Differences In Institutional Arrangements Research Articles

Orchestrating the Performance of Equity Crowdfunding Platforms

We model the behavior and performance of equity crowdfunding platforms in providing finance to entrepreneurs. We characterize the equity crowdfunding process in terms of a relationship between the number of investors and the amount of money raised. This framing permits analysis of sources of heterogeneity by considering variation in the average amount supplied by investors in each pitch, for example due to diversity in the architecture of platforms or differences in institutional arrangements and policies between countries. We use a proprietary dataset collected from the most prominent platforms in Germany, USA and UK, 2011-2019. We find that the underlying equilibrium relationship between the number of investors and the amount of money raised for entrepreneurs is loglinear, with a coefficient less than one. Hence, the underlying relationship is concave to the origin. This finding has important policy implications. We go on to identify significant variation in the average amount invested by platform and across countries, pointing to the impact of institutional and organizational specificities. These variations affect both the intercept and the slope of the curve.

Child Support Policy across High-Income Countries: Similar Problems, Different Approaches

We provide an overview of child support policy in high-income countries, highlighting differences in institutional arrangements, the amount of child support due, and the amount of child support received. We show that the United States expects high levels of child support from nonresident parents when compared to other countries, that noncompliance is a problem across countries, and that most European countries deal with nonpayment of child support by providing guarantees of public support for children and resident parents. The guarantee schemes vary in terms of eligibility and generosity. Throughout, we find that child support policy approaches differ across countries. A key policy implication from this review is that the United States may be expecting too much child support from nonresident parents and that it could consider guaranteeing a modest amount of public support to single-parent households.

Polycentricity and adaptive governance of transboundary marine socio-ecological systems

Transboundary marine socio-ecological systems (SESs) are complex and dynamic systems. Enhancing the sustainability of such systems requires adaptive governance supported by polycentric structures. However, adaptive governance of marine SESs across national boundaries can be challenging, as significant differences in institutional arrangements for resource management and adaptive governance capabilities may exist. The limitations of various institutional arrangements and the challenges of adaptive governance across borders are still poorly understood. We offer a comparative study of two marine co-management systems, in southern Kenya and northern Tanzania, which are bound by different legislative environments to elucidate how institutions might limit or enable adaptive governance at the local and transboundary scale. The legislative environment is characterized based on a review of the literature. The structural properties of the co-management systems are examined for evidence of polycentricity using social network analysis. Across the different co-management contexts, we discover similar and distinct institutional opportunities and challenges for adaptive governance. Both co-management regimes foster the participation of diverse actors and multiple interactions. However, both show strong sectoral tendencies and high centrality of government, which can hinder adaptive governance. There are more autonomous decision units in Tanzania's co-management network, hence a more robust social context for polycentricism compared to Kenya. A shift towards enhanced polycentricity to foster adaptive governance of the Kenya-Tanzania transboundary marine SES will require policy frameworks that enhance cross-sectoral integration and create opportunities for multi-stakeholder bridging.

Is the farmer field school still relevant? Case studies from Malawi and Indonesia

The capacity of farmers to adapt to changing environments is critical for sustainable, economically viable and resilient rural development. The Farmer Field School (FFS) was developed by FAO in the late 1980s to build farmers’ knowledge and skills for adaptive management. The FFS was subsequently implemented in over 90 countries by a multitude of stakeholders. We conducted case studies in Malawi and Indonesia to answer contemporary questions about the FFS, regarding its relevance at field level, its position in the institutional environment, and its contribution to rural development. We show that the FFS remains relevant at field level, helping farmers to adapt their agricultural practices and livelihood situation to changing circumstances. Differences in institutional arrangements between the two countries highlight the importance of a coordinated support for the FFS. Long-term impacts were found at farmer and institutional level. This study provides insight into the FFS, regarding the causal factors of change, institutional factors, and the role in continued development. As an approach that empowers rural people, the FFS thus contributes to achieving the Sustainable Development Goals.

Reimagining organisational conflicts through the metaphor of music

ABSTRACTIn this theoretical article, the vital role of conflicts in knowledge creation is foregrounded, and the concept of conflict is reimagined using a metaphor of music. Theoretically, knowledge creation is understood as a process in which people, through institutionalisation, synthesise their conflicting institutional arrangements affecting their decisions, actions, and behaviour. Utilising metaphor as a methodological choice, and combining music and organisational conflicts in an analytical framework offer ways to cross and move the boundaries between arts and science of organisational studies. As a result, conflicts are reimagined and reconceptualised as relational, felt meaning and lived experiences of differences in institutional arrangements. This reimagined concept shifts the focus of organisational conflicts from ‘thingification” to human aspects underlying the sense-making of conflict experiences: the evolving story, identity, emotions and power relations.

Assessing and explaining policy coherence: A comparative study of water governance and large carnivore governance in Sweden

AbstractThis paper explores the relationship between different types of multilevel governance systems and policy coherence (i.e., uniformity of goals and rules) through a study of the governance systems for water and large carnivores in Sweden. The study objects represent multilevel governance systems for contested natural resources in the same national context, although in different policy areas and with substantial differences in institutional arrangements. We define the characteristics of each governance system through an institutional analysis of official records and compare their perceived ability to promote coherence through a statistical analysis of survey data. Our empirical results both support and problematize common ideas about how different institutional features relate to policy coherence in multilevel governance. The results clearly indicate that multilevel governance systems are challenged by conflicting goals and rules, both within and across governance systems, and that the capacity to address these difficulties is generally perceived as wanting in both types of systems. The results tentatively suggest that clashes with other governance systems are more prominent in polycentric and ecologically based systems, whereas internal goal and rule conflicts are more prevalent in centralized and more traditionally organized systems. The findings contribute to our understanding of the quandaries associated with the design of new governance systems. The study also contributes important insights into what features to focus on in attempts to mitigate the downsides of different institutional arrangements in multilevel governance systems.

Using institutional grammar to improve understanding of the form and function of payment for ecosystem services programs

Payments for ecosystem services (PES) schemes are governed by complex institutional arrangements. Specific rules are needed to control who can participate in buying and selling of services, under what circumstances participation is allowed, how transactions are regulated, and many other actions. Decisions made by the developers of PES schemes about what rules to include and what form these rules take are likely to have an impact on the eventual success or failure of the scheme. This paper applies the Institutional Analysis and Develop Framework’s rules typology and Institutional Grammar Tool to develop a new method of classifying and summarizing institutional arrangements of PES schemes. We use 21 water quality trading schemes and develop the institutional rules classification and summary system. The classification system enables comparative assessment of institutional diversity across PES schemes. We demonstrate the utility of the classification system for this purpose by showing that there is significant institutional diversity among water quality trading schemes, despite their common environmental objectives and market-based approaches to addressing environmental challenges. We conclude with suggestions for applying the classification system to comparative research to understand the effectiveness of PES schemes generally and how differences in institutional arrangements may contribute to success or failure.

Tax Prices in a Democratic Polity: The Continuing Relevance of Antonio de Viti de Marco

While Antonio de Viti de Marco was a significant figure within the Italian school of public finance that flourished between 1880 and 1940, his theoretical framework also has relevance today. Contemporary theory largely adopts a sequential framework where states act to modify previously established market outcomes. In contrast, de Viti worked with a framework where political and market outcomes were established simultaneously because he regarded the state as an essential productive factor within society. At the same time, however, de Viti did not treat state activity as a particular form of market activity. While he extended the logic of market exchange to state activity, he recognized the need to theorize in light of significant differences in institutional arrangements between markets and states. Collective action was guided by tax prices and not market prices. De Viti’s formulation of tax prices demonstrates in turn the important place of constitutional arrangements in his theory of public finance.

Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity

This study introduces a novel multidimensional measure of the entrepreneurial environment that reveals how differences in institutional arrangements influence both the rate and the type of entrepreneurial activity in a country. Drawing from institutional theory, the measure examines the regulatory, normative, and cognitive dimensions of entrepreneurial activity, and introduces a novel conducive dimension that measures a country's capability to support high-impact entrepreneurship. Our findings suggest that differences in institutional arrangements are associated with variance in both the rate and type of entrepreneurial activity across countries. For the formation of innovative, high-growth new ventures, the regulative environment matters very little. For high-impact entrepreneurship an institutional environment filled with new opportunities created by knowledge spillovers and the capital necessary for high-impact entrepreneurship matter most.

Soil Conservation in Transition Countries: the Role of Institutions

Degradation of agricultural soils is a serious concern in transition countries in the EU. We investigate similarities and differences between the soil conservation policy frameworks of Bulgaria, the Czech Republic and East Germany and their implementation. Our focus is on the differences in institutional arrangements, i.e. formally existing policies, property rights, informal institutions (rules), and governance structures to implement these rules. We conducted comparative case studies based on a framework of institutional analysis, using literature survey, document analysis, and in-depth stakeholder interviews. Results show that among the determining factors for policy effectiveness are property rights regimes and land use rights, traditions in the provision of advisory services, farmers’ previous experience with soil conservation practices and policies, perceived threat of enforcement, and trust in administrative authorities. We conclude that the existence of similar legislation and a common policy framework does not guarantee similar outcomes because institutional arrangements and their evolution play a major role in the effectiveness of agricultural soil conservation policies.

The impact of fiscal decentralization on economics performance in high-income OECD nations: an institutional approach

This paper examines the impact of public sector decentralization on per capita income. Controlling for differences in institutional arrangements among countries, panel data regressions on a sample of observations from 20 high-income OECD nations spanning the years 1972 to 2005 indicate that decentralization is positively related to income. The empirical analysis shows that institutions consistent with economic freedom enhance the positive income effects of decentralization. Thus, the impact of public sector decentralization is dependent upon a nation’s institutional environment.

Involvement of Ministries of Health in Health Service Coverage Decisions: Is England an Aberrant Case?

This article examines the involvement of ministries of health in making health service coverage decisions in Denmark, England, France and Germany. The study aims to inform debate in England about the feasibility of reducing perceived ministerial and bureaucratic ‘interference’ in decisions affecting the National Health Service, based on interviews with senior government officials and other health system stakeholders. Ministries of health differ in their involvement in health system governance and coverage decisions (‘the benefits package’), reflecting differences in institutional arrangements. In all four countries, organizations at arm's length or independent from government are either involved in providing technical advice to the ministry of health or have been mandated to take these decisions themselves. However, ministries of health occasionally intervene in the decision-making process or ignore the advice of these organizations. The Department of Health in England is not an aberrant case, at least in relation to coverage decisions. Indeed, ministries of health in Denmark and France play a larger role in making these decisions. Public pressure, often amplified by the media, is a shared reason for ministerial and ministry involvement in all four countries. This dynamic may thus limit the feasibility of attempts to further separate the NHS from both the Department of Health and wider political pressures.

Tax Prices in a Democratic Polity: The Contemporary Relevance of Antonio De Viti de Marco

While Antonio De Viti de Marco was a significant figure within the Italian School of Public Finance that flourished between 1880 and 1940, his theory of public finance also has great significance for contemporary theorizing. Where contemporary theory largely treats states as acting to modify previously established market equilibria, De Viti theorized that societal equilibrium was established simultaneously in states and markets. De Viti treated the state as a essential productive factor within society, rendering it fictional to conceptualize an economic equilibrium independent of state activity. In contrast to much contemporary literature, De Viti did not treat the state as just a particular instance of market equilibrium. While he extended the logic of market exchange to state activity, he recognized the need to theorize in light of significant differences in institutional arrangements between markets and states. Collective action was guided by tax prices and not market prices. De Viti’s formulation of tax prices demonstrates in turn the important place of constitutional arrangements in his theory of public finance.

SIMILAR PROBLEMS, DIFFERENT SOLUTIONS: COMPARING REFUSE COLLECTION IN THE NETHERLANDS AND SPAIN

Because of differences in institutional arrangements, public service markets, and national traditions regarding government intervention, local public service provision can vary greatly. In this paper we compare the procedures adopted by the local governments of The Netherlands and Spain in arranging for the provision of solid waste collection. We find that Spain faces a problem of consolidation, opting more frequently to implement policies of privatization and cooperation, at the expense of competition. By contrast, The Netherlands, which has larger municipalities on average, resorts somewhat less to privatization and cooperation, and more to competition. Both options-cooperation and competition-have their merits when striving to strike a balance between transaction costs and scale economies. The choices made in organizational reform seem to be related to several factors, among which the nature of the political system and the size of municipalities appear to be relevant.

Exploring Country-Level Institutional Arrangements on the Rate and Type of Entrepreneurial Activity

This study introduces a novel multidimensional measure of the entrepreneurial environment that reveals how differences in institutional arrangements influence both the rate and the type of entrepreneurial activity in a country. Drawing from institutional theory, the measure examines the regulatory, normative, and cognitive dimensions of entrepreneurial activity, and introduces a novel conducive dimension that measures a country’s capability to support high-impact entrepreneurship. Our findings suggest that differences in institutional arrangements are associated with variance in both the rate and type of entrepreneurial activity across countries. For the formation of innovative, high-growth new ventures, the regulative environment matters very little. For high-impact entrepreneurship an institutional environment filled with new opportunities created by knowledge spillovers and the capital necessary for high-impact entrepreneurship matter most.

Backing, the Quantity Theory, and the Transition to the US Dollar, 1723–1850

Among the thirteen original colonies, Pennsylvania was most successful at issuing paper money with only minimal effects on prices -- so much so that the colony's experience is sometimes seen as violating the classical quantity theory of money. Quantity theorists usually attribute this apparent anomaly to mismeasurement of the money stock. In contrast, I use data on money, prices, and real activity in Pennsylvania from 1723 to 1774 and for the United States as a whole from 1790 to 1850 (when the money stock is better measured) to show that the long-run behavior of money and prices is well explained by the quantity theory in both periods, despite the differences in institutional arrangements, once growth in monetized transactions is taken into account.

Corporate Governance and Institutional Transparency in Emerging Markets

This paper posits that differences in corporate governance structure partly result from differences in institutional arrangements linked to business systems. We developed a new international triad of business systems: the Anglo-American, the Communitarian and the Emerging system, building on the frameworks of Choi et al. (British Academy of Management (Kynoch Birmingham) 1996,Management International Review 39, 257-279, 1999). A common factor determining the success of a corporate governance structure is the extent to which it is transparent to market forces. Such transparency is more than pure financial transparency; as it can also be based on factors such as governmental, banking and other types of institutional transparency mechanism. There may also be a choice for firms to adopt voluntary corporate disclosure in situations where mandatory disclosure is not established. The Asian financial crisis of 1997-1999 and the more recent corporate governance scandals such as Enron, Andersen and Worldcom in the United States and Ahold and Parmalat in Europe show that corporate governance and business ethics issues exist throughout the world. As an illustration we focus on Asia’s emerging1 markets, as, both in view of the pressure of globalization and taking into account the institutional arrangements peculiar to the emerging business system, these issues are important there. Particularly for those who have to find an accommodation between the corporate governance structures and disclosure standards of the Emerging system and those of the Anglo-American and Communitarian systems.

Institutional arrangements and the quality of publicly provided goods: A tentative note

There are considerable differences in the quality of publicly provided goods. A simple model is presented to explain these observations by differences in institutional arrangements without having to rely on eventual differences in the relative preferences of bureaucrats and politicians.