Environmental Engineering Reference
In-Depth Information
Table 3.3
Institutional indicators for assessing the CIA 'Information asymmetry state vs. irm'
Information
asymmetry
Methodology
to
identify information
asymmetry: (1)
Identify potential
sources of information
asymmetry related
to the policy under
scrutiny; (2) Evaluate
the impact of this
information asymmetry
on the efficiency of this
policy; (3) Assess the
additional controlling
and monitoring costs
necessary to reduce the
level of information
asymmetry to an
'
acceptable
' level
Qualitative
assessment
by expert
group
High additional
controlling and
monitoring costs
necessary to reach
an '
acceptable
'
level of information
asymmetry indicate a
high constraint
Affinity of
governments
towards
devolution
Degree of affinity of
the government of
a country towards
devolution
Qualitative
assessment
by expert
group
Low degrees indicate
high information
asymmetries since
centralised control
and monitoring is
more costly
Farm density
Average number of farms
per 100 ha
SEAMLESS
Databases
High numbers indicate
higher controlling
and monitoring
costs, thus, likely
higher information
asymmetries
Rule of Law
Composite indicator of
the extent to which
agents have confidence
in and abide by the
rules of society, and in
particular the quality of
contract enforcement,
the police, and the
courts, as well as the
likelihood of crime and
violence
World Bank
Low measures indicate
an ineffective/
inefficient existing
controlling and
monitoring system
causing information
asymmetries
PICA Step Four: Aggregating Information on Crucial
Institutional Aspects of the Policy Option
In this final step of PICA, the expert team that runs PICA with the help of external
scientific experts and stakeholders is using the information provided by the
institutional indicators for a qualitative assessment of the restricted list of CIA.
