Characterizing the Efficiency and Effectiveness of Regulatory Institutions

Introduction: This study briefly surveys contributions to our understanding of performance-drivers in infrastructure sectors. One task facing analysts and policy-makers involves evaluating the impacts of particular features of regulatory institutions. Here, particular attention is given to methodologies for evaluating regulatory agencies, since regulatory governance is one of the key factors influencing sector outcomes. There is strong evidence that regulatory institutions matter, as studies find positive links. For Example, Gutierrez (2003) shows that better regulatory systems (as characterized in an index) affect cost containment and telecommunications network deployment.