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Triangulation Framework for Local Service Delivery - Philippine ...

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Table 6. Different Levels of Hierarchy<br />

Level Examples Frequency of<br />

Change<br />

Institutions related to Mainly in<strong>for</strong>mal Very long horizon (10<br />

the social structure of institutions such as 2 nd power and 10 3 rd<br />

the society (level 1) traditions, social power) but may<br />

norms, customs change also in times<br />

Endogenous<br />

of shocks/crisis<br />

Institutions related to<br />

rules of the game<br />

(level 2)<br />

Institutions related to<br />

the play of the game<br />

(level 3)<br />

Institutions related to<br />

allocation<br />

mechanisms<br />

(level 4)<br />

Mainly <strong>for</strong>mal rules<br />

defining property<br />

rights and judiciary<br />

system<br />

Exogenous or<br />

endogenous<br />

Rules defining the<br />

governance private<br />

structure of a country<br />

and contractual<br />

relationships, e.g.<br />

business contracts,<br />

ordering<br />

Endogenous<br />

Rules related to<br />

resource allocation,<br />

e.g. capital flow<br />

controls; trade flow<br />

regimes, social<br />

security systems<br />

Endogenous<br />

Source: J.Jutting, based on Williamson (2000).<br />

Long horizon (10 to<br />

100 years)<br />

Mid-term horizon<br />

(1 to 10 years)<br />

Short-term horizon<br />

and continuous<br />

Effect<br />

Defines a way a<br />

society conducts itself<br />

Defines the overall<br />

institutional<br />

environment)<br />

Leads the building of<br />

organizations<br />

Adjustment to prices<br />

and outputs, incentive<br />

alignments<br />

Institutions are also classified according to areas of analysis. Jutting’s classification is divided into four:<br />

(1) economic institutions, (2) political institutions, (3), legal institutions, and (4) social institutions.<br />

“Under economic institutions, authors usually place rules that define the production, allocation and<br />

distribution process of goods and services, including markets (Bowles, 1998). Studies of political<br />

institutions usually employ variables that provide details about elections, election rules, type of political<br />

system, party composition of the opposition and the government, measures of checks and balances and<br />

political stability (Beck et al., 2002). Studies related to law and institutions refer to the type of legal<br />

system, the definition and en<strong>for</strong>cement of property rights and legal origin. Finally, studies on social<br />

institutions usually cover rules that have to do with access to health and education and social security<br />

29

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