Ownership Structure and Incentives to Invest: Dual-structured Irrigation Cooperatives in Australia
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In the past decade, Australia has begun to privatize its irrigation system. Two general models have emerged: a single and a dual ownership structure. This paper examines the trade-offs, costs and benefits, and the attendant efficiencies regarding costs of ownership. In particular, we examine member capital investment incentives and resultant risk-bearing costs related to capital formation. The paper concludes that the dual ownership structure system has significant economic advantages relative to its single-structured counterpart.
Journal of Institutional Economics, 6(2), 261-280, 2010.