Explaining the determinants of contractual inefficiencies: the case of water provision in Saltillo, Mexico.

by Soto-Vázquez, Abdelali

Abstract (Summary)

Public-private partnerships to provide services are a relatively new policy initiative in Mexico, and have shown contrasting results. This research has endeavored to analyze the possible determinants behind the failure, or the success, of the choice of a specific mode of service provision. By using contracting literature based on transaction costs, and looking specifically at the case of AGSAL, a joint venture established between Saltillo, a northern Mexican city, and INTERAGBAR, a private investor, for the provision of water, this study showed that characteristics of the transaction at stake. More specifically, it showed that specificity of the investments that support a given transaction, the unanticipated changes in circumstances surrounding an exchange, either from physical assets or its ownership rights, and the frequency and duration with which parties engage in the transaction.

Bibliographical Information:


School:University of the Western Cape/Universiteit van Wes-Kaapland

School Location:South Africa

Source Type:Master's Thesis

Keywords:drinking water mexico supply government policy privatization privatisation public private sector cooperation


Date of Publication:01/01/2006

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