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INSTITUTIONAL CHANGE AND ECONOMIC GROWTH: THE EVOLUTION OF WATER RIGHTS IN VICTORIA, AUSTRALIA 1850–1886
Author(s) -
HARRIS EDWYNA
Publication year - 2007
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2007.tb01011.x
Subject(s) - inheritance (genetic algorithm) , institutional change , colonialism , economic efficiency , economic system , economics , political science , development economics , market economy , biology , public administration , law , biochemistry , gene
This paper provides a preliminary exploration of the role of adaptive efficiency and institutional learning as the basis for long‐run economic growth in Australia by means of an analysis of the institutional changes in water rights between 1850 and 1886 in the colony of Victoria. It is argued that the effects of adaptive efficiency and institutional learning led to the replacement of growth‐hindering institutional arrangements in water supply in favour of growth‐enhancing frameworks that provided the basis for better economic performance over the long‐run. The analysis presents evidence that suggests that in addition to the colonial experience, adaptive efficiency embedded in the inheritance of British culture rather than institutions has played an important role in Australia's economic performance.