Accountability in the Generation of Governance Indicators

Abstract

This chapter discusses the market mechanisms of regulation, specifically the extent to which indicator producers provide reasons, participation opportunities, review mechanisms, and transparency in their activities. It then assumes two means by which the levels of these kinds of accountability in indicator generation are resolved where some type of market for the indicators exists, namely the Demand Hypothesis and the Supply Hypothesis. Finally, this chapter tests these two hypotheses and looks at how they explain observed levels of accountability in the creation of three specific indicators.