The public management of risk: Separating ex ante and ex post monitors

Yolande Hiriart, David Martimort and Jerome Pouyet

Journal of Public Economics, 2010, vol. 94, issue 11-12, 1008-1019

Abstract: When a firm undertakes risky activities, the conflict between social and private incentives to implement safety care requires public intervention which can take the form of both monetary incentives and also ex ante or ex post monitoring, i.e., before or after an accident occurs. We delineate the optimal scope of monitoring depending on whether public monitors are benevolent or corruptible. We show that separating the ex ante and the ex post monitors increases the likelihood of ex post investigation, helps prevent capture and improves welfare.

Keywords: Risk; regulation; Monitoring; Capture; Integration; and; separation (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Related works:
Working Paper: The Public Management of Risk: Separating Ex Ante and Ex Post Monitors (2010)
Working Paper: The Public Management of Risk: Separating Ex Ante and Ex Post Monitors (2010)
Working Paper: The public management of risk: Separating ex ante and ex post monitors (2010)
Working Paper: The public management of risk: Separating ex ante and ex post monitors (2010)
Working Paper: The public management of risk: Separating ex ante and ex post monitors (2009)
Working Paper: The public management of risk: Separating ex ante and ex post monitors (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:94:y:2010:i:11-12:p:1008-1019

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