The Public Management of Risk: Separating Ex Ante and Ex Post Monitors

Yolande Hiriart, David Martimort and Jerome Pouyet

No 98454, Institutions and Markets Papers from Fondazione Eni Enrico Mattei (FEEM)

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 but 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: Financial; Economics (search for similar items in EconPapers)
Pages: 35
Date: 2010-11
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Citations: View citations in EconPapers (29)

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https://ageconsearch.umn.edu/record/98454/files/NDL2010-144.pdf (application/pdf)

Related works:
Journal Article: 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:ags:feemim:98454

DOI: 10.22004/ag.econ.98454

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