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Ex Ante and Ex Post Values for Changes in Risks

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  • A. Myrick Freeman

Abstract

In this paper, I take risk to mean a composite of the probability of an adverse event and the severity of the consequences of the event. I explore two issues in the economic valuation of changes in individual risks brought about by public policies. These are: (1) the relationship between the values of risk prevention (i.e., the lowering of the probabilities of adverse events) and risk reduction (i.e., the reduction of the severity of the consequences of adverse events); and (2) the relationship between ex ante and ex post measures of the value of changes in risk.

Suggested Citation

  • A. Myrick Freeman, 1989. "Ex Ante and Ex Post Values for Changes in Risks," Risk Analysis, John Wiley & Sons, vol. 9(3), pages 309-317, September.
    • Handle: RePEc:wly:riskan:v:9:y:1989:i:3:p:309-317
    DOI: 10.1111/j.1539-6924.1989.tb00996.x
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    References listed on IDEAS

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