TY - JOUR
T1 - Ex-Ante and Ex-Post Evaluation of Infrastructure Projects From a Perspective of Optimal Contract
AU - Fukumoto, Jun Ya
N1 - Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2002
Y1 - 2002
N2 - In general, the techniques of the policy evaluation are classified into two categories: ex-ante evaluation and ex-post evaluation. The role of the ex-ante evaluation is to remove the inefficiency in the allocation of the scarce budget. On the other hand, the role of the ex-post evaluation is ambiguous and its methodology is not well established. However, it is also true that the ex-post evaluation is strongly requested for the efficient public investment. Therefore, this paper aims to answer the following questions: “What is the role of the ex-post evaluation and which kind of methodology is needed?” Based on the contract theory, we analyzed for the mechanism which induces the undistorted implementation of the ex-ante evaluation. Further, we examined the role of the ex-post evaluation interpreting the results of the model analysis. From the results, we concluded that i) the role of the ex-post evaluation is to give the incentive for the undistorted implementation of the ex-ante evaluation to the analyst who implements the ex-ante evaluation, and ii) the methodology of the ex-post evaluation is one of the following two: to measure the realized social net benefit or to confirm the probability of the realized social state in the ex-ante forecast.
AB - In general, the techniques of the policy evaluation are classified into two categories: ex-ante evaluation and ex-post evaluation. The role of the ex-ante evaluation is to remove the inefficiency in the allocation of the scarce budget. On the other hand, the role of the ex-post evaluation is ambiguous and its methodology is not well established. However, it is also true that the ex-post evaluation is strongly requested for the efficient public investment. Therefore, this paper aims to answer the following questions: “What is the role of the ex-post evaluation and which kind of methodology is needed?” Based on the contract theory, we analyzed for the mechanism which induces the undistorted implementation of the ex-ante evaluation. Further, we examined the role of the ex-post evaluation interpreting the results of the model analysis. From the results, we concluded that i) the role of the ex-post evaluation is to give the incentive for the undistorted implementation of the ex-ante evaluation to the analyst who implements the ex-ante evaluation, and ii) the methodology of the ex-post evaluation is one of the following two: to measure the realized social net benefit or to confirm the probability of the realized social state in the ex-ante forecast.
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U2 - 10.2457/srs.33.3_103
DO - 10.2457/srs.33.3_103
M3 - Article
AN - SCOPUS:85024448608
VL - 33
SP - 103
EP - 121
JO - Studies in Regional Science
JF - Studies in Regional Science
SN - 0287-6256
IS - 3
ER -