Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements? Export

@article{citeulike:1576922, abstract = {This paper concerns the regulation of hazardous economic activities. Economists have generally viewed ex ante regulations (safety standards, Pigouvian fees) that regulate an activity before an accident occurs as substitutes for ex post policies (exposure to tort liability) for correcting externalities. This paper shows that where there is uncertainty, there are inefficiencies associated with the exclusive use of negligence liability and that ex ante regulation can correct the inefficiencies. In such a case it is efficient to set the safety standard below the level of precaution that would be called for if the standard were used alone.}, author = {Kolstad, Charles D. and Ulen, Thomas S. and Johnson, Gary V.}, citeulike-article-id = {1576922}, citeulike-linkout-0 = {http://www.jstor.org/stable/2006714}, journal = {The American Economic Review}, number = {4}, pages = {888--901}, posted-at = {2007-08-20 14:58:08}, priority = {2}, title = {Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements?}, url = {http://www.jstor.org/stable/2006714}, volume = {80}, year = {1990} }

TY - JOUR ID - citeulike:1576922 L3 - citeulike-article-id:1576922 N2 - This paper concerns the regulation of hazardous economic activities. Economists have generally viewed ex ante regulations (safety standards, Pigouvian fees) that regulate an activity before an accident occurs as substitutes for ex post policies (exposure to tort liability) for correcting externalities. This paper shows that where there is uncertainty, there are inefficiencies associated with the exclusive use of negligence liability and that ex ante regulation can correct the inefficiencies. In such a case it is efficient to set the safety standard below the level of precaution that would be called for if the standard were used alone. IS - 4 JF - The American Economic Review EP - 901 TI - Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements? VL - 80 SP - 888 AU - Kolstad, Charles AU - Ulen, Thomas AU - Johnson, Gary PY - 1990/// UR - http://www.jstor.org/stable/2006714 ER -