What is ex-post efficiency?

Alfred Galichon Following Hylland and Zeckhauser (1979), an assignment is called ex-post efficient if no other deterministic assignment is improving on it; and ex-ante efficient if no lottery over deterministic assignments is.

What is the meaning of ex-ante investment?

Ex-ante investment refers to the desired investment or planned investment during the period of one year. This is the investment expenditure which is intended to be made in the economy during the period of one year.

What is the legal definition of ex-ante?

The term ex-ante (sometimes written ex ante or exante) is a phrase meaning “before the event”. Ex-ante or notional demand refers to the desire for goods and services which is not backed by the ability to pay for those goods and services. This is also termed as ‘wants of people’.

Is Pareto efficiency possible?

Pareto efficiency is when an economy has its resources and goods allocated to the maximum level of efficiency, and no change can be made without making someone worse off. Pure Pareto efficiency exists only in theory, though the economy can move toward Pareto efficiency.

How is ex ante risk calculated?

Ex ante variance calculation: The expected return is subtracted from the return within each state of nature; this difference is then squared. Each squared difference is multiplied by the probability of the state of nature. These weighted squared terms are then summed together.

What ex post means?

Ex-post is another word for actual returns and is Latin for “after the fact.” The use of historical returns has customarily been the most well-known approach to forecast the probability of incurring a loss on investment on any given day. Ex-post is the opposite of ex-ante, which means “before the event.”

What is meant by ex post?

What is the difference between ex-ante investment?

Ex-ante investment refers to amount of investment which firms plan to invest at different levels of income in the economy, whereas, ex-post investment refers to the realised or actual investment in an economy during a year.

What is ex-ante evaluation?

Ex ante evaluation is a broad initial assessment aimed at identifying which alternative will yield the greatest benefit from an intended investment. More commonly, considerable resources are used on detailed planning of a single, specific solution, whereas alternatives are not (or are inadequately) assessed early on.

What is the meaning of the term ex-ante?

What is ‘Ex-Ante’. Ex-ante refers to future events, such as the potential returns of a particular security, or the returns of a company. Transcribed from Latin, it means “before the event.”. Much of the analysis conducted in the markets is ex-ante, focusing on the impacts of long-term cash flows, earnings and revenue.

Which is the opposite of ex ante in economics?

The opposite of ex-ante is ex-post (actual) (or ex post). Buying a lottery ticket loses you money ex ante (in expectation), but if you win, it was the right decision ex post. Examples: In the financial world, the ex-ante return is the expected return of an investment portfolio.

When is ex-ante analysis can be relied on?

For this reason, no ex-ante analysis can be relied upon entirely. Once the event that ex-ante analysis attempted to predict has passed, it’s then possible to compare expectations versus actuals, which is called ex-post. Looking back at predictions ex-post helps to refine them going forward, and sometimes provides additional insights.

Which is an example of an ex-ante quantity?

Ex-ante. Some of these quantities refer directly to a point of time. That is true of “capital value” as also of such quantities as demand and supply prices. Other terms – as e.g. “income”, “revenue”, “return”, “expenses”, “savings”, “investments” – imply, however, a time period for which they are reckoned.

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What is ex-post efficiency? Alfred Galichon Following Hylland and Zeckhauser (1979), an assignment is called ex-post efficient if no other deterministic assignment is improving on it; and ex-ante efficient if no lottery over deterministic assignments is. What is the meaning of ex-ante investment? Ex-ante investment refers to the desired investment or planned investment during the…