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Ex-ante is used most commonly in the commercial world, where results of a particular action, or series of actions, are forecast (or intended). 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. [2]
It has been pointed out by Schmitz (2006) that the property rights approach can be extended to the case of asymmetric information, which may explain ex-post inefficiencies. [16] The property rights approach has also been extended by Chiu (1998) and DeMeza and Lockwood (1998), who allow for different ways to model the renegotiations.
The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate of a future annual rate of return. Applied ex-post, it measures the actual achieved investment return of a historical investment. It is also called the discounted cash flow rate of return (DCFROR) [1] or yield rate. [2]
However, RSD is not ex-ante PE when the agents have Von Neumann-Morgenstern utilities over random allocations, i.e., lotteries over objects (Note that ex-ante envy-freeness is weaker than ex-post envy-freeness, but ex-ante Pareto-efficiency is stronger than ex-post Pareto-efficiency). As an example, suppose there are three agents, three items ...
In the case of contracts stated in terms of the nominal interest rate, the real interest rate is known only at the end of the period of the loan, based on the realized inflation rate; this is called the ex-post real interest rate. Since the introduction of inflation-indexed bonds, ex-ante real interest rates have become observable. [2]
Ex-ante conditionality requires a country to meet certain conditions and prove it can maintain them before it will receive any aid. [2] Traditionally, the IMF lends funds based on ex-post criteria, which might induce moral hazard behavior by the borrowing country. The moral hazard problem appears when a government behaves in a risky manner in ...
ex post facto: from a thing done afterward Commonly said as "after the fact." ex post facto law: A retroactive law. E.g. a law that makes illegal an act that was not illegal when it was done. ex proprio motu: by [one's] own motion Commonly spoken as "by one's own accord." ex rel [arising] out of the narration [of the relator] Abbreviation of ex ...
In this analysis, the nominal rate is the stated rate, and the real interest rate is the interest after the expected losses due to inflation. Since the future inflation rate can only be estimated, the ex ante and ex post (before and after the fact) real interest rates may be different; the premium paid to actual inflation (higher or lower).