Becchetti, Leonardo;
Pisani, Fabio;
Salustri, Francesco;
Semplici, Lorenzo;
(2022)
The frontier of social impact finance in the public sector: Theory and two case studies.
Annals of Public and Cooperative Economics
, 93
(4)
pp. 887-912.
10.1111/apce.12357.
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Abstract
Social impact bonds (SIBs) are a novel and innovative form of public-private partnership financing social services performed by a best-practice selected non-governmental third entity. In our paper we outline a SIB theoretical model identifying government and private investors' participation constraints and we discuss the conflicts of interests that may arise among the different actors involved in presence of asymmetric information. We apply our theoretical model to two investment cases concerning contrast to jail recidivism and health budget project. We show conditions for viability of the SIB scheme in both cases under reasonable parametric conditions, provide sensitivity analysis on crucial parameters, and calculate participants' payoffs under different assumptions.
| Type: | Article |
|---|---|
| Title: | The frontier of social impact finance in the public sector: Theory and two case studies |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1111/apce.12357 |
| Publisher version: | https://doi.org/10.1111/apce.12357 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Jail recidivism, health budget, public policy, social impact bonds, social impact finance |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Population Health Sciences > Institute for Global Health UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10142957 |
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