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A Theory of Social Impact Bonds

3 July 2020
Case Study
Publisher : NBER WORKING PAPER SERIES

17092

This working paper develops a theoretical framework for Social Impact Bonds (SIBs), defining their outcomes-based financing structure and the incentives for investors, service providers, and governments. Using descriptive statistics, the authors analyse contract design, risk-sharing, and implications for public goods provision. The paper concludes that SIBs represent a real innovation in public finance, expanding the set of implementable projects, particularly when governments are pessimistic about intervention success or averse to unfruitful project costs.

Author(s) :

Daniel L. Tortorice et al

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Key topics

Innovative Finance/ Blended Finance, Social Justice, Philanthropy and Human Rights

Also found in

Systems Thinking and Complex Problem Design

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