Payment by Results and Social Impact Bonds

2018 ◽  
Author(s):  
Kevin Albertson ◽  
Chris Fox ◽  
Chris O'Leary ◽  
Gary Painter
Keyword(s):  
Capital Investment ◽  
Social Impact ◽  
Social Outcomes ◽  
For Profit ◽  
The Us ◽  
Social Impact Bonds ◽  
Social Goods ◽  
Outcomes Based Funding ◽  
Corporate Profits ◽  
The Impact

Over recent years there has been increasing interest in ‘Payment by Results’ (PbR) — Pay for Success (PFS) or outcomes-based funding in the US — as a model for outcomes-based commissioning in the public sector. Social Impact Bonds (SIBs) — Pay for Success financing in the US — are a class of PbR where the finance needed to make the contract work is provided by private finance, rather than the service provider. This short book asks whether and under what circumstances PbR/PFS and SIBs/PSBs are an efficient way to unlock new capital investment and advance social goods. It considers whether PbR/PFS and SIBs/Pay for Success financing drive efficiency and innovation in the delivery of social outcomes, and whether attempts to reconcile corporate profits and social goods may lead to perverse incentives and inefficiency. It also analyses the impact of PbR and SIBs on not-for-profit and smaller players in the market for social outcomes.

Introduction: outcome-based payment and the reform of public services

2018 ◽  
Author(s):  
Kevin Albertson ◽  
Chris Fox ◽  
Chris O’leary ◽  
Gary Painter ◽  
Kimberly Bailey ◽  
...  
Keyword(s):  
Social Impact ◽  
Social Outcomes ◽  
Reform Agenda ◽  
The Public ◽  
For Profit ◽  
Social Impact Bonds ◽  
Perverse Incentives ◽  
The Uk ◽  
Outcomes Based Funding ◽  
Corporate Profits

This book examines outcomes-based commissioning as an important element of the public service reform agenda, focusing on Payment by Results (PbR) and Social Impact Bonds (SIBs) in the UK (also known as Pay for Success (PFS) or outcomes-based funding and Pay for Success financing in the US, respectively). It considers whether PbR/PFS and SIBs/Pay for Success financing drive efficiency and innovation in the delivery of social outcomes, and whether attempts to reconcile corporate profits and social goods may lead to perverse incentives and inefficiency. It also analyses the impact of PbR and SIBs on not-for-profit and smaller players in the market for social outcomes. This introduction provides an overview of outcomes-based commissioning, the distinction between PbR/PFS and SIBs/Pay for Success financing, some key questions raised by outcomes-based commissioning, and the chapters that follow.

scholarly journals The Impact of the US Financial Crisis on How Students Pay for College

2015 ◽  
Author(s):  
Arthur M. Hauptman
Keyword(s):  
The United States ◽  
Public Institutions ◽  
Federal Financial Aid ◽  
For Profit ◽  
American Students ◽  
The Us ◽  
Home Values ◽  
The Impact ◽  
Private Loan ◽  
Us Financial Crisis

The 2008 failure of major financial institutions in the United States may have dramatic ramifications on American students and whether/where they attend college. Several sources of funding may be at risk, including potential decreases in federal financial aid, the tightening of private loan availability, lowered home values impinging on equity-based lending, and stock market losses in college-fund savings. Public institutions, whose tuition is much lower than private or for-profit institutions, may see an increase in enrollment.

scholarly journals Does a Payment-for-Outcomes Model Improve Indigenous Wellbeing? Commissioning Agencies and Social Impact Bonds in New Zealand

2020 ◽  
Vol 11 (4) ◽  
pp. 1-26
Author(s):  
Louise Humpage
Keyword(s):  
New Zealand ◽  
Indigenous Peoples ◽  
Social Impact ◽  
Policy Innovation ◽  
Social Outcomes ◽  
Nation States ◽  
Improved Outcomes ◽  
Social Impact Bonds ◽  
Funding Mechanisms ◽  
The Government

Commissioning agencies and social impact bonds are two examples of New Zealand’s shift towards payment-for-outcomes funding mechanisms over the last decade, as the government attempted to improve both policy innovation and social outcomes. This article highlights that although the commissioning agencies have been more successful than social impact bonds, neither has completely achieved these goals of innovation and improved outcomes. This is particularly concerning given Indigenous Māori are disproportionately impacted by both policies. Discussion concludes by highlighting some of the problems associated with applying a payment-for-outcomes model to Indigenous Peoples, given these funding mechanisms are becoming increasingly popular in other settler nation states.

Types of CSR Initiatives and Fans’ Social Outcomes: The Case of Professional Sport Organizations

2021 ◽  
Vol 30 (2) ◽  
Author(s):  
Yoseph Mamo ◽  
Kwame Agyemang ◽  
Damon Andrew
Keyword(s):  
Social Impact ◽  
Social Outcomes ◽  
Sport Organizations ◽  
Sports Fans ◽  
Sport Fans ◽  
The Social ◽  
External Stakeholders ◽  
Sustain Ability ◽  
Corporate Social ◽  
The Impact

While the burgeoning research on corporate social responsibility (CSR) indicates the importance of tracking the interest of external stakeholders to obtain societal goals, insight into what types of CSR activities contribute to social outcomes remain scarce. As such, the purpose of this study was to identify the relevant dimensions of CSR that can enhance the social outcomes of one specific group of external stakeholders (i.e., sport fans). Data were collected from US sports fans (n = 312) over the course of two weeks. The present research indicates that fans gain more excitement and happiness as well as increased their social cohesion if sport organization CSR initiatives are concentrating on sport governance, environmental management and sustain-ability, and philanthropy issues. Assessing the impact of CSR from micro-level approach would be one way to strengthen the relationship between existing fans and sport organizations to make positive social impact

scholarly journals Evaluating the impact of stay-at-home orders on the time to reach the peak burden of Covid-19 cases and deaths: does timing matter?

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Alexandra Medline ◽  
Lamar Hayes ◽  
Katia Valdez ◽  
Ami Hayashi ◽  
Farnoosh Vahedi ◽  
...  
Keyword(s):  
Social Impact ◽  
Regression Analyses ◽  
Us States ◽  
Peak Number ◽  
Time To Peak ◽  
The Us ◽  
Prolonged Duration ◽  
Case Rate ◽  
The Impact ◽  
At Home

Abstract Background The economic, psychological, and social impact of pandemics and social distancing measures prompt the urgent need to determine the efficacy of non-pharmaceutical interventions (NPIs), especially those considered most stringent such as stay-at-home and self-isolation mandates. This study focuses specifically on the impact of stay-at-home orders, both nationally and internationally, on the control of COVID-19. Methods We conducted an observational analysis from April to May 2020 and included both countries and US states with known stay-at-home orders. Our primary exposure was the time between the date of the first reported case of COVID-19 to an implemented stay-at-home mandate for each region. Our primary outcomes were the time from the first reported case to the highest number of daily cases and daily deaths. We conducted linear regression analyses, controlling for the case rate of the outbreak in each respective region. Results For countries and US states, a longer period of time between the first reported case and stay-at-home mandates was associated with a longer time to reach both the peak daily case and death counts. The largest effect was among regions classified as the latest 10% to implement a mandate, which in the US, predicted an extra 35.3 days (95% CI: 18.2, 52.5) to the peak number of cases, and 38.3 days (95% CI: 23.6, 53.0) to the peak number of deaths. Conclusions Our study supports the association between the timing of stay-at-home orders and the time to peak case and death counts for both countries and US states. Regions in which mandates were implemented late experienced a prolonged duration to reaching both peak daily case and death counts.

Review of the evidence for outcome-based payment systems

2018 ◽  
Author(s):  
Kevin Albertson ◽  
Chris Fox ◽  
Chris O’leary ◽  
Gary Painter ◽  
Kimberly Bailey ◽  
...  
Keyword(s):  
Performance Management ◽  
Social Impact ◽  
Payment Systems ◽  
Performance Management Systems ◽  
Current State ◽  
Social Impact Bonds ◽  
Us Findings ◽  
The Uk ◽  
The Impact

This chapter reviews the current state of evidence on what works in outcomes-based commissioning using published evaluations of Payment by Results (PbR) and Social Impact Bonds (SIBs) in the UK and SIBs in the US. Findings from these evaluations are arranged under the following broad headings: designing and commissioning, development of markets, performance management, innovation, the role of incentives, and overall outcomes. The evaluations address issues such as the complexity of PbR commissioning models compared to other commissioning exercises, the impact of PbR on the market for social goods, and the development of new or enhanced performance management systems as a result of outcomes-based commissioning. Two areas of innovation are also highlighted: innovation in service design and delivery, and innovation in financing.

scholarly journals The promise and realities of Pay for Success/ Social Impact Bonds

2017 ◽  
Vol 25 ◽  
pp. 59 ◽  
Author(s):  
Kenneth J. Saltman
Keyword(s):  
Social Impact ◽  
Cost Savings ◽  
Early Experiment ◽  
Investment Banks ◽  
Public Schooling ◽  
Consulting Firms ◽  
The Us ◽  
Social Impact Bonds ◽  
Every Student Succeeds Act ◽  
Economic Considerations

This article considers proponents’ arguments for Pay for Success also known as Social Impact Bonds. Pay for Success allows banks to finance public services with potential profits tied to metrics. Pay for Success has received federal support through the Every Student Succeeds Act of 2016 and is predicted by 2020 to expand in the US to a trillion dollars. As school districts, cities, and states face debt and budget crises, Pay for Success has been advocated by philanthropists, corporate consulting firms, politicians, and investment banks on the grounds of improving accountability, cost savings, risk transfer, and market discipline. With its trailblazing history in neoliberal education, Chicago did an early experiment in Pay for Success. This article provides a conceptual analysis of the key underlying assumptions and ideologies of Pay for Success. It examines the claims of proponents and critics and sheds light on the financial and ideological motivations animating Pay for Success. The article contends that Pay for Success primarily financially benefits banks without providing the benefits that proponents promise. It concludes by considering Pay for Success in relation to broader structural economic considerations and the recent uses of public schooling to produce short-term profit for capitalists. 

Assessing venture capital industry growth in Korea

2018 ◽  
Vol 44 (1) ◽  
pp. 74-85 ◽  
Author(s):  
Hae Jin Chung ◽  
Moon Young Kang
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Bass Model ◽  
Industry Growth ◽  
Content Type ◽  
Government Interventions ◽  
Venture Capital Investment ◽  
The Us ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to investigate how the venture capital industry evolves in Korea. The paper also compares the venture capital industry growth of Korea with that of the USA. Design/methodology/approach This paper forecasts the growth of the Korean venture capital industry using the Bass Model. The authors apply the Bass Model to both Korean and US data to compare the model estimates of Korean and US data, and to make use of the US case by taking the “guess by similarity” approach to analyze Korean venture capital industry growth. Findings The authors find that the innovative fund inflows in Korea are stronger than those in the USA, while inertial reinvestments are weak. The study forecasts that new investments in Korea grow at a 5-7 percent rate each year for the next five years, and the growth rate slows down over time. Peak investment is predicted around the year 2030. Practical implications Based on the forecasted venture capital investment schedule each year, this study derives the fundraising schedule and the implications for Korea fund-of-funds management to match the investment schedule. Originality/value The model estimates provide a guideline for forecasting venture capital industry development in countries with brief histories of venture capital, which lack data. The analysis can also be applied to cases when developing countries and emerging financial markets assess the impact of government interventions on venture capital industry growth, especially when they provide fund-of-funds.

scholarly journals Interdependence of Renewable and Conventional Fossil Power Generation

2011 ◽  
Author(s):  
John L. Arnold ◽  
Laney H. Bisbee ◽  
Jim Pratt
Keyword(s):  
Power Generation ◽  
Capital Investment ◽  
Power Plants ◽  
Fossil Fuel ◽  
Renewable Generation ◽  
Critical Systems ◽  
Fossil Plants ◽  
The Us ◽  
Plant Emissions ◽  
The Impact

The current economic climate and energy policies are forcing significant change on the bulk of the US power generation fleet. Specifically, the rapid increase in renewable power generation and in environmental requirements will have a direct impact on the conventional fossil-fuel fired power plants. The likely outcome will be the shuttering of smaller coal generating units, older boilers, and units where environmental-related capital investment is not economically viable. Many of the surviving plants will face the addition of environmental-related equipment and a change in operation from base-loaded to more cyclical duty. While some coal plants will continue to operate as base-load generation due to the specific energy market served, it is forecast that much of the US coal fleet will in some way be required to balance the intermittent and variable production characteristics of renewable generation when those sources (wind, solar, hydro) are not available. As the renewable portfolio standards are currently estimated to range from 15–33% (1) of a utilities annual generation, this balancing role is critical to match the electricity demands of the US market. The resultant increase in cycling of the existing fossil fleet that will occur when this balancing occurs is expected to have extremely deleterious effects on the fleet of aging plants. Specifically, the impact will be felt in the areas of serviceability of the critical systems, emissions of fossil plants, and operational efficiencies. This paper is intended to identify some of the major issues that are expected to occur to the existing conventional fossil-fuel fleet as the renewable generation increases. These issues include the degradation in serviceability and reliability in light of increased cyclic operation, reductions in plant thermal efficiency, and impact on plant emissions.

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