Factors affecting the maximum outcome payments of social impact bonds.

ABSTRACT: As governments globally seek market-based solutions to address complex social challenges, Social Impact Bonds (SIBs) have gained prominence in public policy reforms for their potential to align fiscal accountability with social innovation. SIBs are innovative financial tools designed to fund social projects through outcome-based payments, lower government financial pressure, and increase the efficiency with which social problems are solved. In a SIB, the maximum outcome payment refers to the highest amount the outcome payer is willing to provide, and is one of the key factors attracting investor participation. It is typically calculated as the sum of service costs and fiscal savings. However, the current approach often prioritizes reducing government expenditure, without sufficiently accou

SUBMITTER: Wang H 

PROVIDER: S-EPMC12233227 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature