Injecting Incentives into the Solution of Social Problems: Social Policy Bonds
Posted: 2 May 2001
There seems little chance of achieving many social objectives, given that the ways in which they are being pursued fail to harness self-interest. A way forward is to create a new financial instrument-Social Policy Bonds-which would be auctioned by government. The bonds would be tradable and would be redeemed only when a specified social objective had been achieved.
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