“Social finance as a public policy instrument”

by Dora Gambardella, Mariacristina Rossi, Riccardo Salomone; CeRP WP 178/18

We address the high social impact household savings could generate if channeled (at least, partially) into social impact investments in a win-win formula for both households and society as a whole. More specifically, we focus on two financial products which both have a monetary return along with a well-defined social impact: Social Bonds (SB) and Social Impact Bonds (SIB). While social bonds reduce the net return in favor of setting up a social program, social impact bonds are a breakthrough concept that combines traditional investment, be it risky or risk-free, with a social connotation in a unique public/private partnership.

Published: February 2018