IDEAS home Printed from https://ideas.repec.org/a/cup/jbcoan/v6y2015i03p628-653_00.html
   My bibliography  Save this article

Using Benefit-Cost Analysis to Scale Up Early Childhood Programs through Pay-for-Success Financing

Author

Listed:
  • Temple, Judy A.
  • Reynolds, Arthur J.

Abstract

Increasing access to effective preschool programs is a high priority at local, state, and federal levels. Recently, two initiatives to expand preschool programming in Illinois and Utah have used funds from private investors to scale up existing programs. Private-sector social impact investors provide funding to nonprofit or public preschool providers to increase the number of children served. If the measured outcomes from preschool participation meet predetermined goals, then the estimated government cost savings arising from these preschool interventions are used to repay the investors. Social impact investing with a “Pay-for-Success†contract can help budget-constrained governments expand proven or promising preventive interventions without the need to increase taxes. Benefit-cost analysis (BCA) plays a crucial role in helping to identify which social, educational, or health interventions are suitable for this type of innovative financing. Benefit-cost analysts are needed to design the structure of the success payments that the government will make to the private investors. This paper describes social impact borrowing as a new method for financing public services, outlines the contribution of BCA, and discusses the innovative use of social impact financing to promote scaling evidence-based Child-Parent Centers and other early childhood programs.

Suggested Citation

  • Temple, Judy A. & Reynolds, Arthur J., 2015. "Using Benefit-Cost Analysis to Scale Up Early Childhood Programs through Pay-for-Success Financing," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 6(3), pages 628-653, October.
    • Handle: RePEc:cup:jbcoan:v:6:y:2015:i:03:p:628-653_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S2194588815000548/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eleonora Broccardo & Maria Mazzuca & Maria Laura Frigotto, 2020. "Social impact bonds: The evolution of research and a review of the academic literature," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1316-1332, May.
    2. Abdellah Kabli & Alessandro Rizzello & Annarita Trotta, 2021. "Roadmapping New Impact Bonds in a Post-COVID World: Insights from Case Studies in the Education Sector," Sustainability, MDPI, vol. 13(8), pages 1-16, April.
    3. Richardson, Brandt A. & Reynolds, Arthur J. & Temple, Judy A. & Smerillo, Nicole E., 2017. "School readiness in the Midwest Child-Parent Center Expansion: A propensity score analysis of year 1 impacts," Children and Youth Services Review, Elsevier, vol. 79(C), pages 620-630.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jbcoan:v:6:y:2015:i:03:p:628-653_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/bca .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.