Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview
Output-based payments are an important tool of government policy. Sometimes governments offer "output-based aid" to subsidize services sold to households. Because output-based payments are tied to the delivery of outputs, they have an obv...
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/07/6421145/estimating-fiscal-risks-costs-output-based-payments-overview http://hdl.handle.net/10986/11041 |
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okr-10986-110412021-04-23T14:02:53Z Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview Boyle, Glenn Irwin, Timothy ANNUITY APPLICATIONS ASSET PRICING COST OF CAPITAL DEBT GROWTH RATE HEALTH CARE INNOVATIONS LIABILITY TELECOMMUNICATIONS TEXT VALUATION Output-based payments are an important tool of government policy. Sometimes governments offer "output-based aid" to subsidize services sold to households. Because output-based payments are tied to the delivery of outputs, they have an obvious advantage over input-based payments. In agreeing to make such payments, however, governments assume a liability not unlike that created by taking on debt. Moreover, in some cases the payment amounts are subject to considerable uncertainty. As a result governments may benefit from estimating both the costs of these commitments, and the new fiscal risks they create-and comparing these costs and risks with those of alternative policies. Output-based payments come in many forms, as do the risks they present. However, measuring the risks and costs of output-based schemes is feasible but also, inevitably, mathematical. Quantifying risk necessarily involves some knowledge, and application of probability and statistics; estimating the cost of uncertain payments that occur at different points in time, requires asset pricing techniques from modern finance theory. Nevertheless, most of the important issues are conceptual, rather than technical. 2012-08-13T13:58:18Z 2012-08-13T13:58:18Z 2005-07 http://documents.worldbank.org/curated/en/2005/07/6421145/estimating-fiscal-risks-costs-output-based-payments-overview OBApproaches notes ; no. 8 (July 2005). http://hdl.handle.net/10986/11041 English OBApproaches; Note. No. 8 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ANNUITY APPLICATIONS ASSET PRICING COST OF CAPITAL DEBT GROWTH RATE HEALTH CARE INNOVATIONS LIABILITY TELECOMMUNICATIONS TEXT VALUATION |
| spellingShingle |
ANNUITY APPLICATIONS ASSET PRICING COST OF CAPITAL DEBT GROWTH RATE HEALTH CARE INNOVATIONS LIABILITY TELECOMMUNICATIONS TEXT VALUATION Boyle, Glenn Irwin, Timothy Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview |
| relation |
OBApproaches; Note. No. 8 |
| description |
Output-based payments are an important
tool of government policy. Sometimes governments offer
"output-based aid" to subsidize services sold to
households. Because output-based payments are tied to the
delivery of outputs, they have an obvious advantage over
input-based payments. In agreeing to make such payments,
however, governments assume a liability not unlike that
created by taking on debt. Moreover, in some cases the
payment amounts are subject to considerable uncertainty. As
a result governments may benefit from estimating both the
costs of these commitments, and the new fiscal risks they
create-and comparing these costs and risks with those of
alternative policies. Output-based payments come in many
forms, as do the risks they present. However, measuring the
risks and costs of output-based schemes is feasible but
also, inevitably, mathematical. Quantifying risk necessarily
involves some knowledge, and application of probability and
statistics; estimating the cost of uncertain payments that
occur at different points in time, requires asset pricing
techniques from modern finance theory. Nevertheless, most of
the important issues are conceptual, rather than technical. |
| format |
Publications & Research :: Brief |
| author |
Boyle, Glenn Irwin, Timothy |
| author_facet |
Boyle, Glenn Irwin, Timothy |
| author_sort |
Boyle, Glenn |
| title |
Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview |
| title_short |
Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview |
| title_full |
Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview |
| title_fullStr |
Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview |
| title_full_unstemmed |
Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview |
| title_sort |
estimating the fiscal risks and costs of output-based payments : an overview |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/07/6421145/estimating-fiscal-risks-costs-output-based-payments-overview http://hdl.handle.net/10986/11041 |
| _version_ |
1764415307971035136 |