Publication:
Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview

dc.contributor.author Boyle, Glenn
dc.contributor.author Irwin, Timothy
dc.date.accessioned 2012-08-13T13:58:18Z
dc.date.available 2012-08-13T13:58:18Z
dc.date.issued 2005-07
dc.description.abstract 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. en
dc.identifier http://documents.worldbank.org/curated/en/2005/07/6421145/estimating-fiscal-risks-costs-output-based-payments-overview
dc.identifier.citation OBApproaches notes ; no. 8 (July 2005).
dc.identifier.uri http://hdl.handle.net/10986/11041
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries OBApproaches; Note. No. 8
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ANNUITY
dc.subject APPLICATIONS
dc.subject ASSET PRICING
dc.subject COST OF CAPITAL
dc.subject DEBT
dc.subject GROWTH RATE
dc.subject HEALTH CARE
dc.subject INNOVATIONS
dc.subject LIABILITY
dc.subject TELECOMMUNICATIONS
dc.subject TEXT
dc.subject VALUATION
dc.title Estimating the Fiscal Risks and Costs of Output-Based Payments : An Overview en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs
okr.doctype Publications & Research :: Brief
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2005/07/6421145/estimating-fiscal-risks-costs-output-based-payments-overview
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Education
okr.globalpractice Finance and Markets
okr.globalpractice Trade and Competitiveness
okr.identifier.externaldocumentum 000012009_20051117135947
okr.identifier.internaldocumentum 6421145
okr.identifier.report 34304
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/11/17/000012009_20051117135947/Rendered/PDF/343040rev0MeasuringRisk0OBApproaches08.pdf en
okr.topic Technology Industry
okr.topic Insurance and Risk Mitigation
okr.topic Education :: Education for the Knowledge Economy
okr.topic Economic Theory and Research
okr.topic Macroeconomics and Economic Growth :: Knowledge Economy
okr.topic Finance and Financial Sector Development
okr.topic Industry
okr.unit Office of the Vice President (SDNVP)
okr.volume 1 of 1
relation.isAuthorOfPublication 4cdd14e3-d673-5b41-bfda-166d60c2e404
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