The Pay‐for‐Success Contract: A Valuation Note
论证按成效付费合同具有类似期权的收益特征，运用标准期权定价方法评估其投资价值，并通过马萨诸塞州青少年司法按成效付费项目的参数进行数值应用，为投资和社会政策决策提供参考。
ABSTRACT Pay‐for‐success contracts are social and financial innovations in social policy and capital markets, respectively. This paper argues that they exhibit option‐like payoffs and implements standard option‐pricing arguments in assessing the value of investing in pay‐for‐success contracts. Sensitivities vis‐à‐vis contract specifications are reflected in the valuation formula and help reach investment and social policy decisions. These sensitivities are demonstrated via a numerical application that uses parameters drawn from the Massachusetts Juvenile Justice Pay for Success Initiative, the largest pay‐for‐success initiative in the United States at the time of its launch.