Incentive Alignment Bonds: Making Public Goods Financially and Politically Profitable

Key Points

• The aim is to evaluate how incentive alignment bonds can redirect government funding toward programs with high societal value instead of low-value ones.
• Developing a framework for incentive alignment bonds
• Analyzing existing government spending patterns
• Assessing lobbying effects on funding decisions
• Demonstrated that current funding prioritizes lobbying over net societal value
• Showed potential for substantial reallocation of funds to high-value programs through bonds
• Indicated public goods can yield private financial profits for investors and politicians

Abstract