Alternative education finance strategies

Education

Alternative education finance strategies - discussion

Education

Alternative forms of external finance : a survey

The main purpose of this paper is to survey the existing literature on alternative finance (AF) and indicate the major research gaps. In this way, the survey may help to identify the factors influencing the flow of AF; provide analytical, and empirically supported underpinnings for policy work; and assess the amounts likely to be available. The focus of this survey is on aspects of country risks related to AF and the dispute settlement of international claims, domestic incentive schemes to attract foreign financing, the intermediation role of multinational firms and banks, and the supply side of AF.The survey thus investigates the incentives for individuals and firms, and, where necessary, takes into account the aggregate implications. The paper provides some descriptive statistics of AF and makes a comparison with traditional finance (TF). It identifies the key characteristics in which AF differs from TF and briefly reviews the factors motivating capital flows. The paper identifies the extent to which TF and AF differ in the factors motivating capital flows and to what extent the implications of these differences have been explored in the literature to date.Financial Intermediation,International Terrorism&Counterterrorism,Environmental Economics&Policies,Banks&Banking Reform,Economic Theory&Research

Women and Trade: Gender\u27s Impact on Trade Finance and Fintech

Woman-owned firms engage differently with finance for trade. The barriers they face in starting and running a business are well-known. Yet, this offers little insight into how they finance their business once globalized. Surveys indicate that finance is often the primary barrier to trade. We seek to deepen and modernize this finding by using a unique data set to explore the patterns of financial access exhibited by woman-owned exporting firms. We show that women face two levels of exclusion in access to finance—access to basic finance and access to trade finance. The latter is driven by characteristics common to firms owned by women. Also, in line with existing work, we show that woman-owned firms tend to turn to informal finance as an alternative more than their male counterparts. However, we also show that women are more likely to adopt fintech as a financial solution than men. This suggests that policies aimed at incentivizing banks to lend more to women may not be solving the right problem

The Continuing Cost of Privatization: Extra Payments to Medicare Advantage Plans Jump to $11.4 Billion in 2009

Outlines the impact of the 2003 increase in payments to private Medicare Advantage plans, efforts to phase out extra payments in order to finance improvements for low-income beneficiaries, and alternative approaches to providing equitable coverage

Mezzanine finance and corporate bonds

The article deals with the problems of mezzanine finance in relation to corporate bonds. Firstly, attention is paid to definition of mezzanine finance. The term mezzanine finance is used as a term for hybrid forms of financing that combine elements of debt and equity financing. Mezzanine finance represents an alternative form of financing corporate activities. Secondly, possible forms of mezzanine finance are characterized. We can say that special types of corporate bonds (convertible bonds and option bonds) present instruments of mezzanin finance. Then, attention is focused on the problems of corporate bonds. Corporate bond is a security connected with the right to settlement of the sum owing and with the issuer’s obligation to meet this right. A corporate bond is one of the important instruments on the capital market, and at the same time it is a potential source of financial means for companies.mezzanine finance, corporate bonds, option bonds

The evaluation of welfare under alternative models of higher education finance

A model is developed which allows us to examine the welfare effects of alternative methods of financing access to higher education. Under an extreme specification of the social welfare function, it is shown that it does not matter whether higher education is financed privately or through the exchequer. Under a more general specification of the social welfare function, conditions may be derived under which (a) private finance is more welfare enhancing than public finance and (b) public finance is more welfare enhancing than private finance. Empirical estimates of the social welfare function are used to draw policy conclusions.

Incentives for public investment under fiscal rules

The authors explore the relationship between fiscal rules and capital budgeting. The current budgetary approach to limit deficits to a fixed portion of GDP or to balance budgets could undermine incentives to invest in public capital with long-run returns since politicians concerned about electoral prospects would favor expenditures providing immediate benefits to their voters. An alternative budgetary approach is to separate capital from current revenues and expenditures and relax fiscal constraints by allowing governments to finance capital expenditures with debt, as suggested by the golden rule approach to capital funding. But the effect of capital budgeting would be to provide opportunities to politicians to escape the fiscal rule constraints by shifting current expenditures into capital accounts that are difficult to measure properly, thereby leading to increased borrowing. As an alternative, the authors propose a modified golden rule limiting debt finance to a proportion of the government's investment in self-liquidating assets.Public Sector Economics&Finance,Investment and Investment Climate,Economic Theory&Research,Public&Municipal Finance,Urban Economics

Ownership Characteristics and Access to Finance: Evidence from a Survey of Large Privatised Companies in Hungary and Poland

We examine financial constraints and forms of finance used for investment, by analysing survey data on 157 large privatised companies in Hungary and Poland for the period 1998 – 2000. The Bayesian analysis using Gibbs sampling is carried out to obtain inferences about the sample companies’ access to finance from a model for categorical outcome. By applying alternative measures of financial constraints we find that foreign companies, companies that are part of domestic industrial groups and enterprises with concentrated ownership are all less constrained in their access to finance. Moreover, we identify alternative modes of finance since different corporate control and past performance characteristics influence the sample firms’ choice of finance source. In particular, while being industry-specific, the access to domestic credit is positively associated with company size and past profitability. Industrial group members tend to favour bond issues as well as sells-offs of assets as appropriate types of finance for their investment programmes. Preferences for raising finance in the form of equity are associated with share concentration in a non-monotonic way, being most prevalent in those companies where the dominant owner holds 25%-49% of shares. Close links with a leading bank not only increase the possibility of bond issues but also appear to facilitate access to non-banking sources of funds, in particular, to finance supplied by industrial partners. Finally, reliance on state finance is less likely for the companies whose profiles resemble the case of unconstrained finance, namely, for companies with foreign partners, companies that are part of domestic industrial groups and companies with a strategic investor. Model implications also include that the use of state funds is less likely for Polish than for Hungarian companies.financial constraints, investment, enterprises, foreign ownership, industrial groups, concentrated ownership, leading bank, proportional-odds model, Bayesian updating.