A Framework for Modelling Investment Effect of Social Polices

Abstract

Social security spending is also increasing as population aging, and Korea is at an important time to discuss the effectiveness of social policies through preemptive social investment and evaluation. However, since most of the current evaluations are based on qualitative evaluation, there is a limitation that the subjective judgment of the evaluator is highly likely to play a large role. Even with quantitative evaluation, public services in the health and welfare sector tend to underestimate the value of public goods or services due to the absence of a method to measure the value of social investment. Therefore, it is necessary to devise a policy evaluation plan to create a structure that balances the efficiency of fiscal expenditure and the quality improvement of public services. In this study, the process of analyzing social return on investment was conceptually organized and presented, and examples of applying it to actual projects were provided through preliminary research. In order to supplement the limitations of underestimating social investment in public services, a model for analyzing the investment effect of social policies was established as part of a pilot study. In order to supplement the limitations of underestimating social investment in public services, a model for analyzing the investment effect of social policies was established as part of a pilot study. And as a model method, the system dynamics (SD) model was used. The model established in this study was composed of a population module, a demand module, a supply module, and a social impact module, and the results of the social return on investment (SROI) of the elderly care service were analyzed in the interrelation between the modules. According to the analysis results, the rate of social return on investment of the elderly care service was 1.621:1, confirming that it is a program with high social value compared to investment. In this study, we were able to analyze social value of the policy effects by conducting a preliminary study on the case of the elderly care.