Importance of using social overhead capital
as one of the explanatory variables
From the viewpoint of a policy maker, investing social overhead capital
in the regions with relatively deficient SOC stocks is more efficient than investing it in the regions with relatively sufficient SOC stocks.
Moreover, the FILP can also invest in the formation of social overhead capital
, where there is often no market rate of return.
In a sense, the phenomenon of environmental pollution may be regarded as an outcome of mismanagement of social overhead capital
, but in a purely market economy, there is very little incentive to bring about the effective measures in regularising the use to be made of such social overhead capital
On the other hand, the FILP, which utilises Trust Fund Bureau funds, can invest in less profitable areas, such as the formation of social overhead capital
, in combination with budget expenditures in the form of grants or subsidies.
The asset management company is not only managing equity funds, but is also managing balanced portfolios including exchange traded funds (ETF), private equity funds (PEF) and several other funds that focus on bonds, real estate and social overhead capital