Publication Date
7-1-1999
Summary
The Subsidy Dependence Index (SDI) is the most common way to measure the importance of public support for Development Finance Institutions (DFIs). We present the SDI and show its equivalence to a subsidy-adjusted measure of return on equity. We then review recent attempts to adjust the SDI. As a whole, the recent measures are either meaningless or answer unimportant questions. Their use does not lead to a better understanding of the social cost of a DFI.
Document Type
Working Paper
Category
Financial Inclusion
Subarea
Asset Building
Original Citation
Schreiner, M., & Yaron, J. (1999). The subsidy dependence index and recent attempts to adjust it (CSD Working Paper No. 99-2). St. Louis, MO: Washington University, Center for Social Development.
Project
Microfinance
Keywords
microfinance, financial services, social development, measurement
Recommended Citation
Schreiner, M., & Yaron, J. (1999). The subsidy dependence index and recent attempts to adjust it (CSD Working Paper No. 99-2). St. Louis, MO: Washington University, Center for Social Development.
DOI: https://doi.org/10.7936/K7GH9HH3
Notes
Subsequent publication: Schreiner, M., & Yaron, J. (1999). The subsidy dependence index and recent attempts to adjust it. Savings and Development, 23(4), 375–405.