Additional Authors

Yaron, Jacob

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

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.

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.

DOI:

https://doi.org/10.7936/K7GH9HH3

Project

Microfinance

Keywords

microfinance, financial services, social development, measurement

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