On the Efficiency Effects of Subsidies in Microfinance: An Empirical Inquiry

Marek Hudon; D. Traça

doi:10.1016/j.worlddev.2009.10.017

On the Efficiency Effects of Subsidies in Microfinance: An Empirical Inquiry

Marek Hudon^*
, D. Traça

^*Autor corresponent d’aquest treball

Producció científica: Article en revista indexada › Article › Avaluat per experts

160 Cites (Scopus)

Resum

Using an original database of rating agencies, this paper gives empirical evidence on the impact of subsidy intensity on the efficiency of Microfinance Institutions (MFIs). We find that subsidies have had a positive impact on efficiency, in the sense that MFIs that received subsidies are more efficient than those that do not. However, we find also that subsidization beyond a certain threshold renders the marginal effect on efficiency negative. In our sample, 26% of MFIs receive levels of subsidization higher than that threshold, which implies that a marginal cut on subsidy intensity would increase their efficiency.

Idioma original	Anglès
Pàgines (de-a)	966-973
Nombre de pàgines	8
Revista	World Development
Volum	39
Número	6
DOIs	https://doi.org/10.1016/j.worlddev.2009.10.017
Estat de la publicació	Publicada - de juny 2011
Publicat externament	Sí

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Aquest resultat contribueix als següents objectius de desenvolupament sostenible.

ODS 1 Fi de la pobresa
ODS 5 Igualtat de gènere
ODS 8 Treball digne i creixement econòmic

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10.1016/j.worlddev.2009.10.017

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title = "On the Efficiency Effects of Subsidies in Microfinance: An Empirical Inquiry",

abstract = "Using an original database of rating agencies, this paper gives empirical evidence on the impact of subsidy intensity on the efficiency of Microfinance Institutions (MFIs). We find that subsidies have had a positive impact on efficiency, in the sense that MFIs that received subsidies are more efficient than those that do not. However, we find also that subsidization beyond a certain threshold renders the marginal effect on efficiency negative. In our sample, 26\% of MFIs receive levels of subsidization higher than that threshold, which implies that a marginal cut on subsidy intensity would increase their efficiency.",

keywords = "Efficiency, Microfinance, Productivity, Subsidies",

author = "Marek Hudon and D. Tra{\c c}a",

year = "2011",

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T1 - On the Efficiency Effects of Subsidies in Microfinance

T2 - An Empirical Inquiry

AU - Hudon, Marek

AU - Traça, D.

PY - 2011/6

Y1 - 2011/6

N2 - Using an original database of rating agencies, this paper gives empirical evidence on the impact of subsidy intensity on the efficiency of Microfinance Institutions (MFIs). We find that subsidies have had a positive impact on efficiency, in the sense that MFIs that received subsidies are more efficient than those that do not. However, we find also that subsidization beyond a certain threshold renders the marginal effect on efficiency negative. In our sample, 26% of MFIs receive levels of subsidization higher than that threshold, which implies that a marginal cut on subsidy intensity would increase their efficiency.

AB - Using an original database of rating agencies, this paper gives empirical evidence on the impact of subsidy intensity on the efficiency of Microfinance Institutions (MFIs). We find that subsidies have had a positive impact on efficiency, in the sense that MFIs that received subsidies are more efficient than those that do not. However, we find also that subsidization beyond a certain threshold renders the marginal effect on efficiency negative. In our sample, 26% of MFIs receive levels of subsidization higher than that threshold, which implies that a marginal cut on subsidy intensity would increase their efficiency.

KW - Efficiency

KW - Microfinance

KW - Productivity

KW - Subsidies

UR - https://www.scopus.com/pages/publications/79956142546

U2 - 10.1016/j.worlddev.2009.10.017

DO - 10.1016/j.worlddev.2009.10.017

M3 - Article

AN - SCOPUS:79956142546

SN - 0305-750X

VL - 39

SP - 966

EP - 973

JO - World Development

JF - World Development

IS - 6

ER -

On the Efficiency Effects of Subsidies in Microfinance: An Empirical Inquiry

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