EconPapers    
Economics at your fingertips  
 

On the efficiency effects of subsidies in microfinance: an empirical inquiry

Marek Hudon and Daniel Traca

No 06-020.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: The impact of subsidies on the efficiency of microfinance institutions (MFIs) is a key question in the field, given the large volume of subsidies received over the last twenty years. Using an original database of rating agencies, this paper gives empirical evidence on the impact of subsidy intensity on the efficiency of MFIs. After correcting for endogeneity bias, our results suggest that subsidies have contributed to raise efficiency, for the majority of MFIs in our sample. However, the evidence suggests also that there is a level beyond which increased subsidization taxes efficiency, at the margin. In our sample, 50% of MFIs receive levels of subsidization higher than that threshold.

Keywords: Microfinance; Subsidies; Sustainability. (search for similar items in EconPapers)
JEL-codes: G30 G32 J23 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2006-10
New Economics Papers: this item is included in nep-dev, nep-fin, nep-fmk and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published by: Centre Emile Bernheim

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/9239/1/dt-0010.pdf dt-0010 (application/pdf)

Related works:
Journal Article: On the Efficiency Effects of Subsidies in Microfinance: An Empirical Inquiry (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sol:wpaper:06-020

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... .ulb.ac.be:2013/9239

Access Statistics for this paper

More papers in Working Papers CEB from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels (bpauwels@ulb.ac.be).

 
Page updated 2025-03-20
Handle: RePEc:sol:wpaper:06-020