Jonathan Morduch is the author of the 1999 paper titled 'The Microfinance Promise', published in the Journal of Economic Literature.

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A 1999 paper by Jonathan Morduch titled ‘The Microfinance Promise’ was published in the *Journal of Economic Literature* (Volume 37, Issue 4, pp. 1569–1614). The paper is presented as a significant piece of literature for understanding the concepts and realities of microfinance.

The Microfinance Promise (Morduch, 1999)

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

The Grameen Bank in Bangladesh implements a group lending model to address credit market failures. Under this system, loans are given to individuals within a group, but all members are held jointly responsible for repayment. This collective liability incentivizes borrowers to work diligently and make prudent financial decisions, substituting for the traditional requirements of equity or collateral. The success of each member is tied to the group's ability to secure future loans, ensuring peer support and monitoring.

Grameen Bank's Group Lending Model

Jonathan Morduch

The *Journal of Economic Literature* is the academic journal that published Jonathan Morduch's 1999 paper, 'The Microfinance Promise'.

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