The Economics of Microfinance

Jonathan Morduch, Beatriz Armendariz

Research output: Book/ReportBook


"This survey of microfinance seeks to bridge the gap in the exisiting literature on microfinance between academic economists and practitioners." "The authors move beyond the usual theoretical focus in the microfinance literature and draw on new developments in theories of contracts and incentives. They challenge conventional assumptions about how poor households save and build assets and how institutions can overcome market failures. The book provides an overview of microfinance by addressing a range of issues, including lessons from informal markets, savings and insurance, the role of women, the place of subsidies, impact measurement, and management incentives. It integrates theory with empirical data, citing studies from Asia, Africa, and Latin America and introducing ideas about asymmetric information, principal-agent theory, and household decision making in the context of microfinance." "The Economics of Microfinance can be used by students in economics, public policy, and development studies. Mathematical notation is used to clarify some arguments, but the main points can be grasped without the math. Each chapter ends with analytically challenging exercises for advanced economics students."--Jacket
Original languageEnglish (US)
Place of PublicationCambridge, Mass
PublisherMIT Press
Number of pages346
ISBN (Print)9780262512015, 0262012162, 0262512017, 9780262012164
StatePublished - 2005


  • Aspects économiques
  • Microfinance
  • Microfinanzas
  • Pays en développement
  • Kredietverlening
  • Kleinbedrijf
  • Bedrijfsfinanciering


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