How do I estimate and compare the size of formal and informal credit markets in rural households in a specific township??

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Peter F. Colwell

The term "informal" might equate to "illegal" if there are usury laws that are being violated. Isn't this the primary reason for informal credit markets? So interviews are unlikely to work. The relative levels of informal credit markets (e.g., region to region or time to time) may be detected by acts of violence that may show up in hospitals. Threats of violence and violence itself are often used to enforce the terms of illegal contracts. So one might hypothesize that the informal credit market activity is associated with the difference between the rate of inflation and the usury ceiling. (making use of the Fisher effect here).