In a dynamic general equilibrium framework with heterogeneous firms, this study analyzes the importance of informal credit markets in financial development and growth. By drawing instances from informal market we show that informal loans reduce the cost of credit constraints under regulated...

The findings of this paper suggest that the allegation against futures market in India 'that it distorts the spot market price and creates artificial scarcity by allowing unnecessary hoarding', is a misconception. This paper finds out that there is a co-movement among futures price, production...