Vasilev, Aleksandar - In: The IUP Journal of Applied Finance 27 (2021) 3, pp. 5-20
We augment an otherwise standard business cycle model with a richer government sector, and add a stochastic costly credit production as in Benk at al. (2005), and a modified cash in advance (CIA) considerations. In particular, the cash in advance constraint of Cole (2020) is extended to include...