Vasilev, Aleksandar - In: Econometrics. Ekonometria: Advances in Applied Data Analysis 26 (2022) 1 (forthcoming), pp. 1-13
We augment the standard business cycle model with cash and credit goods a la Lucas and Stokey (1983, 1987), plus a modified cash-in-advance (CIA) considerations. In particular, the cash-in-advance constraint is extended to include private investment and government purchases. This specification...