Models of aggregate productivity growth linked to sectoral models of production typically assume that product and factor markets are perfectly competitive. The perfect markets assumption allows intermediate goods to be viewed as internal, offsetting transfers. This paper relaxes the conventional...

Due to tougher lending standards, Rent-to-Own (RTO) contracts are getting popular. In a RTO contract, a tenant signs a lease with the option to buy a house at a predetermined purchase price. That is, the tenant receives a call option. RTO contracts allow potential financially constrained...