The key ingredients of real business cycle models are common. The market structure is perfectly competitive, the forcing process is a technology shock, and in most cases agents are identical. Textbook market structures are introduced in a real business cycle model. The market structures studied...

A modified version of the nominal contract developed by Gray (1976) and Fischer (1977) is introduced in a general equilibrium model with money which has been used in the real business cycle literature. Money is introduced in the model through cash-in-advance constraint. The contract studied is...