Cooley and Hansen introduce money into a real-business-cycle model -- Hansen's (1985) indivisible-labor economy with employment lotteries -- via a cash-in-advance constraint that applies only to …
PublishedClassicJournal of Money, Credit and BankingPublished Aug 1991
Extending their 1989 cash-in-advance real-business-cycle model, Cooley and Hansen add distorting taxes on labor and capital income and no-uncertainty perfect foresight to study the fiscal consequences …