Dynare forums

Hello everyone,

recently I came across a code of a model, that is written in a way I have never seen before. I cannot even find it in the dynare user manual. Can you explain me the following declaration? A piece of a code looks like this:

Code: Select all

model;

C = (1-SLC)*CNLC+SLC*CLC;
VLL = exp(EPS_LL)*omeg*SL*(1-LL-(NPARTL-EX_NPARTL))^kappa;

end;


where uppercase letters represent variables. I see that the model is defined in non-linear form - it is obvious. But dynare manual stipulates in this case, that variables should be declared using logarithms. In this case, the variables are not defined using a logarithm operator. And for clarification, EPS_LL represents a shock variable.

Thank you for helping me.

Jan

That is just a regular model description, where Dynare will linearize the model instead of loglinearization. From where did you infer

But dynare manual stipulates in this case, that variables should be declared using logarithms

?

I was a little bit confused. Now I see that. Even in the manual.

Sorry for this bad question.