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Log Linearization with using Dynare

PostPosted: Wed Dec 07, 2011 10:06 pm
by Lisa11
Hi All,

I am a completely new user of Dynare and wondering whether it is possible to use Dynare to generate log linearization around the steady states with a couple of first order conditions. I am reading the reference manual now but have found any practical information yet.

The equations that I want to linearize are attached. Please have a look at the end of page 3 and at the beginning of page 4, you will find those 8 equations which need to be linearized. Thank you very much for your interest and help. Any effort will be highly appreciated.

Re: Log Linearization with using Dynare

PostPosted: Wed Dec 07, 2011 10:09 pm
by BBCH
rewrite every variable as exp(x)

Re: Log Linearization with using Dynare

PostPosted: Wed Dec 07, 2011 10:15 pm
by Lisa11
Hi BBCH,

Thanks for answering so fast. I will try it asap. I will give you feedback later with the codes writing. :)