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Issue with log-linear equations

PostPosted: Sat Apr 07, 2012 11:33 pm
by rteconomics
Hi there!
I have a problem with a model I'm working to. The system is composed by 22 equations. 19 are fine but I have an issue with 3 of them.
Specifically, the issue is that (by following Uribe (2003)) these equations are written in log-deviation (for some (!) of the variables) from the steady state. More in details, here are the 3 equations:

1) Government expenditure with spending reversal: ln(g)-gbar=rhogg*(ln(g(-1))-gbar)+rhogd*(d(-1)/y(-1)-dbar/ybar)+eg;
2) Tax rate: tau=tauav+theta*(d(-1)/y(-1)-dbar/ybar);
3) External debt elastic interest rate: r=rav+psi*(exp(s-sbar)-1);

A 'bar' in the variable name indicates the steady-state value of the variable itself.
Clearly, Dynare does not like my way of writing the code but I have no idea how to fix it.

Any idea?
THANKS!

Re: Issue with log-linear equations

PostPosted: Sat Apr 07, 2012 11:35 pm
by rteconomics
Oh, btw I forgot to mention that all other equations are fine and they are NOT written in log terms.. (very standard first order conditions..).

Re: Issue with log-linear equations

PostPosted: Wed Apr 18, 2012 7:23 pm
by jpfeifer
Why is this a problem? Is your model in general linear or log-linear? Do you use exp() for log-linearization. Which error do you get?