linearized shock
Posted: Sun May 05, 2013 6:39 pm
Hey,
I'm new in using dynare, i have to replicate a paper with a two country rbc model. I have a non linear model but i write the shock like "exp(x)" . Now my question, am I allowed to declare it as a linear model allthough it is not fully linearized. Because the whole model works if i use linear in stoch_simul, but it doesn't work without.
Thanks for your help
savunzli
I'm new in using dynare, i have to replicate a paper with a two country rbc model. I have a non linear model but i write the shock like "exp(x)" . Now my question, am I allowed to declare it as a linear model allthough it is not fully linearized. Because the whole model works if i use linear in stoch_simul, but it doesn't work without.
Thanks for your help
savunzli