Dynare forums

Hi, I have a two good model that I am able to run successfully. However, my adviser suggests I should rewrite the model in log forms, so that I can compare my impulse response functions when I run the model with different values of alpha. Can someone please advise how to do this? I have attached the mod file.

Thanks!

Use a log transformation by putting all variables with nonzero and nonnegative steady state in exp(). See also Pfeifer(2013): "A Guide to Specifying Observation Equations for the Estimation of DSGE Models" https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf