Please Help Me:
i can't linearize this equation:
where G is government expenditure, r is interest rate, b is bond , π is p/p(-1), T is tax, EX is nominal exchange rate, Oil is oil revenue and DC is government debt to central bank.
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Help Me! A problem with linearizing
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Help Me! A problem with linearizing
by aminapc » Fri Aug 12, 2016 5:24 pm
hello
Please Help Me:
i can't linearize this equation:
where G is government expenditure, r is interest rate, b is bond , π is p/p(-1), T is tax, EX is nominal exchange rate, Oil is oil revenue and DC is government debt to central bank.
Please Help Me:
i can't linearize this equation:
where G is government expenditure, r is interest rate, b is bond , π is p/p(-1), T is tax, EX is nominal exchange rate, Oil is oil revenue and DC is government debt to central bank.
- aminapc
- Posts: 4
- Joined: Wed Nov 04, 2015 6:34 pm
Re: Help Me! A problem with linearizing
by jpfeifer » Sun Aug 14, 2016 6:07 pm
What is your problem? This is a standard equation. You simply need to apply a first-order Taylor approximation.
- jpfeifer
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- Location: Cologne, Germany
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