Ramsey policy and linearized model

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Ramsey policy and linearized model

Postby abscissaordinate » Fri Feb 20, 2009 1:11 am

Dear all,

I have a log-linearized model in Dynare and I want to take it a step further and incorporate Ramsey.

Does it matter if I specify a log-linearized version of the welfare function or if I enter the non-linearized welfare function with log-linearized variables?

Thank you in advance for your help!
abscissaordinate
 
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