# Questions tagged [log-linearization]

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### Log_linearization

Can any one please suggest me how to log-linearize the utility maximization of the Ricardian households in a closed economy DSGE model. The equation is bellow :
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### Log-linearization of the additive habit formation model

I am trying to derive the log-linearized Euler Equation (EE) of a Model with additive Habit formation. Attached you will find my attempt to derive the EE. I am missing an (1-b) in the denominator. ...
37 views

### how to Log-linear this equation?

I am working on my thesis, doing a model with energy price. I am following this paper "Energy Price Shocks and Financial Market Integration: Evidence from New Keynesian Model", Tarek ...
51 views

### Loglinearization of first order condition

I am trying to loglinearize the following first order condition (FOC): \begin{equation} \varrho_{t}^{E} = \mathbb{E}_{t}q_{t, t+1}\Bigl[\left(R_{k, t}^{L} - R_{t}^{D}\right) + \gamma^{L}\left(1 - \...
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### Log linearising EUler equation

I am trying to solve a problem that asks to log linearise following Euler equation of the New Keynesian model: $$C^{-\sigma}_t=\beta E_tC^{-\sigma}_{t+1}(1+i_t)/(1+\pi_{t+1}).$$ The solution is ...
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### Are typical macro DSGE (RBC or New Keynesian DSGE) models linear, non-linear, or log (linearized)?

In Carl Hommes 2015 book on Expectations, it seems he considers DSGE models (being it either RBC DSGE or New Keynesian DSGE) to be linear, or (log)linearized models, on page 3 of the introduction. He ...
280 views

### Log-linearizing a non-separable utility function around the steady state

I've started reading Jordi Galí's Monetary Policy, Inflation and the Business Cycle (2nd ed., 2015). In section 2.5.2, Galí considers an example with the following non-separable period utility ...
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### Constant elasticity proof for log-linear demand curve

From Perloff 2008e solved 2.2: Q: Show that the elasticity of demand is a constant e if the demand function is log-linear, ln Q=ln A+e ln p. A: Differentiating with respect to p, we find that (dQ/dp)/...
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I'm stuck with a derivation from Gali's book. In the version 2008, I can't get eq. (7) from chapter 3. All is ok until the following:  (1-\epsilon)\log\pi_{t}=\log(\theta+(1-\theta)\exp[(1-\...