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DSGE - Dynamic Stochastic General Equilibrium models.
1
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1
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Log-linearizing a second order term around the steady-state
I want to log-linearize around the steady-state, as it is commonly done for DSGE models (see here) and I want to disregard all second order terms. …
1
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0
answers
58
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Help with the log-linearization of a difficult term
I want to log-linearize around the steady-state, as it is commonly done for DSGE models (see here). $\bar{x_t}$ are steady-state values and $\hat{x_t}$ are percentage steady-state deviations. …
1
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1
answer
71
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Conceptual question about the zero-inflation steady-state in DSGE-models
As I understand, it is usually common practice, to choose DSGE models in such a way, that the steady-state inflation is freely choose-able and for simplifications it is than usually assumed to be zero. …
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0
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Help me understand the shock process in this DSGE model
I'm looking at the model proposed in Hansen2020.
The not linearized model features a shock equation looking like this:
$A_t = \bar{A}*e^{\epsilon_t}$ , where $\bar{A}$ is the steady state of $A_t$ and …