Hi,
- Dynare takes everything that is not separated by a semicolon as one line. So you can just wrap around without using the Matlab “…”;. Empty spaces are simply ignored. However, there may be problems if you use tabulators or other special characters to indent the lines. For example:
k=(1-delta)*k(-1)
+i;
- What you do is perform a variable substitution, i.e. you replace all variables x with exp(x), but you do not log-linearize yourself. Hence, n_original^(eta) becomes exp(n)^eta, because in this way, n is implicitly defined as log(n_original) and thus n_original^(eta)=exp(n)^eta. See other forum posts like e.g. [Log-linearization). This also means you do not have to tell Dynare that you performed a substitution.