recently I came across a code of a model, that is written in a way I have never seen before. I cannot even find it in the dynare user manual. Can you explain me the following declaration? A piece of a code looks like this:
model; C = (1-SLC)*CNLC+SLC*CLC; VLL = exp(EPS_LL)*omeg*SL*(1-LL-(NPARTL-EX_NPARTL))^kappa; end;
where uppercase letters represent variables. I see that the model is defined in non-linear form - it is obvious. But dynare manual stipulates in this case, that variables should be declared using logarithms. In this case, the variables are not defined using a logarithm operator. And for clarification, EPS_LL represents a shock variable.
Thank you for helping me.