Greetings!
Section 5 in Johannes Pfeifer’s guide on specifying observation equations deals with writing a stationary representation into Dynare of models with an explicitly specified trend. The focus is on labor augmenting technology growth. However, suppose instead that there is trend growth in TFP. Is there a simple example representing this? In effect, I am curious about the analogue to Listing 9.
With TFP growth, there is a different balanced growth rate for technology as for the other variables, but it should otherwise not pose any problem. (I suspect I am asking something somewhat trivial, and I apologize in advance for this.)
Warm regards.