(1/d_1)-(q/c_1)+(1/c_1/r)*m_b*q(+1)*pai(+1)-beta_b/c_1(+1)**m_b*q(+1)+beta_bq(+1)/c_1(+1)=0;

(((1-alpha)*y/d_z/x)-q)/c_z+(1/r/c_z-beta_z/c_z(+1)/pai(+1))*m_z*q(+1)*pai(+1)+beta_z*q(+1)/c_z(+1)=0;

These two equations are too complicated, I don’t know how to start. Is there a detailed log linearization process? grateful.

I don’t think these equations are complex. What is your usual way of log linearizing equations though? You can use Uhlig’s method.

Example…

There is no benefit in log linearizing your model in dynare though…by hand.

But I think that if the model is not log-linearized, the steady-state values of all variables need to be obtained. I think solving the steady state of the model is the most troublesome.

I tried to do it, but I found that I still couldn’t do it. Could you please help me to do the first one, it’s better to have detailed steps. Thank you so much.

I will do it like this. But with so many variables, I am a bit helpless.

Seems you did not follow the Uhlig method I posted. Lemme ask though, what is this method you are using for log linearizing your model? Taylor expansion?

By the way, you don’t need to log linearized the model before you obtain steady state values. If you have the equilibrium condition y_t = x_t v_t, in steady state, you have y = x v. Why would you want to log linearize before finding steady state?