Interpreting loglinear command results

[stepan-a]

Hi,

Yes, log-linearisation gives you percentage deviations from the steady state (for the moments and IRFs). See the discussion about the different ways to achieve this in Dynare (the loglinear option is not always possible or desirable):

Linearisation vs Log-linearisation

Dear all, Sorry for the stupid question. When we solve our model in dynare, is the linearisation of a first order Taylor approximation the same as we would log-linearise the model by hand? My question is based on Johannes’ reply in this post, where Johannes says: But the model you are referring to, the Smets/Wouters 2007 model, was linearized, i.e. a first order Taylor approximation was performed. As far as I remember is the SW model log-linearised. Many thanks for your help! Robert

Best,
Stéphane