I read some of the responses of yours about linear vs log linear but I need some clarifications to make sure that I am on the right track:
If my FOC equations are all linear and variables are in levels, then whether I declared “model (linear)” or “model” without linear options, the variables are interpreted as absolute deviations from steady state and the only difference is the speed of computation. Right ?
I was checking your code for Gali and Monacelli (2005) whereby you have used linear model option while the textbook (Gali book chapter 7) derivation is log-linear version.
If I want to follow your methodology in estimating a linear version of the model to elude assigning steady state values, then it is sufficient to take the exponential for both sides of the log-linear equations or I have to derive the model again for a linear version ?
Thank you so much in advance,