Dear Dynare users,
I’ve got a question regarding a welfare-analysis. I derived a model with log-linear relations around the efficient steady state and got an quadratic welfare loss function with inflation and output-gap in quadratic terms.
Is it possible in Dynare to implement the log-linear model and also to insert the Loss-Function with the quadratic terms for the relevant variables? How would the code look like?
Thanks in advance and wish you all have a nice weekend.