I am a student from the University of Berlin and I am currently working on replicating Galí (2007) article “Understanding the effects of government spending”.
Where I struggle is to log-linearize equation (5) describing the dynamics of Tobins-Q:
with the resulting log-linearized equation being (23) in the image.
The other equations are straightforward to log-linearize, but this particular one I struggle with. Any guidance in the right direction is much appreciated.