# Log-linearization, Galí 2007 **URL:** \ **Category:** Replication Attempts\ **Created:** [29 May 2020 17:36 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945 "2020-05-29T17:36:36Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![peter\_l](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/3be4f8/32.png) [@peter\_l](https://forum.dynare.org/u/peter_l)\ **Post date:** [29 May 2020 17:36 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/1 "2020-05-29T17:36:36Z")
Hi everyone 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: ![log-lin](https://forum.dynare.org/uploads/default/original/2X/5/5153e6eb0efd1067779dac4e38acd4753ca613a5.png) 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. Peter. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [30 May 2020 12:39 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/2 "2020-05-30T12:39:15Z")
That should be straightforward. How far did you get, i.e. where is the problem? ---
**Author:** ![peter\_l](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/3be4f8/32.png) [@peter\_l](https://forum.dynare.org/u/peter_l)\ **Post date:** [30 May 2020 13:04 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/3 "2020-05-30T13:04:50Z")
Hi Johannes First of all, thanks for offering your help. After hours of trial-and-error I finally managed to get it right. My problem was getting the right value of R^k, and Iuckily I found the steady state value herefor in the appendix. So I suppose the lesson is always to pay attention to details. 🙂 Peter L. ---
**Author:** ![KiboAndersen](https://forum.dynare.org/letter_avatar_proxy/v4/letter/k/4491bb/32.png) [@KiboAndersen](https://forum.dynare.org/u/KiboAndersen)\ **Post date:** [21 April 2021 13:55 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/4 "2021-04-21T13:55:30Z")
Hi @peter_l Me and my Bachelor mate are also currently stuck at this linearisation. At the moment I don’t have any clue how even to begin as nothing has made sense to this point. Would you be willing to share the derivation with us? ---
**Author:** ![lszacho](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/d07c76/32.png) [@lszacho](https://forum.dynare.org/u/lszacho)\ **Post date:** [18 November 2023 13:19 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/5 "2023-11-18T13:19:28Z")
Hi Johannes I am currently sitting with the same problem as Peter did (but with time-varying depreciation), and I have not been able to find the steps of the log-linearization of Q anywhere. Any chance you can help? ---
**Author:** ![HFrimodt](https://forum.dynare.org/letter_avatar_proxy/v4/letter/h/e9bcb4/32.png) [@HFrimodt](https://forum.dynare.org/u/HFrimodt)\ **Post date:** [19 November 2023 13:25 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/6 "2023-11-19T13:25:04Z")
Dear Johannes Unfortunately, I am sitting with the same problem and would love to see the derivations to the log-linearization of Tobin’s Q. Hoping to hear from you ---
**Author:** ![HFrimodt](https://forum.dynare.org/letter_avatar_proxy/v4/letter/h/e9bcb4/32.png) [@HFrimodt](https://forum.dynare.org/u/HFrimodt)\ **Post date:** [19 November 2023 21:06 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/8 "2023-11-19T21:06:59Z")
Hi 🙂 We try and understand how to obtain equation (23) from (5) i.e. the log-linearization of equation (5) Can you by any chance help? ---
**Author:** ![eisamabodian](https://forum.dynare.org/user_avatar/forum.dynare.org/eisamabodian/32/12023_2.png) [@eisamabodian](https://forum.dynare.org/u/eisamabodian)\ **Post date:** [19 November 2023 21:16 UTC](https://forum.dynare.org/t/log-linearization-gali-2007/15945/10 "2023-11-19T21:16:08Z")
Equation 5 did not Log-linearized in that initial form. You can work on it and transfer it to a different simpler equation for Tobin’s Q and after this step you can linear that equation by Uhlig’s method.