Hi all,

We need to use log-linear version in dynare, and I change all endogeneous variables to exp() form(I do not change parameters), for example, change

```
q*cc^(-sigma) = beta*(cc(+1)^(-sigma))*(q(+1)*(1-delta)+r(+1));
```

into

```
exp(q)*exp(cc)^(-sigma) = beta*(exp(cc(+1))^(-sigma))*(exp(q(+1))*(1-delta)+exp(r(+1)));.
```

And I also change initial values from

```
omegab = 0.59455;
PHI = normcdf((log(omegab)-M)/S);
phi = normpdf((log(omegab)-M)/S) / (omegab*S);
g = normcdf((log(omegab)-M)/S - S) - PHI*mu + (1-PHI)*omegab;
f = 1-mu*PHI- g;
q = 1/(1-mu*0.01+(gamma-1)*f);
r = q*((1-beta*(1-delta))/beta);
H = .3;
He = eta;
```

into

```
omegab = 0.59455;
PHI = normcdf((log(omegab)-M)/S);
phi = normpdf((log(omegab)-M)/S) / (omegab*S);
g = normcdf((log(omegab)-M)/S - S) - PHI*mu + (1-PHI)*omegab;
f = 1-mu*PHI- g;
q = ln(1/(1-mu*0.01+(gamma-1)*f));
r = ln(exp(q)*((1-beta*(1-delta))/beta));
H = ln(0.3);
He = ln(eta);
```

Before I take exponential, I can find a steady state and I have checked that no variables are 0 before they are taken log. (The shock innovation ezA and ezMU are 0 in steady state, and I did not take log of them.)

But after I change variables into exp() form, I cannot find steady state anymore.

Could you please tell me where I am wrong?

Thanks a lot!!!