Log-linearization of BGG1999

Someone help me please. I have problem with deriving log-linearization of BGG1999( the financial accelerator in a quantitative business cycle framework, handbook of macroeconomics, chapter 21).

In equation 4.16: the second term is about C_e_t+1, shouldn’t it be about W_e_t ?

In equation 4.24: how to deal with the integral term in equation 4.13? why not log-linear it just like equation B.8 to get equation 4.14? If I ignore the integral term in equation 4.13, I can’t get 4.24, either. how to get it?

And I also have problem with equation 4.17 ( expression of ‘nu’) and equation 4.19(expression of ‘phi’).

Thank you so sososososo much.

Did you try having a look at the teaching materials of Larry Christiano?

jpfeifer,

Thank you so much!

Do you mean ‘Lawrence Christiano’ ? I have read his teaching materials about bgg financial frictions part which scattered in his different courses but not completely the same as bgg 1999, and have not steps about log-linearization.

I can derive other log-linear equations in bgg 1999, however always have wrong with above equations. How I wish there is detailed materials I can refer to…

Yes, I meant those. So there is nothing useful in there. I see. How about Christensen/Dib (2008). They also linearize.

I have seen questions like yours popping up repeatedly, but have never seen a satisfactory answer.