Log-linearization of CMR

General DSGE Modeling Replication Attempts
1

Hi, I am trying to log-linearise the model of CMR (2014) by transforming the model with the exp() method.

However, it just doesn’t seem to run properly. Maybe someone can give me some insight on what I’m doing wrong.

Log-linearization_CMR.mod (25.6 KB)

2

Why are you trying to do this? It’s a very error-prone process and does not really add value. There are better alternatives like appending auxiliary variables (which is automated by the var(log) statement in Dynare 6).