I’m building my own DSGE model with habit persistence preferences.
After evaluation of the steady state, I now want to log-linearize the FOCs (in particular the Euler equation and the labor-supply equation).
Are there any tricks to do this? Until now, I was always able to do log-linearization but in this case it becomes a bit more complicated. So far, I have written the model part in the dynare-code in non-linear form.
Thank you in advance