Log linearized and non-linearity in one model

Perfect foresight simulations
4
  1. Ideally, you call the log-linearized variables something like N_hat and define
    N_hat=log(N)-log(STEADY_STATE(N))
    That makes sure the mean is correctly taken care of.
  2. For perfect foresight, mixing linear and nonlinear equations is problematic, because you will care about nonlinearities but only preserve them in some part of the code.
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