Dear All,
While using dynare, is it necessary to input the equations in the log linear form? If yes, is there any program, code or toolkit in Dynare that can simply perform log linearization for us?
There is no requirement for this. Using a variable substitution or the loglinear option, you can get a loglinearization. See Section 4.4. “4.4 Linearization vs. Log-linearization” in Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf.