Model in log form

Hi, I have a two good model that I am able to run successfully. However, my adviser suggests I should rewrite the model in log forms, so that I can compare my impulse response functions when I run the model with different values of alpha. Can someone please advise how to do this? I have attached the mod file.

Model_baseline65.mod (4.09 KB)

Use a log transformation by putting all variables with nonzero and nonnegative steady state in exp(). See also Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”

1 Like