# Modeling trend growth in DSGE, what utility function should be adopted? **URL:** \ **Category:** General DSGE Modeling\ **Created:** [24 January 2021 02:22 UTC](https://forum.dynare.org/t/modeling-trend-growth-in-dsge-what-utility-function-should-be-adopted/17339 "2021-01-24T02:22:44Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![jane2004855](https://forum.dynare.org/letter_avatar_proxy/v4/letter/j/4bbf92/32.png) [@jane2004855](https://forum.dynare.org/u/jane2004855)\ **Post date:** [24 January 2021 02:22 UTC](https://forum.dynare.org/t/modeling-trend-growth-in-dsge-what-utility-function-should-be-adopted/17339/1 "2021-01-24T02:22:44Z")
Dear all, I am modeling trend growth of productivity in a DSGE model. What utility function (separable or non-separable utility function) I shall use? and Why? Thank you very much! ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [24 January 2021 09:46 UTC](https://forum.dynare.org/t/modeling-trend-growth-in-dsge-what-utility-function-should-be-adopted/17339/2 "2021-01-24T09:46:26Z")
The answer depends on whether you care about balanced growth. See Section 1.4 of King, R.G., Plosser, C.I. & Rebelo, S.T. Production, Growth and Business Cycles: Technical Appendix. _Computational Economics_ **20,** 87–116 (2002). [https://doi.org/10.1023/A:1020529028761](https://doi.org/10.1023/A:1020529028761) ---
**Author:** ![jane2004855](https://forum.dynare.org/letter_avatar_proxy/v4/letter/j/4bbf92/32.png) [@jane2004855](https://forum.dynare.org/u/jane2004855)\ **Post date:** [24 January 2021 22:17 UTC](https://forum.dynare.org/t/modeling-trend-growth-in-dsge-what-utility-function-should-be-adopted/17339/3 "2021-01-24T22:17:38Z")
Thank you very much for your help!