Modeling trend growth in DSGE, what utility function should be adopted?

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

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