Hi everyone, I need some help now. I want to reproduce the results of BGG. There is a complete derivation of loglinear equations. But I can’t derive the equation(4.24), the path of net worth. I need your help to tell me how can get that equation. Thank you!
hi ztbhewitt,
I am new in dsge model, I can’t derive the equation 4.24, either. I think equation 4.24 is log-linearized version of 4.13. In equation 4.13, there is a term with integral, but in equation 4.24, there is no, why? Have you successfully derive it yet? Please help me. Thanks a lot!