Dear Dynarers,
Hello, I try to solve a sticky information DSGE model (Reis 2009).
Is it possible to write the model in nonlinear forms in Dynare?
Or should I log-linearize the model?
Thank you for your help!
Dear Dynarers,
Hello, I try to solve a sticky information DSGE model (Reis 2009).
Is it possible to write the model in nonlinear forms in Dynare?
Or should I log-linearize the model?
Thank you for your help!
Do you mean the AEJ: Macro paper? Section 1D suggests that you need the linearity to do the aggregation in the sticky information case. The nonlinear model would not work.