Dear all:
The Linear Quadratic approximations proposed by Benigno and Woodford can now be easily computed. The analytical derivations of this methodology were thought to be time consuming. In a recent paper, this is shown to be extremely easy. The paper is available at papers.ssrn.com/sol3/papers.cfm? … _id=920802. One can apply the trick proposed therein and use Dynare LQ technology. With version 4 of Dynare it will be possible to do everything inside Dynare, due to the contribution of A. Levin code (available in a message in this forum).
Best