Hi,

I have a rather general question concerning writing a Dynare code. One possibility is just to write the equations of the model and specify the variables as “exp(x)” so as to get linear approximation of the logs of the variables. On the other hand, it is possible to write down in Dynare a log-linearazed model where all variables are expressed as percentage deviations from steady-state.

I’m wondering what is the reasoning when deciding which approach to use (in different papers/codes I saw both approaches). So why would it be, for example, preferable to log-linearize a model by hand before writing the code?

And generally, if one would try to rewrite a code of log-linearized model in a code of non-linear model with “exp(x)”, should it give exactly the same results?

I would be grateful if somebody could explain this issue to me!