Can I read Log-Linearization in Macroeconomics on EtoBox?
Log-Linearization in Macroeconomics by Amil Musovic is a document available to read on EtoBox.
What is Log-Linearization in Macroeconomics about?
1) The document discusses quantitative macroeconomics and log-linearization, which is used to approximate nonlinear dynamic models with linear equations. 2) It explains how to take the log of a variable and its deviation from the steady state. 3) The document then works through log-linearizing the key equations in a real business cycle model, including the Euler equation and resource constraint. This involves taking a Taylor approximation of logarithmic functions and separating steady state from deviation
- Author
- Amil Musovic
- Language
- EN