Uhlig, Harald - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2006
solution method, loglinearization,
dynamic stochastic general equilibrium methods, recursive law of motion. JEL codes: C60 … difference between linearization
and log-linearization is that entries in x
t
denote the original variable (e.g. consumption c …. There is no need to choose either linearization or log-linearization for all entries
in x
t
. One may choose to linearize …