Log-Linearizing Around the Steady State: A Guide with Examples
18 Pages Posted: 14 Dec 2006
Date Written: December 2, 2006
The paper discusses for the beginning graduate student the mathematical background and several approaches to converting nonlinear equations into log-deviations from the steady state format. Guidance is provided on when to use which approach. Pertinent examples with detailed derivations illustrate the material.
Keywords: Log-linearization, log-deviations from the steady state, examples
JEL Classification: C60, C65
Suggested Citation: Suggested Citation