Exploiting Model Structure to Solve the Dynamics of a Macro Model
AbstractThis paper considers alternative approaches to solving the time-path of a representative agent model following an exogenous shock. The model has a number of important dynamic properties that are both common to a wide range of economic models and have important computational implications for solving the model. The paper compares the alternative approaches on a computational basis and shows that the best approach to solving the model is obtained by fully exploiting the model structure in a modified reverse shooting algorithm.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 266.
Date of creation: 2000
Date of revision:
Representative agent models; shooting methods; MATLAB;
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Cowles Foundation Discussion Papers
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