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Reverse Shooting Made Easy: Solving for the Global Nonlinear Saddle Path

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Author Info
Manoj Atolia () (Department of Economics, Florida State University)
Edward F. Buffie () (Department of Economics, Indiana University)

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Abstract

We present the blueprints for a set of innovative reverse shooting algorithms that trap the global saddle path in systems with 2-4 state variables. The solution procedure is built around a new distance mapping and refined simplex algorithms. Since the algorithms are completely reliable and always work in the same way, we have been able to develop canned programs that solve for the global nonlinear saddle path in any model with 2-4 state variables. The programs are written in the spirit of plug and play: the user types in the equations of the model and then waits for the solution.

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Publisher Info
Paper provided by Department of Economics, Florida State University in its series Working Papers with number wp2009_01_01.

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Length: 47
Date of creation: Aug 2004
Date of revision: Jan 2009
Handle: RePEc:fsu:wpaper:wp2009_01_01

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Related research
Keywords: Reverse shooting; global saddle path; distance mapping;

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Find related papers by JEL classification:
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis

References listed on IDEAS
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  1. Manoj Atolia & Edward Buffie, 2009. "Smart Forward Shooting," Computational Economics, Springer, vol. 33(1), pages 1-30, February. [Downloadable!] (restricted)
    Other versions:
  2. Brunner, Martin & Strulik, Holger, 2002. "Solution of perfect foresight saddlepoint problems: a simple method and applications," Journal of Economic Dynamics and Control, Elsevier, vol. 26(5), pages 737-753, May. [Downloadable!] (restricted)
    Other versions:
  3. Mercenier, Jean & Michel, Philippe, 1994. "Discrete-Time Finite Horizon Appromixation of Infinite Horizon Optimization Problems with Steady-State Invariance," Econometrica, Econometric Society, vol. 62(3), pages 635-56, May. [Downloadable!] (restricted)
  4. Ric Herbert & Peter Stemp, 2003. "Exploiting Model Structure to Solve the Dynamics of a Macro Model," Computational Economics, Springer, vol. 21(3), pages 203-207, June. [Downloadable!] (restricted)
  5. Judd, Kenneth L., 2002. "The parametric path method: an alternative to Fair-Taylor and L-B-J for solving perfect foresight models," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1557-1583, August. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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