Solving for the Global Nonlinear Saddlepath: Reverse Shooting vs. Approximation Methods
AbstractThe paper implements reverse shooting to solve for global nonlinear saddle path for optimal control problems with two state variables. It shows how to do reverse shooting. This will reduce entry barriers for researchers for whom this technique may be useful. For this purpose, user-friendly â€˜plug-and- playâ€™ programs are made available in public domain. These sample programs can be easily tailored to solve other problems as the search for the desired saddle path is done with very limited use of problem-specific information. The paper also compares the performance of existing approximation methods and finds their ranking in general depends on the nature of the problem, the variables that are of interest and the time horizon of interest
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Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number 336.
Date of creation: 11 Nov 2005
Date of revision:
Reverse Shooting; Global Nonlinear Saddlepath Solution;
Other versions of this item:
- Manoj Atolia & Edward F. Buffie, 2004. "Solving for the Global Nonlinear Saddlepath: Reverse Shooting vs. Approximation Methods," Working Papers wp2004_08_01, Department of Economics, Florida State University.
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-19 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alfonso Novales & Emilio Dominguez & Javier J. Perez & Jesus Ruiz, 1998. "Solving Non-linear Rational Expectations Models By Eigenvalue-Eigenvector Decompositions," QM&RBC Codes 124, Quantitative Macroeconomics & Real Business Cycles.
- Manoj Atolia, 2003. "Productivity-Enhancing Reforms, Private Capital Inflows, and Real Interest Rates in Africa," Working Papers wp2003_10_02, Department of Economics, Florida State University, revised Dec 2008.
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