This paper shows how a forward-shooting algorithm can be easily implemented using the Matlab programming language. In the paper we develop and implement a forward-shooting numerical algorithm for computing the dynamics of a small representative agent macroeconomic model when subjected to an...

Two common properties of macroeconomic models are saddle-path instability and the existence of non-linearities. Under these circumstances, a common approach is to make analysis more tractable by linearising the model in the neighbourhood of an appropriate steady-state. The linearised model is...

This paper is concerned with the development of computationally efficient algorithms for the solution of the dynamics of macroeconomic models. The paper focuses on a particular continuous-time macroeconomic model. In the paper we exploit the model structure to improve the efficiency of solving...

This paper examines the issue of modelling languages as software tools for the construction and analysis of economic models. Modelling languages are intermediate level software tools that fit between the conventional commercial programming languages (such as C ++ and Java) and the higher level...

This 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...

This paper presents an approach for assessing the time taken by the well known reverse-shooting and forward-shooting algorithms to solve large-scale macroeconomic models characterized by saddle-path instability. We focus on a range of investment models with multi-dimensional specifications of...

When working with large-scale models or numerous small models, there can be a temptation to rely on default settings in proprietary software to derive solutions to the model. In this paper we show that, for the solution of non-linear dynamic models, this approach can be inappropriate....

The property of saddle-path instability often arises in economic models derived from optimizing behavior by individual agents. In the case when underlying functional forms are nonlinear, it is likely that the stable and unstable arms defining the saddle-path dynamics will also have nonlinear...

In this paper, we consider a macroeconomic model with alternative linear and non-linear specifications. One version of the model, expressed in levels, is highly non-linear and has at least two steady-state equilibria. One of these equilibria has an economically meaningful interpretation, while...