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Reverse Shooting Made Easy: Automating the Search for the Global Nonlinear Saddle Path

Manoj Atolia
Florida State University - Department of Economics

Edward F. Buffie
Indiana University Bloomington - Department of Economics

January 1, 2009

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.

Keywords: Reverse shooting, global saddle path, distance mapping

JEL Classifications: C61, C63, E00

Working Paper Series

Date posted: October 16, 2008 ; Last revised: February 26, 2009

Suggested Citation

Atolia, Manoj and Buffie, Edward F., Reverse Shooting Made Easy: Automating the Search for the Global Nonlinear Saddle Path (January 1, 2009). Available at SSRN: http://ssrn.com/abstract=1285052

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Contact Information

Manoj Atolia (Contact Author) Florida State University - Department of Economics ( email ) Tallahassee, FL 30306-2180 United States +1.850.644.7088 (Phone) +1.850.644.4535 (Fax) HOME PAGE: http://mailer.fsu.edu/~matolia/
Edward F. Buffie Indiana University Bloomington - Department of Economics ( email ) Wylie Hall 105 107 S. Indiana Avenue Bloomington, IN 47405-7000 United States 812-855-4848 (Phone)