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

50 Pages Posted: 16 Oct 2008 Last revised: 26 Feb 2009

See all articles by Manoj Atolia

Manoj Atolia

Florida State University - Department of Economics

Edward F. Buffie

Indiana University Bloomington - Department of Economics

Date Written: 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 Classification: C61, C63, E00

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: https://ssrn.com/abstract=1285052 or http://dx.doi.org/10.2139/ssrn.1285052

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)

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