Solving the dynamics of a representative agent macro-economic model Original Research Article

This paper describes two alternative approaches (modified reverse shooting and forward shooting) for solving the time-path of a representative agent model following an exogenous shock. In particular, reverse shooting is demonstrably better for solving part of the model but must be modified before it can be used to solve the full model with the least computational effort. On the other hand, an unmodified form of forward shooting can be used to solve both part and full model.