Shooting algorithm / asymptotics

Dynare help (legacy posts)
1

Hey Johannes!

I was thinking about how Dynare could play a role in implementing transition dynamics in models with unbalanced growth. Are you aware of any ways to trick dynare into solving a problem where, say, there’s balanced growth in the long “long” run, but unbalanced growth in the short run? My impression is that one would want to make use of the initval endval block sections. An alternative is using dynare as part of a shooting algorithm. I looked for prior posts about this topic, but found none.

Any thoughts?

2

If there exist a steady state (or balanced growth) in the long, long run and that it can be determined independently of the transition dynamics, then you can use Dynare as it is.

I think it is very difficult to discuss “unbalanced” growth in abstract. Do you have a model in mind?

Best,

3

Hi Michel,

Pleasure to see your reply! I will follow up with you via email since the instance I have in mind is indeed quite concrete based on a working paper of mine.