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Multiple Shooting in Rational Expectations Models

Econometrica 1982 50(5), 1329
Tht" note desc:,.-tb.. 8 ~n "I!:ort~h,.for t hl!-lIolut lon of ratlom.}""p"c;tHtlonJ' =de.1a with "addle.poiutIItabilLL y properties.The algorithm i:ll b .. :SIed 00 the ",e thod of "",!tlpl" "hootin!:, which il< wfd e ly u",,<1 to "olve 11Il'1tl",maticHlly s i mi14r problemG i n the physical sciences.Potentiol opplicatlon~ to e~onom1cs lndude mod .. l" "f c~ptL"l ~ccum"ht!rm>lnd v"lll" tI"n ."'."""y ""d gro~th ... "..:1"I."gerate determination .and m4cr occooomic octivity.In generol, whene~r on as~et pri'''' lncoTPor>l t ... " lnfo,.",,,Uon"hou t the future p>lth of It .. y v"ri"bl" ... ,001 .. e10n olgorlthmG of the t ype we consider 4Ie applic4ble.