When working with large-scale models or numerous small models, there can be a temptation to rely on default settings in proprietary software to derive solutions to the model. In this paper we show that, for the solution of non-linear dynamic models, this approach can be inappropriate....

In this paper, we consider a macroeconomic model with alternative linear and non-linear specifications. One version of the model, expressed in levels, is highly non-linear and has at least two steady-state equilibria. One of these equilibria has an economically meaningful interpretation, while...

This paper investigates the properties of dynamic solutions that have been derived using the well-known reverse-shooting and forwardshooting algorithms. Given an arbitrary large-scale model about which we have limited information, how successful are the algorithms likely to be in solving this...