Matlab Implementation of the AIM Algorithm: A Beginner's Guide

Paolo Zagaglia

No 169, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: The Anderson-Moore algorithm provides a well-established solution method for forward-looking linear rational expectations models. It is widely used at the Federal Reserve Board for a variety of purposes, ranging from simulations of macroeconometric models to computations based on models of monetary policy. The aim of this paper is to support a wider use of the Anderson-Moore method by discussing the practical sides of its application. I describe the features of one of its Matlab implementations that is freely downloadable from the web. Experience shows that one is usually required to spend quite some time in order to fully understand how the available Matlab functions work. The úemphasis is on the structures that should be modified to tailor the programs to one's needs. I also present the application of the algorithm to Coenen and Wieland (2000)'s macromodel of the Euro area.

Keywords: algebraic methods; macroeconomic modelling; software (search for similar items in EconPapers)
JEL-codes: C63 C88 E17 (search for similar items in EconPapers)
Pages: 43
Date: 2002-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:169

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