Taylor projection is a numerical method for solving dynamic general equilibrium models. It is implemented by this Matlab toolbox and described in detail in this paper. The toolbox contains sample codes for the following models:
1. Real business cycle model;
2. Epstein-Zin preferences;
3. RBC model with Markov-switching parameters;
4. Models with rare disasters.
5. All the models in Fernandez-Villaverde and Levintal (QE 2018).
These slides provide further details.
All the material is explained in the following user guide: Taylor Projection - User Guide, October 2018.
I am currently working to extend the algorithm to models with occasionally binding constraints, continuous-time models and heterogeneous-agent models. Codes and documentation will be posted soon.
Acknowledgement: This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No. 746653; and from the United States-Israel Binational Science Foundation (BSF), Jerusalem, Israel.