Computational programming environments

This paper examines the issue of computational languages and environments as software tools for the construction and analysis of economic models. Computational languages are intermediate level software tools that fit between the conventional commercial programming languages (such as C++ and Java) and the higher level applications packages (such as specific econometric packages). They try to blend the advantages of both the higher level and lower level tools. They are aimed at technical computing including mathematical computation, data analysis, equation solving, and visualization. In many ways they can be consider as a step up from a spreadsheet. This paper examines these languages for use in the construction of economic models. Specifically, it examines the issue of whether such a language is the appropriate software tool for an economic modeler. It uses the computational language MATLAB together with a number of illustrative examples to examine the use of these software tools with dynamic economic models