Juillard, Michel <br/><br/>
Methods for Simulating Stochastic General Equilibrium Models 

 -  2008.<br/>							 
<br/><br/> 5 
<br/><br/> This paper presents the numerical methods commonly used today to solve dynamic stochastic general equilibrium (DSGE) models.We begin by introducing a canonical model of dynamic optimization, which is the crucial element in this approach.We then review value-function iteration, the projection method, the parameterized expectation approach (PEA), and the perturbation method. Linearization, a very popular method in the literature, is presented as a special case of the perturbation method.