Perturbation Methods: Framework and Tools

Perturbation methods are the tool most frequently employed to solve dynamic general equilibrium models. Their popularity is due to the fact that they are easy to apply. Toolkit programmers can keep all the algorithm details hidden away from users. Due to their widespread use, Heer and Maußner examine perturbation methods in detail, over three chapters. The present chapter introduces readers to the perturbation approach and related issues, develops a general framework, and reviews the required tools.