A simple but powerful simulated certainty equivalent approximation method for dynamic stochastic problems

We introduce a novel simulated certainty equivalent approximation (SCEQ) method for solving dynamic stochastic problems. Our examples show that SCEQ can quickly solve high?dimensional finite? or infinite?horizon, stationary nonstationary problems with hundreds of state variables, wide space, and occasionally binding constraints. With the method, desktop computer will suffice large problems, but it also use parallel tools efficiently. The is simple, stable, utilize any solver, making suitable complex economic cannot be solved by other algorithms.