I want to know more how dynare solves policy functions.
Chapter 7.3 in User Guide says, there are a series of algebraic trics to solve the policy functions(gy, gu) after first order Taylor expansion of necessary conditions, detailed in Michel Juillard’s presentation. The reference I found in the end of the User Guide is, Juillard, M. (1996): \Dynare : a program for the resolution and simulation
of dynamic models with forward variables through the use of a relaxation algorithm. Is this the one detailing the trics?
If not, where can I find the right answer? If so, I don’t see how this paper explains how dynare works. Because seems this paper relies on initial and terminal conditions, while I thought dynare solves time-irrespective models. Thanks!