Chapter 7. Numerical Methods for Large Scale Dynamic Economic Models We survey numerical methods that are tractable in dynamic economic models with a finite large number of continuous state variables. (Examples of such models are new Keynesian models life cycle models heterogeneous agents models asset pricing models multisector models multicountry models and climate change models.) First we describe the ingredients that help us to reduce the cost of global solution methods. These are efficient nonproduct techniques for interpolating and approximating functions (Smolyak stochastic simulation and ε distinguishable set grids) accurate low cost monomial integration formulas derivative free solvers and numerically stable regression methods. Second we discuss endogenous grid and envelope condition methods that reduce the cost and increase accuracy of value function iteration. Third we show precomputation techniques that construct solution manifolds for some models’ variables outside the main iterative cycle. Fourth we review techniques that increase the accuracy of perturbation methods: a change of variables and a hybrid of local and global solutions. Finally we show examples of parallel computation using multiple CPUs and GPUs including applications on a supercomputer. We illustrate the performance of the surveyed methods using a multiagent model. Many codes are publicly available.