Dear Dynare users,

We are pleased to announce the release of Dynare 4.2.3.

This is a bugfix release.

The Windows package is already available for download at the official Dynare website http://www.dynare.org. The Mac and Linux packages should follow soon.

All users are strongly encouraged to upgrade.

This release is compatible with MATLAB versions ranging from 7.0 (R14) to 7.13 (R2011b) and with GNU Octave versions ranging from 3.0 to 3.4.

Here is a non-exhaustive list of the problems identified in version 4.2.2 and that have been fixed in version 4.2.3:

* `steady_state_model' was broken for lags higher than 2

* `simult_.m' was not working correctly with `order=3' if `k_order_solver' had not been explicitly specified

* `stoch_simul' with `order=3' and without `periods' option was reporting dummy theoretical moments

* Under Octave, option `solve_algo=0' was causing crashes in `check' and `stoch_simul'

* Identification module was broken

* The test for singularity in the model reporting eigenvalues close to 0/0 was sometimes reporting false positives

* The `conditional_variance_decomposition' option was not working if one period index was 0. Now, Dynare reports an error if the periods are not strictly positive.

* Second order approximation was buggy if one variable was not present at the current period

On behalf of the Dynare Team,