Dear Dynare users,

We are pleased to announce the release of Dynare 4.2.4.

This is a bugfix release. It comes only a few days after the previous release, because version 4.2.3 was affected by a critical bug (see below).

The Windows package for the new release 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, especially those who have installed the buggy 4.2.3 release.

The new 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 the list of the problems identified in version 4.2.3 and that have been fixed in version 4.2.4:

* Second order approximation was broken for most models, giving incorrect results (this problem only affects version 4.2.3, not previous versions)

* Bayesian priors with inverse gamma distribution and very small variances were giving incorrect results in some cases

* The `model_diagnostics' command was broken

On behalf of the Dynare team,