Dear Dynare users and friends,

We are pleased to announce the release of Dynare 4.5.7.

This is a bugfix release.

The Windows and MacOS packages are already available for download at:

https://www.dynare.org/download/

The GNU/Linux packages (for Debian and Ubuntu LTS) should follow soon.

This release is compatible with MATLAB versions 7.5 (R2007b) to 9.4 (R2018b) and with GNU Octave version 4.4.1

Here is a list of the problems identified in version 4.5.6 and that have been fixed in version 4.5.7:

- The mex-file conducting the QZ decomposition erroneously applied the `qz_criterium` to the square absolute value of eigenvalues instead of the absolute value itself (as done in mjdgges.m and the AIM solver).

- In pathological cases, `mode_compute=5` (`newrat`) might enter an infinite loop.

- `discretionary_policy` might erroneously state that the derivatives of the objective function are non-zero if there are NaN present.

- Dynare++, when conducting the QZ decomposition, erroneously applied the `qz_criterium` to the square absolute value of eigenvalues instead of the absolute value itself.

- Dynare++: IRFs were incorrectly computed.

- `dynare_sensitivity` did not display the figures of `irf_calibration`, it only stored them on the disk.

- Scatter plots generated by `dynare_sensitivity` did not correctly display LaTeX names.

- Parameter updating via steady state files did not correctly work in case of using [static]/[dynamic] equation tags.

- Memory leaks in `k_order_pert` (used by higher order stochastic simulations) could lead to crashes.

- Predetermined variables were not properly set when used in model local variables.

- Posterior moment computation did not correctly update the covariance matrix of exogenous shocks during posterior sampling.

- Dynare was crashing with a cryptic message if a non estimated parameter was initialized in the `estimated_params_init` block.

- The `forecast` command crashed if the model was declared as linear and contained deterministic exogenous variables.

- Block decomposition is broken when used in conjunction with `varexo_det`.

- The model was not correctly specified when `identification` was run without another stochastic command in the `.mod` file (e.g. `estimation`, `stoch_simul`, etc.).

- Realtime annualized shock decompositions added the wrong steady state value.

- `mh_recover` option crashed when using slice sampler.

- x-axis values in plots of moment restrictions were wrong for autocovariances.

On behalf of the Dynare Team, Stéphane.