Hi all,
I have posted previously a topic asking for clarifications on why my forecasting code based on the outcome of an estimated DSGE model gives explodig results for versions of Dynare later that 4.4.3.
I have now found the issue…is the smoother! The smoothed series and shocks are completely different between verison 4.4.3 and version 4.5.6 and the one that doesnt work is the latest one! If I replace the smoothed series with the ones estimated with 4.4.3 the code works perfectly. If I don
t I get explosive forecasts!
Can anyone clarify if there is something wrong with the smoother in Dynare versions after 4.4.3 or if there is another explanation for what I obtain?
Thanks