%options_.ms.log_var = [ ]; % subset of "options_.ms.vlist. Variables in log level so that differences are in **monthly** growth, unlike R and U which are in annual percent (divided by 100 already).
options_.ms.percent_var=[1:size(options_.varobs,1)];% subset of "options_.ms.vlist"
%options_.ms.restriction_fname='ftd_upperchol3v'; %Only used by msstart2.m.
ylab=options_.ms.varlist;
xlab=options_.ms.varlist;
%----------------
nvar=length(options_.ms.vlist);% number of endogenous variables
nlogeno=length(options_.ms.log_var)% number of endogenous variables in options_.ms.log_var
npereno=length(options_.ms.percent_var)% number of endogenous variables in options_.ms.percent_var
if(nvar~=(nlogeno+npereno))
disp(' ')
warning('Check xlab, nlogeno or npereno to make sure of endogenous variables in options_.ms.vlist')
disp('Press ctrl-c to abort')
return
elseif(nvar==length(options_.ms.vlist))
nexo=1;% only constants as an exogenous variable. The default setting.
elseif(nvar<length(options_.ms.vlist))
nexo=length(options_.ms.vlist)-nvar+1;
else
disp(' ')
warning('Make sure there are only nvar endogenous variables in options_.ms.vlist')
disp('Press ctrl-c to abort')
return
end
%------- A specific sample is considered for estimation -------
%options_.ms.real_pseudo_forecast = 0; % 1: options_.ms.real_pseudo_forecast forecasts; 0: real time forecasts
%options_.ms.bayesian_prior = 1; % 1: Bayesian prior; 0: no prior
indxDummy=options_.ms.bayesian_prior;% 1: add dummy observations to the data; 0: no dummy added.
%options_.ms.dummy_obs = 0; % No dummy observations for xtx, phi, fss, xdatae, etc. Dummy observations are used as an explicit prior in fn_rnrprior_covres_dobs.m.
%if indxDummy
% options_.ms.dummy_obs=nvar+1; % number of dummy observations
%else
% options_.ms.dummy_obs=0; % no dummy observations
%end
%=== The following mu is effective only if options_.ms.bayesian_prior==1.
mu=zeros(6,1);% hyperparameters
mu=zeros(6,1);% hyperparameters
mu(1)=0.57;
mu(2)=0.13;
mu(3)=0.1;
mu(4)=1.5;%1.4 or 1.5, faster decay, produces much better inflation forecast.
mu(5)=5;%10;
mu(6)=5;%10;
% mu(1): overall tightness and also for A0;
% mu(2): relative tightness for A+;
% mu(3): relative tightness for the constant term;
% mu(4): tightness on lag decay; (1)
% mu(5): weight on nvar sums of coeffs dummy observations (unit roots);
% mu(6): weight on single dummy initial observation including constant
% (cointegration, unit roots, and stationarity);
%
%
hpmsmd=[0.0;0.0];
indxmsmdeqn=[0;0;0;0];%This option disenable using this in fn_rnrprior_covres_dobs.m
tdf=3;% degrees of freedom for t-dist for initial draw of the MC loop