From 63f500830546e86748f6652a3f5795303b9079cb Mon Sep 17 00:00:00 2001
From: michel <michel@ac1d8469-bf42-47a9-8791-bf33cf982152>
Date: Mon, 13 Oct 2008 20:08:13 +0000
Subject: [PATCH] v 4.0.2: simpler solution to problem with unobserved
 stochastic trends

git-svn-id: https://www.dynare.org/svn/dynare/dynare_v4@2149 ac1d8469-bf42-47a9-8791-bf33cf982152
---
 matlab/DsgeLikelihood.m |  6 +++---
 matlab/DsgeSmoother.m   | 34 +++++++++-------------------------
 2 files changed, 12 insertions(+), 28 deletions(-)

diff --git a/matlab/DsgeLikelihood.m b/matlab/DsgeLikelihood.m
index 00277d797..5c2940d23 100644
--- a/matlab/DsgeLikelihood.m
+++ b/matlab/DsgeLikelihood.m
@@ -241,17 +241,17 @@ function [fval,cost_flag,ys,trend_coeff,info] = DsgeLikelihood(xparam1,gend,data
       
       Z = QT(mf,:);
       R1 = QT'*R;
-      %      [u,s,v]=svd(Z*ST(:,1:nk),0);
+%      [u,s,v]=svd(Z*ST(:,1:nk),0);
       [QQ,RR,EE] = qr(Z*ST(:,1:nk),0);
       k = find(abs(diag(RR)) < 1e-8);
       if length(k) > 0
-          k1 = find(ismember(EE,k)); %find(EE(:,k));
+          k1 = EE(:,k);
 %	  [junk,k1] = max(abs(v(:,k)));
 	  dd =ones(nk,1);
 	  dd(k1) = zeros(length(k1),1);
 	  Pinf(1:nk,1:nk) = diag(dd);
       end
-	
+
   end
   %------------------------------------------------------------------------------
   % 4. Likelihood evaluation
diff --git a/matlab/DsgeSmoother.m b/matlab/DsgeSmoother.m
index 0cfb5b232..cc8b050ff 100644
--- a/matlab/DsgeSmoother.m
+++ b/matlab/DsgeSmoother.m
@@ -175,16 +175,15 @@ function [alphahat,etahat,epsilonhat,ahat,SteadyState,trend_coeff,aK,T,R,P,PK,d,
       
       Z = QT(mf,:);
       R1 = QT'*R;
-      %      [u,s,v]=svd(Z*ST(:,1:nk),0);
-      [QQ,RR,EE] = qr(Z*ST(:,1:nk),0);
-      k = find(abs(diag(RR)) < 1e-8);
-      if length(k) > 0
-          k1 = find(ismember(EE,k)); %find(EE(:,k));
-%	  [junk,k1] = max(abs(v(:,k)));
-	  dd =ones(nk,1);
-	  dd(k1) = zeros(length(k1),1);
-	  Pinf(1:nk,1:nk) = diag(dd);
-      end
+% $$$       [u,s,v]=svd(Z*ST(:,1:nk),0);
+% $$$       k = find(abs(diag(s)) < 1e-8);
+% $$$       if length(k) > 0
+% $$$ 	  [junk,k1] = max(abs(v(:,k)));
+% $$$ 	  dd =ones(nk,1);
+% $$$ 	  dd(k1) = zeros(length(k1),1);
+% $$$ 	  Pinf(1:nk,1:nk) = diag(dd);
+% $$$       end
+      Pinf(1:nk,1:nk) = eye(nk);
   end
   % -----------------------------------------------------------------------------
   %  4. Kalman smoother
@@ -282,18 +281,3 @@ function [alphahat,etahat,epsilonhat,ahat,SteadyState,trend_coeff,aK,T,R,P,PK,d,
           end
       end
   end
-
-aE=T*alphahat;
-global ss_
-ss_.T=T;
-ss_.R=R;
-ss_.a=alphahat(:,end);
-ss_.a1=alphahat(:,1);
-ss_.ss=SteadyState(oo_.dr.order_var);
-for j= (length(ss_.ss)+1):length(T),
-    ss_.ss(j)=ss_.ss(find(T(j,:)));
-end
-ss_.etahat=etahat;
-% ss_.af=af;
-ss_.aE=aE;
-