diff --git a/doc/manual/source/the-model-file.rst b/doc/manual/source/the-model-file.rst index 2de866f5f..c9cd8bf91 100644 --- a/doc/manual/source/the-model-file.rst +++ b/doc/manual/source/the-model-file.rst @@ -6497,8 +6497,8 @@ observed variables. Do not use the kalman filter to evaluate the likelihood, but instead evaluate the conditional likelihood, based on the first order reduced - form of the model, by assuming that the initial state vector is 0 for all - the endogenous variables. This approach requires that: + form of the model, by assuming that the initial state vector is at its + steady state. This approach requires that: 1. The number of structural innovations be equal to the number of observed variables.