From 9ac3e7a582eb65c2d481bbba7fc5eee4593ccb8a Mon Sep 17 00:00:00 2001
From: Michel Juillard <michel.juillard@mjui.fr>
Date: Tue, 1 Nov 2011 18:23:12 +0100
Subject: [PATCH] fixing bug when estimating models with a steady state
 different from zero. Introduced in commit
 bd00dc11d8fdd969d91663bf635203351a11b36f

---
 matlab/dynare_estimation_1.m    |  7 -------
 matlab/dynare_estimation_init.m | 16 ++++++++++++++++
 2 files changed, 16 insertions(+), 7 deletions(-)

diff --git a/matlab/dynare_estimation_1.m b/matlab/dynare_estimation_1.m
index 7333fd7b6..576132a1a 100644
--- a/matlab/dynare_estimation_1.m
+++ b/matlab/dynare_estimation_1.m
@@ -72,13 +72,6 @@ if ~isempty(estim_params_)
     set_parameters(xparam1);
 end
 
-if all(abs(oo_.steady_state(bayestopt_.mfys))<1e-9)
-    options_.noconstant = 1;
-else
-    options_.noconstant = 0;
-end
-
-
 % compute sample moments if needed (bvar-dsge)
 if options_.dsge_var
     if dataset_.missing.state
diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index 9dc2ae568..8df351304 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -308,3 +308,19 @@ end
 dataset_ = initialize_dataset(options_.datafile,options_.varobs,options_.first_obs,options_.nobs,transformation,options_.prefilter,xls);
 
 options_.nobs = dataset_.info.ntobs;
+
+% setting noconstant option
+if options_.diffuse_filter
+    steadystate_check_flag = 0;
+else
+    steadystate_check_flag = 1;
+end
+
+oo_.steady_state = evaluate_steady_state(oo_.steady_state,M_,options_,oo_,steadystate_check_flag);
+if all(abs(oo_.steady_state(bayestopt_.mfys))<1e-9)
+    options_.noconstant = 1;
+else
+    options_.noconstant = 0;
+end
+
+