function global_initialization()
%function global_initialization()
% initializes global variables and options for DYNARE
%
% INPUTS
%    none
%
% OUTPUTS
%    none
%
% SPECIAL REQUIREMENTS
%    none

% Copyright (C) 2003-2008 Dynare Team
%
% This file is part of Dynare.
%
% Dynare is free software: you can redistribute it and/or modify
% it under the terms of the GNU General Public License as published by
% the Free Software Foundation, either version 3 of the License, or
% (at your option) any later version.
%
% Dynare is distributed in the hope that it will be useful,
% but WITHOUT ANY WARRANTY; without even the implied warranty of
% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
% GNU General Public License for more details.
%
% You should have received a copy of the GNU General Public License
% along with Dynare.  If not, see <http://www.gnu.org/licenses/>.

  global oo_ M_ options_

  options_.terminal_condition = 0;
  options_.rplottype = 0;
  options_.smpl = 0;
  options_.dynatol = 0.00001;
  options_.maxit_ = 10;
  options_.slowc = 1;
  options_.timing = 0;
  options_.gstep = 1e-2;
  options_.scalv = 1;
  options_.debug = 0;
  options_.initval_file = 0;
  options_.Schur_vec_tol = 1e-11; % used to find nonstationary variables
                                  % in Schur decomposition of the
                                  % transition matrix
  options_.qz_criterium = 1.000001;
  options_.lyapunov_complex_threshold = 1e-15;
  options_.solve_tolf = eps^(1/3);
  options_.solve_tolx = eps^(2/3);
  options_.solve_maxit = 500;
  options_.deterministic_simulation_initialization = 0;

  % steady state file
  if exist([M_.fname '_steadystate.m'],'file')
    options_.steadystate_flag = 1;
  else
    options_.steadystate_flag = 0;
  end
  options_.steadystate_partial = [];

  % subset of the estimated deep parameters
  options_.ParamSubSet = 'None';

  % bvar-dsge
  options_.bvar_dsge = 0;
  options_.varlag = 4;

  % Optimization algorithm [6] gmhmaxlik
  options_.Opt6Iter = 2;
  options_.Opt6Numb = 5000;

  % Graphics
  options_.graphics.nrows = 3;
  options_.graphics.ncols = 3;
  options_.graphics.line_types = {'b-'};
  options_.graphics.line_width = 1;
  options_.nograph = 0;
  options_.XTick = [];
  options_.XTickLabel = [];

  % IRFs & other stoch_simul output
  options_.irf = 40;
  options_.relative_irf = 0;
  options_.ar = 5;
  options_.simul_seed = [];
  options_.hp_filter = 0;
  options_.hp_ngrid = 512;
  options_.nomoments = 0;
  options_.nocorr = 0;
  options_.periods = 0;
  options_.noprint = 0;
  options_.SpectralDensity = 0;

  % TeX output
  options_.TeX = 0;

  % Exel
  options_.xls_sheet = '';
  options_.xls_range = '';

  % Prior draws
  options_.forecast = 0;

  % Model
  options_.linear = 0;

  % Deterministic simulation
  options_.stack_solve_algo = 0;
  options_.markowitz = 0.5;
  options_.minimal_solving_periods = 1;
  
  % Solution
  options_.order = 2;
  options_.solve_algo = 2;
  options_.linear = 0;
  options_.replic = 50;
  options_.drop = 100;
  % if mjdgges.dll (or .mexw32 or ....) doesn't exist, matlab/qz is added to the path. 
  % There exists now qz/mjdgges.m that contains the calls to the old Sims code 
  % Hence, if mjdgges.m is visible exist(...)==2, 
  % this means that the DLL isn't avaiable and use_qzdiv is set to 1
  if exist('mjdgges')==2
      options_.use_qzdiv = 1;
  else
      options_.use_qzdiv = 0;
  end
  options_.aim_solver = 0; % i.e. by default do not use G.Anderson's AIM solver, use mjdgges instead
  options_.k_order_solver=0; % by default do not use k_order_perturbation but mjdgges
  options_.partial_information = 0;
  options_.conditional_variance_decomposition = [];
  
  % Ramsey policy
  options_.planner_discount = 1.0;
  options_.ramsey_policy = 0;
  options_.timeless = 0;
    
  % estimation
  options_.Harvey_scale_factor = 10;
  options_.MaxNumberOfBytes = 1e6;
  options_.MaximumNumberOfMegaBytes = 111;
  options_.PosteriorSampleSize = 1000;
  options_.bayesian_irf = 0;
  options_.bayesian_th_moments = 0;
  options_.diffuse_d = [];
  options_.diffuse_filter = 0;
  options_.filter_step_ahead = [];
  options_.filtered_vars = 0;
  options_.first_obs = 1;
  options_.kalman_algo = 0;
  options_.kalman_tol = 1e-12;
  options_.riccati_tol = 1e-6;
  options_.lik_algo = 1;
  options_.lik_init = 1;
  options_.load_mh_file = 0;
  options_.logdata = 0;
  options_.loglinear = 0;
  options_.mh_conf_sig = 0.90;
  options_.prior_interval = 0.90;
  options_.mh_drop = 0.5;
  options_.mh_jscale = 0.2;
  options_.mh_init_scale = 2*options_.mh_jscale;
  options_.mh_mode = 1;
  options_.mh_nblck = 2;
  options_.mh_recover = 0;
  options_.mh_replic = 20000;
  options_.mode_check = 0;
  options_.mode_check_nolik = 0;
  options_.mode_compute = 4;
  options_.mode_file = '';
  options_.moments_varendo = 0;
  options_.nk = 1;
  options_.noconstant = 0;
  options_.nodiagnostic = 0;
  options_.posterior_mode_estimation = 1;
  options_.prefilter = 0;
  options_.presample = 0;
  options_.prior_trunc = 1e-10;
  options_.smoother = 0;
  options_.student_degrees_of_freedom = 3;
  options_.subdraws = [];
  options_.unit_root_vars = [];
  options_.use_mh_covariance_matrix = 0;
  options_.gradient_method = 2;
  options_.posterior_sampling_method = 'random_walk_metropolis_hastings';
  options_.proposal_distribution = 'rand_multivariate_normal';
  options_.student_degrees_of_freedom = 3;
  options_.trace_plot_ma = 200;
  options_.mh_autocorrelation_function_size = 30;
  options_.plot_priors = 1;
  options_.cova_compute = 1;
  options_.parallel = 0;
  options_.number_of_grid_points_for_kde = 2^9;
  quarter = 1;
  years = [1 2 3 4 5 10 20 30 40 50];
  options_.conditional_variance_decomposition_dates = zeros(1,length(years));
  for i=1:length(years)
      options_.conditional_variance_decomposition_dates(i) = ...
          (years(i)-1)*4+quarter;
  end
  % Misc
  options_.conf_sig = 0.6;
  oo_.exo_simul = [];
  oo_.endo_simul = [];
  oo_.dr = [];
  oo_.exo_steady_state = [];
  oo_.exo_det_steady_state = [];
  oo_.exo_det_simul = [];

  M_.params = [];
  
  % Variance matrix for measurement errors
  M_.H = 0;

  % BVAR
  M_.bvar = [];

  % homotopy
  options_.homotopy_mode = 0;
  options_.homotopy_steps = 1;

  % prior analysis
  options_.prior_mc = 20000;
  options_.prior_analysis_endo_var_list = [];
  
  % did model undergo block decomposition + minimum feedback set computation ?
  options_.block = 0;

  % model evaluated using a compiled MEX
  options_.use_dll = 0;
  
  % model evaluated using bytecode.dll
  options_.bytecode = 0;
  
  % SWZ SBVAR
  options_.ms.freq = 1;
  options_.ms.initial_subperiod = 1;
  options_.ms.final_subperiod=4;
  options_.ms.log_var = [ ];
  options_.ms.forecast = 1;
  options_.ms.nlags = 1;
  options_.ms.cross_restrictions = 0;
  options_.ms.contemp_reduced_form = 0;
  options_.ms.real_pseudo_forecast = 0;
  options_.ms.bayesian_prior = 1;
  options_.ms.dummy_obs = 0;
  options_.ms.ncsk = 0;
  options_.ms.nstd = 6;
  options_.ms.ninv = 1000;
  options_.ms.indxparr = 1;
  options_.ms.indxovr = 0;
  options_.ms.aband = 1;
  options_.ms.indxap = 1;
  options_.ms.apband = 1;
  options_.ms.indximf = 1;
  options_.ms.imfband = 1;
  options_.ms.indxfore = 0;
  options_.ms.foreband = 0;
  options_.ms.indxgforhat = 1;
  options_.ms.indxgimfhat = 1;
  options_.ms.indxestima = 1;
  options_.ms.indxgdls = 1;
  options_.ms.cms =0;
  options_.ms.ncms = 0;
  options_.ms.eq_cms = 1;
  options_.ms.cnum = 0;
  options_.ms.banact = 1;
  options_.ms.nstates = 2;
  options_.ms.indxscalesstates = 0;
  options_.ms.alpha = 1.0;
  options_.ms.beta = 1.0;
  options_.ms.gsig2_lmd = 50^2;
  options_.ms.gsig2_lmdm = 50^2;
  options_.ms.q_diag = 0.85;
  options_.ms.flat_prior = 0;
  options_.ms.create_initialization_file = 1;
  options_.ms.estimate_msmodel = 1;
  options_.ms.compute_mdd = 1;
  options_.ms.compute_probabilities = 1;
  options_.ms.print_draws = 1;
  options_.ms.n_draws=1000;
  options_.ms.thinning_factor=1;
  options_.ms.proposal_draws = 100000;