Dear all, I have two issues with conditional_variance_decomposition. 1. The option conditional_variance_decomposition in stoch_simul only triggers the decomposition, if theoretical moments are requested, i.e. periods=0. I guess this makes sense as the decomposition is based on the state-space form, which is a theoretical concept. However, we never provide a warning that no variance decomposition will be performed nor do we document the requirement in the manual. 2. Even if one specifies order=2 (with periods=0), Dynare still outputs a variance_decomposition. If I understand it correctly, I am not sure this is a good idea as the decomposition is based on the first order state-space system. We should either shut off this feature for order=2 or at least provide an explicit warning that the decomposition is only for first order although a higher order approximation was used. Regards, Johannes -------- Johannes Pfeifer Haußerstr. 29 72076 Tübingen Tel.: +49-(0)7071-6396184 Mobil: +49-(0)170-6936820 jpfeifer@gmx.de