Dear all, dynare_estimation_init.m in 4.2.5 currently reads if options_.prefilter == 1 if options_.missing_data bayestopt_.mean_varobs = zeros(n_varobs,1); for variable=1:n_varobs rdx = find(~isnan(rawdata(:,variable))); m = mean(rawdata(rdx,variable)); rawdata(rdx,variable) = rawdata(rdx,variable)-m; bayestopt_.mean_varobs(variable) = m; end else bayestopt_.mean_varobs = mean(rawdata,1)'; rawdata = rawdata-repmat(bayestopt_.mean_varobs',gend,1); end end % Transpose the dataset array. data = transpose(rawdata); Hence, rawdata is overwritten with the demeaned data. This leads to wrong smoother plots. The corresponding part should be: if options_.prefilter == 1 if options_.missing_data data=rawdata; bayestopt_.mean_varobs = zeros(n_varobs,1); for variable=1:n_varobs rdx = find(~isnan(rawdata(:,variable))); m = mean(rawdata(rdx,variable)); data(rdx,variable) = rawdata(rdx,variable)-m; bayestopt_.mean_varobs(variable) = m; end else bayestopt_.mean_varobs = mean(rawdata,1)'; data = rawdata-repmat(bayestopt_.mean_varobs',gend,1); end end % Transpose the dataset array. data = transpose(data); I tried to push a fix for cherrypicking to 4.2 but I am not sure I succeeded. Best, Johannes -------- Johannes Pfeifer Haußerstr. 29 72076 Tübingen Tel.: +49-(0)7071-6396184 Mobil: +49-(0)170-6936820 jpfeifer@gmx.de