diff --git a/matlab/dr_block.m b/matlab/dr_block.m
index d5689682920c6e839670e7763ba12eeb4d49d05f..d8030be043930108a4f8928e6ef84d60741ac3b7 100644
--- a/matlab/dr_block.m
+++ b/matlab/dr_block.m
@@ -61,11 +61,18 @@ end
%verbose = options_.verbosity;
if options_.order > 1
error('2nd and 3rd order approximation not implemented with block option')
+else
+ if options_.loglinear
+ error('The loglinear option is not yet supported in first order approximation for a block decomposed model');
+ end
end
z = repmat(dr.ys,1,M_.maximum_lead + M_.maximum_lag + 1);
zx = repmat([oo_.exo_simul oo_.exo_det_simul],M_.maximum_lead + M_.maximum_lag + 1, 1);
-
+if isempty(zx)
+ zx = [repmat(oo_.exo_steady_state',M_.maximum_lead + M_.maximum_lag + 1,1) repmat(oo_.exo_det_steady_state',M_.maximum_lead + M_.maximum_lag + 1,1)];
+end
+
if ~isfield(M_,'block_structure')
error('Option ''block'' has not been specified')
end
diff --git a/matlab/dsge_likelihood.m b/matlab/dsge_likelihood.m
index 49a27a7eced310ce413288858773474c6ed778a8..ae9babbc24c3abd21517cec0d58853b9a51d978d 100644
--- a/matlab/dsge_likelihood.m
+++ b/matlab/dsge_likelihood.m
@@ -670,7 +670,7 @@ singularity_has_been_detected = false;
if ((kalman_algo==1) || (kalman_algo==3))% Multivariate Kalman Filter
if no_missing_data_flag && ~DynareOptions.occbin.likelihood.status
if DynareOptions.block
- LIK = block_kalman_filter(T,R,Q,H,Pstar,Y,start,Z,kalman_tol,riccati_tol, Model.nz_state_var, Model.n_diag, Model.nobs_non_statevar);
+ [LIK,lik] = block_kalman_filter(T,R,Q,H,Pstar,Y,start,Z,kalman_tol,riccati_tol, Model.nz_state_var, Model.n_diag, Model.nobs_non_statevar);
elseif DynareOptions.fast_kalman_filter
if diffuse_periods
%kalman_algo==3 requires no diffuse periods (stationary
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 6307b4ff8f5a940e9c4cddd8f144452de1ac4e17..b43d6aa78eca96d2da35d8836faf3ac1433a41a7 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -294,6 +294,8 @@ MODFILES = \
kalman/lik_init/fs2000_lik_init_3.mod \
kalman/lik_init/fs2000_lik_init_4.mod \
kalman/lik_init/fs2000_lik_init_5.mod \
+ kalman/block/fs2000.mod \
+ kalman/block/fs2000_missing_data.mod \
kalman_initial_state/fs2000_smoother_only_initial_state.mod \
kalman_initial_state/fs2000_ns_smoother_only_initial_state.mod \
kalman_initial_state/fs2000_kalman_initial.mod \
diff --git a/tests/kalman/block/fs2000.mod b/tests/kalman/block/fs2000.mod
new file mode 100644
index 0000000000000000000000000000000000000000..f434b22ffb5fd81a1513e8aa0d4130db7062c815
--- /dev/null
+++ b/tests/kalman/block/fs2000.mod
@@ -0,0 +1,84 @@
+// See fs2000.mod in the examples/ directory for details on the model
+
+var m P c e W R k d n l gy_obs gp_obs y dA;
+varexo e_a e_m;
+
+parameters alp bet gam mst rho psi del;
+
+alp = 0.33;
+bet = 0.99;
+gam = 0.003;
+mst = 1.011;
+rho = 0.7;
+psi = 0.787;
+del = 0.02;
+
+model(block);
+dA = exp(gam+e_a);
+log(m) = (1-rho)*log(mst) + rho*log(m(-1))+e_m;
+-P/(c(+1)*P(+1)*m)+bet*P(+1)*(alp*exp(-alp*(gam+log(e(+1))))*k^(alp-1)*n(+1)^(1-alp)+(1-del)*exp(-(gam+log(e(+1)))))/(c(+2)*P(+2)*m(+1))=0;
+W = l/n;
+-(psi/(1-psi))*(c*P/(1-n))+l/n = 0;
+R = P*(1-alp)*exp(-alp*(gam+e_a))*k(-1)^alp*n^(-alp)/W;
+1/(c*P)-bet*P*(1-alp)*exp(-alp*(gam+e_a))*k(-1)^alp*n^(1-alp)/(m*l*c(+1)*P(+1)) = 0;
+c+k = exp(-alp*(gam+e_a))*k(-1)^alp*n^(1-alp)+(1-del)*exp(-(gam+e_a))*k(-1);
+P*c = m;
+m-1+d = l;
+e = exp(e_a);
+y = k(-1)^alp*n^(1-alp)*exp(-alp*(gam+e_a));
+gy_obs = dA*y/y(-1);
+gp_obs = (P/P(-1))*m(-1)/dA;
+end;
+
+steady_state_model;
+ dA = exp(gam);
+ gst = 1/dA;
+ m = mst;
+ khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
+ xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
+ nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
+ n = xist/(nust+xist);
+ P = xist + nust;
+ k = khst*n;
+
+ l = psi*mst*n/( (1-psi)*(1-n) );
+ c = mst/P;
+ d = l - mst + 1;
+ y = k^alp*n^(1-alp)*gst^alp;
+ R = mst/bet;
+ W = l/n;
+ ist = y-c;
+ q = 1 - d;
+
+ e = 1;
+
+ gp_obs = m/dA;
+ gy_obs = dA;
+end;
+
+shocks;
+var e_a; stderr 0.014;
+var e_m; stderr 0.005;
+end;
+
+steady;
+
+check;
+
+estimated_params;
+alp, beta_pdf, 0.356, 0.02;
+bet, beta_pdf, 0.993, 0.002;
+gam, normal_pdf, 0.0085, 0.003;
+mst, normal_pdf, 1.0002, 0.007;
+rho, beta_pdf, 0.129, 0.223;
+psi, beta_pdf, 0.65, 0.05;
+del, beta_pdf, 0.01, 0.005;
+stderr e_a, inv_gamma_pdf, 0.035449, inf;
+stderr e_m, inv_gamma_pdf, 0.008862, inf;
+end;
+
+varobs gp_obs gy_obs;
+
+options_.solve_tolf = 1e-12;
+
+estimation(order=1,datafile='../../fs2000/fsdat_simul',nobs=192,mh_replic=0,mh_nblocks=1,mh_jscale=0.8,consider_only_observed);
\ No newline at end of file
diff --git a/tests/kalman/block/fs2000_missing_data.mod b/tests/kalman/block/fs2000_missing_data.mod
new file mode 100644
index 0000000000000000000000000000000000000000..384106ec2dac235ab0d0f962ebbbe469f7709b60
--- /dev/null
+++ b/tests/kalman/block/fs2000_missing_data.mod
@@ -0,0 +1,83 @@
+// Tests kalman filter with missing observations
+
+var m P c e W R k d n l gy_obs gp_obs y dA;
+varexo e_a e_m;
+
+parameters alp bet gam mst rho psi del;
+
+alp = 0.33;
+bet = 0.99;
+gam = 0.003;
+mst = 1.011;
+rho = 0.7;
+psi = 0.787;
+del = 0.02;
+
+model(block);
+dA = exp(gam+e_a);
+log(m) = (1-rho)*log(mst) + rho*log(m(-1))+e_m;
+-P/(c(+1)*P(+1)*m)+bet*P(+1)*(alp*exp(-alp*(gam+log(e(+1))))*k^(alp-1)*n(+1)^(1-alp)+(1-del)*exp(-(gam+log(e(+1)))))/(c(+2)*P(+2)*m(+1))=0;
+W = l/n;
+-(psi/(1-psi))*(c*P/(1-n))+l/n = 0;
+R = P*(1-alp)*exp(-alp*(gam+e_a))*k(-1)^alp*n^(-alp)/W;
+1/(c*P)-bet*P*(1-alp)*exp(-alp*(gam+e_a))*k(-1)^alp*n^(1-alp)/(m*l*c(+1)*P(+1)) = 0;
+c+k = exp(-alp*(gam+e_a))*k(-1)^alp*n^(1-alp)+(1-del)*exp(-(gam+e_a))*k(-1);
+P*c = m;
+m-1+d = l;
+e = exp(e_a);
+y = k(-1)^alp*n^(1-alp)*exp(-alp*(gam+e_a));
+gy_obs = dA*y/y(-1);
+gp_obs = (P/P(-1))*m(-1)/dA;
+end;
+
+steady_state_model;
+ dA = exp(gam);
+ gst = 1/dA;
+ m = mst;
+ khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
+ xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
+ nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
+ n = xist/(nust+xist);
+ P = xist + nust;
+ k = khst*n;
+
+ l = psi*mst*n/( (1-psi)*(1-n) );
+ c = mst/P;
+ d = l - mst + 1;
+ y = k^alp*n^(1-alp)*gst^alp;
+ R = mst/bet;
+ W = l/n;
+ ist = y-c;
+ q = 1 - d;
+
+ e = 1;
+
+ gp_obs = m/dA;
+ gy_obs = dA;
+end;
+
+
+shocks;
+var e_a; stderr 0.014;
+var e_m; stderr 0.005;
+end;
+
+steady;
+
+check;
+
+estimated_params;
+alp, beta_pdf, 0.356, 0.02;
+bet, beta_pdf, 0.993, 0.002;
+gam, normal_pdf, 0.0085, 0.003;
+mst, normal_pdf, 1.0002, 0.007;
+rho, beta_pdf, 0.129, 0.223;
+psi, beta_pdf, 0.65, 0.05;
+del, beta_pdf, 0.01, 0.005;
+stderr e_a, inv_gamma_pdf, 0.035449, inf;
+stderr e_m, inv_gamma_pdf, 0.008862, inf;
+end;
+
+varobs gp_obs gy_obs;
+
+estimation(order=1, datafile='../../fs2000/fsdat_simul_missing_obs', nobs=192, mh_replic=0, mh_nblocks=1, mh_jscale=0.8);
\ No newline at end of file