diff --git a/doc/dynare.texi b/doc/dynare.texi
index ed4506b7a78124534dfed09f445aae048a98115e..87578c10012debf8281bbb2740e2a7fa92948ba8 100644
--- a/doc/dynare.texi
+++ b/doc/dynare.texi
@@ -4609,7 +4609,11 @@ Default value is @code{1}. For advanced use only.
 For internal use and testing only.
 
 @item conf_sig = @var{DOUBLE}
-@xref{conf_sig}.
+Confidence interval used for classical forecasting after estimation. See @xref{conf_sig}.
+
+@item mh_conf_sig = @var{DOUBLE}
+@anchor{mh_conf_sig} 
+Confidence/HPD interval used for the computation of prior and  posterior statistics like: parameter distributions, prior/posterior moments, conditional variance decomposition, impulse response functions, Bayesian forecasting. Default: @code{0.9} 
 
 @item mh_replic = @var{INTEGER}
 @anchor{mh_replic} Number of replications for Metropolis-Hastings
diff --git a/preprocessor/DynareBison.yy b/preprocessor/DynareBison.yy
index aab4a95a1171546de912eee96284a1e52488427d..3ce406b7836a226cfcbfe14b8e5a7780fc927eb6 100644
--- a/preprocessor/DynareBison.yy
+++ b/preprocessor/DynareBison.yy
@@ -104,7 +104,7 @@ class ParsingDriver;
 %token KALMAN_ALGO KALMAN_TOL SUBSAMPLES OPTIONS TOLF
 %token LAPLACE LIK_ALGO LIK_INIT LINEAR LOAD_IDENT_FILES LOAD_MH_FILE LOAD_PARAMS_AND_STEADY_STATE LOGLINEAR LOGDATA LYAPUNOV
 %token LYAPUNOV_FIXED_POINT_TOL LYAPUNOV_DOUBLING_TOL LYAPUNOV_SQUARE_ROOT_SOLVER_TOL LOG_DEFLATOR LOG_TREND_VAR LOG_GROWTH_FACTOR MARKOWITZ MARGINAL_DENSITY MAX MAXIT
-%token MFS MH_DROP MH_INIT_SCALE MH_JSCALE MH_MODE MH_NBLOCKS MH_REPLIC MH_RECOVER POSTERIOR_MAX_SUBSAMPLE_DRAWS MIN MINIMAL_SOLVING_PERIODS
+%token MFS MH_CONF_SIG MH_DROP MH_INIT_SCALE MH_JSCALE MH_MODE MH_NBLOCKS MH_REPLIC MH_RECOVER POSTERIOR_MAX_SUBSAMPLE_DRAWS MIN MINIMAL_SOLVING_PERIODS
 %token MODE_CHECK MODE_CHECK_NEIGHBOURHOOD_SIZE MODE_CHECK_SYMMETRIC_PLOTS MODE_CHECK_NUMBER_OF_POINTS MODE_COMPUTE MODE_FILE MODEL MODEL_COMPARISON MODEL_INFO MSHOCKS ABS SIGN
 %token MODEL_DIAGNOSTICS MODIFIEDHARMONICMEAN MOMENTS_VARENDO DIFFUSE_FILTER SUB_DRAWS TAPER_STEPS GEWEKE_INTERVAL MCMC_JUMPING_COVARIANCE MOMENT_CALIBRATION
 %token <string_val> NAME
@@ -1561,6 +1561,7 @@ estimation_options : o_datafile
                    | o_nodisplay
                    | o_graph_format
                    | o_conf_sig
+                   | o_mh_conf_sig
                    | o_mh_replic
                    | o_mh_drop
                    | o_mh_jscale
@@ -2175,6 +2176,7 @@ dynare_sensitivity_option : o_gsa_identification
                           | o_nodisplay
                           | o_graph_format
                           | o_conf_sig
+                          | o_mh_conf_sig
                           | o_loglinear
                           | o_mode_file
                           | o_load_ident_files
@@ -2471,6 +2473,7 @@ o_subsample_name : symbol EQUAL date_expr ':' date_expr
                    { driver.set_subsample_name_equal_to_date_range($1, $3, $5); }
                  ;
 o_conf_sig : CONF_SIG EQUAL non_negative_number { driver.option_num("conf_sig", $3); };
+o_mh_conf_sig : MH_CONF_SIG EQUAL non_negative_number { driver.option_num("mh_conf_sig", $3); };
 o_mh_replic : MH_REPLIC EQUAL INT_NUMBER { driver.option_num("mh_replic", $3); };
 o_posterior_max_subsample_draws : POSTERIOR_MAX_SUBSAMPLE_DRAWS EQUAL INT_NUMBER { driver.option_num("posterior_max_subsample_draws", $3); };
 o_mh_drop : MH_DROP EQUAL non_negative_number { driver.option_num("mh_drop", $3); };
diff --git a/preprocessor/DynareFlex.ll b/preprocessor/DynareFlex.ll
index ab9770ab45bf6096ae4776c838dda8cb6d0ea9e1..9c04044412f775868c406ae1caa1b50d35fb9c13 100644
--- a/preprocessor/DynareFlex.ll
+++ b/preprocessor/DynareFlex.ll
@@ -262,6 +262,7 @@ DATE -?[0-9]+([YyAa]|[Mm]([1-9]|1[0-2])|[Qq][1-4]|[Ww]([1-9]{1}|[1-4][0-9]|5[0-2
 <DYNARE_STATEMENT>print   		{return token::PRINT;}
 <DYNARE_STATEMENT>noprint   		{return token::NOPRINT;}
 <DYNARE_STATEMENT>conf_sig  		{return token::CONF_SIG;}
+<DYNARE_STATEMENT>mh_conf_sig  		{return token::MH_CONF_SIG;}
 <DYNARE_STATEMENT>mh_replic 		{return token::MH_REPLIC;}
 <DYNARE_STATEMENT>mh_drop   		{return token::MH_DROP;}
 <DYNARE_STATEMENT>mh_jscale   		{return token::MH_JSCALE;}