DynareTeam/dynare — pull request #465 by JohannesPfeifer (2013-09-03 14:26:37+00:00)
Title: Bugfix for conditional variance decomposition

The flag sigma_e_is_diagonal used only for conditional variance decomposition was erroneously set if the covariance matrix was diagonal but contained a 0 on the main diagonal. This led to subsequent problems in conditional variance decomposition as those tried to perform a Cholesky decomposition of a not strictly positive definite matrix.