diff --git a/matlab/kronecker/A_times_B_kronecker_C.m b/matlab/kronecker/A_times_B_kronecker_C.m
index a810326a5..c70c2e86a 100644
--- a/matlab/kronecker/A_times_B_kronecker_C.m
+++ b/matlab/kronecker/A_times_B_kronecker_C.m
@@ -35,9 +35,11 @@ function [err, D] = A_times_B_kronecker_C(A,B,C,fake)
 % along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
 
 % Chek number of inputs and outputs.
-if nargin>3 || nargin<2 || nargout~=2
+if nargin>4 || nargin<3 || nargout~=2
     error('A_times_B_kronecker_C takes 3 or 4 input arguments and provides exactly 2 output arguments.')
 end
+
+
 % Get & check dimensions. Initialization of the output matrix.
 [mA,nA] = size(A);
 [mB,nB] = size(B);
diff --git a/matlab/kronecker/sparse_hessian_times_B_kronecker_C.m b/matlab/kronecker/sparse_hessian_times_B_kronecker_C.m
index 5273c1078..028ea9244 100644
--- a/matlab/kronecker/sparse_hessian_times_B_kronecker_C.m
+++ b/matlab/kronecker/sparse_hessian_times_B_kronecker_C.m
@@ -1,5 +1,5 @@
-function [err, D] = sparse_hessian_times_B_kronecker_C(A,B,C,fake)
-%function [err, D] = sparse_hessian_times_B_kronecker_C(A,B,C)
+function [err, D] = sparse_hessian_times_B_kronecker_C(varargin)
+%function [err, D] = sparse_hessian_times_B_kronecker_C(A,B,C, fake)
 % Computes A * kron(B,C) where A is a sparse matrix.
 %
 % INPUTS
@@ -33,16 +33,19 @@ function [err, D] = sparse_hessian_times_B_kronecker_C(A,B,C,fake)
 %
 % You should have received a copy of the GNU General Public License
 % along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
-
+A = varargin{1};
+B = varargin{2};
+C = varargin{3};
+fake = varargin{nargin};
 if nargout~=2
     error('sparse_hessian_times_B_kronecker_C provides exactly 2 output arguments.')
 end
 
 switch nargin
   case 4
-    D = A_times_B_kronecker_C(A,B,C,fake);
+    [fake,D] = A_times_B_kronecker_C(A,B,C,fake);
   case 3
-    D = A_times_B_kronecker_C(A,B,B,fake);
+    [fake,D] = A_times_B_kronecker_C(A,B,C);
   otherwise
     error('Two or Three input arguments required!')
 end