diff --git a/matlab/default_option_values.m b/matlab/default_option_values.m
index 5dae852c5..35fda79a2 100644
--- a/matlab/default_option_values.m
+++ b/matlab/default_option_values.m
@@ -72,6 +72,7 @@ options_.huge_number = 1e7;
 % Default number of threads for parallelized mex files.
 options_.threads.kronecker.sparse_hessian_times_B_kronecker_C = num_procs;
 options_.threads.local_state_space_iteration_2 = num_procs;
+options_.threads.local_state_space_iteration_3 = num_procs;
 options_.threads.local_state_space_iteration_k = 1;
 options_.threads.perfect_foresight_problem = num_procs;
 options_.threads.k_order_perturbation = max(1, num_procs/2);
diff --git a/tests/particle/local_state_space_iteration_3_test.mod b/tests/particle/local_state_space_iteration_3_test.mod
index f6b5a20e0..1d1c9298f 100644
--- a/tests/particle/local_state_space_iteration_3_test.mod
+++ b/tests/particle/local_state_space_iteration_3_test.mod
@@ -52,9 +52,6 @@ rf_ghxuu = dr.ghxuu(dr.restrict_var_list, :);
 rf_ghxss = dr.ghxss(dr.restrict_var_list, :);
 rf_ghuss = dr.ghuss(dr.restrict_var_list, :);
 
-options_.threads.local_state_space_iteration_3 = 12;
-options_.threads.local_state_space_iteration_k = 12;
-
 % Without pruning
 tStart1 = tic; for i=1:nsims, ynext1 = local_state_space_iteration_3(yhat, epsilon, rf_ghx, rf_ghu, rf_constant, rf_ghxx, rf_ghuu, rf_ghxu, rf_ghxxx, rf_ghuuu, rf_ghxxu, rf_ghxuu, rf_ghxss, rf_ghuss, options_.threads.local_state_space_iteration_3); end, tElapsed1 = toc(tStart1);
 tStart2 = tic; [udr] = folded_to_unfolded_dr(dr, M_, options_); for i=1:nsims, ynext2 = local_state_space_iteration_k(yhat, epsilon, dr, M_, options_, udr); end, tElapsed2 = toc(tStart2);