diff --git a/matlab/kordpert/dr1_k_order.m b/matlab/kordpert/dr1_k_order.m
index 70233d21a..1adf9c426 100644
--- a/matlab/kordpert/dr1_k_order.m
+++ b/matlab/kordpert/dr1_k_order.m
@@ -138,24 +138,40 @@ function [dr,info,M_,options_,oo_] = dr1(dr,task,M_,options_,oo_)
             else % 2nd order
                 [ysteady, ghx_u, g_2]=k_order_perturbation(dr,task,M_,options_, oo_ , ['.' mexext]);
                 
-                %Here is pseud code for recovering ghxx ghxu ghxx ghs2
+                %Here is code for recovering ghxx ghxu ghxx ghs2
                 s0 = 0;
                 s1 = 0;%0
                 g_2cols=size(g_2,2);
                 g_2rows=size(g_2,1);
                 nExog=M_.exo_nbr;
                 nspred=dr.nspred;
-                %ghxx=zeros(g_2rows);
-                for i=1:g_2cols
+                ghxx=zeros(g_2rows, nspred^2);
+                ghxu=zeros(g_2rows, nspred*nExog);
+                ghuu=zeros(g_2rows, nExog^2);
+                ghs2=zeros(g_2rows, 1);
+%                for i=1:g_2cols
+                i=0;
+                while i<g_2cols
+                    i=i+1
                    if s0 < nspred & s1 < nspred%+1
-                       for j=1:g_2rows
-                           ghxx(j,s0*nspred+s1+1) = 2*g_2(j,i);
+                       if  s1 < s0
+                           ghxx(:,s0*nspred+s1+1) = ghxx(:,(s0+1)+(nspred+1)*s1);
+                           i=i-1;
+                       else
+                           for j=1:g_2rows % j is the row jumber
+                               ghxx(j,s0*nspred+s1+1) = 2*g_2(j,i);
+                           end
                        end
                    elseif s0 < nspred & s1 < nspred+nExog %+1
-                       for j=1:g_2rows
-                           ghxu(j,(s0*nspred+s1-nspred+1)) = 2*g_2(j,i);
-                       end
-                   elseif s0 < nspred+nExog & s1 < nspred+nExog%+1
+%                       if  s1 < s0+nspred
+%                           ghxu(:,s0*nExog+s1-nspred+1) = ghxu(:,(s0+1)+(nExog+1)*(s1-nspred));
+%                           i=i-1;
+ %                      else
+                           for j=1:g_2rows
+                               ghxu(j,(s0*nExog+s1-nspred+1)) = 2*g_2(j,i);
+                           end
+ %                      end
+                   elseif s0 < nspred+nExog & s1 < nExog% nspred+nExog%+1
                        for j=1:g_2rows
                            ghuu(j,(s0-nspred)*nExog+s1-nExog+1) = 2*g_2(j,i);
                        end
@@ -164,14 +180,16 @@ function [dr,info,M_,options_,oo_] = dr1(dr,task,M_,options_,oo_)
                            ghs2(j,1) = 2*g_2(j,i);
                        end
                    end
-                       
-                   % Note: j is the row jumber
                    s1=s1+1;
-                   if s1 == nspred+nExog+1
+                   if s1 == nspred+nExog%+1
                         s0=s0+1;
-                        s1 =s0;
+                        s1 =0 %s0;
                    end
                 end % for loop
+                dr.ghxx = ghxx;
+                dr.ghxu = ghxu;
+                dr.ghuu = ghuu;
+                dr.ghs2 = ghs2;
 
             end
 %            load(M_.fname);