diff --git a/.gitignore b/.gitignore
index 6feb45057..ff09453b7 100644
--- a/.gitignore
+++ b/.gitignore
@@ -113,8 +113,7 @@ mex/build/matlab/run_m2html.m
 /preprocessor/doc/
 
 # MATLAB dir
-/matlab/dynare_m
-/matlab/dynare_m.exe
+/matlab/preprocessor*
 /matlab/dynare_version.m
 
 # DLL rules
diff --git a/Makefile.am b/Makefile.am
index d14a0f351..7b23cec88 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -35,17 +35,25 @@ EXTRA_DIST = \
 
 dist-hook:
 	rm -rf `find $(distdir)/matlab $(distdir)/examples -name *~`
-	rm -f $(distdir)/matlab/dynare_m$(EXEEXT) $(distdir)/matlab/dynare_version.m
+	rm -rf $(distdir)/matlab/preprocessor* $(distdir)/matlab/dynare_version.m
 	$(MKDIR_P) $(distdir)/mex/matlab $(distdir)/mex/octave
 	rm -rf `find $(distdir)/contrib -name '.git*'`
 
 install-exec-local:
 	$(MKDIR_P) $(DESTDIR)$(pkglibdir)/contrib/ms-sbvar/TZcode
+	cp -r contrib/ms-sbvar/TZcode/MatlabFiles $(DESTDIR)$(pkglibdir)/contrib/ms-sbvar/TZcode
 	cp -r examples $(DESTDIR)$(pkglibdir)
 	cp -r matlab $(DESTDIR)$(pkglibdir)
-	rm -f $(DESTDIR)$(pkglibdir)/matlab/dynare_m
-	cp preprocessor/dynare_m $(DESTDIR)$(pkglibdir)/matlab
-	cp -r contrib/ms-sbvar/TZcode/MatlabFiles $(DESTDIR)$(pkglibdir)/contrib/ms-sbvar/TZcode
+	rm -rf $(DESTDIR)$(pkglibdir)/matlab/preprocessor*
+	{ \
+	if [ -z "`file preprocessor/dynare_m | grep x86.64`" ]; then \
+	  ARCH="32"; \
+	else \
+	  ARCH="64"; \
+	fi; \
+	mkdir -p $(DESTDIR)$(pkglibdir)/matlab/preprocessor$$ARCH; \
+	cp preprocessor/dynare_m $(DESTDIR)$(pkglibdir)/matlab/preprocessor$$ARCH; \
+	}
 
 uninstall-local:
 	rm -f  $(DESTDIR)$(bindir)/dynare++
diff --git a/doc/dynare.texi b/doc/dynare.texi
index c7ff4cf2d..0e60bdf3e 100644
--- a/doc/dynare.texi
+++ b/doc/dynare.texi
@@ -793,6 +793,15 @@ graph
 @item nointeractive
 Instructs Dynare to not request user input
 
+@item nopathchange
+By default Dynare will change Matlab/Octave's path if
+@file{dynare/matlab} directory is not on top and if Dynare's routines
+are overriden by routines provided in other toolboxes. If one wishes to
+override Dynare's routines, the @code{nopathchange} options can be
+used. Alternatively, the path can be temporarly modified by the user at
+the top of the @file{*.mod} file (using Matlab/Octave's @code{addpath}
+command).
+
 @item cygwin
 Tells Dynare that your MATLAB is configured for compiling MEX files with
 Cygwin (@pxref{Software requirements}). This option is only available
@@ -2428,7 +2437,7 @@ The command accepts three file formats:
 
 @item
 M-file (extension @file{.m}): for each endogenous and exogenous
-variable, the file must contain a row vector of the same name.
+variable, the file must contain a row or column vector of the same name. Their length must be @code{periods+M_.maximum_lag+M_.maximum_lead} 
 
 @item
 MAT-file (extension @file{.mat}): same as for M-files.
@@ -4855,7 +4864,9 @@ Uses Chris Sims's @code{csminwel}
 
 @item 5
 Uses Marco Ratto's @code{newrat}. This value is not compatible with non
-linear filters or DSGE-VAR models
+linear filters or DSGE-VAR models.
+This is a slice optimizer: most iterations are a sequence of univariate optimization step, one for each estimated parameter or shock.
+Uses @code{csminwel} for line search in each step.
 
 @item 6
 Uses a Monte-Carlo based optimization routine (see
@@ -4974,6 +4985,25 @@ Initial approximation for the inverse of the Hessian matrix of the posterior ker
 
 @end table
 
+@item 5
+Available options are:
+
+@table @code
+
+@item 'MaxIter'
+Maximum number of iterations. Default: @code{1000}
+
+@item 'Hessian'
+Triggers three types of Hessian computations. @code{0}: outer product gradient; @code{1} default DYNARE Hessian routine; @code{2} 'mixed' outer product gradient, where diagonal elements are obtained using second order derivation formula and outer product is used for correlation structure. 
+Both @{0@} and @{2@} options require univariate filters, to ensure using maximum number of individual densities and a positive definite Hessian.
+Both @{0@} and @{2@} are quicker than default DYNARE numeric Hessian, but provide decent starting values for Metropolis for large models (option @{2@} being more accurate than @{0@}).
+Default: @code{1}.
+
+@item 'TolFun'
+Stopping criteria. Default: @code{1e-5} for numerical derivatives @code{1e-7} for analytic derivatives.
+
+@end table
+
 @item 6
 Available options are:
 
@@ -5555,7 +5585,7 @@ and end of the sample for which no forecasts can be made, e.g. entries (1,5,1) a
 the variables will be ordered in the order of declaration after the estimation 
 command (or in general declaration order if no variables are specified here). In case 
 of running the classical smoother, the variables will always be ordered in general 
-declaration order. If the @xref{selected_variables_only} option is specified with the classical smoother, 
+declaration order. If the @ref{selected_variables_only} option is specified with the classical smoother, 
 non-requested variables will be simply left out in this order.
 @end defvr
 
diff --git a/dynare++/kord/journal.cweb b/dynare++/kord/journal.cweb
index 9b7d658cd..b43b27bcc 100644
--- a/dynare++/kord/journal.cweb
+++ b/dynare++/kord/journal.cweb
@@ -101,7 +101,7 @@ void SystemResources::getRUS(double& load_avg, long int& pg_avail,
 	majflt = -1;
 #endif
 
-#if !defined(__MINGW32__) && !defined(__CYGWIN32__)
+#if !defined(__MINGW32__) && !defined(__CYGWIN32__) && !defined(__CYGWIN__) && !defined(__MINGW64__) && !defined(__CYGWIN64__)
 	getloadavg(&load_avg, 1);
 #else
 	load_avg = -1.0;
diff --git a/dynare++/parser/cc/dynamic_atoms.cpp b/dynare++/parser/cc/dynamic_atoms.cpp
index f02b580af..ca6b6dcd2 100644
--- a/dynare++/parser/cc/dynamic_atoms.cpp
+++ b/dynare++/parser/cc/dynamic_atoms.cpp
@@ -341,6 +341,12 @@ int DynamicAtoms::index(const char* name, int ll) const
 	return -1;
 }
 
+bool DynamicAtoms::is_referenced(const char* name) const
+{
+	Tvarmap::const_iterator it = vars.find(name);
+	return it != vars.end();
+}
+
 const DynamicAtoms::Tlagmap& DynamicAtoms::lagmap(const char* name) const
 {
 	Tvarmap::const_iterator it = vars.find(name);
diff --git a/dynare++/parser/cc/dynamic_atoms.h b/dynare++/parser/cc/dynamic_atoms.h
index 03cb0411f..7d44d6dcc 100644
--- a/dynare++/parser/cc/dynamic_atoms.h
+++ b/dynare++/parser/cc/dynamic_atoms.h
@@ -182,6 +182,9 @@ namespace ogp {
 		/** Return index of the variable described by the variable
 		 * name and lag/lead. If it doesn't exist, return -1. */
 		int index(const char* name, int ll) const;
+		/** Return true if a variable is referenced, i.e. it has lag
+		 * map. */
+		bool is_referenced(const char* name) const;
 		/** Return the lag map for the variable name. */
 		const Tlagmap& lagmap(const char* name) const;
 		/** Return the variable name for the tree index. It throws an
diff --git a/dynare++/parser/cc/static_atoms.cpp b/dynare++/parser/cc/static_atoms.cpp
index 0151cade6..7276cc0c9 100644
--- a/dynare++/parser/cc/static_atoms.cpp
+++ b/dynare++/parser/cc/static_atoms.cpp
@@ -41,15 +41,14 @@ void StaticAtoms::import_atoms(const DynamicAtoms& da, OperationTree& otree, Tin
 		register_name(name);
 		int tnew = otree.add_nulary();
 		assign(name, tnew);
-		try {
-			const DynamicAtoms::Tlagmap& lmap = da.lagmap(name);
+        if (da.is_referenced(name)) {
+            const DynamicAtoms::Tlagmap& lmap = da.lagmap(name);
 			for (DynamicAtoms::Tlagmap::const_iterator it = lmap.begin();
 				 it != lmap.end(); ++it) {
 				int told = (*it).second;
 				tmap.insert(Tintintmap::value_type(told, tnew));
 			}
-		} catch (const ogu::Exception& e) {
-		}
+        }
 	}
 }
 
diff --git a/dynare++/parser/cc/tree.cpp b/dynare++/parser/cc/tree.cpp
index 08c90fae6..8ff4267c6 100644
--- a/dynare++/parser/cc/tree.cpp
+++ b/dynare++/parser/cc/tree.cpp
@@ -1,5 +1,6 @@
 // Copyright (C) 2005-2011, Ondra Kamenik
 
+
 #include "utils/cc/exception.h"
 
 #include "tree.h"
@@ -55,7 +56,7 @@ int OperationTree::add_unary(code_t code, int op)
 		 code == SQRT ||
 		 code == ERF))
 		return zero;
-	if (op == zero && code == LOG || op == nan)
+	if ((op == zero && code == LOG) || op == nan)
 		return nan;
 	if (op == zero && (code == EXP ||
 					   code == COS ||
@@ -86,39 +87,43 @@ int OperationTree::add_binary(code_t code, int op1, int op2)
 	if (op1 == nan || op2 == nan)
 		return nan;
 	// for plus
-	if (code == PLUS)
+	if (code == PLUS) {
 		if (op1 == zero && op2 == zero)
 			return zero;
 		else if (op1 == zero)
 			return op2;
 		else if (op2 == zero)
 			return op1;
+    }
 	// for minus
-	if (code == MINUS)
+	if (code == MINUS) {
 		if (op1 == zero && op2 == zero)
 			return zero;
 		else if (op1 == zero)
 			return add_unary(UMINUS, op2);
 		else if (op2 == zero)
 			return op1;
+    }
 	// for times
-	if (code == TIMES)
+	if (code == TIMES) {
 		if (op1 == zero || op2 == zero)
 			return zero;
 		else if (op1 == one)
 			return op2;
 		else if (op2 == one)
 			return op1;
+    }
 	// for divide
-	if (code == DIVIDE)
+	if (code == DIVIDE) {
 		if (op1 == op2)
 			return one;
 		else if (op1 == zero)
 			return zero;
 		else if (op2 == zero)
 			return nan;
+    }
 	// for power
-	if (code == POWER)
+	if (code == POWER) {
 		if (op1 == zero && op2 == zero)
 			return nan;
 		else if (op1 == zero)
@@ -129,6 +134,7 @@ int OperationTree::add_binary(code_t code, int op1, int op2)
 			return one;
 		else if (op2 == one)
 			return op1;
+    }
 
 	// order operands of commutative operations
 	if (code == TIMES || code == PLUS)
diff --git a/dynare++/src/dynare_atoms.cpp b/dynare++/src/dynare_atoms.cpp
index e0121d530..c1ae58bc4 100644
--- a/dynare++/src/dynare_atoms.cpp
+++ b/dynare++/src/dynare_atoms.cpp
@@ -135,22 +135,19 @@ void DynareAtomValues::setValues(ogp::EvalTree& et) const
 
 	// set parameteres
 	for (unsigned int i = 0; i < atoms.get_params().size(); i++) {
-		try {
+        if (atoms.is_referenced(atoms.get_params()[i])) {
 			const ogp::DynamicAtoms::Tlagmap& lmap = atoms.lagmap(atoms.get_params()[i]);
 			for (ogp::DynamicAtoms::Tlagmap::const_iterator it = lmap.begin();
 				 it != lmap.end(); ++it) {
 				int t = (*it).second;
 				et.set_nulary(t, paramvals[i]);
 			}
-		} catch (const ogu::Exception& e) {
-			// ignore non-referenced parameters; there is no
-			// lagmap for them
 		}
 	}
 
 	// set endogenous
 	for (unsigned int outer_i = 0; outer_i < atoms.get_endovars().size(); outer_i++) {
-		try {
+        if (atoms.is_referenced(atoms.get_endovars()[outer_i])) {
 			const ogp::DynamicAtoms::Tlagmap& lmap = atoms.lagmap(atoms.get_endovars()[outer_i]);
 			for (ogp::DynamicAtoms::Tlagmap::const_iterator it = lmap.begin();
 				 it != lmap.end(); ++it) {
@@ -165,15 +162,12 @@ void DynareAtomValues::setValues(ogp::EvalTree& et) const
 				else
 					et.set_nulary(t, yyp[i-atoms.nstat()-atoms.npred()]);
 			}
-		} catch (const ogu::Exception& e) {
-			// ignore non-referenced endogenous variables; there is no
-			// lagmap for them
 		}
 	}
 
 	// set exogenous
 	for (unsigned int outer_i = 0; outer_i < atoms.get_exovars().size(); outer_i++) {
-		try {
+        if (atoms.is_referenced(atoms.get_exovars()[outer_i])) {
 			const ogp::DynamicAtoms::Tlagmap& lmap = atoms.lagmap(atoms.get_exovars()[outer_i]);
 			for (ogp::DynamicAtoms::Tlagmap::const_iterator it = lmap.begin();
 				 it != lmap.end(); ++it) {
@@ -184,8 +178,6 @@ void DynareAtomValues::setValues(ogp::EvalTree& et) const
 					et.set_nulary(t, xx[i]);
 				}
 			}
-		} catch (const ogu::Exception& e) {
-			// ignore non-referenced variables
 		}
 	}
 }
diff --git a/dynare++/src/forw_subst_builder.cpp b/dynare++/src/forw_subst_builder.cpp
index 5f85f0fab..e2fa6cf55 100644
--- a/dynare++/src/forw_subst_builder.cpp
+++ b/dynare++/src/forw_subst_builder.cpp
@@ -1,5 +1,6 @@
 // Copyright (C) 2006-2011, Ondra Kamenik
 
+
 #include "forw_subst_builder.h"
 
 using namespace ogdyn;
@@ -47,18 +48,20 @@ void ForwSubstBuilder::substitute_for_term(int t, int i, int j)
 		// first make lagsubst be substitution setting f(x(+4)) to f(x(+1))
 		// this is lag = -3 (1-mlead)
 		map<int,int> lagsubst;
-		model.variable_shift_map(model.eqs.nulary_of_term(t), 1-mlead, lagsubst);
+        unordered_set<int> nult = model.eqs.nulary_of_term(t);// make copy of nult!
+		model.variable_shift_map(nult, 1-mlead, lagsubst);
 		int lagt = model.eqs.add_substitution(t, lagsubst);
-		// now maxlead of lagt is +1
-		// add AUXLD_*_*_1 = f(x(+1)) to the model
-		char name[100];
-		sprintf(name, "AUXLD_%d_%d_%d", i, j, 1);
-		model.atoms.register_uniq_endo(name);
-		info.num_aux_variables++;
-		const char* ss = model.atoms.get_name_storage().query(name);
-		int auxt = model.eqs.add_nulary(name);
-		model.eqs.add_formula(model.eqs.add_binary(ogp::MINUS, auxt, lagt));
-		aux_map.insert(Tsubstmap::value_type(ss, lagt));
+
+        // now maxlead of lagt is +1
+        // add AUXLD_*_*_1 = f(x(+1)) to the model
+        char name[100];
+        sprintf(name, "AUXLD_%d_%d_%d", i, j, 1);
+        model.atoms.register_uniq_endo(name);
+        info.num_aux_variables++;
+        const char* ss = model.atoms.get_name_storage().query(name);
+        int auxt = model.eqs.add_nulary(name);
+        model.eqs.add_formula(model.eqs.add_binary(ogp::MINUS, auxt, lagt));
+        aux_map.insert(Tsubstmap::value_type(ss, lagt));
 		// now add variables and equations
 		// AUXLD_*_*_2 = AUXLD_*_*_1(+1) through
 		// AUXLD_*_*_{mlead-1} = AUXLD_*_*_{mlead-2}(+1)
@@ -82,7 +85,9 @@ void ForwSubstBuilder::substitute_for_term(int t, int i, int j)
 			aux_map.insert(Tsubstmap::value_type(ss, lagt));
 		}
 
-		// now we have to substitute AUXLEAD_*_*{mlead-1}(+1) for t
+		// now we have to substitute AUXLD_*_*{mlead-1}(+1) for t
+        sprintf(name, "AUXLD_%d_%d_%d", i, j, mlead-1);
+        ss = model.atoms.get_name_storage().query(name);
 		model.substitute_atom_for_term(ss, +1, t);
 	}
 }
diff --git a/dynare++/src/planner_builder.cpp b/dynare++/src/planner_builder.cpp
index d2a38dfd4..6958a8ab6 100644
--- a/dynare++/src/planner_builder.cpp
+++ b/dynare++/src/planner_builder.cpp
@@ -327,11 +327,11 @@ MultInitSS::MultInitSS(const PlannerBuilder& pb, const Vector& pvals, Vector& yy
 	ogp::FormulaCustomEvaluator fe(builder.static_tree, terms);
 	fe.eval(dssav, *this);
 
-	// solve overdetermined system b+F*lambda=0 => lambda=-(F^T*F)^{-1}*F^T*b
-	GeneralMatrix FtF(F, "transpose", F);
-	Vector lambda(builder.diff_f_static.dim2());
-	F.multVecTrans(0.0, lambda, -1.0, b);
-	ConstGeneralMatrix(FtF).multInvLeft(lambda);
+	// solve overdetermined system b+F*lambda=0 using SVD decomposition
+    SVDDecomp decomp(F);
+    Vector lambda(builder.diff_f_static.dim2());
+    decomp.solve(b, lambda);
+    lambda.mult(-1);
 
 	// take values of lambda and put it to yy
 	for (int fi = 0; fi < builder.diff_f_static.dim2(); fi++) {
diff --git a/dynare++/sylv/cc/GeneralMatrix.cpp b/dynare++/sylv/cc/GeneralMatrix.cpp
index b50b3ed4f..75834f522 100644
--- a/dynare++/sylv/cc/GeneralMatrix.cpp
+++ b/dynare++/sylv/cc/GeneralMatrix.cpp
@@ -481,3 +481,76 @@ void ConstGeneralMatrix::print() const
 		printf("\n");
 	}
 }
+
+void SVDDecomp::construct(const GeneralMatrix& A)
+{
+    // quick exit if empty matrix
+    if (minmn == 0) {
+        U.unit();
+        VT.unit();
+        conv = true;
+        return;
+    }
+
+    // make copy of the matrix
+    GeneralMatrix AA(A);
+
+    lapack_int m = AA.numRows();
+    lapack_int n = AA.numCols();
+    double* a = AA.base();
+    lapack_int lda = AA.getLD();
+    double* s = sigma.base();
+    double* u = U.base();
+    lapack_int ldu = U.getLD();
+    double* vt = VT.base();
+    lapack_int ldvt = VT.getLD();
+    double tmpwork;
+    lapack_int lwork = -1;
+    lapack_int info;
+
+    lapack_int* iwork = new lapack_int[8*minmn];
+    // query for optimal lwork
+    dgesdd("A", &m, &n, a, &lda, s, u, &ldu, vt, &ldvt, &tmpwork,
+                  &lwork, iwork, &info);
+    lwork = (lapack_int)tmpwork;
+    Vector work(lwork);
+    // do the decomposition
+    dgesdd("A", &m, &n, a, &lda, s, u, &ldu, vt, &ldvt, work.base(),
+                  &lwork, iwork, &info);
+    delete [] iwork;
+    if (info < 0)
+        throw SYLV_MES_EXCEPTION("Internal error in SVDDecomp constructor");
+    if (info == 0)
+        conv = true;
+}
+
+void SVDDecomp::solve(const GeneralMatrix& B, GeneralMatrix& X) const
+{
+    if (B.numRows() != U.numRows())
+        throw SYLV_MES_EXCEPTION("Incompatible number of rows ");
+
+    // reciprocal condition number for determination of zeros in the
+    // end of sigma
+    double rcond = 1e-13;
+
+    // solve U: B = U^T*B
+    GeneralMatrix UTB(U, "trans", B);
+    // determine nz=number of zeros in the end of sigma
+    int nz = 0;
+    while (nz < minmn && sigma[minmn-1-nz] < rcond*sigma[0])
+        nz++;
+    // take relevant B for sigma inversion
+    int m = U.numRows();
+    int n = VT.numCols();
+    GeneralMatrix Bprime(UTB, m-minmn, 0, minmn-nz, B.numCols());
+    // solve sigma
+    for (int i = 0; i < minmn-nz; i++)
+        Vector(i, Bprime).mult(1.0/sigma[i]);
+    // solve VT
+    X.zeros();
+    //- copy Bprime to right place of X
+    for (int i = 0; i < minmn-nz; i++)
+        Vector(n-minmn+i, X) = ConstVector(i, Bprime);
+    //- multiply with VT
+    X.multLeftTrans(VT);
+}
diff --git a/dynare++/sylv/cc/GeneralMatrix.h b/dynare++/sylv/cc/GeneralMatrix.h
index 18413b762..d24c11cad 100644
--- a/dynare++/sylv/cc/GeneralMatrix.h
+++ b/dynare++/sylv/cc/GeneralMatrix.h
@@ -7,6 +7,8 @@
 
 #include "Vector.h"
 
+#include <algorithm>
+
 class GeneralMatrix;
 
 class ConstGeneralMatrix {
@@ -272,6 +274,40 @@ private:
 	static int md_length;
 };
 
+class SVDDecomp {
+protected:
+    /** Minimum of number of rows and columns of the decomposed
+     * matrix. */
+    const int minmn;
+    /** Singular values. */
+    Vector sigma;
+    /** Orthogonal matrix U. */
+    GeneralMatrix U;
+    /** Orthogonal matrix V^T. */
+    GeneralMatrix VT;
+    /** Convered flag. */
+    bool conv;
+public:
+    SVDDecomp(const GeneralMatrix& A)
+        : minmn(std::min<int>(A.numRows(), A.numCols())),
+          sigma(minmn),
+          U(A.numRows(), A.numRows()),
+          VT(A.numCols(), A.numCols()),
+          conv(false)
+        {construct(A);}
+    const GeneralMatrix& getU() const
+        {return U;}
+    const GeneralMatrix& getVT() const
+        {return VT;}
+    void solve(const GeneralMatrix& B, GeneralMatrix& X) const;
+    void solve(const Vector& b, Vector& x) const
+        {
+            GeneralMatrix xmat(x.base(), x.length(), 1);
+            solve(GeneralMatrix(b.base(), b.length(), 1), xmat);
+        }
+private:
+    void construct(const GeneralMatrix& A);
+};
 
 
 
diff --git a/m4/ax_matlab_version.m4 b/m4/ax_matlab_version.m4
index c7a1d5f3e..211da8477 100644
--- a/m4/ax_matlab_version.m4
+++ b/m4/ax_matlab_version.m4
@@ -1,4 +1,4 @@
-dnl Copyright (C) 2009-2014 Dynare Team
+dnl Copyright (C) 2009-2015 Dynare Team
 dnl
 dnl This file is part of Dynare.
 dnl
@@ -22,6 +22,9 @@ AC_REQUIRE([AX_MATLAB])
 AC_MSG_CHECKING([for MATLAB version])
 if test "x$MATLAB_VERSION" != "x"; then
   case $MATLAB_VERSION in
+    *2015a | *2015A)
+      MATLAB_VERSION="8.5"
+      ;;
     *2014b | *2014B)
       MATLAB_VERSION="8.4"
       ;;
diff --git a/matlab/add_path_to_mex_files.m b/matlab/add_path_to_mex_files.m
new file mode 100644
index 000000000..ea9065a51
--- /dev/null
+++ b/matlab/add_path_to_mex_files.m
@@ -0,0 +1,89 @@
+function mexpath = add_path_to_mex_files(dynareroot, modifypath)
+    
+% Copyright (C) 2015 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
+
+if nargin<2
+    modifypath = true;
+end
+    
+if isoctave
+    mexpath = {[dynareroot '../mex/octave/']};
+    if modifypath
+        addpath(mexpath{1});
+    end
+else
+    % Add win32 specific paths for Dynare Windows package
+    if strcmp(computer, 'PCWIN')
+        tmp = [dynareroot '../mex/matlab/win32-7.5-8.4/'];
+        if exist(tmp, 'dir')
+            mexpath = tmp;
+            if modifypath
+                addpath(mexpath);
+            end
+        end
+    end
+    % Add win64 specific paths for Dynare Windows package
+    if strcmp(computer, 'PCWIN64')
+        if matlab_ver_less_than('7.8')
+            tmp = [dynareroot '../mex/matlab/win64-7.5-7.7/'];
+            if exist(tmp, 'dir')
+                mexpath = tmp;
+                if modifypath
+                    addpath(mexpath);
+                end
+            end
+        else
+            tmp = [dynareroot '../mex/matlab/win64-7.8-8.5/'];
+            if exist(tmp, 'dir')
+                mexpath = tmp;
+                if modifypath
+                    addpath(mexpath);
+                end
+            end
+        end
+    end
+    % Add OS X 32bits specific paths for Dynare Mac package
+    if strcmp(computer, 'MACI')
+        tmp = [dynareroot '../mex/matlab/osx32-7.5-7.11/'];
+        if exist(tmp, 'dir')
+            mexpath = tmp;
+            if modifypath && exist(mexpath, 'dir')
+                addpath(mexpath);
+            end
+        end
+    end
+    % Add OS X 64bits specific paths for Dynare Mac package
+    if strcmp(computer, 'MACI64')
+        tmp = [dynareroot '../mex/matlab/osx64/'];
+        if exist(tmp, 'dir')
+            mexpath = tmp;
+            if modifypath && exist(mexpath, 'dir')
+                addpath(mexpath);
+            end
+        end
+    end
+    % Add generic MATLAB path (with higher priority than the previous ones)
+    if exist('mexpath')
+        mexpath = { mexpath, [dynareroot '../mex/matlab/'] };
+    else
+        mexpath = { [dynareroot '../mex/matlab/'] };
+    end
+    if modifypath
+        addpath([dynareroot '../mex/matlab/']);
+    end
+end
\ No newline at end of file
diff --git a/matlab/check_matlab_path.m b/matlab/check_matlab_path.m
new file mode 100644
index 000000000..ccd9d6308
--- /dev/null
+++ b/matlab/check_matlab_path.m
@@ -0,0 +1,150 @@
+function check_matlab_path(change_path_flag)
+    
+% Copyright (C) 2015 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
+
+if ~nargin || isempty(change_path_flag)
+    change_path_flag = true;
+end
+
+% Get path to dynare/matlab folder.
+DYNARE_PATH = strrep(which('dynare'),'dynare.m','');
+
+if isempty(DYNARE_PATH)
+    % Nothing to do here (this case should not happen)
+    disp('dynare.m is not in the Matlab''s path.')
+    return
+else
+    % Removes trailing slash.
+    DYNARE_PATH = DYNARE_PATH(1:end-1);
+end
+
+% Get matlab path
+MATLAB_PATH = path();
+
+% Position of DYNARE_PATH in MATLAB_PATH
+idDYNARE = strfind(MATLAB_PATH,DYNARE_PATH);
+
+if isempty(idDYNARE)
+    disp('dynare.m is not in the Matlab''s path.')
+    return
+else
+    if isequal(length(idDYNARE),1)
+        if isequal(idDYNARE, 1)
+            % Dynare is on top of matlab's path! Nothing to do here...
+            return
+        else
+            str0 = sprintf('Dynare is not on top of matlab''s path!');
+            % Check that this will not create a problem
+            MATLAB_PATH_ = path2cell(MATLAB_PATH);
+            DYNARE_ROUTINES = getallroutinenames(DYNARE_PATH, getalldirectories(DYNARE_PATH));
+            MATLAB_ROUTINES = {};
+            for i=1:position(idDYNARE, MATLAB_PATH)
+                TMP_MATLAB_ROUTINES = getallroutinenames(MATLAB_PATH_{i});
+                MATLAB_ROUTINES = { MATLAB_ROUTINES{:}  TMP_MATLAB_ROUTINES{:} };
+            end
+            COMMON_ROUTINES = intersect(MATLAB_ROUTINES, DYNARE_ROUTINES);
+            if ~isempty(COMMON_ROUTINES)
+                warning off backtrace
+                skipline()
+                if length(COMMON_ROUTINES)==1
+                    warning(sprintf('%s This can cause problems because the Dynare version of %s will be overriden.', str0, COMMON_ROUTINES{1}));
+                else
+                    str1 = repmat('%s, ', 1, length(COMMON_ROUTINES)-1);
+                    str2 = 'and %s ';
+                    str3 = sprintf(['%s This can cause problems because the Dynare versions of ' str1, str2, 'will be overriden.'], str0, COMMON_ROUTINES{:});
+                    warning(str3);
+                end
+                if change_path_flag
+                    skipline()
+                    msg = sprintf('I put %s on top of your matlab''s path. Note that this is a', DYNARE_PATH);
+                    msg = sprintf(' %s a temporary change (ie will not affect future matlab''s session).', msg);
+                    msg = sprintf(' %s If the ordering was intentional, ie if you really want to override the routines distributed with Dynare,', msg);
+                    msg = sprintf(' %s you can change this behaviour using option nopathchange (see the reference manual).', msg);
+                    warning(msg);
+                    skipline()
+                    rmpath(DYNARE_PATH)
+                    addpath(DYNARE_PATH)    
+                end
+                warning on backtrace
+            end
+        end
+    else
+        % Check that the user did not put all the subfolders in the path.
+        % => If DYNARE_PATH/qz is in the path while mjdgges dll is available
+        % it most likely means that user wrongly put all subfolders in the 
+        % matlab's path!
+        mexpath = add_path_to_mex_files([DYNARE_PATH filesep], false);
+        MATLAB_PATH = path2cell(MATLAB_PATH);
+        for i=1:length(mexpath)
+            if exist([mexpath{i} filesep 'mjdgges.' mexext],'file') && ismember([DYNARE_PATH filesep 'qz'],MATLAB_PATH)
+                msg = sprintf(['You  put all the dynare/matlab subfolders in matlab''s path! Only ' ...
+                               'the dynare/matlab folder (without subfolders)\nshould be in the ' ...
+                               'path, Dynare will automatically add any required subfolders in the ' ...
+                               'path.']);
+                error(msg)
+            end
+        end
+    end
+end
+
+function q = path2cell(p)
+    % Converts the output of path() to a cell 
+    s = strfind(p,pathsep);
+    n = length(s)+1;
+    q = cell(n,1);
+    q(1) = {p(1:s(1)-1)};
+    q(n) = {p(s(end)+1:end)};
+    for i=2:n-1
+        q(i) = {p(s(i-1)+1:s(i)-1)}; 
+    end
+    
+function flist = getallroutinenames(p, excludedsubfolders)
+    if nargin<2
+        excludedsubfolders = {};
+    end
+    dd = dir(p);
+    flist = {};
+    for f=1:length(dd)
+        if ~(isequal(dd(f).name,'.') || isequal(dd(f).name,'..'))
+            if dd(f).isdir
+                if ~ismember(dd(f).name, excludedsubfolders)
+                    r = getallroutinenames([ p filesep dd(f).name]);
+                    flist = { flist{:} r{:} };
+                end
+            else
+                % Filter out files without m extension.
+                if isequal(dd(f).name(end-1:end),'.m')
+                    flist{length(flist)+1} = [dd(f).name];
+                end
+            end
+        end
+    end
+
+function dlist = getalldirectories(p)
+    dd = dir(p);
+    dlist = {};
+    for f = 1:length(dd)
+        if ~(isequal(dd(f).name,'.') || isequal(dd(f).name,'..'))
+            if dd(f).isdir
+                dlist{length(dlist)+1} = [dd(f).name];
+            end
+        end
+    end
+    
+function n = position(i, currentpath)
+    n = length(strfind(currentpath(1:i), pathsep));
\ No newline at end of file
diff --git a/matlab/dr_block.m b/matlab/dr_block.m
index e09eec429..7eee88acd 100644
--- a/matlab/dr_block.m
+++ b/matlab/dr_block.m
@@ -315,13 +315,17 @@ for i = 1:Size;
         dr.eigval = [dr.eigval ; data(i).eigval];
       case 6
       %% ------------------------------------------------------------------
-        %Solve Forward complete
+      %Solve Forward complete
+        if (maximum_lag > 0)
+            ghx = - jacob(: , n_pred + 1 : n_pred + n_static ...
+                        + n_pred + n_both) \ jacob(: , 1 : n_pred);
+        else
+            ghx = 0;
+        end;
         if maximum_lag > 0 && n_pred > 0
-            data(i).eigval = eig(- jacob(: , 1 : n_pred) / ...
-                                 jacob(: , (n_pred + n_static + 1 : n_pred + n_static + n_pred )));
+            data(i).eigval = -eig(ghx(n_static+1:end,:));
             data(i).rank = 0;
-            full_rank = (rcond(jacob(: , (n_pred + n_static + 1 : n_pred ...
-                                          + n_static + n_pred ))) > 1e-9);
+            full_rank = (rcond(ghx(n_static+1:end,:)) > 1e-9);
         else
             data(i).eigval = [];
             data(i).rank = 0;
@@ -330,11 +334,6 @@ for i = 1:Size;
         dr.eigval = [dr.eigval ; data(i).eigval];
         dr.full_rank = dr.full_rank && full_rank;
         if task ~= 1
-            if (maximum_lag > 0)
-                 ghx = - jacob(: , 1 : n_pred) / jacob(: , n_pred + n_static + 1 : n_pred + n_static + n_pred + n_both);
-            else
-                 ghx = 0;
-            end;
             if other_endo_nbr
                 fx = data(i).g1_o;
                 % retrieves the derivatives with respect to endogenous
diff --git a/matlab/dynare.m b/matlab/dynare.m
index d72d20787..026670af9 100644
--- a/matlab/dynare.m
+++ b/matlab/dynare.m
@@ -16,7 +16,7 @@ function dynare(fname, varargin)
 % SPECIAL REQUIREMENTS
 %   none
 
-% Copyright (C) 2001-2014 Dynare Team
+% Copyright (C) 2001-2015 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -44,7 +44,22 @@ if strcmpi(fname,'help')
     return
 end
 
-% detect if MEX files are present; if not, use alternative M-files
+% Set default local options
+change_path_flag = true;
+
+% Filter out some options.
+if nargin>1
+    id = strfind(varargin,'nopathchange');
+    if ~isempty(id)
+        change_path_flag = false;
+        varargin(id{1}) = [];
+    end
+end
+
+% Check matlab path
+check_matlab_path(change_path_flag);
+
+% Detect if MEX files are present; if not, use alternative M-files
 dynareroot = dynare_config;
 
 warning_config()
@@ -145,9 +160,23 @@ if exist(fname(1:end-4),'dir') && exist([fname(1:end-4) filesep 'hooks'],'dir')
     run([fname(1:end-4) filesep 'hooks/priorprocessing'])
 end
 
-command = ['"' dynareroot 'dynare_m" ' fname] ;
-for i=2:nargin
-    command = [command ' ' varargin{i-1}];
+if ispc
+    arch = getenv('PROCESSOR_ARCHITECTURE');
+else
+    [junk, arch] = system('uname -m');
+end
+
+if isempty(strfind(arch, '64'))
+  arch_ext = '32';
+  disp('Using 32-bit preprocessor');
+else
+  arch_ext = '64';
+  disp('Using 64-bit preprocessor');
+end
+
+command = ['"' dynareroot 'preprocessor' arch_ext filesep 'dynare_m" ' fname] ;
+for i=1:length(varargin)
+    command = [command ' ' varargin{i}];
 end
 
 [status, result] = system(command);
@@ -164,8 +193,8 @@ end
 
 % Save preprocessor result in logfile (if `no_log' option not present)
 no_log = 0;
-for i=2:nargin
-    no_log = no_log || strcmp(varargin{i-1}, 'nolog');
+for i=1:length(varargin)
+    no_log = no_log || strcmp(varargin{i}, 'nolog');
 end
 if ~no_log
     logname = [fname(1:end-4) '.log'];
diff --git a/matlab/dynare_config.m b/matlab/dynare_config.m
index 160cd6222..62bb0a5d0 100644
--- a/matlab/dynare_config.m
+++ b/matlab/dynare_config.m
@@ -35,6 +35,7 @@ function dynareroot = dynare_config(path_to_dynare,verbose)
 if nargin && ~isempty(path_to_dynare)
     addpath(path_to_dynare);
 end
+
 dynareroot = strrep(which('dynare'),'dynare.m','');
 
 origin = pwd();
@@ -44,7 +45,6 @@ if ~nargin || nargin==1
     verbose = 1;
 end
 
-
 addpath([dynareroot '/distributions/'])
 addpath([dynareroot '/kalman/'])
 addpath([dynareroot '/kalman/likelihood'])
@@ -90,8 +90,8 @@ if isoctave
     addpath([dynareroot '/missing/ordeig'])
 end
 
-% ilu is missing in Octave
-if isoctave
+% ilu is missing in Octave < 4.0
+if isoctave && octave_ver_less_than('4.0')
     addpath([dynareroot '/missing/ilu'])
 end
 
@@ -114,49 +114,7 @@ if (isoctave && ~user_has_octave_forge_package('statistics')) ...
 end
 
 % Add path to MEX files
-if isoctave
-    addpath([dynareroot '../mex/octave/']);
-else
-    % Add win32 specific paths for Dynare Windows package
-    if strcmp(computer, 'PCWIN')
-        mexpath = [dynareroot '../mex/matlab/win32-7.5-8.4'];
-        if exist(mexpath, 'dir')
-            addpath(mexpath)
-        end
-    end
-
-    % Add win64 specific paths for Dynare Windows package
-    if strcmp(computer, 'PCWIN64')
-        if matlab_ver_less_than('7.8')
-            mexpath = [dynareroot '../mex/matlab/win64-7.5-7.7'];
-            if exist(mexpath, 'dir')
-                addpath(mexpath)
-            end
-        else
-            mexpath = [dynareroot '../mex/matlab/win64-7.8-8.4'];
-            if exist(mexpath, 'dir')
-                addpath(mexpath)
-            end
-        end
-    end
-
-    if strcmp(computer, 'MACI')
-        mexpath = [dynareroot '../mex/matlab/osx32-7.5-7.11'];
-        if exist(mexpath, 'dir')
-            addpath(mexpath)
-        end
-    end
-
-    if strcmp(computer, 'MACI64')
-        mexpath = [dynareroot '../mex/matlab/osx64'];
-        if exist(mexpath, 'dir')
-            addpath(mexpath)
-        end
-    end
-
-    % Add generic MATLAB path (with higher priority than the previous ones)
-    addpath([dynareroot '../mex/matlab/']);
-end
+add_path_to_mex_files(dynareroot);
 
 %% Set mex routine names
 mex_status = cell(1,3);
diff --git a/matlab/dynare_estimation_1.m b/matlab/dynare_estimation_1.m
index f64960504..5fdd91895 100644
--- a/matlab/dynare_estimation_1.m
+++ b/matlab/dynare_estimation_1.m
@@ -233,7 +233,7 @@ end
 if ~isequal(options_.mode_compute,0) && ~options_.mh_posterior_mode_estimation
     %prepare settings for newrat
     if options_.mode_compute==5
-        %get whether analytical Hessian with non-analytical mode-finding is requested
+        %get whether outer product Hessian is requested
         newratflag=[];
         if ~isempty(options_.optim_opt)
             options_list = read_key_value_string(options_.optim_opt);
@@ -246,19 +246,14 @@ if ~isequal(options_.mode_compute,0) && ~options_.mh_posterior_mode_estimation
         if options_.analytic_derivation,
             options_analytic_derivation_old = options_.analytic_derivation;
             options_.analytic_derivation = -1;
-            if ~isempty(newratflag) && newratflag~=0 %gradient explicitly specified
+            if ~isempty(newratflag) && newratflag~=0 %numerical hessian explicitly specified
                 error('newrat: analytic_derivation is incompatible with numerical Hessian.')
             else %use default
-                newratflag=0; %use analytical gradient
+                newratflag=0; %exclude DYNARE numerical hessian
             end
         elseif ~options_.analytic_derivation 
             if isempty(newratflag) 
-                newratflag=options_.newrat.hess; %use default gradient                
-            end
-            if newratflag==0 %Analytic Hessian wanted, but not automatically computed by newrat itself
-                if ~((options_.kalman_algo == 2) || (options_.kalman_algo == 4)) %kalman_algo not compatible
-                    error('Analytical Hessian with non-analytical mode-finding requires kalman_algo=2 or 4.')
-                end
+                newratflag=options_.newrat.hess; %use default numerical dynare hessian                
             end
         end
     end
@@ -281,11 +276,39 @@ if ~isequal(options_.mode_compute,0) && ~options_.mh_posterior_mode_estimation
                 [junk1, junk2, hh] = feval(objective_function,xparam1, ...
                     dataset_,dataset_info,options_,M_,estim_params_,bayestopt_,bounds,oo_);
                 options_.analytic_derivation = ana_deriv_old;
-            elseif ~(isequal(options_.mode_compute,5) && newratflag==0), 
+            elseif ~(isequal(options_.mode_compute,5) && newratflag~=1), 
                 % with flag==0, we force to use the hessian from outer
                 % product gradient of optimizer 5
                 hh = reshape(hessian(objective_function,xparam1, ...
                     options_.gstep,dataset_,dataset_info,options_,M_,estim_params_,bayestopt_,bounds,oo_),nx,nx);
+            elseif isequal(options_.mode_compute,5)
+                % other numerical hessian options available with optimizer 5
+                %
+                % if newratflag == 0
+                % compute outer product gradient of optimizer 5
+                %
+                % if newratflag == 2
+                % compute 'mixed' outer product gradient of optimizer 5
+                % with diagonal elements computed with numerical second order derivatives
+                %
+                % uses univariate filters, so to get max # of available
+                % densitities for outer product gradient
+                kalman_algo0 = options_.kalman_algo;
+                compute_hessian = 1;
+                if ~((options_.kalman_algo == 2) || (options_.kalman_algo == 4)),
+                    options_.kalman_algo=2;
+                    if options_.lik_init == 3,
+                        options_.kalman_algo=4;
+                    end
+                elseif newratflag==0, % hh already contains outer product gradient with univariate filter
+                    compute_hessian = 0;                                            
+                end
+                if compute_hessian,
+                    crit = options_.newrat.tolerance.f;
+                    newratflag = newratflag>0;
+                    hh = reshape(mr_hessian(0,xparam1,objective_function,newratflag,crit,dataset_, dataset_info, options_,M_,estim_params_,bayestopt_,bounds,oo_), nx, nx);
+                end
+                options_.kalman_algo = kalman_algo0;
             end
         end
     end
diff --git a/matlab/global_initialization.m b/matlab/global_initialization.m
index bcd3cff40..1470d533f 100644
--- a/matlab/global_initialization.m
+++ b/matlab/global_initialization.m
@@ -363,7 +363,7 @@ estimation_info.structural_innovation_corr_prior_index = {};
 estimation_info.structural_innovation_corr_options_index = {};
 estimation_info.structural_innovation_corr.range_index = {};
 estimation_info.joint_parameter_prior_index = {};
-estimation_info.joint_parameter = cell2table(cell(0,11));
+estimation_info.joint_parameter = {'index','domain','interval','mean','median','mode','shape','shift','stdev','truncate','variance'};
 options_.initial_period = NaN; %dates(1,1);
 options_.dataset.file = [];
 options_.dataset.series = [];
@@ -481,7 +481,7 @@ csminwel.maxiter=1000;
 options_.csminwel=csminwel;
 
 %newrat optimization routine
-newrat.hess=1; %analytic hessian
+newrat.hess=1; % dynare numerical hessian
 newrat.tolerance.f=1e-5;
 newrat.tolerance.f_analytic=1e-7;
 newrat.maxiter=1000;
diff --git a/matlab/initvalf.m b/matlab/initvalf.m
index 13e1005d7..0493a2b48 100644
--- a/matlab/initvalf.m
+++ b/matlab/initvalf.m
@@ -64,6 +64,7 @@ switch (extension)
         load(basename);
     case { '.xls', '.xlsx' }
         [data_,names_v_]=xlsread(fullname); % Octave needs the extension explicitly
+        series_=0;
     otherwise
         error(['Unsupported extension for datafile: ' extension])
 end
@@ -75,27 +76,35 @@ oo_.exo_simul = [];
 for i_=1:size(M_.endo_names,1)
     if series_ == 1
         x_ = eval(M_.endo_names(i_,:));
-        oo_.endo_simul = [oo_.endo_simul; x_'];
+        if size(x_,2)>size(x_,1) %oo_.endo_simul must be collection of row vectors
+            oo_.endo_simul = [oo_.endo_simul; x_];
+        else %transpose if column vector
+            oo_.endo_simul = [oo_.endo_simul; x_'];            
+        end
     else
-        k_ = strmatch(upper(M_.endo_names(i_,:)),names_v_,'exact');
+        k_ = strmatch(deblank(M_.endo_names(i_,:)),names_v_,'exact');
         if isempty(k_)
-            error(['INITVAL_FILE: ' M_.endo_names(i_,:) ' not found'])
+            error(['INITVAL_FILE: ' deblank(M_.endo_names(i_,:)) ' not found'])
         end
         x_ = data_(:,k_);
-        oo_.endo_simul = [oo_.endo_simul; x_']; 
+        oo_.endo_simul = [oo_.endo_simul; x_'];            
     end
 end
 
 for i_=1:size(M_.exo_names,1)
     if series_ == 1
         x_ = eval(M_.exo_names(i_,:) );
-        oo_.exo_simul = [oo_.exo_simul x_];
+        if size(x_,2)>size(x_,1) %oo_.endo_simul must be collection of row vectors
+            oo_.exo_simul = [oo_.exo_simul x_'];
+        else %if column vector
+            oo_.exo_simul = [oo_.exo_simul x_];            
+        end
     else
-        k_ = strmatch(upper(M_.exo_names(i_,:)),names_v_,'exact');
+        k_ = strmatch(deblank(M_.exo_names(i_,:)),names_v_,'exact');
         if isempty(k_)
-            error(['INITVAL_FILE: ' M_.exo_names(i_,:) ' not found'])
+            error(['INITVAL_FILE: ' deblank(M_.exo_names(i_,:)) ' not found'])
         end
         x_ = data_(:,k_);
-        oo_.exo_simul = [oo_.exo_simul x_]; 
+        oo_.exo_simul = [oo_.exo_simul x_];            
     end
-end
+end
\ No newline at end of file
diff --git a/matlab/ms-sbvar/identification/exclusions.m b/matlab/ms-sbvar/identification/exclusions.m
index 9632356fe..a2447b1ba 100644
--- a/matlab/ms-sbvar/identification/exclusions.m
+++ b/matlab/ms-sbvar/identification/exclusions.m
@@ -1,4 +1,4 @@
-function [Ui,Vi,n0,np,ixmC0Pres] = exclusions(nvar,nexo,options_ms)
+function [Ui,Vi,n0,np,ixmC0Pres,Qi] = exclusions(nvar,nexo,options_ms)
 % function [Ui,Vi,n0,np,ixmC0Pres] = exclusions(nvar,nexo,options_ms)
 %
 % INPUTS
diff --git a/matlab/ms-sbvar/sbvar_global_identification_check.m b/matlab/ms-sbvar/sbvar_global_identification_check.m
new file mode 100644
index 000000000..642220f54
--- /dev/null
+++ b/matlab/ms-sbvar/sbvar_global_identification_check.m
@@ -0,0 +1,77 @@
+function indent = sbvar_global_identification_check(options_)
+% function sbvar_global_identification_check(options_.ms)
+%
+% INPUTS
+%    options_ms:    (struct)    options
+%
+% OUTPUTS
+%    ident:          (boolean) false = not identified; true = identified
+%
+% SPECIAL REQUIREMENTS
+%    none
+
+% Copyright (C) 2015 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
+
+ident = false;
+
+if isequal(options_.ms.restriction_fname, 'upper_cholesky') || ...
+        isequal(options_.ms.restriction_fname, 'lower_cholesky')
+    ident = true;
+    if ~options_.noprint
+        disp(' ')
+        disp('SBVAR: Cholesky identification is always identified')
+        disp(' ')
+    end
+    return
+end
+nvar = length(options_.varobs);   % number of endogenous variables
+nexo = 1;
+   
+[Uiconst,Viconst,n0,np,ixmC0Pres,Qi] = exclusions(nvar,nexo,options_.ms );
+
+% order column constraints by rank
+Qranks = zeros(nvar,2);
+for j=1:nvar
+    Qranks(j,:) = [j,rank(Qi{j})];
+end
+Qranks = sortrows(Qranks,-2);
+
+ident = true;
+
+for j=1:nvar
+    i = Qranks(j,1);
+    for k=1:1
+        M = [Qi{i}*rand(size(Qi{i},1),nvar);[eye(j) zeros(j,nvar- ...
+                                                          j)]];
+        disp([j,k,rank(M)])
+        if rank(M) < nvar
+            ident = false
+            break
+        end
+    end
+end
+
+if ~options_.noprint
+    disp(' ')
+    if ident
+        disp('The sufficient condition for SBVAR identification is met')
+    else
+        disp('WARNGING: The sufficient condition for SBVAR identification is not met')
+    end
+    disp(' ')
+end
\ No newline at end of file
diff --git a/matlab/optimization/dynare_minimize_objective.m b/matlab/optimization/dynare_minimize_objective.m
index 124a4bf3f..b345b8d55 100644
--- a/matlab/optimization/dynare_minimize_objective.m
+++ b/matlab/optimization/dynare_minimize_objective.m
@@ -177,10 +177,9 @@ switch minimizer_algorithm
         end
     end
     [opt_par_values,hessian_mat,gg,fval,invhess] = newrat(objective_function,start_par_value,analytic_grad,crit,nit,0,varargin{:});
+    %hessian_mat is the plain outer product gradient Hessian
     if options_.analytic_derivation %Hessian is already analytic one, reset option
         options_.analytic_derivation = ana_deriv;
-    elseif ~options_.analytic_derivation && newratflag ==0 %Analytic Hessian wanted, but not computed yet
-            hessian_mat = reshape(mr_hessian(0,opt_par_values,objective_function,1,crit,varargin{:}), n_params, n_params);
     end
   case 6
     [opt_par_values, hessian_mat, Scale, fval] = gmhmaxlik(objective_function, start_par_value, ...
diff --git a/matlab/perfect-foresight-models/private/check_input_arguments.m b/matlab/perfect-foresight-models/private/check_input_arguments.m
index 26d84153d..795f84645 100644
--- a/matlab/perfect-foresight-models/private/check_input_arguments.m
+++ b/matlab/perfect-foresight-models/private/check_input_arguments.m
@@ -41,10 +41,22 @@ end
 
 
 if isempty(DynareResults.endo_simul) || any(size(DynareResults.endo_simul) ~= [ DynareModel.endo_nbr, DynareModel.maximum_lag+DynareOptions.periods+DynareModel.maximum_lead ])
-    error('perfect_foresight_solver:ArgCheck','PERFECT_FORESIGHT_SOLVER: ''oo_.endo_simul'' has wrong size. Did you run ''perfect_foresight_setup'' ?')
+    
+    if options_.initval_file
+        disp(sprintf('PERFECT_FORESIGHT_SOLVER: ''oo_.endo_simul'' has wrong size. Check whether your initval-file provides %d periods.',M_.maximum_endo_lag+options_.periods+M_.maximum_endo_lead))
+        error('perfect_foresight_solver:ArgCheck','PERFECT_FORESIGHT_SOLVER: ''oo_.endo_simul'' has wrong size. Did you run ''perfect_foresight_setup'' ?')
+    else
+        error('perfect_foresight_solver:ArgCheck','PERFECT_FORESIGHT_SOLVER: ''oo_.endo_simul'' has wrong size. Did you run ''perfect_foresight_setup'' ?')
+    end
 end
 
-if (DynareModel.exo_nbr > 0) && (isempty(DynareResults.exo_simul) || ...
-                                 any(size(DynareResults.exo_simul) ~= [ DynareModel.maximum_lag+DynareOptions.periods+DynareModel.maximum_lead, DynareModel.exo_nbr ]))
+if (DynareModel.exo_nbr > 0) && ...
+        (isempty(DynareResults.exo_simul) || any(size(DynareResults.exo_simul) ~= [ DynareModel.maximum_lag+DynareOptions.periods+DynareModel.maximum_lead, DynareModel.exo_nbr ]))
+    if options_.initval_file
+        disp(sprintf('PERFECT_FORESIGHT_SOLVER: ''oo_.exo_simul'' has wrong size. Check whether your initval-file provides %d periods.',M_.maximum_endo_lag+options_.periods+M_.maximum_endo_lead))
+        error('perfect_foresight_solver:ArgCheck','PERFECT_FORESIGHT_SOLVER: ''oo_.exo_simul'' has wrong size.')
+    else
+        error('perfect_foresight_solver:ArgCheck','PERFECT_FORESIGHT_SOLVER: ''oo_.exo_simul'' has wrong size. Did you run ''perfect_foresight_setup'' ?')
+    end
     error('perfect_foresight_solver:ArgCheck','PERFECT_FORESIGHT_SOLVER: ''oo_.exo_simul'' has wrong size. Did you run ''perfect_foresight_setup'' ?')
 end
diff --git a/matlab/perfect-foresight-models/sim1_purely_forward.m b/matlab/perfect-foresight-models/sim1_purely_forward.m
index 8a8fa3294..34b60f510 100644
--- a/matlab/perfect-foresight-models/sim1_purely_forward.m
+++ b/matlab/perfect-foresight-models/sim1_purely_forward.m
@@ -37,7 +37,7 @@ function oo_ = sim1_purely_forward(options_, M_, oo_)
                              1, options_.gstep, options_.solve_tolf, ...
                              options_.solve_tolx, options_.simul.maxit, ...
                              options_.debug,oo_.exo_simul, M_.params, oo_.steady_state, ...
-                             it);
+                             it+M_.maximum_lag);
 
         if info
             oo_.deterministic_simulation.status = 0;
diff --git a/matlab/stoch_simul.m b/matlab/stoch_simul.m
index c90bc1a5e..e9a4e5e2d 100644
--- a/matlab/stoch_simul.m
+++ b/matlab/stoch_simul.m
@@ -82,7 +82,7 @@ else
     [oo_.dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);
 end
 
-if options_.loglinear %log steady state for correct display of decision rules and simulations
+if options_.loglinear && isfield(oo_.dr,'ys') %log steady state for correct display of decision rules and simulations
     oo_.dr.ys=log(oo_.dr.ys);
     oo_.steady_state=log(oo_.steady_state);
     options_old.logged_steady_state = 1;
diff --git a/matlab/warning_config.m b/matlab/warning_config.m
index 6b6f53306..3b9f45d63 100644
--- a/matlab/warning_config.m
+++ b/matlab/warning_config.m
@@ -10,7 +10,7 @@ function warning_config()
 % SPECIAL REQUIREMENTS
 %   none
 
-% Copyright (C) 2008-2013 Dynare Team
+% Copyright (C) 2008-2015 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -34,7 +34,11 @@ warning('on', 'backtrace');
 
 if isoctave
     warning('off', 'Octave:separator-insert');
-    warning('off', 'Octave:matlab-incompatible');
+    if octave_ver_less_than('4.0')
+        warning('off', 'Octave:matlab-incompatible');
+    else
+        warning('off', 'Octave:language-extension');
+    end
     warning('off', 'Octave:single-quote-string');
     warning('off', 'Octave:missing-semicolon');
     warning('off', 'Octave:empty-list-elements');
@@ -43,11 +47,7 @@ if isoctave
     warning('off', 'Octave:str-to-num');
     warning('off', 'Octave:array-as-scalar');
     warning('off', 'Octave:array-as-vector');
-    if octave_ver_less_than('3.6')
-        warning('off', 'Octave:string-concat');
-    else
-        warning('off', 'Octave:mixed-string-concat');
-    end
+    warning('off', 'Octave:mixed-string-concat');
     warning('off', 'Octave:variable-switch-label');
     warning('off', 'Octave:fortran-indexing');
 else
diff --git a/mex/build/octave/Makefile.am b/mex/build/octave/Makefile.am
index 77067b24c..71d4639d6 100644
--- a/mex/build/octave/Makefile.am
+++ b/mex/build/octave/Makefile.am
@@ -2,12 +2,16 @@ ACLOCAL_AMFLAGS = -I ../../../m4
 
 # libdynare++ must come before gensylv, k_order_perturbation, dynare_simul_
 if DO_SOMETHING
-SUBDIRS = mjdgges kronecker bytecode libdynare++ gensylv qzcomplex ordschur block_kalman_filter sobol local_state_space_iterations
+SUBDIRS = mjdgges kronecker bytecode libdynare++ gensylv qzcomplex block_kalman_filter sobol local_state_space_iterations
 
 if COMPILE_LINSOLVE
 SUBDIRS += linsolve
 endif
 
+if COMPILE_ORDSCHUR
+SUBDIRS += ordschur
+endif
+
 if HAVE_MATIO
 SUBDIRS += k_order_perturbation dynare_simul_
 endif
diff --git a/mex/build/octave/configure.ac b/mex/build/octave/configure.ac
index 499f5fe93..fd563e61c 100755
--- a/mex/build/octave/configure.ac
+++ b/mex/build/octave/configure.ac
@@ -1,6 +1,6 @@
 dnl Process this file with autoconf to produce a configure script.
 
-dnl Copyright (C) 2009-2014 Dynare Team
+dnl Copyright (C) 2009-2015 Dynare Team
 dnl
 dnl This file is part of Dynare.
 dnl
@@ -34,9 +34,11 @@ if test "x$MKOCTFILE" != "x"; then
   OCTAVE_VERSION=`$MKOCTFILE -v 2>&1 | sed 's/mkoctfile, version //'`
   AX_COMPARE_VERSION([$OCTAVE_VERSION], [lt], [3.6], [AC_MSG_ERROR([Your Octave is too old, please upgrade to version 3.6 at least.])])
   AX_COMPARE_VERSION([$OCTAVE_VERSION], [ge], [3.8], [OCTAVE38=yes])
+  AX_COMPARE_VERSION([$OCTAVE_VERSION], [ge], [4.0], [OCTAVE40=yes])
 fi
 
 AM_CONDITIONAL([COMPILE_LINSOLVE], [test "$OCTAVE38" != "yes"])
+AM_CONDITIONAL([COMPILE_ORDSCHUR], [test "$OCTAVE40" != "yes"])
 
 CFLAGS="$CFLAGS -Wall -Wno-parentheses"
 FFLAGS="$FFLAGS -Wall"
@@ -121,6 +123,12 @@ else
    BUILD_LINSOLVE_OCTAVE="no (Octave >= 3.8)"
 fi
 
+if test -n "$MKOCTFILE" -a "$OCTAVE40" != "yes"; then
+   BUILD_ORDSCHUR_OCTAVE="yes"
+else
+   BUILD_ORDSCHUR_OCTAVE="no (Octave >= 4.0)"
+fi
+
 AC_ARG_ENABLE([openmp], AS_HELP_STRING([--enable-openmp], [use OpenMP for parallelization of some MEX files]), [
   if test "x$enable_openmp" = "xyes"; then
     CPPFLAGS="$CPPFLAGS -DUSE_OMP"
@@ -139,6 +147,7 @@ Binaries (with "make"):
  Kalman Steady State MEX file for Octave:                            $BUILD_KALMAN_STEADY_STATE_OCTAVE
  Estimation, k-order and dynare_simul MEX for Octave:                $BUILD_ESTIMATION_KORDER_DYNSIMUL_MEX_OCTAVE
  Linsolve for Octave:                                                $BUILD_LINSOLVE_OCTAVE
+ Ordschur for Octave:                                                $BUILD_ORDSCHUR_OCTAVE
 
 ])
 
diff --git a/preprocessor/ComputingTasks.cc b/preprocessor/ComputingTasks.cc
index 373b73faf..1b14ebc61 100644
--- a/preprocessor/ComputingTasks.cc
+++ b/preprocessor/ComputingTasks.cc
@@ -730,17 +730,14 @@ DynareSensitivityStatement::writeOutput(ostream &output, const string &basename)
   output << "dynare_sensitivity(options_gsa);" << endl;
 }
 
-RplotStatement::RplotStatement(const SymbolList &symbol_list_arg,
-                               const OptionsList &options_list_arg) :
-  symbol_list(symbol_list_arg),
-  options_list(options_list_arg)
+RplotStatement::RplotStatement(const SymbolList &symbol_list_arg) :
+  symbol_list(symbol_list_arg)
 {
 }
 
 void
 RplotStatement::writeOutput(ostream &output, const string &basename) const
 {
-  options_list.writeOutput(output);
   symbol_list.writeOutput("var_list_", output);
   output << "rplot(var_list_);" << endl;
 }
@@ -2369,7 +2366,7 @@ JointPriorStatement::writeOutput(ostream &output, const string &basename) const
   writeOutputHelper(output, "truncate", lhs_field);
   writeOutputHelper(output, "variance", lhs_field);
 
-  output << "estimation_info.joint_parameter_tmp = table(key, ..." << endl
+  output << "estimation_info.joint_parameter_tmp = [key, ..." << endl
          << "    " << lhs_field << ".domain , ..." << endl
          << "    " << lhs_field << ".interval , ..." << endl
          << "    " << lhs_field << ".mean , ..." << endl
@@ -2379,15 +2376,9 @@ JointPriorStatement::writeOutput(ostream &output, const string &basename) const
          << "    " << lhs_field << ".shift , ..." << endl
          << "    " << lhs_field << ".stdev , ..." << endl
          << "    " << lhs_field << ".truncate , ..." << endl
-         << "    " << lhs_field << ".variance, ..." << endl
-         << "    'VariableNames',{'index','domain','interval','mean','median','mode','shape','shift','stdev','truncate','variance'});" << endl;
-
-  output << "if height(estimation_info.joint_parameter)" << endl
-         << "  estimation_info.joint_parameter = [estimation_info.joint_parameter; estimation_info.joint_parameter_tmp];" << endl
-         << "else" << endl
-         << "    estimation_info.joint_parameter = estimation_info.joint_parameter_tmp;" << endl
-         << "end" << endl
-         << "clear estimation_info.joint_parameter_tmp;" << endl;
+         << "    " << lhs_field << ".variance];" << endl
+         << "estimation_info.joint_parameter = [estimation_info.joint_parameter; estimation_info.joint_parameter_tmp];" << endl
+         << "estimation_info=rmfield(estimation_info, 'joint_parameter_tmp');" << endl;
 }
 
 void
@@ -2395,10 +2386,14 @@ JointPriorStatement::writeOutputHelper(ostream &output, const string &field, con
 {
   OptionsList::num_options_t::const_iterator itn = options_list.num_options.find(field);
   output << lhs_field << "." << field << " = {";
+  if (field=="variance")
+    output << "{";
   if (itn != options_list.num_options.end())
     output << itn->second;
   else
     output << "{}";
+  if (field=="variance")
+    output << "}";
   output << "};" << endl;
 }
 
diff --git a/preprocessor/ComputingTasks.hh b/preprocessor/ComputingTasks.hh
index 786cf9472..e1c659c19 100644
--- a/preprocessor/ComputingTasks.hh
+++ b/preprocessor/ComputingTasks.hh
@@ -155,10 +155,8 @@ class RplotStatement : public Statement
 {
 private:
   const SymbolList symbol_list;
-  const OptionsList options_list;
 public:
-  RplotStatement(const SymbolList &symbol_list_arg,
-                 const OptionsList &options_list_arg);
+  RplotStatement(const SymbolList &symbol_list_arg);
   virtual void writeOutput(ostream &output, const string &basename) const;
 };
 
diff --git a/preprocessor/DynamicModel.cc b/preprocessor/DynamicModel.cc
index 493bbff4b..f27b1ca3d 100644
--- a/preprocessor/DynamicModel.cc
+++ b/preprocessor/DynamicModel.cc
@@ -187,6 +187,10 @@ DynamicModel::computeTemporaryTermsOrdered()
             it->second->collectTemporary_terms(temporary_terms, temporary_terms_in_use, block);
           for (derivative_t::const_iterator it = derivative_other_endo[block].begin(); it != derivative_other_endo[block].end(); it++)
             it->second->collectTemporary_terms(temporary_terms, temporary_terms_in_use, block);
+          for (derivative_t::const_iterator it = derivative_exo[block].begin(); it != derivative_exo[block].end(); it++)
+            it->second->collectTemporary_terms(temporary_terms, temporary_terms_in_use, block);
+          for (derivative_t::const_iterator it = derivative_exo_det[block].begin(); it != derivative_exo_det[block].end(); it++)
+            it->second->collectTemporary_terms(temporary_terms, temporary_terms_in_use, block);
           v_temporary_terms_inuse[block] = temporary_terms_in_use;
         }
       computeTemporaryTermsMapping();
diff --git a/preprocessor/DynareFlex.ll b/preprocessor/DynareFlex.ll
index 793de8c0e..994aaa421 100644
--- a/preprocessor/DynareFlex.ll
+++ b/preprocessor/DynareFlex.ll
@@ -851,6 +851,8 @@ DATE -?[0-9]+([YyAa]|[Mm]([1-9]|1[0-2])|[Qq][1-4]|[Ww]([1-9]{1}|[1-4][0-9]|5[0-2
   string token;
   yylval->vector_string_val = new vector<string *>;
 
+  bool dynare_statement = true;
+
   while(getline(ss, token, ','))
     if (driver.symbol_exists_and_is_not_modfile_local_or_external_function(token.c_str()))
       yylval->vector_string_val->push_back(new string(token));
@@ -862,9 +864,10 @@ DATE -?[0-9]+([YyAa]|[Mm]([1-9]|1[0-2])|[Qq][1-4]|[Ww]([1-9]{1}|[1-4][0-9]|5[0-2
         delete yylval->vector_string_val;
         BEGIN NATIVE;
         yyless(0);
+        dynare_statement = false;
         break;
       }
-  if (yylval->vector_string_val->size() > 0)
+  if (dynare_statement)
     {
       BEGIN DYNARE_STATEMENT;
       return token::SYMBOL_VEC;
diff --git a/preprocessor/Makefile.am b/preprocessor/Makefile.am
index aea2e45a7..4ea6bf6f0 100644
--- a/preprocessor/Makefile.am
+++ b/preprocessor/Makefile.am
@@ -68,8 +68,14 @@ DynareFlex.cc FlexLexer.h: DynareFlex.ll
 DynareBison.cc DynareBison.hh location.hh stack.hh position.hh: DynareBison.yy
 	$(YACC) -o DynareBison.cc DynareBison.yy
 
-all-local:
-	cd ../matlab && $(LN_S) -f $(abs_srcdir)/$(PROGRAMS) $(PROGRAMS)
+all-local: $(PROGRAMS)
+	if [ -z "`file $(PROGRAMS) | grep x86.64`" ]; then \
+	  ARCH="32"; \
+	else \
+	  ARCH="64"; \
+	fi; \
+	mkdir -p ../matlab/preprocessor$$ARCH ; \
+	cd ../matlab/preprocessor$$ARCH && $(LN_S) -f $(abs_srcdir)/$(PROGRAMS) $(PROGRAMS)
 
 if HAVE_DOXYGEN
 html-local:
@@ -77,7 +83,7 @@ html-local:
 endif
 
 clean-local:
-	cd ../matlab && rm -f $(PROGRAMS)
+	rm -rf ../matlab/preprocessor*
 	rm -rf doc/html/
 
 EXTRA_DIST = $(BUILT_SOURCES) Doxyfile
diff --git a/preprocessor/ParsingDriver.cc b/preprocessor/ParsingDriver.cc
index cd9b0101c..67c4be456 100644
--- a/preprocessor/ParsingDriver.cc
+++ b/preprocessor/ParsingDriver.cc
@@ -1186,8 +1186,7 @@ ParsingDriver::add_in_symbol_list(string *tmp_var)
 void
 ParsingDriver::rplot()
 {
-  mod_file->addStatement(new RplotStatement(symbol_list, options_list));
-  options_list.clear();
+  mod_file->addStatement(new RplotStatement(symbol_list));
   symbol_list.clear();
 }
 
diff --git a/tests/Makefile.am b/tests/Makefile.am
index b26eb65c1..14e46b716 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -39,7 +39,7 @@ MODFILES = \
 	optimal_policy/Ramsey/ramsey_ex_initval_AR2.mod \
 	optimal_policy/Ramsey/ramsey_ex_aux.mod \
 	discretionary_policy/dennis_1.mod \
-	ramst_initval_file.mod \
+	initval_file/ramst_initval_file.mod \
 	ramst_normcdf_and_friends.mod \
 	ramst_vec.mod \
 	example1_varexo_det.mod \
@@ -211,6 +211,8 @@ XFAIL_MODFILES = ramst_xfail.mod \
 	estim_param_in_shock_value.mod \
 	optimal_policy/Ramsey/ramsey_ex_wrong_ss_file.mod
 
+MFILES = initval_file/ramst_initval_file_data.m
+
 # Dependencies
 example1_use_dll.m.trs: example1.m.trs
 example1_use_dll.o.trs: example1.o.trs
@@ -285,6 +287,11 @@ deterministic_simulations/rbc_det_exo_lag_2c.m.trs: deterministic_simulations/rb
 deterministic_simulations/rbc_det_exo_lag_2b.o.trs: deterministic_simulations/rbc_det_exo_lag_2a.o.trs
 deterministic_simulations/rbc_det_exo_lag_2c.o.trs: deterministic_simulations/rbc_det_exo_lag_2a.o.trs
 
+initval_file/ramst_initval_file.m.trs: initval_file/ramst_initval_file_data.m.tls
+initval_file/ramst_initval_file.o.trs: initval_file/ramst_initval_file_data.o.tls
+
+
+
 # Matlab TRS Files
 M_TRS_FILES = $(patsubst %.mod, %.m.trs, $(MODFILES))
 M_TRS_FILES += run_block_byte_tests_matlab.m.trs run_reporting_test_matlab.m.trs run_all_unitary_tests.m.trs
@@ -295,12 +302,21 @@ O_TRS_FILES = $(patsubst %.mod, %.o.trs, $(MODFILES))
 O_TRS_FILES += run_block_byte_tests_octave.o.trs run_reporting_test_octave.o.trs run_all_unitary_tests.o.trs
 O_XFAIL_TRS_FILES = $(patsubst %.mod, %.o.trs, $(XFAIL_MODFILES))
 
+# Matlab TLS Files
+M_TLS_FILES = $(patsubst %.m, %.m.tls, $(MFILES))
+
+# Octave TLS Files
+O_TLS_FILES = $(patsubst %.m, %.o.tls, $(MFILES))
+
+
+
 EXTRA_DIST = \
 	read_trs_files.sh \
 	run_test_matlab.m \
 	run_test_octave.m \
 	$(MODFILES) \
 	$(XFAIL_MODFILES) \
+	$(MFILES) \
 	run_block_byte_tests_matlab.m \
 	run_block_byte_tests_octave.m \
 	run_reporting_test_matlab.m \
@@ -321,8 +337,7 @@ EXTRA_DIST = \
 	fs2000_ssfile_aux.m \
 	printMakeCheckMatlabErrMsg.m \
 	printMakeCheckOctaveErrMsg.m \
-	ramst_initval_file_data.m \
-	test.m \
+	fataltest.m \
 	AIM/data_ca1.m \
 	AIM/fs2000_b1L1L_AIM_steadystate.m \
 	AIM/fs2000_b1L1L_steadystate.m \
@@ -419,10 +434,22 @@ check-octave: $(O_XFAIL_TRS_FILES) $(O_TRS_FILES)
 	DYNARE_VERSION="$(PACKAGE_VERSION)" TOP_TEST_DIR="$(PWD)" \
 		$(OCTAVE) --no-init-file --silent --no-history $< > $*.o.log 2>&1
 
+%.m.tls : %.m
+	TOP_TEST_DIR="$(PWD)"  FILESTEM="$*" \
+		$(MATLAB)/bin/matlab -nosplash -nodisplay -r run_m_script
+	touch $*.m.tls
+
+%.o.tls : %.m
+	TOP_TEST_DIR="$(PWD)"  FILESTEM="$*" \
+		$(OCTAVE) --no-init-file --silent --no-history run_o_script.m 2>&1
+
+
 clean-local:
 	rm -f $(M_TRS_FILES) \
+		$(M_TLS_FILES) \
 		$(M_XFAIL_TRS_FILES) \
 		$(O_TRS_FILES) \
+		$(O_TLS_FILES) \
 		$(O_XFAIL_TRS_FILES) \
 		$(patsubst %.trs, %.log, $(M_TRS_FILES)) \
 		$(patsubst %.trs, %.log, $(M_XFAIL_TRS_FILES)) \
@@ -489,3 +516,5 @@ clean-local:
 		ms-sbvar/tmv_rr_tr
 
 	rm -f estimation/test_matrix.mat
+
+	rm -f initval_file/ramst_initval_file_data_col_vec_mat.mat initval_file/ramst_initval_file_data_row_vec_mat.mat initval_file/ramst_initval_file_excel.xls
diff --git a/tests/deterministic_simulations/rbc_det_exo_lag_2b.mod b/tests/deterministic_simulations/rbc_det_exo_lag_2b.mod
index 08cdb5473..d59a8e613 100644
--- a/tests/deterministic_simulations/rbc_det_exo_lag_2b.mod
+++ b/tests/deterministic_simulations/rbc_det_exo_lag_2b.mod
@@ -77,4 +77,4 @@ rplot Capital;
 
 O=load('rbc_det_exo_lag_2a_results');
 
-test(oo_.endo_simul(:,2:end),O.oo_.endo_simul);
\ No newline at end of file
+fataltest(oo_.endo_simul(:,2:end),O.oo_.endo_simul);
\ No newline at end of file
diff --git a/tests/deterministic_simulations/rbc_det_exo_lag_2c.mod b/tests/deterministic_simulations/rbc_det_exo_lag_2c.mod
index 654446c8c..fd7024109 100644
--- a/tests/deterministic_simulations/rbc_det_exo_lag_2c.mod
+++ b/tests/deterministic_simulations/rbc_det_exo_lag_2c.mod
@@ -77,4 +77,4 @@ rplot Capital;
 
 O=load('rbc_det_exo_lag_2a_results');
 
-test(oo_.endo_simul(:,2:end),O.oo_.endo_simul);
\ No newline at end of file
+fataltest(oo_.endo_simul(:,2:end),O.oo_.endo_simul);
\ No newline at end of file
diff --git a/tests/test.m b/tests/fataltest.m
similarity index 100%
rename from tests/test.m
rename to tests/fataltest.m
diff --git a/tests/ramst_initval_file.mod b/tests/initval_file/ramst_initval_file.mod
similarity index 51%
rename from tests/ramst_initval_file.mod
rename to tests/initval_file/ramst_initval_file.mod
index 192edc9ba..f6afae20b 100644
--- a/tests/ramst_initval_file.mod
+++ b/tests/initval_file/ramst_initval_file.mod
@@ -23,12 +23,25 @@ c = aa*k^alph-delt*k;
 end;
 
 initval_file(filename = ramst_initval_file_data);
-
 steady;
+perfect_foresight_setup(periods=200);
+perfect_foresight_solver;
 
-check;
 
-simul(periods=200);
+initval_file(filename = ramst_initval_file_data_row_vec_mat);
+steady;
+perfect_foresight_setup(periods=200);
+perfect_foresight_solver;
 
-rplot c;
-rplot k;
+
+initval_file(filename = ramst_initval_file_data_col_vec_mat);
+steady;
+perfect_foresight_setup(periods=200);
+perfect_foresight_solver;
+
+if ispc()
+    initval_file(filename = ramst_initval_file_excel);
+    steady;
+    perfect_foresight_setup(periods=200);
+    perfect_foresight_solver;
+end
diff --git a/tests/initval_file/ramst_initval_file_data.m b/tests/initval_file/ramst_initval_file_data.m
new file mode 100644
index 000000000..aa94ecbd3
--- /dev/null
+++ b/tests/initval_file/ramst_initval_file_data.m
@@ -0,0 +1,14 @@
+x = vertcat([ 1; 1.2 ], repmat(1, 200, 1));
+k = repmat(12.7551, 202, 1);
+c = repmat(1.53061, 202, 1);
+save('ramst_initval_file_data_col_vec_mat.mat');
+
+if ispc()
+    xlswrite('ramst_initval_file_excel',[x k c],1,'A2');
+    xlswrite('ramst_initval_file_excel',{'x' 'k' 'c'},1,'A1');
+end
+
+c=c';
+k=k';
+x=x';
+save('ramst_initval_file_data_row_vec_mat.mat');
\ No newline at end of file
diff --git a/tests/ms-sbvar/test_global_identification_FAILURE.mod b/tests/ms-sbvar/test_global_identification_FAILURE.mod
new file mode 100644
index 000000000..8ff9cfddd
--- /dev/null
+++ b/tests/ms-sbvar/test_global_identification_FAILURE.mod
@@ -0,0 +1,16 @@
+// same as test_lower_cholesky.mod, but using exclusion syntax
+var R Pie Y;
+
+varobs Y Pie R;
+
+svar_identification;
+exclusion lag 0;
+equation 1, Pie, Y;
+exclusion lag 1;
+equation 2, Y;
+end;
+
+sbvar_global_identification_check(options_);
+
+sbvar(datafile = data,freq=4,initial_year=1959,final_year=2005,nlags=4);
+
diff --git a/tests/ms-sbvar/test_global_identification_OK.mod b/tests/ms-sbvar/test_global_identification_OK.mod
new file mode 100644
index 000000000..7e54d9223
--- /dev/null
+++ b/tests/ms-sbvar/test_global_identification_OK.mod
@@ -0,0 +1,15 @@
+// same as test_lower_cholesky.mod, but using exclusion syntax
+var R Pie Y;
+
+varobs Y Pie R;
+
+svar_identification;
+exclusion lag 0;
+equation 1, Pie, Y;
+equation 2, Y;
+end;
+
+sbvar_global_identification_check(options_);
+
+sbvar(datafile = data,freq=4,initial_year=1959,final_year=2005,nlags=4);
+
diff --git a/tests/optimal_policy/OSR/osr_obj_corr_algo_1.mod b/tests/optimal_policy/OSR/osr_obj_corr_algo_1.mod
index 65dcf6991..2b8a30406 100644
--- a/tests/optimal_policy/OSR/osr_obj_corr_algo_1.mod
+++ b/tests/optimal_policy/OSR/osr_obj_corr_algo_1.mod
@@ -28,7 +28,7 @@ options_.nograph=1;
 options_.nocorr=1;
 osr_params gammax0 gammac0 gamma_y_ gamma_inf_;
 
-
+if ~isoctave
 optim_weights;
 inflation 1;
 y 1;
@@ -107,3 +107,4 @@ end
 if max(abs((cell2mat(struct2cell(oo_.osr.optim_params))-cell2mat(struct2cell(oo_covar_single.osr.optim_params)))./cell2mat(struct2cell(oo_.osr.optim_params))))>1e-4
     error('Parameters should be identical')
 end
+end
\ No newline at end of file
diff --git a/tests/optimal_policy/OSR/osr_obj_corr_algo_7.mod b/tests/optimal_policy/OSR/osr_obj_corr_algo_7.mod
index fea442457..d23466728 100644
--- a/tests/optimal_policy/OSR/osr_obj_corr_algo_7.mod
+++ b/tests/optimal_policy/OSR/osr_obj_corr_algo_7.mod
@@ -41,6 +41,7 @@ gammac0 = 1.5;
 gamma_y_ = 8;
 gamma_inf_ = 3;
 
+if ~isoctave
 osr(opt_algo=7);
 %compute objective function manually
 objective=oo_.var(strmatch('y',M_.endo_names,'exact'),strmatch('y',M_.endo_names,'exact'))+oo_.var(strmatch('inflation',M_.endo_names,'exact'),strmatch('inflation',M_.endo_names,'exact'))+oo_.var(strmatch('dummy_var',M_.endo_names,'exact'),strmatch('dummy_var',M_.endo_names,'exact'));
@@ -107,3 +108,4 @@ end
 if max(abs((cell2mat(struct2cell(oo_.osr.optim_params))-cell2mat(struct2cell(oo_covar_single.osr.optim_params)))./cell2mat(struct2cell(oo_.osr.optim_params))))>1e-4
     error('Parameters should be identical')
 end
+end
\ No newline at end of file
diff --git a/tests/ramst_initval_file_data.m b/tests/ramst_initval_file_data.m
deleted file mode 100644
index 75e6e919a..000000000
--- a/tests/ramst_initval_file_data.m
+++ /dev/null
@@ -1,3 +0,0 @@
-x = vertcat([ 1; 1.2 ], repmat(1, 200, 1));
-k = repmat(12.7551, 202, 1);
-c = repmat(1.53061, 202, 1);
diff --git a/tests/run_m_script.m b/tests/run_m_script.m
new file mode 100644
index 000000000..f40fc242c
--- /dev/null
+++ b/tests/run_m_script.m
@@ -0,0 +1,52 @@
+% Copyright (C) 2015 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
+
+top_test_dir = getenv('TOP_TEST_DIR');
+[mfile, name] = strtok(getenv('FILESTEM'));
+
+[directory, mscript, ext] = fileparts([top_test_dir '/' mfile]);
+cd(directory);
+
+try
+  mscript;
+  testFailed = false;
+catch exception
+  printMakeCheckMatlabErrMsg(strtok(getenv('FILESTEM')), exception);
+  testFailed = true;
+end
+
+cd(top_test_dir);
+name = strtok(getenv('FILESTEM'));
+fid = fopen([name '.m.tls'], 'w');
+if fid < 0
+  wd = pwd
+  filestep = getenv('FILESTEM')
+  error(['ERROR: problem opening file ' name '.m.tls for writing....']);
+end
+if testFailed
+  fprintf(fid,':test-result: FAIL\n');
+  fprintf(fid,':number-tests: 1\n');
+  fprintf(fid,':number-failed-tests: 1\n');
+  fprintf(fid,':list-of-failed-tests: %s\n', [name '.m']);
+else
+  fprintf(fid,':test-result: PASS\n');
+  fprintf(fid,':number-tests: 1\n');
+  fprintf(fid,':number-failed-tests: 0\n');
+  fprintf(fid,':list-of-passed-tests: %s\n', [name '.m']);
+end
+fclose(fid);
+exit;
\ No newline at end of file
diff --git a/tests/run_o_script.m b/tests/run_o_script.m
new file mode 100644
index 000000000..317f8cc18
--- /dev/null
+++ b/tests/run_o_script.m
@@ -0,0 +1,52 @@
+## Copyright (C) 2015 Dynare Team
+##
+## This file is part of Dynare.
+##
+## Dynare is free software: you can redistribute it and/or modify
+## it under the terms of the GNU General Public License as published by
+## the Free Software Foundation, either version 3 of the License, or
+## (at your option) any later version.
+##
+## Dynare is distributed in the hope that it will be useful,
+## but WITHOUT ANY WARRANTY; without even the implied warranty of
+## MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+## GNU General Public License for more details.
+##
+## You should have received a copy of the GNU General Public License
+## along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
+
+top_test_dir = getenv('TOP_TEST_DIR');
+[mfile, name] = strtok(getenv('FILESTEM'));
+
+[directory, mscript, ext] = fileparts([top_test_dir '/' mfile]);
+cd(directory);
+
+try
+  mscript;
+  testFailed = false;
+catch
+  printMakeCheckOctaveErrMsg(getenv('FILESTEM'), lasterror);
+  testFailed = true;
+end_try_catch
+
+cd(top_test_dir);
+name = strtok(getenv('FILESTEM'));
+fid = fopen([name '.o.tls'], 'w+');
+if testFailed
+  fprintf(fid,':test-result: FAIL\n');
+  fprintf(fid,':number-tests: 1\n');
+  fprintf(fid,':number-failed-tests: 1\n');
+  fprintf(fid,':list-of-failed-tests: %s\n', [name '.m']);
+else
+  fprintf(fid,':test-result: PASS\n');
+  fprintf(fid,':number-tests: 1\n');
+  fprintf(fid,':number-failed-tests: 0\n');
+  fprintf(fid,':list-of-passed-tests: %s\n', [name '.m']);
+end
+fclose(fid);
+exit;
+
+
+## Local variables:
+## mode: Octave
+## End:
diff --git a/tests/t_sgu_ex1.mod b/tests/t_sgu_ex1.mod
index 9ac2e6fd9..87e270666 100644
--- a/tests/t_sgu_ex1.mod
+++ b/tests/t_sgu_ex1.mod
@@ -28,10 +28,10 @@ stoch_simul(nomoments,nocorr,ar=0,irf=0);
 global dr_
 load objectives/sgu_ex1;
 
-test(oo_.dr.ghx,dr_obj_.ghx,1);
-test(oo_.dr.ghu,dr_obj_.ghu,2);
-test(oo_.dr.ghxx,dr_obj_.ghxx,3);
-test(oo_.dr.ghxu,dr_obj_.ghxu,4);
-test(oo_.dr.ghuu,dr_obj_.ghuu,5);
+fataltest(oo_.dr.ghx,dr_obj_.ghx,1);
+fataltest(oo_.dr.ghu,dr_obj_.ghu,2);
+fataltest(oo_.dr.ghxx,dr_obj_.ghxx,3);
+fataltest(oo_.dr.ghxu,dr_obj_.ghxu,4);
+fataltest(oo_.dr.ghuu,dr_obj_.ghuu,5);
 
-disp('TESTS OK');
\ No newline at end of file
+disp('TESTS OK');
diff --git a/windows/dynare.nsi b/windows/dynare.nsi
index 6f7a45b7a..c76bb5175 100644
--- a/windows/dynare.nsi
+++ b/windows/dynare.nsi
@@ -58,7 +58,12 @@ Section "Dynare core (preprocessor and M-files)"
 
  SetOutPath $INSTDIR\matlab
  File /r ..\matlab\*.m
- File ..\matlab\dynare_m.exe
+
+ SetOutPath $INSTDIR\matlab\preprocessor32
+ File ..\matlab\preprocessor32\dynare_m.exe
+
+ SetOutPath $INSTDIR\matlab\preprocessor64
+ File ..\matlab\preprocessor64\dynare_m.exe
 
  SetOutPath $INSTDIR\contrib
  File /r ..\contrib\*.m
@@ -83,9 +88,9 @@ SectionEnd
 
 SectionGroup "MEX files for MATLAB"
 
-Section "MEX files for MATLAB 32-bit, version 7.5 to 8.4 (R2007b to R2014b)"
- SetOutPath $INSTDIR\mex\matlab\win32-7.5-8.4
- File ..\mex\matlab\win32-7.5-8.4\*.mexw32
+Section "MEX files for MATLAB 32-bit, version 7.5 to 8.5 (R2007b to R2015a)"
+ SetOutPath $INSTDIR\mex\matlab\win32-7.5-8.5
+ File ..\mex\matlab\win32-7.5-8.5\*.mexw32
 SectionEnd
 
 Section "MEX files for MATLAB 64-bit, version 7.5 to 7.7 (R2007b to R2008b)"
@@ -93,9 +98,9 @@ Section "MEX files for MATLAB 64-bit, version 7.5 to 7.7 (R2007b to R2008b)"
  File ..\mex\matlab\win64-7.5-7.7\*.mexw64
 SectionEnd
 
-Section "MEX files for MATLAB 64-bit, version 7.8 to 8.4 (R2009a to R2014b)"
- SetOutPath $INSTDIR\mex\matlab\win64-7.8-8.4
- File ..\mex\matlab\win64-7.8-8.4\*.mexw64
+Section "MEX files for MATLAB 64-bit, version 7.8 to 8.5 (R2009a to R2015a)"
+ SetOutPath $INSTDIR\mex\matlab\win64-7.8-8.5
+ File ..\mex\matlab\win64-7.8-8.5\*.mexw64
 SectionEnd
 
 SectionGroupEnd