diff --git a/matlab/graph_decomp.m b/matlab/graph_decomp.m
index 14cfd0d95..378ca3d8e 100644
--- a/matlab/graph_decomp.m
+++ b/matlab/graph_decomp.m
@@ -1,7 +1,7 @@
-function []=graph_decomp(z,shock_names,varlist,initial_date)
+function []=graph_decomp(z,shock_names,endo_names,i_var,initial_date)
 %function []=graph_decomp(z,varlist,initial_period,freq)
 
-% Copyright (C) 2009 Dynare Team
+% Copyright (C) 2010 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -18,7 +18,6 @@ function []=graph_decomp(z,shock_names,varlist,initial_date)
 % You should have received a copy of the GNU General Public License
 % along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
 
-global M_ 
 % number of components equals number of shocks + 1 (initial conditions)
 comp_nbr = size(z,2)-1;
 
@@ -27,7 +26,8 @@ freq = initial_date.freq;
 initial_period = initial_date.period + initial_date.sub_period/freq;
 x = initial_period-1/freq:(1/freq):initial_period+(gend-1)/freq;
 
-[i_var,nvar] = varlist_indices(varlist);
+nvar = length(i_var);
+
 for j=1:nvar
     z1 = squeeze(z(i_var(j),:,:));
     xmin = x(1);
@@ -39,7 +39,7 @@ for j=1:nvar
     if ymax-ymin < 1e-6
         continue
     end
-    figure('Name',M_.endo_names(i_var(j),:));
+    figure('Name',endo_names(i_var(j),:));
     ax=axes('Position',[0.1 0.1 0.6 0.8]);
     axis(ax,[xmin xmax ymin ymax]);
     plot(ax,x(2:end),z1(end,:),'k-','LineWidth',2)
diff --git a/matlab/shock_decomposition.m b/matlab/shock_decomposition.m
index 9cf773ffb..7f7ef1dd6 100644
--- a/matlab/shock_decomposition.m
+++ b/matlab/shock_decomposition.m
@@ -37,7 +37,11 @@ endo_nbr = M_.endo_nbr;
 nshocks = M_.exo_nbr;
 
 % indices of endogenous variables
-[i_var,nvar] = varlist_indices(varlist);
+if size(varlist,1) == 0
+    varlist = M_.endo_names(M_.orig_endo_nbr);
+end
+
+[i_var,nvar] = varlist_indices(varlist,M_.endo_names);
 
 % reduced form
 dr = oo_.dr;
@@ -91,4 +95,4 @@ options_.initial_date.freq = 1;
 options_.initial_date.period = 1;
 options_.initial_date.sub_period = 0;
 
-graph_decomp(z,M_.exo_names,varlist,options_.initial_date)
+graph_decomp(z,M_.exo_names,i_var,options_.initial_date)
diff --git a/matlab/varlist_indices.m b/matlab/varlist_indices.m
index 480fb20c2..40c83755e 100644
--- a/matlab/varlist_indices.m
+++ b/matlab/varlist_indices.m
@@ -1,9 +1,10 @@
-function [i_var,nvar] = varlist_indices(varlist)
-% function [i_var,nvar] = varlist_indices(varlist)
+function [i_var,nvar] = varlist_indices(sublist,list)
+% function [i_var,nvar] = varlist_indices(sublist,list)
 % returns the indices of a list of endogenous variables
 %
 % INPUT
-%   varlist:    (character area) list of variables
+%   sublist:    sublist of variables
+%   list:       list of variables 
 %
 % OUTPUT
 %   i_var:      variable indices in M_.endo_names
@@ -12,7 +13,7 @@ function [i_var,nvar] = varlist_indices(varlist)
 % SPECIAL REQUIREMENTS
 %    none
 
-% Copyright (C) 2009 Dynare Team
+% Copyright (C) 2010 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -29,19 +30,13 @@ function [i_var,nvar] = varlist_indices(varlist)
 % You should have received a copy of the GNU General Public License
 % along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
 
-global M_
 
-endo_nbr = M_.endo_nbr;
+[check,i_var] = ismember(sublist,list,'rows');
 
-if isempty(varlist)
-    varlist = M_.endo_names(1:M_.orig_endo_nbr,:);
-end
-i_var = [];
-for i=1:size(varlist,1)
-    tmp = strmatch(varlist(i,:),M_.endo_names,'exact');
-    if isempty(tmp)
-        error([tmp ' isn''t an endogenous variable'])
-    end
-    i_var = [i_var; tmp];
-end
 nvar = length(i_var);
+
+if ~all(check)
+    k =find(check);
+    error(strcat(sublist(k,:),' hasn''t been declared'))
+end
+