diff --git a/matlab/dr1.m b/matlab/dr1.m
index 634178be6..f605360d7 100644
--- a/matlab/dr1.m
+++ b/matlab/dr1.m
@@ -42,7 +42,11 @@ else
   z = repmat(dr.ys,1,klen);
 end
 z = z(iyr0) ;
-[junk,jacobia_] = feval([M_.fname '_dynamic'],z,tempex);
+if options_.order == 1
+  [junk,jacobia_] = feval([M_.fname '_dynamic'],z,tempex);
+elseif options_.order == 2
+    [junk,jacobia_,hessian] = feval([M_.fname '_dynamic'],z,tempex);
+end
 
 oo_.exo_simul = tempex ;
 tempex = [];
@@ -104,7 +108,7 @@ if options_.olr
   jacobia_ = jacobia1;
   clear jacobia1
   % computes steady state
-  resid = feval([fname_ '_fff'],zeros(olr_state_.old_M_.endo_nbr,1));
+  resid = feval([M_.fname '_steady'],zeros(olr_state_.old_M_.endo_nbr,1));
   if resid'*resid < 1e-12
     dr.ys =[dr.ys; zeros(nj,1)];
   else
@@ -316,7 +320,7 @@ if options_.order == 1
 end
 
 % Second order
-tempex = oo_.exo_simul ;
+%tempex = oo_.exo_simul ;
 
 %hessian = real(hessext('ff1_',[z; oo_.exo_steady_state]))' ;
 kk = flipud(cumsum(flipud(M_.lead_lag_incidence(M_.maximum_lag+1:end,order_var)),1));
@@ -335,11 +339,11 @@ kk1(k1(k2)) = k2;
 kk1 = [kk1 length(k1)+1:length(k1)+M_.exo_nbr];
 kk = reshape([1:nk^2],nk,nk);
 kk1 = kk(kk1,kk1);
-hessian = zeros(M_.endo_nbr,nk^2);
-hessian(:,kk1(:)) = real(hessian_sparse('ff1_',[z; oo_.exo_steady_state])) ;
+%[junk,junk,hessian] = feval([M_.fname '_dynamic'],z, oo_.exo_steady_state);
+hessian(:,kk1(:)) = hessian;
 
-oo_.exo_simul = tempex ;
-clear tempex
+%oo_.exo_simul = tempex ;
+%clear tempex
 
 n1 = 0;
 n2 = np;
@@ -536,7 +540,7 @@ for i=1:M_.maximum_lead
 
   H = E1 + hx*H;
 end
-RHS = RHS*Sigma_e_(:);
+RHS = RHS*M_.Sigma_e(:);
 dr.fuu = RHS;
 RHS = -RHS-dr.fbias;
 dr.ghs2 = LHS\RHS;
diff --git a/matlab/dynare_m.exe b/matlab/dynare_m.exe
index d8a80742a..1389339d9 100755
Binary files a/matlab/dynare_m.exe and b/matlab/dynare_m.exe differ
diff --git a/matlab/resol.m b/matlab/resol.m
index 1b857041e..79109660a 100644
--- a/matlab/resol.m
+++ b/matlab/resol.m
@@ -19,6 +19,12 @@ if M_.exo_nbr == 0
   oo_.exo_steady_state = [] ;
 end
 
+if M_.maximum_exo_lag > 0 || M_.maximum_exo_lead > 0
+  error (['RESOL: stochastic exogenous variables must appear only at the' ...
+	  ' current period. Use additional endogenous variables']) ;
+end
+
+
 % check if ys is steady state
 tempex = oo_.exo_simul;
 oo_.exo_simul = repmat(oo_.exo_steady_state',M_.maximum_lag+M_.maximum_lead+1,1);
diff --git a/matlab/stoch_simul.m b/matlab/stoch_simul.m
index cb920c58b..8a659a4da 100644
--- a/matlab/stoch_simul.m
+++ b/matlab/stoch_simul.m
@@ -61,10 +61,10 @@ global it_
 	  int2str(length(find(dr_.kstate(:,2) == M_.maximum_lag+2)))])
     disp(['  Number of static variables:  ' int2str(dr_.nstatic)])
     my_title='MATRIX OF COVARIANCE OF EXOGENOUS SHOCKS';
-    labels = deblank(lgx_);
+    labels = deblank(M_.exo_names);
     headers = strvcat('Variables',labels);
     lh = size(labels,2)+2;
-    table(my_title,headers,labels,Sigma_e_,lh,10,6);
+    table(my_title,headers,labels,M_.Sigma_e,lh,10,6);
     disp(' ')
     disp_dr(dr_,options_.order,var_list);
   end
@@ -94,9 +94,9 @@ global it_
     if n == 0
       n = M_.endo_nbr;
       ivar = [1:n]';
-      var_list = lgoo_.endo_simul;
+      var_list = M_.endo_names;
       if TeX
-	var_listTeX = lgoo_.endo_simulToo_.exo_simul;
+	var_listTeX = M_.endo_names_tex;
       end
     else
       ivar=zeros(n,1);
@@ -104,13 +104,13 @@ global it_
 	var_listTeX = [];
       end
       for i=1:n
-	i_tmp = strmatch(var_list(i,:),lgoo_.endo_simul,'exact');
+	i_tmp = strmatch(var_list(i,:),M_.endo_names,'exact');
 	if isempty(i_tmp)
 	  error (['One of the specified variables does not exist']) ;
 	else
 	  ivar(i) = i_tmp;
 	  if TeX
-	    var_listTeX = strvcat(var_listTeX,deblank(lgoo_.endo_simulToo_.exo_simul(i_tmp,:)));
+	    var_listTeX = strvcat(var_listTeX,deblank(M_.endo_names_tex(i_tmp,:)));
 	  end
 	end
       end
@@ -122,15 +122,15 @@ global it_
       fprintf(fidTeX,' \n');
     end
     olditer = iter_;% Est-ce vraiment utile ? Il y a la même ligne dans irf... 
-    SS(lgx_orig_ord_,lgx_orig_ord_)=Sigma_e_+1e-14*eye(M_.exo_nbr);
+    SS(M_.exo_names_orig_order,M_.exo_names_orig_order)=M_.Sigma_e+1e-14*eye(M_.exo_nbr);
     cs = transpose(chol(SS));
-    tit(lgx_orig_ord_,:) = lgx_;
+    tit(M_.exo_names_orig_order,:) = M_.exo_names;
     if TeX
-      titTeX(lgx_orig_ord_,:) = lgx_Too_.exo_simul;
+      titTeX(M_.exo_names_orig_order,:) = M_.exo_names_tex;
     end
     for i=1:M_.exo_nbr
       if SS(i,i) > 1e-13
-	y=irf(dr_,cs(lgx_orig_ord_,i), options_.irf, options_.drop, ...
+	y=irf(dr_,cs(M_.exo_names_orig_order,i), options_.irf, options_.drop, ...
 	      options_.replic, options_.order);
 	if options_.relative_irf
 	  y = 100*y/cs(i,i);