diff --git a/matlab/ols/handle_constant_eqs.m b/matlab/ols/handle_constant_eqs.m
index 2ad9a382f..bd69679e4 100644
--- a/matlab/ols/handle_constant_eqs.m
+++ b/matlab/ols/handle_constant_eqs.m
@@ -1,16 +1,14 @@
-function [ast, ds] = handle_constant_eqs(ast, ds)
-%function [ast, ds] = handle_constant_eqs(ast, ds)
+function ast = handle_constant_eqs(ast)
+%function ast = handle_constant_eqs(ast)
 %
 % Code to handle equations of type `X = 0;` in AST. Returns equation(s)
-% removed from AST and ds.X == 0.
+% removed from AST.
 %
 % INPUTS
 %   ast       [cell array]  JSON representation of abstract syntax tree
-%   ds        [dseries]     data to be updated
 %
 % OUTPUTS
 %   ast       [cell array]  updated JSON representation of abstract syntax tree
-%   ds        [dseries]     data to be updated
 %
 % SPECIAL REQUIREMENTS
 %   none
@@ -32,7 +30,7 @@ function [ast, ds] = handle_constant_eqs(ast, ds)
 % 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
+if nargin ~= 1
     error('Incorrect number of arguments to function')
 end
 
@@ -40,18 +38,12 @@ if isempty(ast) || ~iscell(ast)
     error('ast must be a cell')
 end
 
-if isempty(ds) || ~isdseries(ds)
-    error('ds must be a nonempty dseries')
-end
-
 for i = length(ast):-1:1
     assert(strcmp(ast{i}.AST.node_type, 'BinaryOpNode') && strcmp(ast{i}.AST.op, '='), 'Expecting equation');
     if strcmp(ast{i}.AST.arg2.node_type, 'NumConstNode')
         if ~strcmp(ast{i}.AST.arg1.node_type, 'VariableNode')
             error('At the moment only handling Variable Nodes on LHS')
         end
-        ds.(ast{i}.AST.arg1.name) = ...
-            dseries(ast{i}.AST.arg2.value*ones(ds.nobs, 1), ds.firstdate, ast{i}.AST.arg1.name);
         ast = ast([1:i-1, i+1:end]);
     end
 end
diff --git a/matlab/ols/sur.m b/matlab/ols/sur.m
index 5bef532f4..e46d422bd 100644
--- a/matlab/ols/sur.m
+++ b/matlab/ols/sur.m
@@ -59,8 +59,7 @@ else
 end
 
 %% Get Equation(s)
-ast = get_ast(eqtags);
-[ast, ds] = handle_constant_eqs(ast, ds);
+ast = handle_constant_eqs(get_ast(eqtags));
 neqs = length(ast);
 
 %% Find parameters and variable names in equations and setup estimation matrices
diff --git a/preprocessor b/preprocessor
index c5fc2e38c..1e071ca49 160000
--- a/preprocessor
+++ b/preprocessor
@@ -1 +1 @@
-Subproject commit c5fc2e38c1361aef5820f91a4b1d0375e97f3af9
+Subproject commit 1e071ca499c30b4e112d1ee032181f27057ef46c