diff --git a/matlab/@dseries/chain.m b/matlab/@dseries/chain.m
new file mode 100644
index 000000000..dccf3bb52
--- /dev/null
+++ b/matlab/@dseries/chain.m
@@ -0,0 +1,62 @@
+function vs = chain(ts,us)
+
+% Copyright (C) 2014 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 ts.vobs-us.vobs
+    error(['dseries::chain: dseries objects ' inputname(1) ' and ' inputname(2) ' must have the same number of variables!'])
+end
+
+if ts.freq-us.freq
+    error(['dseries::chain: dseries objects ' inputname(1) ' and ' inputname(2) ' must have common frequencies!'])
+end
+
+if ts.dates(end)<us.dates(1)
+    error(['dseries::chain: The last date in ' inputname(1) ' (' date2string(ts.dates(end)) ') must not preceed the first date in ' inputname(2) ' (' date2string(us.dates(1)) ')!'])
+end
+
+tdx = find(sum(bsxfun(@eq,us.dates.time,ts.dates.time(end,:)),2)==2);
+GrowthFactor = us.data(tdx+1:end,:)./us.data(tdx:end-1,:);
+CumulatedGrowthFactors = cumprod(GrowthFactor);
+
+vs = ts;
+vs.data = [vs.data; bsxfun(@times,CumulatedGrowthFactors,vs.data(end,:))];
+vs.nobs = rows(vs.data);
+
+vs.dates = vs.init:(vs.init+vs.nobs);
+
+%@test:1
+%$ try
+%$     ts = dseries([1; 2; 3; 4],dates('1950Q1')) ;
+%$     us = dseries([3; 4; 5; 6],dates('1950Q3')) ;
+%$     vs = chain(ts,us);
+%$     t(1) = 1;
+%$ catch
+%$     t(1) = 0;
+%$ end
+%$
+%$ if t(1)
+%$     t(2) = dyn_assert(vs.freq,4);
+%$     t(3) = dyn_assert(vs.init.freq,4);
+%$     t(4) = dyn_assert(vs.init.time,[1950, 1]);
+%$     t(5) = dyn_assert(ts.vobs,1);
+%$     t(6) = dyn_assert(vs.nobs,6);
+%$     t(7) = isequal(vs.data,transpose(1:6));
+%$ end
+%$
+%$ T = all(t);
+%@eof:1
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