diff --git a/matlab/k_order_pert.m b/matlab/k_order_pert.m
index c6a9d38b0..57d25bf50 100644
--- a/matlab/k_order_pert.m
+++ b/matlab/k_order_pert.m
@@ -39,6 +39,20 @@ switch(order)
       return;
     end
     dr.g_1 = g_1;
+    
+    dr.ghx = dr.g_1(:,1:nspred);
+    dr.ghu = dr.g_1(:,nspred+1:end);
+
+    if options.loglinear == 1
+        k = find(dr.kstate(:,2) <= M.maximum_endo_lag+1);
+        klag = dr.kstate(k,[1 2]);
+        k1 = dr.order_var;
+
+        dr.ghx = repmat(1./dr.ys(k1),1,size(dr.ghx,2)).*dr.ghx.* ...
+                 repmat(dr.ys(k1(klag(:,1)))',size(dr.ghx,1),1);
+        dr.ghu = repmat(1./dr.ys(k1),1,size(dr.ghu,2)).*dr.ghu;
+    end
+
   case 2
     [err, g_0, g_1, g_2] = k_order_perturbation(dr,M,options);
     if err
@@ -48,8 +62,43 @@ switch(order)
     dr.g_0 = g_0;
     dr.g_1 = g_1;
     dr.g_2 = g_2;
+    
+    dr.ghx = dr.g_1(:,1:nspred);
+    dr.ghu = dr.g_1(:,nspred+1:end);
+
+    dr.ghs2 = 2*g_0;
+    s0 = 0;
+    s1 = 0;
+    ghxx=zeros(endo_nbr, nspred^2);
+    ghxu=zeros(endo_nbr, nspred*exo_nbr);
+    ghuu=zeros(endo_nbr, exo_nbr^2);
+    for i=1:size(g_2,2)
+        if s0 < nspred && s1 < nspred
+            ghxx(:,s0*nspred+s1+1) = 2*g_2(:,i);
+            if s1 > s0
+                ghxx(:,s1*nspred+s0+1) = 2*g_2(:,i);
+            end
+        elseif s0 < nspred && s1 < nspred+exo_nbr 
+            ghxu(:,(s0*exo_nbr+s1-nspred+1)) = 2*g_2(:,i);
+        elseif s0 < nspred+exo_nbr && s1 < nspred+exo_nbr
+            ghuu(:,(s0-nspred)*exo_nbr+s1-nspred +1) = 2*g_2(:,i);
+            if s1 > s0
+                ghuu(:,(s1-nspred)*exo_nbr+s0-nspred+1) = 2*g_2(:,i);
+            end
+        else
+            error('dr1:k_order_perturbation:g_2','Unaccounted columns in g_2');
+        end
+        s1 = s1+1;
+        if s1 == nspred+exo_nbr
+            s0 = s0+1;
+            s1 = s0; 
+        end
+    end % for loop
+    dr.ghxx = ghxx;
+    dr.ghxu = ghxu;
+    dr.ghuu = ghuu;
   case 3
-    if options.pruning 
+    if options.pruning
         [err, g_0, g_1, g_2, g_3, derivs] = k_order_perturbation(dr, ...
                                                           M,options);
         if err
@@ -84,58 +133,7 @@ switch(order)
     error('order > 3 isn''t implemented')
 end
 
-if options.pruning 
-    return
-end
 
-nspred = M.nspred;
-
-dr.ghx = dr.g_1(:,1:nspred);
-dr.ghu = dr.g_1(:,nspred+1:end);
-
-if options.loglinear == 1
-    k = find(dr.kstate(:,2) <= M.maximum_endo_lag+1);
-    klag = dr.kstate(k,[1 2]);
-    k1 = dr.order_var;
-    
-    dr.ghx = repmat(1./dr.ys(k1),1,size(dr.ghx,2)).*dr.ghx.* ...
-             repmat(dr.ys(k1(klag(:,1)))',size(dr.ghx,1),1);
-    dr.ghu = repmat(1./dr.ys(k1),1,size(dr.ghu,2)).*dr.ghu;
-end
-
-if order > 1
-    dr.ghs2 = 2*g_0;
-    s0 = 0;
-    s1 = 0;
-    ghxx=zeros(endo_nbr, nspred^2);
-    ghxu=zeros(endo_nbr, nspred*exo_nbr);
-    ghuu=zeros(endo_nbr, exo_nbr^2);
-    for i=1:size(g_2,2)
-        if s0 < nspred && s1 < nspred
-            ghxx(:,s0*nspred+s1+1) = 2*g_2(:,i);
-            if s1 > s0
-                ghxx(:,s1*nspred+s0+1) = 2*g_2(:,i);
-            end
-        elseif s0 < nspred && s1 < nspred+exo_nbr 
-            ghxu(:,(s0*exo_nbr+s1-nspred+1)) = 2*g_2(:,i);
-        elseif s0 < nspred+exo_nbr && s1 < nspred+exo_nbr
-            ghuu(:,(s0-nspred)*exo_nbr+s1-nspred +1) = 2*g_2(:,i);
-            if s1 > s0
-                ghuu(:,(s1-nspred)*exo_nbr+s0-nspred+1) = 2*g_2(:,i);
-            end
-        else
-            error('dr1:k_order_perturbation:g_2','Unaccounted columns in g_2');
-        end
-        s1 = s1+1;
-        if s1 == nspred+exo_nbr
-            s0 = s0+1;
-            s1 = s0; 
-        end
-    end % for loop
-    dr.ghxx = ghxx;
-    dr.ghxu = ghxu;
-    dr.ghuu = ghuu;
-end
 
 function y = unfold2(x,n)
 y=zeros(size(x,1),n*n);