diff --git a/matlab/simult_.m b/matlab/simult_.m
index 2ad47cdb4..3e4987628 100644
--- a/matlab/simult_.m
+++ b/matlab/simult_.m
@@ -82,6 +82,13 @@ global M_ options_ it_
 	    dr.ghu*tempu+0.5*(dr.ghxx*tempxx+dr.ghuu*tempuu)+dr.ghxu*tempxu;
       k1 = k1+1;
     end
+  elseif iorder == 3
+      options_.seed = 77;
+      ex_ = [zeros(1,M_.exo_nbr); ex_];
+      y_ = dynare_simul_(3,dr.nstatic,dr.npred-dr.nboth,dr.nboth,dr.nfwrd,M_.exo_nbr, ...
+                    y_(dr.order_var,1),ex_',M_.Sigma_e,options_.seed,dr.ys(dr.order_var),dr.g_0, ...
+                         dr.g_1,dr.g_2,dr.g_3);
+      y_(dr.order_var,:) = y_;
   end
 
 % MJ 08/30/02 corrected bug at order 2
\ No newline at end of file
diff --git a/matlab/stoch_simul.m b/matlab/stoch_simul.m
index 25c08e142..b76306f96 100644
--- a/matlab/stoch_simul.m
+++ b/matlab/stoch_simul.m
@@ -23,8 +23,11 @@ function info=stoch_simul(var_list)
   if options_.linear
       options_.order = 1;
   end
-  if (options_.order == 1)
+  if options_.order == 1
       options_.replic = 1;
+  elseif options_.order == 3
+      options_.simul = 1;
+      options_.use_k_order = 1;
   end
   
 
@@ -62,7 +65,9 @@ function info=stoch_simul(var_list)
     lh = size(labels,2)+2;
     dyntable(my_title,headers,labels,M_.Sigma_e,lh,10,6);
     disp(' ')
-    disp_dr(oo_.dr,options_.order,var_list);
+    if options_.order <= 2
+        disp_dr(oo_.dr,options_.order,var_list);
+    end
   end
 
   if options_.simul == 0 & options_.nomoments == 0