diff --git a/matlab/simult_.m b/matlab/simult_.m
index fd67254f7..bf35c745b 100644
--- a/matlab/simult_.m
+++ b/matlab/simult_.m
@@ -53,15 +53,16 @@ if ~options_.k_order_solver || (options_.k_order_solver && options_.pruning) %if
 end
 
 if options_.k_order_solver && ~options_.pruning % Call dynare++ routines.
-    ex_ = [zeros(M_.maximum_lag,M_.exo_nbr); ex_];     
     if options_.order~=iorder
         error(['The k_order_solver requires the specified approximation order to be '...
                 'consistent with the one used for computing the decision rules'])
     end
+    y_start=y_(:,1); %store first period required for output
     y_ = dynare_simul_(iorder,M_.nstatic,M_.npred,M_.nboth,M_.nfwrd,exo_nbr, ...
-                       y_(dr.order_var,1),ex_',M_.Sigma_e,options_.DynareRandomStreams.seed, ...
+                       y_start(dr.order_var,:),ex_',M_.Sigma_e,options_.DynareRandomStreams.seed, ...
                        dr.ys(dr.order_var),dr);
     y_(dr.order_var,:) = y_;
+    y_=[y_start y_];
 else
     if options_.block
         if M_.maximum_lag > 0
diff --git a/tests/k_order_perturbation/burnside_k_order.mod b/tests/k_order_perturbation/burnside_k_order.mod
index 9ba542833..aef406e5a 100644
--- a/tests/k_order_perturbation/burnside_k_order.mod
+++ b/tests/k_order_perturbation/burnside_k_order.mod
@@ -53,7 +53,7 @@
 
  */
 
-@#define k =7 
+@#define k =7
 
 var y x;
 varexo e;
@@ -133,7 +133,7 @@ nboth = M_.nboth;
 nfwrd = M_.nfwrd;
 nexog = M_.exo_nbr;
 ystart = oo_.dr.ys(oo_.dr.order_var,1);
-ex_ = [zeros(M_.maximum_lag,M_.exo_nbr), oo_.exo_simul'];
+ex_ = oo_.exo_simul';
 ysteady = oo_.dr.ys(oo_.dr.order_var);
 dr = oo_.dr;
 
@@ -143,7 +143,7 @@ seed = options_.DynareRandomStreams;
 tStart1 = tic; fortran_endo_simul = k_order_simul(order, nstat, npred, nboth, nfwrd, nexog, ystart, ex_, ysteady, dr); tElapsed1 = toc(tStart1);
 tStart2 = tic; dynare_endo_simul = dynare_simul_(order, nstat, npred, nboth, nfwrd, nexog, ystart,ex_,vcov,seed, ysteady, dr); tElapsed2 = toc(tStart2);
 
-if max(max(abs(oo_.endo_simul-fortran_endo_simul(oo_.dr.order_var,2:end)))) > 1e-10
+if max(max(abs(oo_.endo_simul-fortran_endo_simul(oo_.dr.order_var,:)))) > 1e-10
     error('Error in k_order_simul: inaccurate simulation');
 end;