diff --git a/doc/dynare.texi b/doc/dynare.texi
index 4d6a58d84..79635bee5 100644
--- a/doc/dynare.texi
+++ b/doc/dynare.texi
@@ -733,8 +733,13 @@ cannot be named @file{test.mod}.
 
 @item noclearall
 By default, @code{dynare} will issue a @code{clear all} command to
-MATLAB or Octave, thereby deleting all workspace variables; this option
-instructs @code{dynare} not to clear the workspace
+MATLAB (<R2015b) or Octave, thereby deleting all workspace variables and
+functions; this option instructs @code{dynare} not to clear the
+workspace. Note that starting with Matlab 2015b @code{dynare} only
+deletes the global variables and the functions using persistent
+variables, in order to benefit from the JIT (Just In Time)
+compilation. In this case the option instructs @code{dynare} not to
+clear the globals and functions.
 
 @item onlyclearglobals
 By default, @code{dynare} will issue a @code{clear all} command to
diff --git a/preprocessor/ModFile.cc b/preprocessor/ModFile.cc
index 6b376764f..06e9f19a4 100644
--- a/preprocessor/ModFile.cc
+++ b/preprocessor/ModFile.cc
@@ -575,7 +575,12 @@ ModFile::writeOutputFiles(const string &basename, bool clear_all, bool clear_glo
     mOutputFile << "warning off" << endl; // This will be executed *after* function warning_config()
 
   if (clear_all)
-    mOutputFile << "clear all" << endl;
+    mOutputFile << "if isoctave || matlab_ver_less_than('8.6')" << endl
+                << "    clear all" << endl
+		<< "else" << endl
+		<< "    clearvars -global" << endl
+		<< "    clear_persistent_variables(fileparts(which('dynare')))" << endl
+		<< "end" << endl;
   else if (clear_global)
     mOutputFile << "clear M_ options_ oo_ estim_params_ bayestopt_ dataset_;" << endl;