From ec6c9ed9a7498b64d28f302c3d9ba08550d011d3 Mon Sep 17 00:00:00 2001
From: Michel Juillard <michel.juillard@mjui.fr>
Date: Sat, 19 Mar 2011 18:47:49 +0100
Subject: [PATCH] fixing bug recently introduced for models without lagged
 variables

---
 matlab/set_state_space.m | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/matlab/set_state_space.m b/matlab/set_state_space.m
index 99a919f19..c08d7028c 100644
--- a/matlab/set_state_space.m
+++ b/matlab/set_state_space.m
@@ -92,7 +92,7 @@ kstate = [ repmat([1:endo_nbr]',klen-1,1) kron([klen:-1:2]',ones(endo_nbr,1)) ..
 kiy = flipud(lead_lag_incidence(:,order_var))';
 kiy = kiy(:);
 if max_lead > 0
-    kstate(1:endo_nbr,3) = kiy(1:endo_nbr)-nnz(lead_lag_incidence(2,:));  
+    kstate(1:endo_nbr,3) = kiy(1:endo_nbr)-nnz(lead_lag_incidence(max_lag+1,:));  
     kstate(kstate(:,3) < 0,3) = 0;
     kstate(endo_nbr+1:end,4) = kiy(2*endo_nbr+1:end);  
 else