diff --git a/matlab/bvar_forecast.m b/matlab/bvar_forecast.m
index d5691dc33..632330bb9 100644
--- a/matlab/bvar_forecast.m
+++ b/matlab/bvar_forecast.m
@@ -11,7 +11,7 @@ function bvar_forecast(nlags)
 % SPECIAL REQUIREMENTS
 %    none
 
-% Copyright (C) 2007-2010 Dynare Team
+% Copyright (C) 2007-2010,2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -30,7 +30,6 @@ function bvar_forecast(nlags)
 
 global options_ oo_ M_
 
-options_ = set_default_option(options_, 'bvar_replic', 2000);
 if options_.forecast == 0
     error('bvar_forecast: you must specify "forecast" option')
 end
diff --git a/matlab/bvar_irf.m b/matlab/bvar_irf.m
index 5f833b90a..0e8d3b272 100644
--- a/matlab/bvar_irf.m
+++ b/matlab/bvar_irf.m
@@ -11,7 +11,7 @@ function bvar_irf(nlags,identification)
 % SPECIAL REQUIREMENTS
 %    none
 
-% Copyright (C) 2007-2009 Dynare Team
+% Copyright (C) 2007-2009,2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -34,8 +34,6 @@ if nargin==1
     identification = 'Cholesky';
 end
 
-options_ = set_default_option(options_, 'bvar_replic', 2000);
-
 [ny, nx, posterior, prior] = bvar_toolbox(nlags);
 
 S_inv_upper_chol = chol(inv(posterior.S));
diff --git a/matlab/bvar_toolbox.m b/matlab/bvar_toolbox.m
index 8cb86f632..1a218ab86 100644
--- a/matlab/bvar_toolbox.m
+++ b/matlab/bvar_toolbox.m
@@ -42,7 +42,7 @@ function [ny, nx, posterior, prior, forecast_data] = bvar_toolbox(nlags)
 %    - bvar_prior_{tau,decay,lambda,mu,omega,flat,train}
 
 % Copyright (C) 2003-2007 Christopher Sims
-% Copyright (C) 2007-2011 Dynare Team
+% Copyright (C) 2007-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -66,14 +66,6 @@ dataset = read_variables(options_.datafile, options_.varobs, [], options_.xls_sh
 options_ = set_default_option(options_, 'nobs', size(dataset,1)-options_.first_obs+1);
 
 % Parameters for prior
-options_ = set_default_option(options_, 'bvar_prior_tau', 3);
-options_ = set_default_option(options_, 'bvar_prior_decay', 0.5);
-options_ = set_default_option(options_, 'bvar_prior_lambda', 5);
-options_ = set_default_option(options_, 'bvar_prior_mu', 2);
-options_ = set_default_option(options_, 'bvar_prior_omega', 1);
-options_ = set_default_option(options_, 'bvar_prior_flat', 0);
-options_ = set_default_option(options_, 'bvar_prior_train', 0);
-
 if options_.first_obs + options_.presample <= nlags
     error('first_obs+presample should be > nlags (for initializing the VAR)')
 end
diff --git a/matlab/discretionary_policy_1.m b/matlab/discretionary_policy_1.m
index 40dc5d1c2..6ded6bb70 100644
--- a/matlab/discretionary_policy_1.m
+++ b/matlab/discretionary_policy_1.m
@@ -1,6 +1,6 @@
 function [dr,ys,info]=discretionary_policy_1(oo_,Instruments)
 
-% Copyright (C) 2007-2011 Dynare Team
+% Copyright (C) 2007-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -20,10 +20,8 @@ function [dr,ys,info]=discretionary_policy_1(oo_,Instruments)
 global M_ options_
 persistent Hold
 
-options_ = set_default_option(options_,'noprint',0);
 options_ = set_default_option(options_,'qz_criterium',1.000001);
 options_ = set_default_option(options_,'solve_maxit',3000);
-options_ = set_default_option(options_,'discretion_tol',1e-7);
 
 % safeguard against issues like running ramsey policy first and then running discretion
 if isfield(M_,'orig_model')
diff --git a/matlab/disp_moments.m b/matlab/disp_moments.m
index add1dc9f2..058bebc97 100644
--- a/matlab/disp_moments.m
+++ b/matlab/disp_moments.m
@@ -1,7 +1,7 @@
 function disp_moments(y,var_list)
 % Displays moments of simulated variables
 
-% Copyright (C) 2001-2011 Dynare Team
+% Copyright (C) 2001-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -80,8 +80,6 @@ if options_.nocorr == 0
     end
 end
 
-ar = options_.ar;
-options_ = set_default_option(options_,'ar',5);
 ar = options_.ar;
 if ar > 0
     autocorr = [];
diff --git a/matlab/dynare_solve.m b/matlab/dynare_solve.m
index 921a1d53e..72555ed85 100644
--- a/matlab/dynare_solve.m
+++ b/matlab/dynare_solve.m
@@ -35,7 +35,6 @@ function [x,info] = dynare_solve(func,x,jacobian_flag,varargin)
 
 global options_
 
-options_ = set_default_option(options_,'solve_algo',2);
 info = 0;
 if options_.solve_algo == 0
     if ~exist('OCTAVE_VERSION')
diff --git a/matlab/global_initialization.m b/matlab/global_initialization.m
index f1cb88fb7..9fd8388ba 100644
--- a/matlab/global_initialization.m
+++ b/matlab/global_initialization.m
@@ -86,9 +86,20 @@ options_.steady.stop_on_error = 1;
 options_.ParamSubSet = 'None';
 
 % bvar-dsge
+M_.bvar = [];
 options_.dsge_var = 0;
 options_.dsge_varlag = 4;
 
+% BVAR a la Sims
+options_.bvar_replic = 2000;
+options_.bvar_prior_tau = 3;
+options_.bvar_prior_decay = 0.5;
+options_.bvar_prior_lambda = 5;
+options_.bvar_prior_mu = 2;
+options_.bvar_prior_omega = 1;
+options_.bvar_prior_flat = 0;
+options_.bvar_prior_train = 0;
+
 % Optimization algorithm [6] gmhmaxlik
 options_.Opt6Iter = 2;
 options_.Opt6Numb = 5000;
@@ -380,9 +391,6 @@ oo_.exo_det_simul = [];
 M_.params = [];
 M_.endo_histval = [];
 
-% BVAR
-M_.bvar = [];
-
 % homotopy
 options_.homotopy_mode = 0;
 options_.homotopy_steps = 1;
@@ -428,6 +436,7 @@ options_.initial_date.subperiod = 0;
 
 % discretionary policy
 options_.discretionary_policy = 0;
+options_.discretionary_tol = 1e-7;
 
 % Shock decomposition
 options_.parameter_set = [];
diff --git a/matlab/osr.m b/matlab/osr.m
index 4e6beabc7..eab1a8ecd 100644
--- a/matlab/osr.m
+++ b/matlab/osr.m
@@ -1,6 +1,6 @@
 function osr(var_list,params,i_var,W)
 
-% Copyright (C) 2001-2010 Dynare Team
+% Copyright (C) 2001-2010,2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -20,15 +20,7 @@ function osr(var_list,params,i_var,W)
 global M_ options_ oo_  
 
 options_.order = 1;
-options_ = set_default_option(options_,'linear',0);
-options_ = set_default_option(options_,'ar',5);
-options_ = set_default_option(options_,'irf',40);
-options_ = set_default_option(options_,'drop',100);
 options_ = set_default_option(options_,'replic',1);
-options_ = set_default_option(options_,'nomoments',0);
-options_ = set_default_option(options_,'nocorr',0);
-options_ = set_default_option(options_,'hp_filter',0);
-options_ = set_default_option(options_,'hp_ngrid',512);
 options_ = set_default_option(options_,'simul',0);
 options_ = set_default_option(options_,'periods',1);
 
diff --git a/matlab/partial_information/PCL_Part_info_moments.m b/matlab/partial_information/PCL_Part_info_moments.m
index 990c20f47..0a742d498 100644
--- a/matlab/partial_information/PCL_Part_info_moments.m
+++ b/matlab/partial_information/PCL_Part_info_moments.m
@@ -5,7 +5,7 @@ function  AutoCOR_YRk=PCL_Part_info_moments( H, varobs, dr,ivar)
 % Pearlman, Currie and Levine 1986 solution.
 % 22/10/06 - Version 2 for new Riccati with 4 params instead 5 
 
-% Copyright (C) 2006-2011 Dynare Team
+% Copyright (C) 2006-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -166,8 +166,6 @@ else
     COR_Y=[];
 end
 
-ar = options_.ar;
-options_ = set_default_option(options_,'ar',5);
 ar = options_.ar;
 if ar > 0
     COV_YRk= zeros(nn,ar); 
diff --git a/matlab/partial_information/PCL_resol.m b/matlab/partial_information/PCL_resol.m
index 96028e2ea..3787de03b 100644
--- a/matlab/partial_information/PCL_resol.m
+++ b/matlab/partial_information/PCL_resol.m
@@ -25,7 +25,7 @@ function [dr,info]=PCL_resol(ys,check_flag)
 % SPECIAL REQUIREMENTS
 %    none
 
-% Copyright (C) 2001-2011 Dynare Team
+% Copyright (C) 2001-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -47,7 +47,6 @@ global it_
 
 jacobian_flag = 0; 
 
-options_ = set_default_option(options_,'jacobian_flag',1);
 info = 0;
 
 it_ = M_.maximum_lag + 1 ;
diff --git a/matlab/partial_information/dr1_PI.m b/matlab/partial_information/dr1_PI.m
index af48e037a..134da7f91 100644
--- a/matlab/partial_information/dr1_PI.m
+++ b/matlab/partial_information/dr1_PI.m
@@ -40,7 +40,7 @@ function [dr,info,M_,options_,oo_] = dr1_PI(dr,task,M_,options_,oo_)
 %   none.
 %  
 
-% Copyright (C) 1996-2011 Dynare Team
+% Copyright (C) 1996-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -60,10 +60,6 @@ function [dr,info,M_,options_,oo_] = dr1_PI(dr,task,M_,options_,oo_)
 global lq_instruments;
 info = 0;
 
-options_ = set_default_option(options_,'loglinear',0);
-options_ = set_default_option(options_,'noprint',0);
-options_ = set_default_option(options_,'olr',0);
-options_ = set_default_option(options_,'olr_beta',1);
 options_ = set_default_option(options_,'qz_criterium',1.000001);
 
 xlen = M_.maximum_endo_lead + M_.maximum_endo_lag + 1;
diff --git a/matlab/simul.m b/matlab/simul.m
index aafc4f8c1..b523e926d 100644
--- a/matlab/simul.m
+++ b/matlab/simul.m
@@ -12,7 +12,7 @@ function simul
 % SPECIAL REQUIREMENTS
 %   none
 
-% Copyright (C) 1996-2011 Dynare Team
+% Copyright (C) 1996-2012 Dynare Team
 %
 % This file is part of Dynare.
 %
@@ -55,7 +55,6 @@ if size(M_.lead_lag_incidence,2)-nnz(M_.lead_lag_incidence(M_.maximum_endo_lag+1
     error (mess) ;
 end
 
-options_ = set_default_option(options_,'periods',0);
 if options_.periods == 0
     error('SIMUL: number of periods for the simulation isn''t specified')
 end