diff --git a/matlab/sim1.m b/matlab/sim1.m
index 70f4583ee..85ce76b52 100644
--- a/matlab/sim1.m
+++ b/matlab/sim1.m
@@ -88,7 +88,7 @@ for iter = 1:options_.maxit_
         s = eye(ny) ;
         s(:,isf) = s(:,isf)+c(ic,1:nyf) ;
         ic = ic + ny ;
-        c(ic,nrc) = s\c(:,nrc) ;
+        c(ic,nrc) = s\c(ic,nrc) ;
         c = bksup1(ny,nrc) ;
         c = reshape(c,ny,options_.periods+1) ;
         oo_.endo_simul(:,it_init+(0:options_.periods)) = oo_.endo_simul(:,it_init+(0:options_.periods))+options_.slowc*c ;