diff --git a/matlab/cli/prior.m b/matlab/cli/prior.m
index 703297d73..1e1fb4985 100644
--- a/matlab/cli/prior.m
+++ b/matlab/cli/prior.m
@@ -62,6 +62,12 @@ end
 
 % Fill or update bayestopt_ structure
 [xparam1, EstimatedParams, BayesOptions, lb, ub, Model] = set_prior(estim_params_, M_, options_);
+% Set restricted state space
+options_plot_priors_old=options_.plot_priors;
+options_.plot_priors=0;
+[~,~,~,~, M_, options_, oo_, EstimatedParams, BayesOptions] = ...
+    dynare_estimation_init(M_.endo_names, M_.fname, 1, M_, options_, oo_, estim_params_, bayestopt_);
+options_.plot_priors=options_plot_priors_old;
 
 
 % Temporarly change qz_criterium option value
@@ -102,7 +108,8 @@ if ismember('simulate', varargin) % Prior simulations (BK).
     disp(['Complex jacobian share                = ' num2str(results.jacobian.problem_share)])
     disp(['mjdgges crash share                   = ' num2str(results.dll.problem_share)])
     disp(['Steady state problem share            = ' num2str(results.ss.problem_share)])
-    disp(['Complex steady state  share           = ' num2str(results.ss.complex_share)])
+    disp(['Complex steady state share            = ' num2str(results.ss.complex_share)])
+    disp(['Endogenous prior violation share      = ' num2str(results.endogenous_prior_violation_share)])
     if options_.loglinear
         disp(['Nonpositive steady state share        = ' num2str(results.ss.nonpositive_share)])
     end
@@ -130,10 +137,13 @@ if ismember('moments', varargin) % Prior simulations (2nd order moments).
     oo__ = oo_;
     oo__.dr = set_state_space(oo__.dr, Model, options_);
     % Solve model
-    [dr, info, Model , options__ , oo__] = resol(0, Model , options_ ,oo__);
+    [T,R,~,info,Model , options__ , oo__] = dynare_resolve(Model , options_ ,oo__,'restrict');
+    if ~info(1)
+        info=endogenous_prior_restrictions(T,R,Model , options__ , oo__);
+    end
     if info
         skipline()
-        disp(sprintf('Cannot solve the model on the prior mode (info = %s, %s)', num2str(info(1)), interpret_resol_info(info)));
+        fprintf('Cannot solve the model on the prior mode (info = %s, %s)\n', num2str(info(1)), interpret_resol_info(info));
         skipline()
         return
     end
diff --git a/matlab/prior_sampler.m b/matlab/prior_sampler.m
index ccc0dc415..2506f91c3 100644
--- a/matlab/prior_sampler.m
+++ b/matlab/prior_sampler.m
@@ -50,6 +50,7 @@ count_nan_steadystate = 0;
 count_nan_params = 0;
 count_complex_params = 0;
 count_nonpositive_steadystate = 0;
+count_endogenous_prior_violation = 0;
 count_unknown_problem = 0;
 NumberOfSimulations = options_.prior_mc;
 NumberOfParameters = length(bayestopt_.p1);
@@ -95,7 +96,11 @@ while iteration < NumberOfSimulations
     loop_indx = loop_indx+1;
     params = prior_draw();
     M_ = set_all_parameters(params,estim_params_,M_);
-    [dr,INFO,M_,options_,oo_] = resol(work,M_,options_,oo_);
+    [T,R,~,INFO,M_,options_,oo_] = dynare_resolve(M_,options_,oo_,'restrict');
+    dr=oo_.dr;
+    if ~INFO(1)
+        INFO=endogenous_prior_restrictions(T,R,M_,options_,oo_);
+    end
     file_line_number = file_line_number + 1;
     iteration = iteration + 1;
     if drsave
@@ -138,6 +143,8 @@ while iteration < NumberOfSimulations
         count_nan_params = count_nan_params + 1 ;
       case 26
         count_nonpositive_steadystate = count_nonpositive_steadystate + 1;
+      case 49
+        count_endogenous_prior_violation = count_endogenous_prior_violation + 1;
       otherwise
         count_unknown_problem = count_unknown_problem + 1 ;
     end
@@ -167,6 +174,7 @@ results.ss.complex_share = count_complex_steadystate/loop_indx;
 results.ass.problem_share = count_steadystate_file_exit/loop_indx;
 results.ss.nonpositive_share = count_nonpositive_steadystate/loop_indx;
 results.jacobian.problem_share = count_complex_jacobian/loop_indx;
+results.endogenous_prior_violation_share = count_endogenous_prior_violation/loop_indx;
 results.garbage_share = ...
     results.bk.indeterminacy_share + ...
     results.bk.unstability_share + ...
@@ -177,6 +185,7 @@ results.garbage_share = ...
     results.ss.complex_share + ...
     results.ss.nonpositive_share + ...
     results.jacobian.problem_share + ...
+    results.endogenous_prior_violation_share + ...
     count_unknown_problem/loop_indx ;
 results.prior.mean = sampled_prior_expectation;
 results.prior.variance = sampled_prior_covariance;
diff --git a/tests/gsa/ls2003a.mod b/tests/gsa/ls2003a.mod
index 0bca629a7..ada43c747 100644
--- a/tests/gsa/ls2003a.mod
+++ b/tests/gsa/ls2003a.mod
@@ -97,6 +97,8 @@ y_obs,R_obs(@{ilag}), -; //[ccf]
 y_obs,pie_obs(@{ilag}), -; //[ccf]
 @#endfor
 end;
+prior simulate;
+prior moments(distribution);
 
 if isoctave()
   dynare_sensitivity(prior_range=0, nodisplay, graph_format=(eps));