diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index af476b32dbe07f283df58d00ba15fc1d42cc855a..e403df3a378e9dbb4be3abc59fbb41684995cae7 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -333,11 +333,12 @@ end
 k = find(isnan(bayestopt_.jscale));
 bayestopt_.jscale(k) = options_.mh_jscale;
 
-% Load and transform data.
-transformation = [];
+% Take data in logs?
+logged_data_flag = 0;
 if options_.loglinear && ~options_.logdata
-    transformation = @log;
+    logged_data_flag = 1;
 end
+
 xls.sheet = options_.xls_sheet;
 xls.range = options_.xls_range;