diff --git a/matlab/print_expectations.m b/matlab/print_expectations.m
index d53a3238d8c0c23aaa8f9a708055591148b7f0f5..7663798c34a52d173b60ba4a35f3ccb49195369b 100644
--- a/matlab/print_expectations.m
+++ b/matlab/print_expectations.m
@@ -379,9 +379,9 @@ if isequal(expectationmodelkind, 'pac') && growth_correction
                             variable = sprintf('%s.lag(%u)', variable, -transformations{k,2});
                         elseif isequal(transformations{k,1}, 'diff')
                             if isempty(transformations{k,2})
-                                variable = sprintf('%s.%s()', variable, transformations{k,1});
+                                variable = sprintf('%s.diff()', variable);
                             else
-                                variable = sprintf('%s(-%u).%s()', variable, transformations{k,2}, transformations{k,1});
+                                variable = sprintf('%s.lag(%u).diff()', variable, transformations{k,2});
                             end
                         else
                             variable = sprintf('%s.%s()', variable, transformations{k});
@@ -440,9 +440,9 @@ if isequal(expectationmodelkind, 'pac') && growth_correction
                                     variable = sprintf('%s.lag(%u)', variable, -transformations{k,2});
                                 elseif isequal(transformations{k,1}, 'diff')
                                     if isempty(transformations{k,2})
-                                        variable = sprintf('%s.%s()', variable, transformations{k,1});
+                                        variable = sprintf('%s.diff()', variable);
                                     else
-                                        variable = sprintf('%s(-%u).%s()', variable, transformations{k,2}, transformations{k,1});
+                                        variable = sprintf('%s.lag(%u).diff()', variable, transformations{k,2});
                                     end
                                 else
                                     variable = sprintf('%s.%s()', variable, transformations{k});
diff --git a/preprocessor b/preprocessor
index 8c528f4f9a15baf73c014e1c3e55bc13583ca09d..d149d3a76c7527608e55b7b73b6509dc3b4af097 160000
--- a/preprocessor
+++ b/preprocessor
@@ -1 +1 @@
-Subproject commit 8c528f4f9a15baf73c014e1c3e55bc13583ca09d
+Subproject commit d149d3a76c7527608e55b7b73b6509dc3b4af097
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 62da3ef47a0ebd1f177991b7f52d914194573bca..750ca5af64277732b47298f763add0231bc52874 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -531,6 +531,7 @@ ECB_MODFILES = \
 	pac/var-11e/example1.mod \
 	pac/var-12/example1.mod \
 	pac/var-12/example2.mod \
+	pac/var-12/example3.mod \
 	pac/var-12/example4.mod \
 	pac/var-12/example11.mod \
 	pac/var-12/example12.mod \
diff --git a/tests/pac/var-12/example1.mod b/tests/pac/var-12/example1.mod
index 0cb734f268d69ba26c1eb3a511ecc3ec5124f716..c5655b700539f8b3acd1a99bd8b4e3145b2fd8f0 100644
--- a/tests/pac/var-12/example1.mod
+++ b/tests/pac/var-12/example1.mod
@@ -58,12 +58,6 @@ model;
 
 end;
 
-shocks;
-  var ex = 1.0;
-  var ey = 1.0;
-  var ez = 1.0;
-end;
-
 // Initialize the PAC model (build the Companion VAR representation for the auxiliary model).
 pac.initialize('pacman');
 
diff --git a/tests/pac/var-12/example11.mod b/tests/pac/var-12/example11.mod
index 68f3a88f3ab11608095719ca828c813dd0895585..fbd4886fa395523e787abde0c11bf1d6d1e0ae54 100644
--- a/tests/pac/var-12/example11.mod
+++ b/tests/pac/var-12/example11.mod
@@ -39,12 +39,6 @@ model;
 
 end;
 
-shocks;
-  var ex = 1.0;
-  var ey = 1.0;
-  var ez = 1.0;
-end;
-
 // Initialize the PAC model (build the Companion VAR representation for the auxiliary model).
 pac.initialize('pacman');
 
diff --git a/tests/pac/var-12/example12.mod b/tests/pac/var-12/example12.mod
index 9685ef6ee6a1d1c2ca21dd7c4071bade9a52facc..d3adfc4fd4521e44a0f54a6aa3f3f54fae6efd57 100644
--- a/tests/pac/var-12/example12.mod
+++ b/tests/pac/var-12/example12.mod
@@ -40,12 +40,6 @@ model;
 
 end;
 
-shocks;
-  var ex = 1.0;
-  var ey = 1.0;
-  var ez = 1.0;
-end;
-
 // Initialize the PAC model (build the Companion VAR representation for the auxiliary model).
 pac.initialize('pacman');
 
diff --git a/tests/pac/var-12/example13.mod b/tests/pac/var-12/example13.mod
index ff888b85258f96d195290cdf10550c4f68144b87..fdb06daaf3ed6a7d9f38436b81e7f2eebb8b9046 100644
--- a/tests/pac/var-12/example13.mod
+++ b/tests/pac/var-12/example13.mod
@@ -39,12 +39,6 @@ model;
 
 end;
 
-shocks;
-  var ex = 1.0;
-  var ey = 1.0;
-  var ez = 1.0;
-end;
-
 // Initialize the PAC model (build the Companion VAR representation for the auxiliary model).
 pac.initialize('pacman');
 
diff --git a/tests/pac/var-12/example2.mod b/tests/pac/var-12/example2.mod
index b1cdee083827c4bdcfa3c3abae2b25405664a5df..7a4880cbdd907669172f9c70ac11070941886609 100644
--- a/tests/pac/var-12/example2.mod
+++ b/tests/pac/var-12/example2.mod
@@ -58,12 +58,6 @@ model;
 
 end;
 
-shocks;
-  var ex = 1.0;
-  var ey = 1.0;
-  var ez = 1.0;
-end;
-
 // Initialize the PAC model (build the Companion VAR representation for the auxiliary model).
 pac.initialize('pacman');