diff --git a/matlab/DsgeLikelihood.m b/matlab/DsgeLikelihood.m
index 23dfffcd7c66b8671fa01643b6a2d2aeff323fe4..07593f2cded3d65743050973094293149423f1da 100644
--- a/matlab/DsgeLikelihood.m
+++ b/matlab/DsgeLikelihood.m
@@ -124,9 +124,8 @@ M_.H = H;
 %------------------------------------------------------------------------------
 % 2. call model setup & reduction program
 %------------------------------------------------------------------------------
-[T,R,SteadyState,info] = dynare_resolve(bayestopt_.restrict_var_list,...
-                                        bayestopt_.restrict_columns,...
-                                        bayestopt_.restrict_aux);
+[T,R,SteadyState,info] = dynare_resolve('restrict');
+
 if info(1) == 1 || info(1) == 2 || info(1) == 5
     fval = bayestopt_.penalty+1;
     cost_flag = 0;
diff --git a/matlab/DsgeLikelihood_hh.m b/matlab/DsgeLikelihood_hh.m
index 5535ec3069430fe848f9abdfcc4b751c63b8aeb1..d6d2d147367348f4c2ecd9436e1a2d6ec0744629 100644
--- a/matlab/DsgeLikelihood_hh.m
+++ b/matlab/DsgeLikelihood_hh.m
@@ -125,9 +125,7 @@ function [fval,llik,cost_flag,ys,trend_coeff,info] = DsgeLikelihood(xparam1,gend
   %------------------------------------------------------------------------------
   % 2. call model setup & reduction program
   %------------------------------------------------------------------------------
-  [T,R,SteadyState,info] = dynare_resolve(bayestopt_.restrict_var_list,...
-					  bayestopt_.restrict_columns,...
-					  bayestopt_.restrict_aux);
+  [T,R,SteadyState,info] = dynare_resolve('restrict');
   if info(1) == 1 || info(1) == 2 || info(1) == 5
       fval = bayestopt_.penalty+1;
       cost_flag = 0;
diff --git a/matlab/DsgeSmoother.m b/matlab/DsgeSmoother.m
index 784eecb6fe9a1cd248d4e4c78f370d3bfd5b15a9..e522d34e0c46d9d57724a205fab2e3791954312f 100644
--- a/matlab/DsgeSmoother.m
+++ b/matlab/DsgeSmoother.m
@@ -67,8 +67,10 @@ set_all_parameters(xparam1);
 %------------------------------------------------------------------------------
 % 2. call model setup & reduction program
 %------------------------------------------------------------------------------
-[T,R,SteadyState] = dynare_resolve(bayestopt_.smoother_var_list,...
-                                        bayestopt_.smoother_restrict_columns,[]);
+oo_.dr.restrict_var_list = bayestopt_.smoother_var_list;
+oo_.dr.restrict_columns = bayestopt_.smoother_restrict_columns;
+[T,R,SteadyState] = dynare_resolve('restrict');
+
 bayestopt_.mf = bayestopt_.smoother_mf;
 if options_.noconstant
     constant = zeros(nobs,1);
diff --git a/matlab/DsgeVarLikelihood.m b/matlab/DsgeVarLikelihood.m
index 0a25e445bf96ac4518c8db8091d4ab1d992c7ba7..18c6475fba2983290b791c36031cc16ab58b4ee3 100644
--- a/matlab/DsgeVarLikelihood.m
+++ b/matlab/DsgeVarLikelihood.m
@@ -106,9 +106,8 @@ end
 %------------------------------------------------------------------------------
 % 2. call model setup & reduction program
 %------------------------------------------------------------------------------
-[T,R,SteadyState,info] = dynare_resolve(bayestopt_.restrict_var_list,...
-                                        bayestopt_.restrict_columns,...
-                                        bayestopt_.restrict_aux);
+[T,R,SteadyState,info] = dynare_resolve('restrict');
+
 if info(1) == 1 || info(1) == 2 || info(1) == 5
     fval = bayestopt_.penalty+1;
     cost_flag = 0;
diff --git a/matlab/dsge_posterior_kernel.m b/matlab/dsge_posterior_kernel.m
index 0b7f190a70455ff28becc2e8c1ba06bd735c70a5..2a5232786127db7c4f240c8d1529f9e1c81a4314 100644
--- a/matlab/dsge_posterior_kernel.m
+++ b/matlab/dsge_posterior_kernel.m
@@ -124,9 +124,7 @@ M_.H = H;
 %------------------------------------------------------------------------------
 % 2. call model setup & reduction program
 %------------------------------------------------------------------------------
-[T,R,SteadyState,info] = dynare_resolve(bayestopt_.restrict_var_list,...
-                                        bayestopt_.restrict_columns,...
-                                        bayestopt_.restrict_aux);
+[T,R,SteadyState,info] = dynare_resolve('restrict');
 if info(1) == 1 | info(1) == 2 | info(1) == 5
     fval = bayestopt_.penalty+1;
     cost_flag = 0;
diff --git a/matlab/dynare_resolve.m b/matlab/dynare_resolve.m
index d6bca093712275f7112030e3730f8c3df7420e53..c3b6de9d7c1113d386aacd56d9726fa8520f0db2 100644
--- a/matlab/dynare_resolve.m
+++ b/matlab/dynare_resolve.m
@@ -1,12 +1,10 @@
-function [A,B,ys,info] = dynare_resolve(iv,ic,aux)
-% function [A,B,ys,info] = dynare_resolve(iv,ic,aux)
+function [A,B,ys,info] = dynare_resolve(mode)
+% function [A,B,ys,info] = dynare_resolve(mode)
 % Computes the linear approximation and the matrices A and B of the
 % transition equation
 %
 % INPUTS
-%    iv:             selected variables (observed and state variables)
-%    ic:             state variables position in the transition matrix columns
-%    aux:            indices for auxiliary equations
+%    mode:           string 'restrict' returns restricted transition matrices
 %
 % OUTPUTS
 %    A:              matrix of predetermined variables effects in linear solution (ghx)
@@ -61,16 +59,15 @@ if nargin == 0
     npred = oo_.dr.npred;
     iv = (1:endo_nbr)';
     ic = [ nstatic+(1:npred) endo_nbr+(1:size(oo_.dr.ghx,2)-npred) ]';
-    aux = oo_.dr.transition_auxiliary_variables;
-    k = find(aux(:,2) > npred);
-    aux(:,2) = aux(:,2) + nstatic;
-    aux(k,2) = aux(k,2) + oo_.dr.nfwrd;
+else
+    iv = oo_.dr.restrict_var_list;
+    ic = oo_.dr.restrict_columns;
 end
 
 if nargout==1
-    A = kalman_transition_matrix(oo_.dr,iv,ic,aux,M_.exo_nbr);
+    A = kalman_transition_matrix(oo_.dr,iv,ic,M_.exo_nbr);
     return
 end
 
-[A,B] = kalman_transition_matrix(oo_.dr,iv,ic,aux,M_.exo_nbr);
+[A,B] = kalman_transition_matrix(oo_.dr,iv,ic,M_.exo_nbr);
 ys = oo_.dr.ys;
\ No newline at end of file