diff --git a/matlab/ms-sbvar/clean_swz_files.m b/matlab/ms-sbvar/clean_ms_files.m
similarity index 93%
rename from matlab/ms-sbvar/clean_swz_files.m
rename to matlab/ms-sbvar/clean_ms_files.m
index 9ee29d345e91185825e34567063d8ad3c69f668e..2d0e86d3544a3f9c6fef54b0cc3d5d95767b2135 100644
--- a/matlab/ms-sbvar/clean_swz_files.m
+++ b/matlab/ms-sbvar/clean_ms_files.m
@@ -1,6 +1,6 @@
-function clean_swz_files(mod_name)
-% function clean_swz_files()
-% removes SWZ intermediary files
+function clean_ms_files(mod_name)
+% function clean_ms_files()
+% removes MS intermediary files
 %
 % INPUTS
 %    none
@@ -11,7 +11,7 @@ function clean_swz_files(mod_name)
 % SPECIAL REQUIREMENTS
 %    none
 
-% Copyright (C) 2007-2008, 2010 Dynare Team
+% Copyright (C) 2007-2011 Dynare Team
 %
 % This file is part of Dynare.
 %
diff --git a/matlab/ms-sbvar/swz_mardd.m b/matlab/ms-sbvar/ms_mardd.m
similarity index 97%
rename from matlab/ms-sbvar/swz_mardd.m
rename to matlab/ms-sbvar/ms_mardd.m
index e27b085262ee26312d3de55f95a88d9dea6eb5f9..9b8070c36f6d41e7fb560efdd9cb6baf3a299da6 100644
--- a/matlab/ms-sbvar/swz_mardd.m
+++ b/matlab/ms-sbvar/ms_mardd.m
@@ -1,4 +1,4 @@
-function swz_mardd(options_)
+function ms_mardd(options_)
 % Applies to both linear and exclusion restrictions.
 % (1) Marginal likelihood function p(Y) for constant structural VAR models, using Chib (1995)'s ``Marginal Likelihood from the Gibbs Output'' in JASA.
 % (2) Conditional likelihood function f(Y|A0, A+) on the ML estimate for constant exclusion-identified models.
diff --git a/matlab/ms-sbvar/swz_sbvar.m b/matlab/ms-sbvar/ms_sbvar.m
similarity index 81%
rename from matlab/ms-sbvar/swz_sbvar.m
rename to matlab/ms-sbvar/ms_sbvar.m
index 63c748acb16d48c456d34ac8c8cacd6f469d0ab8..6774db32f069c6efca37f194d5339ee1d2cf2990 100644
--- a/matlab/ms-sbvar/swz_sbvar.m
+++ b/matlab/ms-sbvar/ms_sbvar.m
@@ -1,14 +1,14 @@
-function swz_sbvar(ms_flag, M, options)
+function ms_sbvar(ms_flag, M, options)
 
 dynareroot = strrep(which('dynare'),'dynare.m','');
-swz_root = [dynareroot '/ms-sbvar'];
+ms_root = [dynareroot '/ms-sbvar'];
 
-addpath([swz_root '/cstz']);
-addpath([swz_root '/identification']);
-addpath([swz_root '/switching_specification']);
-addpath([swz_root '/mhm_specification']);
+addpath([ms_root '/cstz']);
+addpath([ms_root '/identification']);
+addpath([ms_root '/switching_specification']);
+addpath([ms_root '/mhm_specification']);
 
-clean_swz_files(M.fname);
+clean_ms_files(M.fname);
 
 options.data = read_variables(options.datafile,options.varobs,[],options.xls_sheet,options.xls_range);
 
@@ -35,7 +35,7 @@ elseif ~isempty(options.ms.Qi) && ~isempty(options.ms.Ri)
 end
 
 if ms_flag == 1
-    % changing some option names to match SWZ code 
+    % changing some option names to match MS code
     options.ms.firstMetrop = options.ms.draws_nbr_burn_in_1;
     options.ms.secondMetrop = options.ms.draws_nbr_burn_in_2;
     options.ms.ndrawsmv = options.ms.draws_nbr_mean_var_estimate;
@@ -50,5 +50,5 @@ if ms_flag == 1
     options.ms.markov_file = 'markov_file';
     sz_prd(M,options);
 else
-    swz_mardd(options);
+    ms_mardd(options);
 end
diff --git a/matlab/ms-sbvar/swz_write_markov_file.m b/matlab/ms-sbvar/ms_write_markov_file.m
similarity index 96%
rename from matlab/ms-sbvar/swz_write_markov_file.m
rename to matlab/ms-sbvar/ms_write_markov_file.m
index ce253158fc32792a9d6876040a7254f200ca4b2f..defd64225164eee907edd9b56b1b19a8e8c93a5b 100644
--- a/matlab/ms-sbvar/swz_write_markov_file.m
+++ b/matlab/ms-sbvar/ms_write_markov_file.m
@@ -1,4 +1,4 @@
-function swz_write_markov_file(fname,M,options)
+function ms_write_markov_file(fname,M,options)
 
     n_chains = length(options.ms.ms_chain);
     nvars = size(options.varobs,1);
diff --git a/matlab/ms-sbvar/swz_write_mhm_input.m b/matlab/ms-sbvar/ms_write_mhm_input.m
similarity index 96%
rename from matlab/ms-sbvar/swz_write_mhm_input.m
rename to matlab/ms-sbvar/ms_write_mhm_input.m
index e455f810d434f0d209c192a019c7ee7387b71efe..2debc1203907c3e1d6b767a8624a3995f91d02d2 100644
--- a/matlab/ms-sbvar/swz_write_mhm_input.m
+++ b/matlab/ms-sbvar/ms_write_mhm_input.m
@@ -1,4 +1,4 @@
-function swz_write_mhm_input(fname,options_ms)
+function ms_write_mhm_input(fname,options_ms)
 
     fh = fopen(fname,'w');
 
diff --git a/matlab/ms-sbvar/sz_prd.m b/matlab/ms-sbvar/sz_prd.m
index a4be892e91c03bc1964e96476bc3b3975d1f48d4..a11e5dd495a09af040e59fc7c0859ddf36f1a502 100644
--- a/matlab/ms-sbvar/sz_prd.m
+++ b/matlab/ms-sbvar/sz_prd.m
@@ -6,17 +6,17 @@ function sz_prd(M,options_)
 %generation of mhm file
 %generateMHM_input(options_);
 
-swz_root = strrep(which('swz_sbvar'),'/swz_sbvar.m','');
+ms_root = strrep(which('ms_sbvar'),'/ms_sbvar.m','');
 
 % path for C executables
 %c_path='./c-executables';
-c_path = [swz_root '/bin'];
+c_path = [ms_root '/bin'];
 
 % path for Markov specification
-m_spec_path=[swz_root '/switching_specification'];
+m_spec_path=[ms_root '/switching_specification'];
 
 % path for MHM specification
-mhm_spec_path=[swz_root '/mhm_specification'];
+mhm_spec_path=[ms_root '/mhm_specification'];
 
 %==========================================================================
 %== Processing control
@@ -486,7 +486,7 @@ if options_.ms.create_initialization_file == 1
     %======================================================================
     %== Create C initialization filename
     %======================================================================
-    swz_write_markov_file(markov_file,M,options_)
+    ms_write_markov_file(markov_file,M,options_)
     if options_.ms.standalone == 1
         if use_linux == 1
             create_init_file=[c_path,'/sbvar_init_file ',matlab_filename,' ',markov_file,' ',options_.ms.output_file_tag];
@@ -527,7 +527,7 @@ end
 %==========================================================================
 if options_.ms.compute_mdd == 1
     mhm_file = ['mhm_input_' M.fname '.dat'];
-    swz_write_mhm_input(mhm_file,options_.ms);
+    ms_write_mhm_input(mhm_file,options_.ms);
     if options_.ms.standalone == 1
         if use_linux == 1
             compute_mdd1=[c_path,'/sbvar_mhm_1 -cseed 5 -ft ',options_.ms.output_file_tag,' -fi ',mhm_file];
@@ -588,4 +588,4 @@ if options_.ms.print_draws == 1 %error here as well
         [err] = mex_sbvar_draws(print_draws);
         mexErrCheck('mex_sbvar_draws',err);
     end
-end
\ No newline at end of file
+end
diff --git a/ms-sbvar/mex/mex_top_level.cc b/ms-sbvar/mex/mex_top_level.cc
index 1ae594e2278ec8c915e71c7d7042752d05a752ab..e81c522df439ea3d4185c7e697a29be66f415ab1 100644
--- a/ms-sbvar/mex/mex_top_level.cc
+++ b/ms-sbvar/mex/mex_top_level.cc
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2010 Dynare Team
+ * Copyright (C) 2010-2011 Dynare Team
  *
  * This file is part of Dynare.
  *
@@ -44,38 +44,38 @@ mexFunction(int nlhs, mxArray *plhs[],
    * Check args
    */
   if (nrhs != 1 || !mxIsChar(prhs[0]) || nlhs != 1)
-    DYN_MEX_FUNC_ERR_MSG_TXT("Error in swz_mex: this function takes 1 string input argument and returns 1 output argument.");
+    DYN_MEX_FUNC_ERR_MSG_TXT("Error in MS-SBVAR MEX file: this function takes 1 string input argument and returns 1 output argument.");
 
   /*
    * Allocate memory
    */
   maxnargs = (int)(mxGetN(prhs[0])/2+1);
-  argument = (char *)swzCalloc(mxGetN(prhs[0])+1, sizeof(char));
-  args = (char **)swzCalloc(maxnargs, sizeof(char *));
+  argument = (char *)mxCalloc(mxGetN(prhs[0])+1, sizeof(char));
+  args = (char **)mxCalloc(maxnargs, sizeof(char *));
   if (argument==NULL || args==NULL)
-    DYN_MEX_FUNC_ERR_MSG_TXT("Error in swz_mex: could not allocate memory. (1)");
+    DYN_MEX_FUNC_ERR_MSG_TXT("Error in MS-SBVAR MEX file: could not allocate memory. (1)");
 
   /*
    * Create argument string from prhs and parse to create args / nargs
    */
-  if (!(args[nargs] = (char *)swzCalloc(strlen(mainarg)+1, sizeof(char))))
-    DYN_MEX_FUNC_ERR_MSG_TXT("Error in swz_mex: could not allocate memory. (2)");
+  if (!(args[nargs] = (char *)mxCalloc(strlen(mainarg)+1, sizeof(char))))
+    DYN_MEX_FUNC_ERR_MSG_TXT("Error in MS-SBVAR MEX file: could not allocate memory. (2)");
 
   strncpy(args[nargs++], mainarg, strlen(mainarg));
 
   if (mxGetString(prhs[0], argument, mxGetN(prhs[0])+1))
-    DYN_MEX_FUNC_ERR_MSG_TXT("Error in swz_mex: error using mxGetString.\n");
+    DYN_MEX_FUNC_ERR_MSG_TXT("Error in MS-SBVAR MEX file: error using mxGetString.\n");
 
   beginarg = &argument[0];
   while((n=strcspn(beginarg, " ")))
     {
-      if (!(args[nargs] = (char *)swzCalloc(n+1, sizeof(char))))
-        DYN_MEX_FUNC_ERR_MSG_TXT("Error in swz_mex: could not allocate memory. (3)");
+      if (!(args[nargs] = (char *)mxCalloc(n+1, sizeof(char))))
+        DYN_MEX_FUNC_ERR_MSG_TXT("Error in MS-SBVAR MEX file: could not allocate memory. (3)");
 
       strncpy(args[nargs++], beginarg, n);
       beginarg += (isspace(beginarg[n]) || isblank(beginarg[n]) ? ++n : n);
     }
-  swzFree(argument);
+  mxFree(argument);
 
   /*
    * Call top_level function (formerly main)
@@ -93,8 +93,8 @@ mexFunction(int nlhs, mxArray *plhs[],
    * free memory
    */
   for (n=0; n<nargs; n++)
-    swzFree(args[n]);
-  swzFree(args);
+    mxFree(args[n]);
+  mxFree(args);
 
   plhs[0] = mxCreateDoubleScalar(0);
 }
diff --git a/ms-sbvar/mex/modify_for_mex.cc b/ms-sbvar/mex/modify_for_mex.cc
index c7e7d20ba628bdb84607711efa6508bd31365c83..8d9cc5a466d54c12b2300e4b4fabdbeeba2ee838 100644
--- a/ms-sbvar/mex/modify_for_mex.cc
+++ b/ms-sbvar/mex/modify_for_mex.cc
@@ -36,7 +36,7 @@ extern "C"
   int constant_seed;
 
   void
-  swz_fprintf_err(char *str, ...)
+  ms_fprintf_err(char *str, ...)
   {
     va_list ap;
     va_start(ap, str);
@@ -53,10 +53,10 @@ extern "C"
 
 
   void
-  swzExit(int status)
+  msExit(int status)
   {
 #if defined(MATLAB_MEX_FILE) || defined(OCTAVE_MEX_FILE)
-    throw "Error in SWZ mex file.\n";
+    throw "Error in MS-SBVAR MEX file.\n";
 #else
     exit(status);
 #endif
diff --git a/ms-sbvar/mex/modify_for_mex.h b/ms-sbvar/mex/modify_for_mex.h
index 3c66102c896a4948b042c29586a1c2e541db8724..671ca54768e9e992f4eee2100fd7ec9fe26be7b5 100644
--- a/ms-sbvar/mex/modify_for_mex.h
+++ b/ms-sbvar/mex/modify_for_mex.h
@@ -20,8 +20,8 @@
 #ifndef _MEXMOD
 #define _MEXMOD
 
-void swz_exit(int status);
-void swz_fprintf_err(const char * str, ...);
+void ms_exit(int status);
+void ms_fprintf_err(const char * str, ...);
 extern int constant_seed;
 
 #endif
@@ -34,10 +34,10 @@ extern int constant_seed;
 #include <dynlapack.h>
 #include <mat.h>
 
-#define swzMalloc mxMalloc
-#define swzCalloc mxCalloc
-#define swzRealloc mxRealloc
-#define swzFree mxFree
+#define msMalloc mxMalloc
+#define msCalloc mxCalloc
+#define msRealloc mxRealloc
+#define msFree mxFree
 
 mxArray *globalMatlabStruct;
 
@@ -52,10 +52,10 @@ mxArray *getMxArray(double *, int, int);
 
 #else
 
-#define swz_fprintf_stdout printf
-#define swzMalloc malloc
-#define swzCalloc calloc
-#define swzRealloc realloc
-#define swzFree free
+#define ms_fprintf_stdout printf
+#define msMalloc malloc
+#define msCalloc calloc
+#define msRealloc realloc
+#define msFree free
 
 #endif
diff --git a/preprocessor/ComputingTasks.cc b/preprocessor/ComputingTasks.cc
index 0cb37338a9d127de5b898f33f6452e5c88cc4d64..7d917e3555776308c56225f420173908cb790d0c 100644
--- a/preprocessor/ComputingTasks.cc
+++ b/preprocessor/ComputingTasks.cc
@@ -852,7 +852,7 @@ void
 SBVARStatement::writeOutput(ostream &output, const string &basename) const
 {
   options_list.writeOutput(output);
-  output << "swz_sbvar(0,M_,options_);" << endl;
+  output << "ms_sbvar(0,M_,options_);" << endl;
 }
 
 MS_SBVARStatement::MS_SBVARStatement(const OptionsList &options_list_arg) :
@@ -870,7 +870,7 @@ void
 MS_SBVARStatement::writeOutput(ostream &output, const string &basename) const
 {
   options_list.writeOutput(output);
-  output << "swz_sbvar(1,M_,options_);" << endl;
+  output << "ms_sbvar(1,M_,options_);" << endl;
 }
 
 IdentificationStatement::IdentificationStatement(const OptionsList &options_list_arg) :
diff --git a/tests/.gitignore b/tests/.gitignore
index 88c873bc7062a0bd35a79bb641ef13f6ffb7e7c2..b1231b4f6ea8efa06f0e929702ddd48e65c7bfab 100644
--- a/tests/.gitignore
+++ b/tests/.gitignore
@@ -40,6 +40,7 @@
 !/ls2003/data_ca1.m
 !/objectives/sgu_ex1.mat
 !/missing/simulate_data_with_missing_observations.m
+!/ms-sbvar/data.m
 !/parallel/data_ca1.m
 !/pi2004/idata.m
 !/pi2004/ych.dat
@@ -51,6 +52,5 @@
 !/recursive/data_ca1.m
 !/run_test.m
 !/run_test_octave.m
-!/swz/data.m
 !/test.m
 !/fs2000_ssfile_aux.m