diff --git a/matlab/PlotPosteriorDistributions.m b/matlab/PlotPosteriorDistributions.m
index ffc7856bca1843dce525e6afd88598bfd3139d70..9d8607d56a13ef9a79f98b543b6a58d7256326ff 100644
--- a/matlab/PlotPosteriorDistributions.m
+++ b/matlab/PlotPosteriorDistributions.m
@@ -2,7 +2,7 @@ function PlotPosteriorDistributions()
 % stephane.adjemian@ens.fr [09-09-2005]
 global estim_params_ M_ options_ bayestopt_ oo_
 
-DirectoryName = CheckPath('Plots/Densities');
+OutputDirectoryName = CheckPath('Output');
 
 TeX   	= options_.TeX;
 nblck 	= options_.mh_nblck;
@@ -19,7 +19,7 @@ nn = sqrt(MaxNumberOfPlotPerFigure);
 figurename = 'Priors and posteriors';
 
 if TeX    
-  fidTeX = fopen([DirectoryName '/' M_.fname '_PriorsAndPosteriors.TeX'],'w');
+  fidTeX = fopen([OutputDirectoryName '/' M_.fname '_PriorsAndPosteriors.TeX'],'w');
   fprintf(fidTeX,'%% TeX eps-loader file generated by PlotPosteriorDistributions.m (Dynare).\n');
   fprintf(fidTeX,['%% ' datestr(now,0) '\n']);
   fprintf(fidTeX,' \n');
@@ -27,12 +27,17 @@ end
 
 figunumber = 0;
 subplotnum = 0;
+
 for i=1:npar
   subplotnum = subplotnum+1;
   if subplotnum == 1
     figunumber = figunumber+1;
-    hfig = figure('Name',figurename);
-  end  
+    if options_.nograph
+      hfig = figure('Name',figurename,'Visible','off');
+    else
+      hfig = figure('Name',figurename);
+    end
+  end
   if subplotnum == 1
     if TeX
       TeXNAMES = [];
@@ -47,10 +52,10 @@ for i=1:npar
   [x2,f2,abscissa,dens,binf2,bsup2] = draw_prior_density(i);
   top2 = max(f2); 
   if i <= nvx
-    name = deblank(M_.exo_names(estim_params_.var_exo(i,1),:));    
+    name = deblank(M_.exo_names(estim_params_.var_exo(i,1),:));  
     eval(['x1 = oo_.posterior_density.shocks_std.' name '(:,1);'])
-    eval(['f1 = oo_.posterior_density.shocks_std.' name '(:,2);'])    
-    eval(['pmode = oo_.posterior_mode.shocks_std.' name ';'])  
+    eval(['f1 = oo_.posterior_density.shocks_std.' name '(:,2);'])
+    eval(['pmode = oo_.posterior_mode.shocks_std.' name ';'])
   elseif i <= nvx+nvn
     name = deblank(options_.varobs(estim_params_.var_endo(i-nvx,1),:));
     eval(['x1 = oo_.posterior_density.measurement_errors_std.' name '(:,1);'])
@@ -97,9 +102,9 @@ for i=1:npar
   hold off;
   drawnow
   if subplotnum == MaxNumberOfPlotPerFigure | i == npar;
-    eval(['print -depsc2 ' DirectoryName '/' M_.fname '_PriorsAndPosteriors' int2str(figunumber)]);
-    eval(['print -dpdf ' DirectoryName '/' M_.fname '_PriorsAndPosteriors' int2str(figunumber)]);
-    saveas(hfig,[DirectoryName '/' M_.fname '_PriorsAndPosteriors' int2str(figunumber) '.fig']);
+    eval(['print -depsc2 ' OutputDirectoryName '/' M_.fname '_PriorsAndPosteriors' int2str(figunumber)]);
+    eval(['print -dpdf ' OutputDirectoryName '/' M_.fname '_PriorsAndPosteriors' int2str(figunumber)]);
+    saveas(hfig,[OutputDirectoryName '/' M_.fname '_PriorsAndPosteriors' int2str(figunumber) '.fig']);
     if TeX
       fprintf(fidTeX,'\\begin{figure}[H]\n');
       for j = 1:size(NAMES,1)