diff --git a/matlab/dynare_sensitivity.m b/matlab/dynare_sensitivity.m
index 3f0227b217f3b702fe3cab71228b179d999bd46e..389ca31cff027ac7daff22d8dd9ac033e2c4a491 100644
--- a/matlab/dynare_sensitivity.m
+++ b/matlab/dynare_sensitivity.m
@@ -97,6 +97,7 @@ options_gsa = set_default_option(options_gsa,'redform',0);
 options_gsa = set_default_option(options_gsa,'pprior',1);
 options_gsa = set_default_option(options_gsa,'prior_range',1);
 options_gsa = set_default_option(options_gsa,'ppost',0);
+options_gsa = set_default_option(options_gsa,'neighborhood_width',0);
 options_gsa = set_default_option(options_gsa,'ilptau',1);
 options_gsa = set_default_option(options_gsa,'morris',0);
 options_gsa = set_default_option(options_gsa,'glue',0);
diff --git a/preprocessor/DynareBison.yy b/preprocessor/DynareBison.yy
index 3b454ee288b822583b108c873a1db5baf6dfe843..eb1b5ad502c1a7433766327d67606669f3f3cb86 100644
--- a/preprocessor/DynareBison.yy
+++ b/preprocessor/DynareBison.yy
@@ -159,7 +159,7 @@ class ParsingDriver;
 %token MARKOV_SWITCHING CHAIN STATE DURATION NUMBER_OF_STATES
 %token SVAR COEFFICIENTS VARIANCES CONSTANTS EQUATIONS
 %token EXTERNAL_FUNCTION EXT_FUNC_NAME EXT_FUNC_NARGS FIRST_DERIV_PROVIDED SECOND_DERIV_PROVIDED
-%token SELECTED_VARIABLES_ONLY COVA_COMPUTE
+%token SELECTED_VARIABLES_ONLY COVA_COMPUTE NEIGHBORHOOD_WIDTH
 
 %type <node_val> expression expression_or_empty
 %type <node_val> equation hand_side
@@ -1537,6 +1537,7 @@ dynare_sensitivity_option : o_gsa_identification
                           | o_gsa_namexo
                           | o_gsa_namlagendo
                           | o_gsa_var_rmse
+                          | o_gsa_neighborhood_width
                           | o_datafile
                           | o_nobs
                           | o_first_obs
@@ -1774,6 +1775,7 @@ o_gsa_istart_rmse : ISTART_RMSE EQUAL INT_NUMBER { driver.option_num("istart_rms
 o_gsa_alpha_rmse : ALPHA_RMSE EQUAL non_negative_number { driver.option_num("alpha_rmse", $3); };
 o_gsa_alpha2_rmse : ALPHA2_RMSE EQUAL non_negative_number { driver.option_num("alpha2_rmse", $3); };
 o_gsa_trans_ident : TRANS_IDENT EQUAL INT_NUMBER { driver.option_num("trans_ident", $3); };
+o_gsa_neighborhood_width : NEIGHBORHOOD_WIDTH EQUAL non_negative_number { driver.option_num("neighborhood_width", $3); };
 
 o_load_ident_files : LOAD_IDENT_FILES EQUAL INT_NUMBER { driver.option_num("load_ident_files", $3); }
 o_useautocorr : USEAUTOCORR EQUAL INT_NUMBER { driver.option_num("useautocorr", $3); }
diff --git a/preprocessor/DynareFlex.ll b/preprocessor/DynareFlex.ll
index d39c04dfc10e7acd286d2abc4cf7f4ec4e9d48d8..e184a366671a82db9146fd6692c3dd6cdc3c87ca 100644
--- a/preprocessor/DynareFlex.ll
+++ b/preprocessor/DynareFlex.ll
@@ -522,6 +522,7 @@ string eofbuff;
 <DYNARE_STATEMENT>trans_ident {return token::TRANS_IDENT;}
 <DYNARE_STATEMENT>load_ident_files {return token::LOAD_IDENT_FILES;}
 <DYNARE_STATEMENT>useautocorr {return token::USEAUTOCORR;}
+<DYNARE_STATEMENT>neighborhood_width {return token::NEIGHBORHOOD_WIDTH;}
  /* end of GSA options */
 
  /* For identification() statement */