diff --git a/matlab/getIrfShocksIndx.m b/matlab/getIrfShocksIndx.m
index 0974bcedce95e6f4553d16908a1fa1fedb1054e9..715a530bcbe7e5b3633d4ea2bf9c96199c544bb6 100644
--- a/matlab/getIrfShocksIndx.m
+++ b/matlab/getIrfShocksIndx.m
@@ -24,6 +24,6 @@ if (isfield(options_,'irf_shocks')==0)
 else
     irf_shocks_indx = zeros(1,size(options_.irf_shocks,1));
     for i=1:size(options_.irf_shocks,1)
-        irf_shocks_indx(i) = find(M_.exo_names==options_.irf_shocks(i));
+        irf_shocks_indx(i) = find(strcmp(deblank(options_.irf_shocks(i,:)), cellstr(M_.exo_names)));
     end
-end
\ No newline at end of file
+end
diff --git a/preprocessor/ParsingDriver.cc b/preprocessor/ParsingDriver.cc
index ddf7ed9010aaa7a1bd4a9cb6328735821af6011e..a449370860f4d6420db780567f94260960bf557b 100644
--- a/preprocessor/ParsingDriver.cc
+++ b/preprocessor/ParsingDriver.cc
@@ -934,7 +934,7 @@ ParsingDriver::option_symbol_list(const string &name_option)
       for (vector<string>::const_iterator it = shocks.begin();
            it != shocks.end(); it++)
         if (mod_file->symbol_table.getType(*it) != eExogenous)
-          error("Variables passed to irf_for must be exogenous. Caused by: " + *it);
+          error("Variables passed to irf_shocks must be exogenous. Caused by: " + *it);
     }
 
   options_list.symbol_list_options[name_option] = symbol_list;
diff --git a/tests/Makefile.am b/tests/Makefile.am
index dcfef72b119d2fcd061745155354b2245ecfb953..7e4e0a32c22c064c47078d0aa49bcef171d3201a 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -7,6 +7,7 @@ MODFILES = \
 	example2.mod \
 	example1_use_dll.mod \
 	example1_with_tags.mod \
+	example1_irf_shocks.mod \
 	t_sgu_ex1.mod \
 	osr_example.mod \
 	optimal_policy/ramsey.mod \
diff --git a/tests/example1_irf_shocks.mod b/tests/example1_irf_shocks.mod
new file mode 100644
index 0000000000000000000000000000000000000000..661f0984d0c2224774668d421ba427c923e4b72e
--- /dev/null
+++ b/tests/example1_irf_shocks.mod
@@ -0,0 +1,46 @@
+// Example 1 from Collard's guide to Dynare
+var y, c, k, a, h, b;
+varexo e, u, eps;
+
+parameters beta, rho, alpha, delta, theta, psi, tau;
+
+alpha = 0.36;
+rho   = 0.95;
+tau   = 0.025;
+beta  = 0.99;
+delta = 0.025;
+psi   = 0;
+theta = 2.95;
+
+phi   = 0.1;
+
+model;
+c*theta*h^(1+psi)=(1-alpha)*y;
+k = beta*(((exp(b)*c)/(exp(b(+1))*c(+1)))
+    *(exp(b(+1))*alpha*y(+1)+(1-delta)*k));
+y = exp(a)*(k(-1)^alpha)*(h^(1-alpha));
+k = exp(b)*(y-c)+(1-delta)*k(-1);
+a = rho*a(-1)+tau*b(-1) + e;
+b = tau*a(-1)+rho*b(-1) + u + eps;
+end;
+
+initval;
+y = 1.08068253095672;
+c = 0.80359242014163;
+h = 0.29175631001732;
+k = 11.08360443260358;
+a = 0;
+b = 0;
+e = 0;
+u = 0;
+eps = 0;
+end;
+
+shocks;
+var e; stderr 0.009;
+var u; stderr 0.009;
+var eps; stderr 0.009;
+var e, u = phi*0.009*0.009;
+end;
+
+stoch_simul(irf_shocks=(eps,u));