diff --git a/tests/steady_state/Linear_steady_state_xfail.mod b/tests/steady_state/Linear_steady_state_xfail.mod
new file mode 100644
index 000000000..501a9b4af
--- /dev/null
+++ b/tests/steady_state/Linear_steady_state_xfail.mod
@@ -0,0 +1,23 @@
+// Test whether a nonlinear equation specfied as a linear model is correctly filtered out
+var A;
+
+varexo epsilona;
+parameters  rho;
+
+rho =   .42; 
+
+model(linear);
+log(A) = rho*log(A(-1)) + epsilona;
+end;
+
+initval;
+    A = 1.34;
+end;
+
+steady;
+
+
+
+
+
+