diff --git a/tests/Makefile.am b/tests/Makefile.am
index a639bf838..b2244a596 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -3,6 +3,7 @@ MODFILES = \
 	estimation/fs2000_MCMC_jumping_covariance.mod \
 	estimation/fs2000_initialize_from_calib.mod	\
 	estimation/fs2000_calibrated_covariance.mod \
+	estimation/fs2000_model_comparison.mod \
 	estimation/MH_recover/fs2000_recover.mod \
 	estimation/t_proposal/fs2000_student.mod \
 	estimation/TaRB/fs2000_tarb.mod \
@@ -294,6 +295,9 @@ AIM/fs2000x10_L9_L_AIM.o.trs: AIM/fs2000x10_L9_L.o.trs
 AIM/ls2003_2L0L_AIM.o.trs: AIM/ls2003_2L0L.o.trs
 AIM/ls2003_2L2L_AIM.o.trs: AIM/ls2003_2L2L.o.trs
 
+estimation/fs2000_model_comparison.m.trs: estimation/fs2000.m.trs estimation/fs2000_initialize_from_calib.m.trs estimation/fs2000_calibrated_covariance.m.trs
+estimation/fs2000_model_comparison.o.trs: estimation/fs2000.o.trs estimation/fs2000_initialize_from_calib.o.trs estimation/fs2000_calibrated_covariance.o.trs
+
 optimizers/fs2000_102.m.trs: estimation/fs2000.m.trs
 optimizers/fs2000_102.o.trs: estimation/fs2000.o.trs
 
diff --git a/tests/estimation/fs2000_model_comparison.mod b/tests/estimation/fs2000_model_comparison.mod
new file mode 100644
index 000000000..b350eb337
--- /dev/null
+++ b/tests/estimation/fs2000_model_comparison.mod
@@ -0,0 +1,110 @@
+// See fs2000.mod in the examples/ directory for details on the model
+
+var m P c e W R k d n l gy_obs gp_obs y dA;
+varexo e_a e_m;
+
+parameters alp bet gam mst rho psi del;
+
+alp = 0.33;
+bet = 0.99;
+gam = 0.003;
+mst = 1.011;
+rho = 0.7;
+psi = 0.787;
+del = 0.02;
+
+model;
+dA = exp(gam+e_a);
+log(m) = (1-rho)*log(mst) + rho*log(m(-1))+e_m;
+-P/(c(+1)*P(+1)*m)+bet*P(+1)*(alp*exp(-alp*(gam+log(e(+1))))*k^(alp-1)*n(+1)^(1-alp)+(1-del)*exp(-(gam+log(e(+1)))))/(c(+2)*P(+2)*m(+1))=0;
+W = l/n;
+-(psi/(1-psi))*(c*P/(1-n))+l/n = 0;
+R = P*(1-alp)*exp(-alp*(gam+e_a))*k(-1)^alp*n^(-alp)/W;
+1/(c*P)-bet*P*(1-alp)*exp(-alp*(gam+e_a))*k(-1)^alp*n^(1-alp)/(m*l*c(+1)*P(+1)) = 0;
+c+k = exp(-alp*(gam+e_a))*k(-1)^alp*n^(1-alp)+(1-del)*exp(-(gam+e_a))*k(-1);
+P*c = m;
+m-1+d = l;
+e = exp(e_a);
+y = k(-1)^alp*n^(1-alp)*exp(-alp*(gam+e_a));
+gy_obs = dA*y/y(-1);
+gp_obs = (P/P(-1))*m(-1)/dA;
+end;
+
+steady_state_model;
+  dA = exp(gam);
+  gst = 1/dA;
+  m = mst;
+  khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
+  xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
+  nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
+  n  = xist/(nust+xist);
+  P  = xist + nust;
+  k  = khst*n;
+
+  l  = psi*mst*n/( (1-psi)*(1-n) );
+  c  = mst/P;
+  d  = l - mst + 1;
+  y  = k^alp*n^(1-alp)*gst^alp;
+  R  = mst/bet;
+  W  = l/n;
+  ist  = y-c;
+  q  = 1 - d;
+
+  e = 1;
+  
+  gp_obs = m/dA;
+  gy_obs = dA;
+end;
+
+
+shocks;
+var e_a; stderr 0.014;
+var e_m; stderr 0.005;
+end;
+
+steady;
+
+check;
+
+estimated_params;
+% alp, beta_pdf, 0.356, 0.02;
+bet, beta_pdf, 0.993, 0.002;
+% gam, normal_pdf, 0.0085, 0.003;
+% mst, normal_pdf, 1.0002, 0.007;
+% rho, beta_pdf, 0.129, 0.223;
+% psi, beta_pdf, 0.65, 0.05;
+% del, beta_pdf, 0.01, 0.005;
+% stderr e_a, inv_gamma_pdf, 0.035449, inf;
+% stderr e_m, inv_gamma_pdf, 0.008862, inf;
+end;
+
+varobs gp_obs gy_obs;
+
+options_.solve_tolf = 1e-12;
+
+estimation(order=1,datafile=fsdat_simul,nobs=192,loglinear,mh_replic=2000,mh_nblocks=1,mh_jscale=0.8);
+
+
+model_comparison fs2000(0.5) fs2000_calibrated_covariance(0.5);
+if isfield(oo_,'Model_Comparison')
+    error('Model Comparison should not work with ML')
+end
+model_comparison fs2000 fs2000_initialize_from_calib;
+model_comparison fs2000(0.5) fs2000_initialize_from_calib(0.5);
+model_comparison fs2000(0.25) fs2000_initialize_from_calib(0.25);
+model_comparison (marginal_density=laplace) fs2000(0.5) fs2000_initialize_from_calib(0.5);
+if oo_.Model_Comparison.fs2000.Posterior_Model_Probability < oo_.Model_Comparison.fs2000_initialize_from_calib.Posterior_Model_Probability && ...
+        oo_.Model_Comparison.fs2000.Log_Marginal_Density > oo_.Model_Comparison.fs2000_initialize_from_calib.Log_Marginal_Density
+   error('Model Comparison not correct') 
+end
+oo_laplace=oo_;
+model_comparison (marginal_density=modifiedharmonicmean) fs2000(0.5) fs2000_initialize_from_calib(0.75);
+if abs(oo_laplace.Model_Comparison.fs2000.Log_Marginal_Density-oo_.Model_Comparison.fs2000.Log_Marginal_Density)>0.1
+   error('Laplace and Harmonic Mean do not match') 
+end
+model_comparison (marginal_density=modifiedharmonicmean) fs2000(0) fs2000_initialize_from_calib(1);
+if oo_.Model_Comparison.fs2000.Posterior_Model_Probability~=0 && oo_.Model_Comparison.fs2000_initialize_from_calib.Log_Marginal_Density~=1
+   error('Incorporation of prior wrong') 
+end
+
+model_comparison(marginal_density=laplace) fs2000(0.333) fs2000_initialize_from_calib(0.333) fs2000_model_comparison(0.333);