diff --git a/tests/Makefile.am b/tests/Makefile.am
index e391108cb..cbe63cf48 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -238,7 +238,7 @@ MODFILES = \
 XFAIL_MODFILES = ramst_xfail.mod \
 	estim_param_in_shock_value_xfail.mod \
 	optimal_policy/Ramsey/ramsey_ex_wrong_ss_file_xfail.mod \
-	steady_state/run_linear_steady_state_fail_test.mod
+	steady_state/Linear_steady_state_xfail.mod
 
 MFILES = initval_file/ramst_initval_file_data.m
 
diff --git a/tests/steady_state/Linear_steady_state_fail.mod b/tests/steady_state/Linear_steady_state_fail.mod
deleted file mode 100644
index 501a9b4af..000000000
--- a/tests/steady_state/Linear_steady_state_fail.mod
+++ /dev/null
@@ -1,23 +0,0 @@
-// 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;
-
-
-
-
-
-