diff --git a/matlab/initial_estimation_checks.m b/matlab/initial_estimation_checks.m
index 669e84f20..fdc8525ab 100644
--- a/matlab/initial_estimation_checks.m
+++ b/matlab/initial_estimation_checks.m
@@ -44,6 +44,16 @@ if DynareDataset.vobs>length(find(diag(Model.Sigma_e)))+EstimatedParameters.nvn
     error(['initial_estimation_checks:: Estimation can''t take place because too many shocks have been calibrated with a zero variance!'])
 end
 
+if ~strcmpi(DynareOptions.proposal_distribution, 'rand_multivariate_student') || ...
+        ~strcmpi(DynareOptions.proposal_distribution, 'rand_multivariate_studuuent')
+    error(['initial_estimation_checks:: the proposal_distribution option to estimation takes either ' ...
+        'rand_multivariate_student or rand_multivariate_normal as options']);
+end
+
+if DynareOptions.student_degrees_of_freedom <= 0
+    error('initial_estimation_checks:: the student_degrees_of_freedom takes a positive integer argument');
+end
+
 old_steady_params=Model.params; %save initial parameters for check if steady state changes param values
 
 % % check if steady state solves static model (except if diffuse_filter == 1)
diff --git a/preprocessor/DynareBison.yy b/preprocessor/DynareBison.yy
index bd9300e1f..5893b6dc1 100644
--- a/preprocessor/DynareBison.yy
+++ b/preprocessor/DynareBison.yy
@@ -87,9 +87,9 @@ class ParsingDriver;
 %token BVAR_DENSITY BVAR_FORECAST NODECOMPOSITION DR_DISPLAY_TOL HUGE_NUMBER
 %token BVAR_PRIOR_DECAY BVAR_PRIOR_FLAT BVAR_PRIOR_LAMBDA TARB_OPTIM
 %token BVAR_PRIOR_MU BVAR_PRIOR_OMEGA BVAR_PRIOR_TAU BVAR_PRIOR_TRAIN
-%token BVAR_REPLIC BYTECODE ALL_VALUES_REQUIRED
+%token BVAR_REPLIC BYTECODE ALL_VALUES_REQUIRED PROPOSAL_DISTRIBUTION
 %token CALIB_SMOOTHER CHANGE_TYPE CHECK CONDITIONAL_FORECAST CONDITIONAL_FORECAST_PATHS CONF_SIG CONSTANT CONTROLLED_VAREXO CORR COVAR CUTOFF CYCLE_REDUCTION LOGARITHMIC_REDUCTION
-%token CONSIDER_ALL_ENDOGENOUS CONSIDER_ONLY_OBSERVED
+%token CONSIDER_ALL_ENDOGENOUS CONSIDER_ONLY_OBSERVED STUDENT_DEGREES_OF_FREEDOM
 %token DATAFILE FILE SERIES DOUBLING DR_CYCLE_REDUCTION_TOL DR_LOGARITHMIC_REDUCTION_TOL DR_LOGARITHMIC_REDUCTION_MAXITER DR_ALGO DROP DSAMPLE DYNASAVE DYNATYPE CALIBRATION DIFFERENTIATE_FORWARD_VARS
 %token END ENDVAL EQUAL ESTIMATION ESTIMATED_PARAMS ESTIMATED_PARAMS_BOUNDS ESTIMATED_PARAMS_INIT EXTENDED_PATH ENDOGENOUS_PRIOR
 %token FILENAME DIRNAME FILTER_STEP_AHEAD FILTERED_VARS FIRST_OBS LAST_OBS SET_TIME
@@ -1719,6 +1719,8 @@ estimation_options : o_datafile
                    | o_tarb_mode_compute
                    | o_tarb_new_block_probability
                    | o_tarb_optim
+                   | o_proposal_distribution
+                   | o_student_degrees_of_freedom
                    ;
 
 list_optim_option : QUOTED_STRING COMMA QUOTED_STRING
@@ -2633,6 +2635,8 @@ o_mh_drop : MH_DROP EQUAL non_negative_number { driver.option_num("mh_drop", $3)
 o_mh_jscale : MH_JSCALE EQUAL non_negative_number { driver.option_num("mh_jscale", $3); };
 o_optim : OPTIM  EQUAL '(' optim_options ')';
 o_tarb_optim : TARB_OPTIM  EQUAL '(' tarb_optim_options ')';
+o_proposal_distribution : PROPOSAL_DISTRIBUTION EQUAL symbol { driver.option_str("proposal_distribution", $3); };
+o_student_degrees_of_freedom : STUDENT_DEGREES_OF_FREEDOM EQUAL INT_NUMBER { driver.option_num("student_degrees_of_freedom", $3); };
 o_mh_init_scale : MH_INIT_SCALE EQUAL non_negative_number { driver.option_num("mh_init_scale", $3); };
 o_mode_file : MODE_FILE EQUAL filename { driver.option_str("mode_file", $3); };
 o_mode_compute : MODE_COMPUTE EQUAL INT_NUMBER { driver.option_num("mode_compute", $3); };
diff --git a/preprocessor/DynareFlex.ll b/preprocessor/DynareFlex.ll
index 5466487d3..92d52ecfe 100644
--- a/preprocessor/DynareFlex.ll
+++ b/preprocessor/DynareFlex.ll
@@ -371,6 +371,8 @@ DATE -?[0-9]+([YyAa]|[Mm]([1-9]|1[0-2])|[Qq][1-4]|[Ww]([1-9]{1}|[1-4][0-9]|5[0-2
 <DYNARE_STATEMENT>unscented {return token::UNSCENTED;}
 <DYNARE_STATEMENT>montecarlo {return token::MONTECARLO;}
 <DYNARE_STATEMENT>distribution_approximation {return token::DISTRIBUTION_APPROXIMATION;}
+<DYNARE_STATEMENT>proposal_distribution {return token::PROPOSAL_DISTRIBUTION;}
+<DYNARE_STATEMENT>student_degrees_of_freedom {return token::STUDENT_DEGREES_OF_FREEDOM;}
 
 <DYNARE_STATEMENT>alpha {
   yylval->string_val = new string(yytext);
diff --git a/tests/estimation/t_proposal/fs2000_student.mod b/tests/estimation/t_proposal/fs2000_student.mod
index 47c90a403..e920b105a 100644
--- a/tests/estimation/t_proposal/fs2000_student.mod
+++ b/tests/estimation/t_proposal/fs2000_student.mod
@@ -17,7 +17,7 @@
  */
 
 /*
- * Copyright (C) 2004-2010 Dynare Team
+ * Copyright (C) 2004-2015 Dynare Team
  *
  * This file is part of Dynare.
  *
@@ -114,7 +114,4 @@ end;
 
 varobs gp_obs gy_obs;
 
-options_.proposal_distribution='rand_multivariate_student';
-options_.student_degrees_of_freedom=5;
-
-estimation(order=1, datafile='../fsdat_simul',nobs=192, loglinear, mh_replic=2002, mh_nblocks=2, mh_jscale=0.8,mode_compute=4);
+estimation(order=1, datafile='../fsdat_simul',nobs=192, loglinear, mh_replic=2002, mh_nblocks=2, mh_jscale=0.8,mode_compute=4, proposal_distribution=rand_multivariate_studuuent, student_degrees_of_freedom=5);