diff --git a/tests/Makefile.am b/tests/Makefile.am
index 2514653a9..a61ffacfe 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -546,6 +546,7 @@ MODFILES += $(ECB_MODFILES)
 PARTICLEFILES = \
 	particle/dsge_base2.mod \
 	particle/first_spec.mod \
+	particle/first_spec_MCMC.mod \
 	particle/local_state_space_iteration_k_test.mod
 
 
diff --git a/tests/particle/first_spec.mod b/tests/particle/first_spec.mod
index c904ae659..98a1a16f8 100644
--- a/tests/particle/first_spec.mod
+++ b/tests/particle/first_spec.mod
@@ -2,6 +2,8 @@
 
 @#include "first_spec_common.inc"
 
+varobs q ca;
+
 shocks;
 var eeps = 0.04^2;
 var nnu = 0.03^2;
@@ -13,4 +15,6 @@ stoch_simul(order=3,periods=200, irf=0);
 
 save('my_data.mat','q','ca');
 
-estimation(datafile='my_data.mat',order=2,mode_compute=0,mh_replic=1,filter_algorithm=sis,nonlinear_filter_initialization=2);
\ No newline at end of file
+estimation(datafile='my_data.mat',order=2,mode_compute=0,mh_replic=0,filter_algorithm=sis,nonlinear_filter_initialization=2
+    ,cova_compute=0 %tell program that no covariance matrix was computed
+);
\ No newline at end of file
diff --git a/tests/particle/first_spec_MCMC.mod b/tests/particle/first_spec_MCMC.mod
new file mode 100644
index 000000000..9d6bdda20
--- /dev/null
+++ b/tests/particle/first_spec_MCMC.mod
@@ -0,0 +1,26 @@
+//File testing error message if initial state vector is not positive definite
+
+@#include "first_spec_common.inc"
+
+varobs b ca;
+
+shocks;
+var eeps = 0.04^2;
+var nnu = 0.03^2;
+var b = 0.01^2;
+var ca = 0.01^2;
+end;
+
+stoch_simul(order=3,periods=200, irf=0);
+
+save('my_data_MCMC.mat','ca','b');
+
+options_.pruning=1;
+options_.particle.pruning=1;
+options_.particle.number_of_particles=500;
+
+estimation(datafile='my_data_MCMC.mat',order=2,mh_replic=100,filter_algorithm=sis,nonlinear_filter_initialization=2
+    ,mode_compute=0 %don't compute mode
+    ,mcmc_jumping_covariance=identity_matrix %use identity matrix
+    ,cova_compute=0 %tell program that no covariance matrix was computed
+    ,bayesian_irf,moments_varendo,consider_all_endogenous);
\ No newline at end of file
diff --git a/tests/particle/first_spec_common.inc b/tests/particle/first_spec_common.inc
index 37cf027e7..45ad47823 100644
--- a/tests/particle/first_spec_common.inc
+++ b/tests/particle/first_spec_common.inc
@@ -20,27 +20,26 @@ model;
     m = bbetaL*exp(-gbar/ies)*uaux(-1)^((ies-1)/(ies*(1-crra))-1)*u^(1/ies-crra)*c^(-1/ies)/c(-1)^(-1/ies);
     b = bbar*q^eeta*exp(nnu);
     c + q*b*exp(gbar) = 1 + R*b(-1);
-    u = ( (1-bbetaL)*c^((ies-1)/ies) + bbetaL*exp(gbar*(ies-1)/ies)*uaux^((ies-1)/(ies*(1-crra)))  )^(ies/(ies-1));
+    u = ( (1-bbetaL)*c^((ies-1)/ies) + bbetaL*exp(gbar*(ies-1)/ies)*uaux^((ies-1)/(ies*(1-crra))))^(ies/(ies-1));
     R = (1-Rpers)*Rbar + Rpers*R(-1) + eeps;
     ca = b*exp(gbar)-b(-1);
   
 end;
 
-initval;
+steady_state_model;
 R = Rbar;
 m = bbetaL*exp(-gbar/ies);
 q = bbetaL*exp(-gbar/ies)*Rbar;
 b = bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta;
 c = 1 + Rbar*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta - exp(gbar)*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta*bbetaL*exp(-gbar/ies)*Rbar;
 u = ((1-bbetaL)/(1-bbetaL*exp(gbar*(ies-1)/ies )) )^(ies/(ies-1))*(1 + Rbar*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta - exp(gbar)*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta*bbetaL*exp(-gbar/ies)*Rbar);
-uaux = (1 + Rbar*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta - exp(gbar)*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta*bbetaL*exp(-gbar/ies)*Rbar)^(1-crra);
+uaux = u^(1-crra);
 ca = (exp(gbar)-1)*bbar*(bbetaL*exp(-gbar/ies)*Rbar)^eeta;
 end;
 
+resid;
 steady(solve_algo=3);
 
-varobs q ca;
-
 estimated_params;
 ies, normal_pdf, 1.5, .2;
 end;
diff --git a/tests/particle/first_spec_xfail_0.mod b/tests/particle/first_spec_xfail_0.mod
index 792197cdf..ceea4a812 100644
--- a/tests/particle/first_spec_xfail_0.mod
+++ b/tests/particle/first_spec_xfail_0.mod
@@ -2,6 +2,8 @@
 
 @#include "first_spec_common.inc"
 
+varobs q ca;
+
 shocks;
 var eeps = 0.04^2;
 var nnu = 0.03^2;
diff --git a/tests/particle/first_spec_xfail_1.mod b/tests/particle/first_spec_xfail_1.mod
index fb3fa0020..66d588f45 100644
--- a/tests/particle/first_spec_xfail_1.mod
+++ b/tests/particle/first_spec_xfail_1.mod
@@ -2,6 +2,8 @@
 
 @#include "first_spec_common.inc"
 
+varobs q ca;
+
 shocks;
 var eeps = 0.04^2;
 var nnu = 0.03^2;