diff --git a/tests/Makefile.am b/tests/Makefile.am
index 297de6211..e2bd84cae 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -63,6 +63,7 @@ MODFILES = \
 	ramst.mod \
 	ramst_a.mod \
 	ramst_static_tag.mod \
+	ramst_mshocks.mod \
 	on-the-fly/ex1.mod \
 	on-the-fly/ex2.mod \
 	on-the-fly/ex3.mod \
diff --git a/tests/ramst_mshocks.mod b/tests/ramst_mshocks.mod
new file mode 100644
index 000000000..186dbcb97
--- /dev/null
+++ b/tests/ramst_mshocks.mod
@@ -0,0 +1,44 @@
+// Test mshocks block
+
+var c k;
+varexo x;
+
+parameters alph gam delt bet aa;
+alph=0.5;
+gam=0.5;
+delt=0.02;
+bet=0.05;
+aa=0.5;
+
+
+model;
+c + k - aa*x*k(-1)^alph - (1-delt)*k(-1);
+c^(-gam) - (1+bet)^(-1)*(aa*alph*x(+1)*k^(alph-1) + 1 - delt)*c(+1)^(-gam);
+end;
+
+initval;
+x = 2;
+k = ((delt+bet)/(1.0*aa*x*alph))^(1/(alph-1));
+c = aa*x*k^alph-delt*k;
+end;
+
+steady;
+
+check;
+
+mshocks;
+var x;
+periods 1 2:3;
+values 1.2 0.8;
+end;
+
+perfect_foresight_setup(periods=200);
+perfect_foresight_solver;
+
+rplot c;
+rplot k;
+
+if ~all(oo_.exo_simul(M_.maximum_lag+(1:3)) == [ 2.4; 1.6; 1.6]) ...
+    || ~all(oo_.exo_simul(M_.maximum_lag+(4:200)) == 2)
+  error("mshocks not correctly applied")
+end