diff --git a/ParsingDriver.cc b/ParsingDriver.cc
index 43d775cc..b7abea8a 100644
--- a/ParsingDriver.cc
+++ b/ParsingDriver.cc
@@ -1866,7 +1866,7 @@ ParsingDriver::add_steady_state_model_equal(string *varname, NodeID expr)
     }
 
   SymbolType type = mod_file->symbol_table.getType(id);
-  if (type != eEndogenous && type != eModFileLocalVariable)
+  if (type != eEndogenous && type != eModFileLocalVariable && type != eParameter)
     error(*varname + " has incorrect type");
 
   mod_file->steady_state_model.addDefinition(id, expr);
diff --git a/SteadyStateModel.cc b/SteadyStateModel.cc
index f2e58a0e..6ebf32be 100644
--- a/SteadyStateModel.cc
+++ b/SteadyStateModel.cc
@@ -31,7 +31,8 @@ void
 SteadyStateModel::addDefinition(int symb_id, NodeID expr)
 {
   assert(symbol_table.getType(symb_id) == eEndogenous
-         || symbol_table.getType(symb_id) == eModFileLocalVariable);
+         || symbol_table.getType(symb_id) == eModFileLocalVariable
+         || symbol_table.getType(symb_id) == eParameter);
 
   // Add the variable
   recursive_order.push_back(symb_id);
@@ -93,8 +94,7 @@ SteadyStateModel::writeSteadyStateFile(const string &basename, bool ramsey_polic
     output << "ys_orig_";
   output << ", exo_)" << endl
          << "% Steady state generated by Dynare preprocessor" << endl
-         << "    global M_" << endl
-         << "    ys_=zeros(" << symbol_table.orig_endo_nbr() << ",1);" << endl;
+         << "    global M_" << endl;
 
   for(size_t i = 0; i < recursive_order.size(); i++)
     {