diff --git a/tests/example1_model_block_declared_vars.mod b/tests/example1_model_block_declared_vars.mod
index 7e5afef45c39c1377ee0714ec0035bd02de1efd6..50f937126b07179d31004c448597d47bf9c921c5 100644
--- a/tests/example1_model_block_declared_vars.mod
+++ b/tests/example1_model_block_declared_vars.mod
@@ -8,13 +8,11 @@ verbatim;
 var = 1;
 end;
 
-parameters beta, rho, alpha, delta, theta, psi, tau;
+parameters beta, rho, theta, psi, tau;
 
-alpha = 0.36;
 rho   = 0.95;
 tau   = 0.025;
 beta  = 0.99;
-delta = 0.025;
 psi   = 0;
 theta = 2.95;
 
@@ -23,13 +21,16 @@ phi   = 0.1;
 model;
 c*theta*h^(1+psi)=(1-alpha)*y;
 k|e = beta*(((exp(b)*c)/(exp(b(+1))*c(+1)))
-    *(exp(b(+1))*alpha*y(+1)+(1-delta)*k));
+    *(exp(b(+1))*alpha|p*y(+1)+(1-delta)*k));
 y|e = exp(a)*(k(-1)^alpha)*(h^(1-alpha));
-k = exp(b)*(y-c)+(1-delta)*k(-1);
+k = exp(b)*(y-c)+(1-delta|p)*k(-1);
 a = rho*a(-1)+tau*b(-1) + e|x;
 b = tau*a(-1)+rho*b(-1) + u|x;
 end;
 
+alpha = 0.36;
+delta = 0.025;
+
 initval;
 y = 1.08068253095672;
 c = 0.80359242014163;