diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index eab7b8b7e1c2abfcba31630ef90b0cc0447fc9f9..6acc0c9d18e14e6b78070cf5c64309a3c8b0ab91 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -453,7 +453,8 @@ if options_.analytic_derivation,
     if estim_params_.np,
         % check if steady state changes param values
         M=M_;
-        M.params(estim_params_.param_vals(:,1)) = M.params(estim_params_.param_vals(:,1))*1.01;
+        M.params(estim_params_.param_vals(:,1)) = xparam1(estim_params_.nvx+estim_params_.ncx+estim_params_.nvn+estim_params_.ncn+1:end); %set parameters
+        M.params(estim_params_.param_vals(:,1)) = M.params(estim_params_.param_vals(:,1))*1.01; %vary parameters
         if options_.diffuse_filter
             steadystate_check_flag = 0;
         else