diff --git a/doc/dynare.texi b/doc/dynare.texi
index a5715a8d3365d23cb616e6781f84e377c1045573..9a735a680ebed7c65e90a1c3ef026ff13a8cd090 100644
--- a/doc/dynare.texi
+++ b/doc/dynare.texi
@@ -2837,22 +2837,25 @@ steady(homotopy_mode = 1, homotopy_steps = 50);
If you know how to compute the steady state for your model, you can
provide a MATLAB/Octave function doing the computation instead of
-using @code{steady}. If your MOD-file is called
-@file{@var{FILENAME}.mod}, the steady state file should be called
-@file{@var{FILENAME}_steadystate.m}.
-
-Again, there are two options for creating this file:
+using @code{steady}. Again, there are two options for doing that:
@itemize
@item
-The easiest way is to write a @code{steady_state_model} block.
+The easiest way is to write a @code{steady_state_model} block, which
+is described below in more details. See also @file{fs2000.mod} in the
+@file{examples} directory for an example.
+
+The steady state file generated by Dynare will be called
+@file{@var{FILENAME}_steadystate2.m}.
@item
-You can write the corresponding Matlab function by hand. See @file{fs2000_steadystate.m}
-in the @file{examples} directory for an example. This option
-gives a bit more flexibility, at the expense of a heavier
-programming burden and a lesser efficiency.
+You can write the corresponding MATLAB function by hand. If your
+MOD-file is called @file{@var{FILENAME}.mod}, the steady state file
+must be called @file{@var{FILENAME}_steadystate.m}. See
+@file{NK_baseline_steadystate.m} in the @file{examples} directory for
+an example. This option gives a bit more flexibility, at the expense
+of a heavier programming burden and a lesser efficiency.
@end itemize
diff --git a/examples/fs2000.mod b/examples/fs2000.mod
index 14e78d91078438e14d110735fe0997738144905a..36aace1135ef871cee0bffda6fbaddd6b51d53e6 100644
--- a/examples/fs2000.mod
+++ b/examples/fs2000.mod
@@ -87,6 +87,32 @@ var e_a; stderr 0.014;
var e_m; stderr 0.005;
end;
+steady_state_model;
+ dA = exp(gam);
+ gst = 1/dA;
+ m = mst;
+ khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
+ xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
+ nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
+ n = xist/(nust+xist);
+ P = xist + nust;
+ k = khst*n;
+
+ l = psi*mst*n/( (1-psi)*(1-n) );
+ c = mst/P;
+ d = l - mst + 1;
+ y = k^alp*n^(1-alp)*gst^alp;
+ R = mst/bet;
+ W = l/n;
+ ist = y-c;
+ q = 1 - d;
+
+ e = 1;
+
+ gp_obs = m/dA;
+ gy_obs = dA;
+end;
+
steady;
check;
diff --git a/examples/fs2000_steadystate.m b/examples/fs2000_steadystate.m
deleted file mode 100644
index 2ac140da5dfd6585ea7168747c441eab7fa2770a..0000000000000000000000000000000000000000
--- a/examples/fs2000_steadystate.m
+++ /dev/null
@@ -1,73 +0,0 @@
-% computes the steady state of fs2000 analyticaly
-% largely inspired by the program of F. Schorfheide
-
-% Copyright (C) 2004-2010 Dynare Team
-%
-% This file is part of Dynare.
-%
-% Dynare is free software: you can redistribute it and/or modify
-% it under the terms of the GNU General Public License as published by
-% the Free Software Foundation, either version 3 of the License, or
-% (at your option) any later version.
-%
-% Dynare is distributed in the hope that it will be useful,
-% but WITHOUT ANY WARRANTY; without even the implied warranty of
-% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
-% GNU General Public License for more details.
-%
-% You should have received a copy of the GNU General Public License
-% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
-
-function [ys,check] = fs2000_steadystate(ys,exe)
- global M_
-
- alp = M_.params(1);
- bet = M_.params(2);
- gam = M_.params(3);
- mst = M_.params(4);
- rho = M_.params(5);
- psi = M_.params(6);
- del = M_.params(7);
-
- check = 0;
-
- dA = exp(gam);
- gst = 1/dA;
- m = mst;
-
- khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
- xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
- nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
- n = xist/(nust+xist);
- P = xist + nust;
- k = khst*n;
-
- l = psi*mst*n/( (1-psi)*(1-n) );
- c = mst/P;
- d = l - mst + 1;
- y = k^alp*n^(1-alp)*gst^alp;
- R = mst/bet;
- W = l/n;
- ist = y-c;
- q = 1 - d;
-
- e = 1;
-
- gp_obs = m/dA;
- gy_obs = dA;
-
- ys =[
-m
-P
-c
-e
-W
-R
-k
-d
-n
-l
-gy_obs
-gp_obs
-y
-dA ];