As a first step, you need to give initial values to the parameters kappa, rhox, rhoa, alpha, theta, phit, rhosa, rhosx, rhosr,alphaspi, alphasx, sigmaa, omega because without them many equations have NaN values for the residuals.
However, the real problem is that the model you are interested in is actually based on the Gali-Monacelli model of 2005, not on the Lubik model of 2007. If you go to
[Solving the SOE model of Gali and Monacelli)
you will find a version of that model which should help you.
Regards
Donihue