For starters, you are estimating too many parameters given your data. You have only one observed data series and this makes some of the parameters not identified. Either add additional observables or estimate fewer parameters. To see this, put

instead of estimation (Important: do not use estimation after identification; use either the one or the other to avoid unwanted interaction between the commands)

Thank you for your reply, I really appreciate that.

Now I have another question about the observation equation after I red your paper “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”.

Q:
The model I am dealing with (as attached already in the last post) is a nonlinear model, but the Taylor Rule is linear form, like: