Problem reading in variables


I have what should be a simple problem. I am trying to estimate via MLE some parameters. From what I can gauge, Dynare can find my M file but not the variables. Can anyone help?

I am using Matlab R2008a and the last 3.xx version.

Thanks in advance. (59.3 KB)
KLEM1996.m (8.4 KB)
NKPC.mod (621 Bytes)