Hi, jpfeifer. Thanks for the help. Here is the error.

Error using lnsrch1 (line 71)

Some element of Newton direction isn’t finite. Jacobian maybe singular or

there is a problem with initial values

Error in solve1 (line 107)

[x,f,fvec,check]=lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin{:});

Error in dynare_solve (line 150)

[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag,

…

Error in evaluate_steady_state (line 66)

[ys,check] = dynare_solve([M.fname ‘_static’],…

Error in resol (line 104)

[dr.ys,M.params,info] =

evaluate_steady_state(oo.steady_state,M,options,oo,0);

Error in dynare_resolve (line 69)

[dr,info,Model,DynareOptions,DynareResults] =

resol(0,Model,DynareOptions,DynareResults);

Error in dsge_likelihood (line 256)

[T,R,SteadyState,info,Model,DynareOptions,DynareResults] =

dynare_resolve(Model,DynareOptions,DynareResults,‘restrict’);

Error in gmhmaxlik (line 157)

logpo2 = - feval(ObjFun,proposal,varargin{:});

Error in dynare_estimation_1 (line 437)

[xparam1,PostVar,Scale,PostMean] = …

Error in dynare_estimation (line 89)

dynare_estimation_1(var_list,dname);

Error in medscale_est (line 408)

dynare_estimation(var_list_);

Error in dynare (line 180)

evalin(‘base’,fname) ;