diff --git a/matlab/global_initialization.m b/matlab/global_initialization.m
index 1f8e8d4db..47a7c1027 100644
--- a/matlab/global_initialization.m
+++ b/matlab/global_initialization.m
@@ -308,6 +308,7 @@ options_.ms.draws_nbr_mean_var_estimate = 200000;
 options_.ms.draws_nbr_modified_harmonic_mean = 1000000;
 options_.ms.thinning_factor = 1;
 options_.ms.dirichlet_scale = [1.0 1.5 2.0];
+options_.ms.vlistlog = [];
 
 % Shock decomposition
 options_.parameter_set = [];
diff --git a/matlab/ms-sbvar/msstart_setup.m b/matlab/ms-sbvar/msstart_setup.m
index e41559602..50a3b4db2 100644
--- a/matlab/ms-sbvar/msstart_setup.m
+++ b/matlab/ms-sbvar/msstart_setup.m
@@ -37,14 +37,14 @@ end
 %2    FFR/100.
 options_.ms.vlist = [1:size(options_.varobs,1)];    % 1: U; 4: PCE inflation.
 options_.ms.varlist=cellstr(options_.varobs);
-%options_.ms.log_var = [ ];   % subset of "options_.ms.vlist.  Variables in log level so that differences are in **monthly** growth, unlike R and U which are in annual percent (divided by 100 already).
-options_.ms.percent_var = [1:size(options_.varobs,1)];           % subset of "options_.ms.vlist"
+options_.ms.log_var = sort(varlist_indices(options_.ms.vlistlog,options_.varobs));   % subset of "options_.ms.vlist.  Variables in log level so that differences are in **monthly** growth, unlike R and U which are in annual percent (divided by 100 already).
+options_.ms.percent_var =setdiff(options_.ms.vlist,options_.ms.log_var);
 %options_.ms.restriction_fname='ftd_upperchol3v';   %Only used by msstart2.m.
 ylab = options_.ms.varlist;
 xlab = options_.ms.varlist;
 
 %----------------
-nvar = length(options_.ms.vlist);   % number of endogenous variables
+nvar = size(options_.varobs,1);   % number of endogenous variables
 nlogeno = length(options_.ms.log_var)  % number of endogenous variables in options_.ms.log_var
 npereno = length(options_.ms.percent_var)  % number of endogenous variables in options_.ms.percent_var
 if (nvar~=(nlogeno+npereno))
diff --git a/preprocessor/DynareBison.yy b/preprocessor/DynareBison.yy
index 1a25176e9..dd65be761 100644
--- a/preprocessor/DynareBison.yy
+++ b/preprocessor/DynareBison.yy
@@ -1834,7 +1834,7 @@ o_final_year : FINAL_YEAR EQUAL INT_NUMBER {driver.option_num("ms.final_year",$3
 o_final_subperiod : FINAL_SUBPERIOD EQUAL INT_NUMBER {driver.option_num("ms.final_subperiod",$3); };
 o_data : DATA EQUAL filename { driver.option_str("ms.data", $3); };
 o_vlist : VLIST EQUAL INT_NUMBER {driver.option_num("ms.vlist",$3); };
-o_vlistlog : VLISTLOG EQUAL INT_NUMBER {driver.option_num("ms.vlistlog",$3); };
+o_vlistlog : VLISTLOG EQUAL '(' symbol_list ')' {driver.option_symbol_list("ms.vlistlog"); };
 o_vlistper : VLISTPER EQUAL INT_NUMBER {driver.option_num("ms.vlistper",$3); };
 o_varlist : VARLIST EQUAL '(' symbol_list ')' {driver.option_symbol_list("ms.varlist"); };
 o_restriction_fname : RESTRICTION_FNAME EQUAL NAME {driver.option_str("ms.restriction_fname",$3); };