diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index 02d83fb62..8e5fe602b 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -556,7 +556,7 @@ if info(1)
     print_info(info, 0, options_);
 end
 
-if all(abs(oo_.steady_state(bayestopt_.mfys))<1e-9)
+if (~options_.loglinear && all(abs(oo_.steady_state(bayestopt_.mfys))<1e-9)) || (options_.loglinear && all(abs(log(oo_.steady_state(bayestopt_.mfys)))<1e-9))
     options_.noconstant = 1;
 else
     options_.noconstant = 0;