diff --git a/matlab/DsgeLikelihood.m b/matlab/DsgeLikelihood.m
index edfae6f23..6f255662c 100644
--- a/matlab/DsgeLikelihood.m
+++ b/matlab/DsgeLikelihood.m
@@ -313,6 +313,7 @@ Y   = DynareDataset.data-trend;
 % 3. Initial condition of the Kalman filter
 %------------------------------------------------------------------------------
 kalman_algo = DynareOptions.kalman_algo;
+diffuse_periods = 0;
 switch DynareOptions.lik_init
   case 1% Standard initialization with the steady state of the state equation.
     if kalman_algo~=2