Price dispersion in TANK

Hi everyone

I am working with a TANK model and want to implement the non-linear equations in Dynare to perform welfare analysis. I need to incorporate sectoral price dispersion (I have two sectors, so j = 2). May I kindly ask for your advice on whether I can implement the price dispersion in Dynare using the highlighted equations (under a Calvo pricing setting)? I express the nominal variables in units of P_{1,t}. Thank you very much in advance.

Typically, that is exactly the way to proceed. See also DSGE_mod/Gali_2015/Derivation_Recursive_Pricing_Equation.pdf at master · JohannesPfeifer/DSGE_mod · GitHub
together with
DSGE_mod/Gali_2015/Gali_2015_chapter_3_nonlinear.mod at master · JohannesPfeifer/DSGE_mod · GitHub

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Thank you so much for the quick answer.