Replicating Christoffel and Kuester (2008)

Good Afternoon,

I am trying to replicate the JME Christoffel and Kuester (2008) paper (Resuscitating the wage channels in models with unemployment fluctuations). However, I end up having 25 equations for 26 variables.
I went through the entire paper but it seems to me that all the FOCs and equilibrium conditions are included, is anybody familiar with this paper able maybe to spot what I am missing here?

Thanks a lot

Christoffel_JME.mod (5.2 KB)