Strange condition in Lubik and Schorfheide (2007)

Hi, I have been trying to reproduce Lubik and Schorfheide’s 2007 paper.

The home country’s CPI is defined as
=(1-alpha)*q_t+P_ft (1)
because GM2005 is small open economy model, then we have
P_ft=e_t+Pstar_t (2)

Substituting (2) into (1), and taking the first order differnce of (1)


Woule you like to post your mod file? thank you