Unemployment with rotemberg and time issues

Dear all,
I attatched the equation which emerge when you considering both Rotemberg rigidity on wage with search and matching frictions.
theseimp.pdf (303.3 KB). Page 3 we have omegat+1 which include rotemberg ridigidy. However in this setup in this omega we have rigidity at t+2 which biais the estimation procedure and I don’t know how to fix it.


Could you please elaborate on your question. Which equation do you refer to an what exactly is the problem your are facing. What do you mean with