Unemployment with rotemberg and time issues

General DSGE Modeling
1

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.

Best

2

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