First Order Condition for RBC with home production:

b
u (cMt , cHt , hMt , hht )  log acMt
e
 (1  a)cHt
e
  (1  b)log(1  hMt  hht )
e
Subject to:
Market budget constraint
cMt  xMt  xHt  hMt  wt  (1   h )  rt  (1   k )  kMt   M  kMt  k  Tt

And home production constraint

cHt  g (hHt , kHt , zHt )  kHt ( zHt hHt )1

Derivative w.r.t hMt

 u  b 
  log  acMt  (1  a )cHt   (1  b)log(1  hMt  hHt ) 
e e

hMt hMt  e 
 b  
 log  acMt  (1  a )cHt   
e e
 (1  b)log(1  hMt  hHt ) 
hMt  e  hMt

u1 (t )  cMt  u3 (t )  0
hMt

cHt  0
hMt
 
cMt    xMt  xHt  hMt  wt  (1   h )  rt  (1   k )  kMt   M  kMt  Tt 
hMt hMt
 0  0  wt  (1   h )  0  0

cMt  wt  (1   h )
hMt

u1 (t )  cMt  u3 (t )  u1 (t )  wt  (1   h )  u3 (t )  0
hMt
u1 (t )  wt  (1   h )  u3 (t )
b 1 e 1
u1 (t )   e  a  ecMt
e acMt  (1  a )cHt
e

e
acMt  (1  a )cHt
e
 Cte
b 1 e 1
u1 (t )   e  a  ecMt  ab  Ct e  cMt
e 1

e Ct
 
kMt  zMt  hMt 
1
wt  f1 (hMt , k Mt , zMt ) 
hMt
 
k Mt  zMt  hMt   k Mt (1   )  zMt  hMt  (1   )  zMt  hMt  z Mt
1  1 1  
zMt  k Mt
hMt
(1   )  zMt  hMt  zMt hMt kMt (1   )  zMt  hMt 
   1
kMt (1   ) y
  
hMt hMt hMt
 (1  b)
u3 (t )   (1  b)log(1  hMt  hHt )   (0  1  0)
hMt (1  hMt  hht )
(1  b)
u3 (t ) 
lt
(1   ) y (1  b)
ab  Ct e  cMt
e 1
(1   h )  
hMt lt
(1  b)hMt
ab  Ct e  cMt
e 1
y (1   )(1   h )  
lt
Derivative w.r.t hHt

u  b 
  log  acMt  (1  a )cHt   (1  b)log(1  hMt  hHt ) 
e e

hHt hHt  e 
 b  
 log  acMt  (1  a )cHt   
e e
 (1  b)log(1  hMt  hHt ) 
hHt  e  hHt

u2 (t )  cHt  u4 (t )  0
hHt
u2 (t )  g1 (t )  u4 (t )  0
u2 (t )  g1 (t )  u4 (t )
While
   
g1 (t )  g (hHt , k Ht , z Ht )  cHt   k Ht ( z Ht hHt )1 
hHt hHt hHt

 k Ht ( z Ht hHt )1   k Ht

(1   )( z Ht hHt )1 1 z Ht
hHt
k Ht (1   )( z Ht hHt )  z Ht hHt (1   )k Ht

( z Ht hHt )1 (1   )cHt
  
hHt hHt hHt
b e 1 b(1  a ) e1
u2 (t )  (1  a )ecHt  cHt  b(1  a )Ct ecHt
e 1

e  ac  (1  a)cHt 
e
Mt
e
Ct 
e

(1  b) (1  b)
u4 (t )  (0  0  1) 
1  hMt  hHt lt
(1   )cHt (1  b)
b(1  a )Ct ecHt
e 1

hHt lt
(1  b)hHt
b(1  a )Ct ecHt
e 11
(1   )  
lt
(1  b)hHt
b(1  a )Ct ecHt
e
(1   )  
lt

Derivative w.r.t k Ht
 u  b 
  log  acMt  (1  a)cHt   (1  b)log(1  hMt  hht ) 
e e

k Ht k Ht  e 
 b  
 log  acMt  (1  a)cHt   
e e
 (1  b)log(1  hMt  hht ) 
k Ht  e  k Ht
 
u1 (t )  cMt  u2 (t )  cHt  0
hHt hHt

cMt 
hHt
While
   
g 2 (t )  g (hHt , k Ht , z Ht )  c Ht   k Ht ( z Ht hHt )1 
k Ht k Ht hHt

Derivative w.r.t kMt

 u  b 
  log  acMt  (1  a )cHt   (1  b)log(1  hMt  hht ) 
e e

k Mt k Mt  e 
 b  
  log  acMt  (1  a )cHt   
e e
 (1  b)log(1  hMt  hht ) 
kMt  e  k Mt

u1 (t )  cMt  0
kMt

cHt  0
k Mt
 
cMt    xMt  xHt  hMt  wt  (1   h )  rt  (1   k )  kMt   M   k  kMt  Tt 
k Mt hMt
 
cMt   xMt  rt  (1   k )   M   k
k Mt kMt
 
xMt   kM (t 1)  k Mt (1   M ) 
k Mt kMt 
  
xMt  kM (t 1)  kMt (1   M )
k Mt k Mt k Mt
Where
 1  1
kM (t 1)  kM (t 1) 
k Mt  kMt 1 
 1
xMt   (1   M )
k Mt 
 1
cMt    (1   M )  rt  (1   k )   M   k
k Mt 
  1 
u1 (t )    (1   M )  rt  (1   k )   M   k   0
  
1
u1 (t )  (1   M )  rt  (1   k )   M   k   u1 (t )

 y  1
u1 (t ) (1   M )   (1   k )   M   k   u1 (t )
 kMt  
y 1
u1 (t )  (1   k )  u1 (t )(1   M )  u1 (t )  u1 (t )   M   k
kMt 
y
u1 (t )  (1   k )  u1 (t )[ 1   M  1 /    M   k ]
kMt
y
 (1   k )  [1 /   1   M (1   k )]
kMt
 (1   k ) yt / kMt  (1 /  )  1   M (1   k )

f 2 (hmt , kmt , zmt )  [k Mt ( zMt hMt )1 ]
kMt
 1 1  kMt 1 ( zMt hMt )1 kMt y
  kMt ( zMt hMt )  
kMt kMt