|
|
Homogeneous of degree zero |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Homogeneous of degree zeroThe property of a function that, if you scale all arguments by the same proportion, the value of the function does not change. See homogeneous of degree X. In the H-O Model, CRTS production functions imply that marginal products have this property, which is critical for FPE.Similar MatchesHomogeneous of degree 1Homogeneous of degree 1The same as linearly homogeneous and, for a production function, constant returns to scale. See homogeneous of degree X. Homogeneous productHomogeneous productThe product of an industry in which the outputs of different firms are indistinguishable. Contrasts with differentiated product. Zero degree homogeneousZero degree homogeneousHomogeneous of degree zero. Homogeneous functionHomogeneous functionA function with the property that multiplying all arguments by a constant changes the value of the function by a monotonic function of that constant: F(lV)=g(l)F(V), where F(·) is the homogeneous function, V is a vector of arguments, l>0 is any constant, and g(·) is some strictly increasing positive function. Special cases include homogeneous of degree X and linearly homogeneous. Homogeneous expectations assumptionHomogeneous expectations assumptionAn assumption of Markowitz portfolio construction that investors have the same expectations with respect to the inputs that are used to derive efficient portfolios: asset returns, variances, and covariances. Further SuggestionsHomogeneous of degree XLinearly homogeneous Homogeneous First degree homogeneous |
|
|
|