Homogeneous of degree zero
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.
Homogeneous productHomogeneous product
The product of an industry in which the outputs of different firms are indistinguishable. Contrasts with differentiated product.
Homogeneous expectations assumptionHomogeneous expectations assumption
An 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.
Homogeneous of degree XHomogeneous of degree X
A homogeneous function where the monotonic function is the constant raised to the exponent X: F(lV)=lXF(V). For X>1, see increasing returns to scale; for X<1, see decreasing returns to scale.
Homogeneous functionHomogeneous function
A 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.
Linearly homogeneousLinearly homogeneous
Homogeneous of degree 1. Sometimes called linear homogeneous.
Further SuggestionsHomogeneous of degree 1
First degree homogeneous
Zero degree homogeneous