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Homogeneous of degree zero |
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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 MatchesZero degree homogeneousZero degree homogeneousHomogeneous of degree zero. First degree homogeneousFirst degree homogeneousHomogeneous of degree 1. 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. Linearly homogeneousLinearly homogeneousHomogeneous of degree 1. Sometimes called linear 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 1Homogeneous product Homogeneous of degree X Homogeneous |
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