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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 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. Zero degree homogeneousZero degree homogeneousHomogeneous of degree zero. Homogeneous of degree XHomogeneous of degree XA 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 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. First degree homogeneousFirst degree homogeneousHomogeneous of degree 1. Further SuggestionsHomogeneous productLinearly homogeneous Homogeneous expectations assumption Homogeneous |
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