Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4615997 | Journal of Mathematical Analysis and Applications | 2014 | 7 Pages |
Abstract
In economics, homothetic functions are production functions whose marginal technical rate of substitution is homogeneous of degree zero. Mathematically, a homothetic function is a function of the form f(x)=F(h(x1,…,xn))f(x)=F(h(x1,…,xn)), where F is a monotonically increasing function and h is a homogeneous function of any degree d≠0d≠0. In this paper, we classify homothetic functions satisfying the homogeneous Monge–Ampère equation. Several applications to production models in economics will also be given.
Related Topics
Physical Sciences and Engineering
Mathematics
Analysis
Authors
Bang-Yen Chen,