homothetic transformation

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homothetic transformation

[¦häm·ə‚thed·ik ‚tranz·fər′mā·shən]
(mathematics)
A transformation that leaves the origin of coordinates fixed and multiplies the distance between any two points by the same fixed constant. Also known as transformation of similitude.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Homothetic utility functions have indifference curves that are "blown-up" versions of one another.
Suppose there are three goods, [x.sub.1],[x.sub.2], and [x.sub.3], and one taxpayer whose preferences can be represented by the homothetic utility function u ([x.sub.1],[x.sub.2],[x.sub.3])=[([x.sub.1][x.sub.2]).sup.1/4][x.sub.3.sup.1/2].
(ii) the countries are assumed to be identical in every respect, including factor endowments, technology, and homothetic utility functions of representative consumers.
Although homotheticity produces attractive simplifications of aggregation theory, it is implausible that any population is well characterized by an assumption of identical homothetic utility functions - in Samuelson and Swamy (1974) label this a "Santa Claus" assumption.
Each household is assumed to have the same homothetic utility function for housing and non-housing consumption.
If the hypothesis of homothetic utility is maintained, the COL bias has upper and lower limits of 0.23 and 0.16 percent per year, respectively.