Century Dictionary and Cyclopedia
- In geometry, similar and similarly placed; in homology with reference to the line at infinity as axis of homology.
- n. A transformation which changes every plane figure into a homothetic figure.
- adj. mathematics of a function of two or more variables in which the ratio of the partial derivatives depends only on the ratio of the variables, not their value
- adj. economics in which the ratio of goods demanded depends only on the ratio of their prices
- adj. the relationship of a microcosm to a macrocosm
“What homothetic objects, other than the candlestick, stood on the mantelpiece?”
“Yet this crucial element of Linder's story was abandon by most later trade economists in favor of the analytically-tractable but counter-empirical assumption that all countries share identical and homothetic preferences … Adding non-homothetic preferences to a traditional models helps explain such diverse phenomenon as growing wage gaps, the mystery of the missing trade, home bias in consumption, and the role of intra-country income distribution, solely from the demand side of general equilibrium.”
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