There is a mathematical relationship between increasing and decreasing returns to scale and homogeneity
Mathematical economics establishes a rigorous link between the homogeneity of production functions and their returns to scale, frequently formalized via Euler's theorem.
The claim asks whether there is a mathematical relationship between increasing/decreasing returns to scale and homogeneity. Neoclassical economic theory and production function mathematics (e.g., Euler's theorem linking homogeneous functions of degree k to returns to scale) establish this directly. Papers [5] and [6] explore the mathematical and formal relationships between homogeneity and returns to scale, supporting the claim.
Oscar Orellana, R. Fuentes. A Theory for Building NEO-Classical Production Functions. 2022. https://doi.org/10.13189/aeb.2022.100101
Paper [5] outlines a formal mathematical theory constructing neoclassical production functions where homogeneity and constant returns to scale are fundamentally linked through Euler's equation.
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Merter Mert. A Note on the Relationship among the Shape of the Production Possibility Frontier, ‘Returns to Scale’ and ‘Returns to Factors’ under Cobb–Douglas Production Function. 2016. https://doi.org/10.1177/2321022215624035
Paper [6] establishes the direct mathematical relationships between various returns to scale, returns to factors, and functions such as Cobb-Douglas.
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