We study the impact of country size on wages in a two-country trade model with monopolistic competition and non-homothetic preferences. Since there is renewed interest in nonhomothetic preferences and variable markups, we revisit standard results on wages obtained using homothetic (CES) preferences. The standard results are that, under free trade, wages are equal and that, with iceberg costs, t...

This paper introduces the ‘extended linear-homothetic’ preferences to model consumer choice. Specifically, we extend Datta and Dixon’s (2000) ‘standard linear-homothetic’ preferences by adding an additional term to the unit cost function. This term captures the relative importance of price interactions within sectors on the unit cost of utility. In an economy composed of a large number of secto...

In an incomplete market, with incompleteness stemming from stochastic factors imperfectly correlated with the underlying stocks, we derive representations of homothetic forward investment performance processes (power, exponential and logarithmic). We develop a connection with ergodic and infinite horizon quadratic BSDE, and with a risk-sensitive control problem. We also develop a connection, fo...

To a given reference triangle Δ and three directions α, β, γ we construct four triads of homothetic triangles and investigate relations between their homothetic centers, centroids, midway triangles, medial triangles and areas. 1. Two triads of homothetic triangles Given an arbitrary triangle Δ = ABC with sidelines a, b, c and an ordered set {α, β, γ} of three directions in the plane of Δ. Let p...

Nonempty sets X1 and X2 in the Euclidean space R n are called homothetic provided X1 = z+λX2 for a suitable point z ∈ R n and a scalar λ 6= 0, not necessarily positive. Extending results of Süss and Hadwiger (proved by them for the case of convex bodies and positive λ), we show that compact (respectively, closed) convex sets K1 and K2 in R n are homothetic provided for any given integer m, 2 ≤ ...

For a change in prices, the common-scaling social cost-of-living index is the equal scaling of each individual’s expenditure level needed to restore the level of social welfare to its prechange value. This index does not, in general, satisfy two standard index-number tests. The reversal test requires the index value for the reverse change to be the reciprocal of the original index. And the circ...