The product rule and chain rule first giveDifferentiating the first expression with respect to yields ; differentiating the second with respect to gives exactly the same polynomial factor. ThusThis also follows from symmetry of second derivatives, since all derivatives of this function are continuous everywhere.
Use the fixed exponents in the original PDF. Assume positive so arbitrary real powers and a relative change are defined. Set . With fixed, the exact new-to-old ratio is . The binomial series, or the one-variable case of the second-order relative change of a monomial, givesTherefore the approximate percentage change through second order isFor negative this same signed expression describes a decrease.
Set and . The exact ratio is . Multiplying the two binomial series and retaining total degree at most two gives the second-order relative change of a monomial:Multiply by one hundred to express the change as a percentage:The cross term accounts for the simultaneous changes in both inputs and cannot be recovered by simply adding their separate second-order percentage changes.
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