The scaling relation says that is a homogeneous function of degree . Fix and differentiate the identity with respect to the positive parameter . The chain rule gives
Setting proves the Euler theorem for homogeneous functions identity
Differentiate once more with respect to , using equality of the mixed partial derivatives for the assumed twice continuously differentiable function:
At this is the second-order Euler identity for homogeneous functions:
The repeated parameter differentiation accounts for the factor , rather than .

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