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The CES production function is a neoclassical production function that displays constant elasticity of substitution.
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Utility functions having constant elasticity of substitution (CES) are homothetic.
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As its name suggests, the CES production function exhibits constant elasticity of substitution between capital and labor.
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Constant elasticity of substitution (CES), in economics, is a property of some production functions and utility functions.
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This aggregator function exhibits constant elasticity of substitution.
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It was named after Wassily Leontief and represents a limiting case of the constant elasticity of substitution production function.
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This means the use of the CES functional form for more than 2 factors will generally mean that there is not constant elasticity of substitution among all factors.
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Although the participants to the meeting recommended that further work needed to be devoted to this important topic, two promising alternatives were identified: (a) the use of a “constant elasticity of substitution” formula and (b) the extension of the Fisher formula to include new and disappearing goods
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Although the participants to the meeting recommended that further work needed to be devoted to this important topic, two promising alternatives were identified: (a) the use of a “constant elasticity of substitution” formula and (b) the extension of the Fisher formula to include new and disappearing goods.
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Abstract This paper introduces two formal equivalent definitions of the Cobb-Douglas function for a continuum model based on a generalization of the Constant Elasticity of Substitution (CES) function for a continuum under not necessarily constant returns to scale and based on principles of product calculus.
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Uzawa showed the only possible n-factor production functions (n>2) with constant partial elasticities of substitution require either that all elasticities between pairs of factors be identical, or if any differ, these all must equal each other and all remaining elasticities must be unity.
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Constant elasticity of substitution
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Alpha-co-radiant functions that include alpha grade Cobb-Douglas and constant elasticity of substitution functions are presented.
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These assumptions imply that the elasticity of intertemporal substitution, and its inverse, the coefficient of (risk) aversion, are constant.
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This paper uses a CES function to estimate the constant elasticity of substitution in consumption for non-tradables relative to tradables in a dependent economy framework.
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several specifications of a production function (Cobb-Douglas and constant-elasticity-of-substitution, CES) do not provide evidence of the existence of increasing returns to scale in the Peruvian agriculture.
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The effect on competition of an increase in the price of one of two products, resulting from a rise in the rate of taxation, without any accompanying equivalent increase in the rate applied to the other product depends, moreover, on the cross-elasticity of demand for the two products which, in turn, ( if it is assumed that consumers' incomes and other prices remain constant ) depends in particular upon the greater or lesser extent to which the products are substitutable for each other .
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Elasticity of substitution is a "partial concept" in that it is a measure of the relationship between one quantity and one price and assumes that all other factors are held constant.
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