A Note on CES Functions
Thöni, C; 2015. A Note on CES Functions. Journal of Behavioral and Experimental Economics, 59: 85-87.
6 Pages Posted: 14 Oct 2017
Date Written: October 8, 2015
Abstract
The most commonly used parameterizations of constant elasticity of substitution functions (CES) have the disadvantage that the share parameter has no meaningful interpretation over the range of possible elasticities of substitution. This note introduces a slightly reformulated CES function which avoids the problem.
Keywords: constant elasticity of substitution, CES, share parameter
JEL Classification: D12, D24
Suggested Citation: Suggested Citation
Thöni, Christian, A Note on CES Functions (October 8, 2015). Thöni, C; 2015. A Note on CES Functions. Journal of Behavioral and Experimental Economics, 59: 85-87., Available at SSRN: https://ssrn.com/abstract=3053035
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