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

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

Christian Thöni (Contact Author)

University of Lausanne ( email )

Quartier Chambronne
Lausanne, Vaud CH-1015
Switzerland

HOME PAGE: http://people.unil.ch/christianthoeni/

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