JSTOR Daily

The Linear Approximation of the CES Function with n Input Variables

The Taylor approximation to the n-input constant elasticity of substitution (CES) function is presented and compared to Kmenta's well-known approximation for n = 2. The n-input approximation is, as ...
JSTOR Daily

The long-term sucCESs of the neoclassical growth model

Oxford Review of Economic Policy, Vol. 23, No. 1, THE SOLOW GROWTH MODEL (SPRING 2007), pp. 94-114 (21 pages) In this paper, we seek to re-establish the link between the constant elasticity of ...
International Monetary Fund

Aggregate Stability and Balanced-Budget Rules

It has been shown that under perfect competition and a Cobb-Douglas production function, a basic real business cycle model may exhibit indeterminacy and sunspot fluctuations when income tax rates are ...
RIETI独立行政法人経済産業研究所

Loyalty and Consumption: A CES representation

This paper offers a new interpretation of the elasticity of substitution in the constant elasticity of substitution (CES) utility function under discrete choice and separability. We model an economy ...
International Monetary Fund

On the Substitution of Private and Public Capital in Production

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation Most macroeconomic models assume that aggregate output is generated by a specification for the production function with ...