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 ...
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 ...
San Francisco Fed

Sticker Shocks: Using VAT Changes to Estimate Upper-Level Elasticities of Substitution

We estimate the upper-level elasticity of substitution between goods and services of a nested aggregate CES preference specification. We show how this elasticity can be derived from the long-run ...