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A note on CES functions

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  • Thöni, Christian

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.

Suggested Citation

  • Thöni, Christian, 2015. "A note on CES functions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 85-87.
    • Handle: RePEc:eee:soceco:v:59:y:2015:i:c:p:85-87
    DOI: 10.1016/j.socec.2015.10.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Constant elasticity of substitution; CES; Share parameter;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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