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How can I find the elasticity of substitution (I know the definition) if I know the utility function $u(x,y)$? I know its increasing in $x$ and $y$, etcetera, and has everything else you want from a reasonable utility function. Is there a way to get the elasticity of substitution without the tedious algebra (writing $x/y$ as a function of mrs/price-ratio etc)?

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  • $\begingroup$ I have found a formula but it says divide by |BH| but it never says what that is. There was also no derivation so not sure if its actually correct. Has anybody heard of |BH|? $\endgroup$ – vroompie Jan 16 at 21:27

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