Questions tagged [ces]
The ces tag has no usage guidance.
11
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Final demand for CES nested in Cobb-Douglas production function
I am deriving the final demand for intermediate good $x_j$ for the following final producer's problem:
\begin{equation}
\max_{{ k_{t}, x_{j,t}}} K^{1-\alpha}X^\alpha - R_tK_t - \int_{0}^{N_t}p_{j,...
- 1
1
vote
1
answer
59
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Are homothetic additively separable preferences always equivalent to CES?
Are homothetic additively separable preferences always a monotonic transformation of CES preferences?
In technical language, the question is the following:
Let $n>1$, and let $f:\mathbb{R}^n_{\ge 0}...
- 232
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15
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CES price index with heterogeneous productivity
When there is a distribution of productivity, so that different firms have different sale shares, the aggregate CES price index has shares as weights?
References to papers are welcomed.
- 203
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2
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58
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Showing that the CES is non-decreasing in the elasticity of substitution
Is this possible? I've been trying so many times, without success, yet if I plot a two good CES on Wolfram, this seems true... I can't find a single numerical example where this does not hold, but I ...
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150
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How to get from a CES production function with inverse elasticity on weights to the special cases Cobb-Douglas & Leontief
I am dealing with a CES production function, and I have attempted some of the "traditional" ways to derive the Cobb-Douglas (logs & l'Hôpital) but I am not sure how to deal with the ...
1
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0
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33
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on nested CES--derivation issue
I am reading Sachs and Kotlikoff (2012 NBER) and am wondering how they derive one equation in their paper. The setting is the following:
Their model is a variant of the standard two-period ...
- 11
3
votes
1
answer
385
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The Intuition of CES Utility
Suppose a (symmetric) CES utility function $$U(\mathbf{x})=\left[\int_{\Omega}\left(x_{\omega}\right)^{\frac{\sigma-1}{\sigma}} d \omega\right]^{\frac{\sigma}{\sigma-1}}, \sigma>1$$
1 The indirect ...
- 2,339
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Derivation of wage rate from nested CES production function
could anyone please help to explain how equation (4) in this paper is derived? I understand that it's an application of first order conditions using the chain rule from equations (1)-(3), but the ...
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3
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0
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45
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An Extension to CES Demand
I am reading a paper with an extended CES final good setting:
The representative household consists of a continuum of members, indexed by $k$
$C_{t}=\int C_{k, t} d k$
$C_{k, t}=\left(\int_{j \in \...
- 2,339
2
votes
1
answer
3k
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Cost function from CES production function
How can I find the cost function $c(w,p)$ given that the production is
$$ f(x)=(x_1^p + x_2^p)^{1/p} \ \ for\ \ 0<p <1 $$
I tried to solve it and found that
$$TC(y) = \left\{
\begin{...
- 61
1
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1
answer
143
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Marshall demand for simple CES utility
Assume that preferences are given by a utility function is given
$$u(x_1,x_2) = (x_1^\rho + x_2^\rho)^{1/\rho}$$
what then are the Marshall demand given budget constraint
$$p_1x_1 + p_2x_2 \leq I$$
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