# Questions tagged [ces-function]

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### Relationship between Elasticity of substitution of sectoral outputs and elasticity of substitution of inputs

There are two sectors Y1 and Y2. Composite output is given by CES form - Each sector employs Capital and Labor in combination through Cobb-Douglas Production Technology. The paper mentions that ...
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### Nested CES Production Function

If I have four input factors (a, b, c, b) and I want to construct a nested CES production function such that (a, b) are substitutes, (c, d) are substitutes and [(a, b), (c, d)] are complements, I.e. a,...
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### Elasticity of substitution meaning

If I computed an elasticity of substitution of f.e. 0.9 between capital and labour, does this implicate that the factors are rather well substitutable or not? Since for 0 they are perfect complements ...
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### Raising the elasticity of substitution in an economy

Papers such as de la Grandville (1989) and Klump/de la Grandville (2000) have shown that a higher elasticity of substitution leads to higher economic growth. My question is, if there is a way to ...
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### CES function estimation

For a paper I was using the micEconCES package to estimate the CES production function for a country at the aggregate. For a two-input function with capital and labour I used for the variables the ...
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### Choosing Data for CES Production Function

So I am currently trying to write a paper estimating the Constant Elasticity of Substitution Production Function of the USA. I am using the simple version with two inputs capital and labour. Since the ...
Assume, using the following equation $Y=[((A_1L)^\alpha K^\beta)^\sigma+ (A_2X^\gamma)^\sigma]^{1/\sigma}$, we back out (obtain) the evolution of $A_1$ & $A_2$. Can we interpret $A_1$ as labour-...