Stack Exchange Network

Stack Exchange network consists of 174 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange
Join us in building a kind, collaborative learning community via our updated Code of Conduct.

The tag has no usage guidance.

1
vote
1answer
23 views

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,...
1
vote
0answers
18 views

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 ...
1
vote
0answers
15 views

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 ...
2
votes
1answer
56 views

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 ...
0
votes
0answers
17 views

Broyden-Fletcher-Goldfarb-Shanno, L-BFGS-B, PORT

I was looking for advantages and disadvantages of the Broyden-Fletcher-Goldfarb-Shanno algorithm (BFGS), the L-BFGS-B and PORT algorithm in optimization. Which one promises the best results and why?
0
votes
0answers
40 views

Elasticity of substitution of a CES production function [duplicate]

Given the CES-production function $y=(a_1x_1^p+a_2x_2^p)^\frac{1}{p}$, where $a_1\neq a_2$. (a) Find the elasticity of substitution of the function. I'm really uncertain if I'm doing this correctly, ...
0
votes
0answers
24 views

Elasticity of Substitution and Taxation

So I am trying to understand the impact of the elasticity of substitution in terms of taxation. I am carrying this out for the U.S. by firstly estimating a two-input CES production function. Chirinko (...
2
votes
1answer
43 views

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 ...
1
vote
1answer
135 views

CES production function application problem

I'm currently trying to do some estimations using the micEconCES package in R by Henningsen/Henningsen (2011). My issue is that I am not very familiar with R and I'm trying to implement my own dataset ...
0
votes
0answers
84 views

Estimating a constant elasticity of substitution (CES) production function

I'm currently on my paper about estimating a CES function for the USA. I use a regular two input function with capital and labour. I would then use nonlinear estimation methods aswell as the kmenta ...
2
votes
1answer
247 views

Cobb-Douglas nested in CES model

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-...