The CES Produktionsfunktion (elasticity OF substitution constant) is a production function, which is used intensively within many fields of the we shank sciences, e.g. in the and the

Generally it reads:

\ mathbb {R} ^n \ longmapsto \ mathbb {R} ^1: f (v) = \ operator name {CES} (v_1, v_2,"Â…, v_n) = \ operator name {CES}

A production function of the CES class with constant substitution elasticity reads:

\ mathbb {R} ^n \ longmapsto \ mathbb {R} ^1, n \ geq1, f (v) = a_0 \ left (\ sum_ {j=1} ^n a_j v_j^ {b_j} \ right) ^ {- \ frac {h} {C}}

Special cases

The Cobb Douglas function is a CES function in that the substitution elasticity one is constant.

The Leontief function is a CES function in that the substitution elasticity zero is constant.

Developer

It was developed 1961 by the Stanford group, thus by Kenneth Arrow, Chenery, Minhas and Robert Merton Solow.

Literature

• Kenneth Arrow; H.B. Chenery; B.S. Minhas; Robert Merton Solow: "Capital laboratory substitution and Economic Efficency "in Review OF Economics and Statistics, volume. 43, 1961, P. 225-250
• Hans Rimbert Hemmer, Michael Frenkel: "Bases of the growth theory ", publishing house Vahlen, Munich, 1999, S 35-36 and P. 58-64, ISBN 3-8006-2396-x

Articles in category "CES Produktionsfunktion"

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