The Cobb–Douglas function as a flexible function

Frédéric Reynès ()

Mathematical Social Sciences, 2019, vol. 97, issue C, 11-17

Abstract: By defining the Variable Output Elasticities Cobb–Douglas function, this article shows that a large class of production functions can be written as a Cobb–Douglas function with non-constant output elasticity. Compared to standard flexible functions such as the Translog function, this framework has several advantages. [1] It does not require the use of a second order approximation. [2] This greatly facilitates the deduction of linear input demands function without the need of involving the duality theorem. [3] It allows for a tractable generalization of the CES function to the case where the elasticity of substitution between each pair of inputs is not necessarily the same. [4] This provides a more general and more flexible framework compared to the traditional nested CES approach while facilitating the analyze of the substitution properties of nested CES functions. The case of substitutions between energy, capital and labor is provided.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165489618300799
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:97:y:2019:i:c:p:11-17

DOI: 10.1016/j.mathsocsci.2018.10.002

Access Statistics for this article

Mathematical Social Sciences is currently edited by J.-F. Laslier

More articles in Mathematical Social Sciences from Elsevier
Bibliographic data for series maintained by Catherine Liu ().