The Calibration of CES Production Functions

Jonathan Temple

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: This note addresses some issues that arise when using 'normalized' CES production functions, an approach that has become popular in the literature. The results of Klump and de La Grandville (2000) provide a simple way to calibrate the parameters of the CES production function when the necessary data are available. But some of the other applications of normalized CES production functions appear problematic, especially when used to argue that productivity is increasing in the elasticity of substitution.

Keywords: CES production functions; elasticity of substitution; normalization (search for similar items in EconPapers)
JEL-codes: D24 O40 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2008-09
New Economics Papers: this item is included in nep-bec and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The calibration of CES production functions (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bri:uobdis:08/606

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