The normalized CES production function: theory and empirics

Rainer Klump, Peter McAdam (pmcadamp@googlemail.com) and Alpo Willman

No 1294, Working Paper Series from European Central Bank

Abstract: The elasticity of substitution between capital and labor and, in turn, the direction of technical change are critical parameters in many fields of economics. Until recently, though, the application of production functions with non-unitary substitution elasticities (i.e., non Cobb Douglas) was hampered by empirical and theoretical uncertainties. As has recently been revealed, JEL Classification: C22, E23, E25, O30, O51

Keywords: constant elasticity of substitution production function; estimation; factor-augmenting technical change; growth theory; identification; normalization (search for similar items in EconPapers)
Date: 2011-02
New Economics Papers: this item is included in nep-hpe
Note: 50336
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1294.pdf (application/pdf)

Related works:
Journal Article: THE NORMALIZED CES PRODUCTION FUNCTION: THEORY AND EMPIRICS (2012)
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:ecb:ecbwps:20111294

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications (officialpublications@ecb.int).