The normalized CES production function: theory and empirics

Rainer Klump, Peter McAdam () 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
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Citations: View citations in EconPapers (27)

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Related works:
Journal Article: THE NORMALIZED CES PRODUCTION FUNCTION: THEORY AND EMPIRICS (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20111294

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