The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

CES Production Function

  • Ryuzo Sato
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_543

Abstract

The CES (constant elasticity of substitution) production function, including its special case the Cobb–Douglas form, is perhaps the most frequently employed function in modern economic analysis. Not only is the CES function used for the formal depiction of production technology, it is used as a convenient tool for empirical analysis as well. In addition to production theory, the CES function, more commonly known as the Bergson family of utility functions, is employed in utility theory.

Keywords

Bergson family of utility functions CES production function Cobb–Douglas functions Elasticity of substitution Jensen inequalities 

JEL Classifications

E23 
This is a preview of subscription content, log in to check access.

Bibliography

  1. Arrow, K., H. Chenery, B. Minhas, and R. Solow. 1961. Capital–labour substitution and economic efficiency. Review of Economics and Statistics 43: 225–250.CrossRefGoogle Scholar
  2. Courant, R. 1959. Differential and integral calculus, 2 vols. New York: Wiley.Google Scholar
  3. Dickinson, H. 1955. A note on dynamic economics. Review of Economic Studies 22 (3): 169–179.CrossRefGoogle Scholar
  4. McElroy, F. 1967. Note on the CES production function. Econometrica 35: 154–156.CrossRefGoogle Scholar
  5. Samuelson, P. 1965. Using full duality to show that simultaneously additive direct and indirect utilities implies unitary price elasticity of demand. Econometrica 33: 781–796.CrossRefGoogle Scholar
  6. Sato, R. 1974. On the class of separable non-homothetic CES production functions. Economic Studies Quarterly 25 (1): 42–55.Google Scholar
  7. Sato, R. 1975. The most general class of CES functions. Econometrica 43: 999–1003.CrossRefGoogle Scholar
  8. Sato, R. 1981. Theory of technical change and economic invariance. New York: Academic Press.Google Scholar
  9. Solow, R. 1956. A contribution to the theory of economic growth. Quarterly Journals of Economics 70: 65–94.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Ryuzo Sato
    • 1
  1. 1.