CES Production Function
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.
KeywordsBergson family of utility functions CES production function Cobb–Douglas functions Elasticity of substitution Jensen inequalities
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