CES Production Function - PowerPoint PPT Presentation
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Title:
CES Production Function
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As ? 0 and s 1 function Cobb Douglas: Y = AKaN1-a. CES Production Function. As ? 1 and s function linear: Y = A(aK (1-a)N) As ? - and s 0 function Leontief: ... – PowerPoint PPT presentation
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Title: CES Production Function
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CES Production Function
- Y A(aK?(1-a)N?)1/?
- Elasticity of substitution s 1/(1-?)
- As ? ? 0 and s ? 1 function ? Cobb Douglas
- Y AKaN1-a
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CES Production Function
- As ? ? 1 and s ? 8 function ? linear
- Y A(aK(1-a)N)
- As ? ? -8 and s ? 0 function ? Leontief
- Y Amin(Ka,N(1-a))
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