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Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society
A Canonical Constant Elasticity of Substitution (CES) Production Function
Vol.32, No.3, September 2021, 94–102
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Ki-Hong Choi
(Korea Institute of Public Finance)
Sungwhee Shin
(University of Seoul)
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Abstract
We propose a canonical form of the CES production function. It includes the normalized CES function as a special case. It can represent factor-augmenting technological progresses through the factor efficiency term. In general, it can represent a family of CES-type function indexed by a parameter. The parameter may represent time, nations, regions, or industries. Finally, it treats well the concern on dimensional homogeneity.
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Keywords
Constant Elasticity of Substitution, Factor-augmenting Technological Progress, Dimensional Homogeneity |
JEL classification codes
C68, D24 |
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