CES function, e.g. alpha * (beta1 * (x1 / theta1)^sigma + beta2 * (x2 / theta2)^sigma)^(1 / sigma).

Some tools for developing general equilibrium models and some general equilibrium models. These models can be used for teaching economic theory and are built by the methods of new structural economics (see <https://www.nse.pku.edu.cn/> and LI Wu, 2019, ISBN: 9787521804225, General Equilibrium and Structural Dynamics: Perspectives of New Structural Economics. Beijing: Economic Science Press). The model form and mathematical methods can be traced back to J. von Neumann (1945, A Model of General Economic Equilibrium. The Review of Economic Studies, 13. pp. 1-9), J. G. Kemeny, O. Morgenstern and G. L. Thompson (1956, A Generalization of the von Neumann Model of an Expanding Economy, Econometrica, 24, pp. 115-135) et al. By the way, J. G. Kemeny is a co-inventor of the computer language BASIC.

LI Wu

General Equilibrium Modeling

CES function

<dl><dt>sigma</dt>
<dd>the sigma coefficient.</dd>
<dt>alpha</dt>
<dd>the alpha coefficient.</dd>
<dt>beta</dt>
<dd>a vector consisting of the beta coefficients.</dd>
<dt>x</dt>
<dd>a vector consisting of the inputs.</dd>
<dt>theta</dt>
<dd>a vector consisting of the theta coefficients.</dd>
<dt>es</dt>
<dd>the elasticity of substitution. If es is not NA, the value of sigma will be ignored.</dd></dl>

Arguments

CES Function — CES

<dl>

<dt>sigma</dt>
<dd>the sigma coefficient.</dd>


<dt>alpha</dt>
<dd>the alpha coefficient.</dd>


<dt>beta</dt>
<dd>a vector consisting of the beta coefficients.</dd>


<dt>x</dt>
<dd>a vector consisting of the inputs.</dd>


<dt>theta</dt>
<dd>a vector consisting of the theta coefficients.</dd>


<dt>es</dt>
<dd>the elasticity of substitution. If es is not NA, the value of sigma will be ignored.</dd>

</dl>

CES: CES Function

Description

Usage

Value

Arguments

Examples