GE (version 0.4.8)

CES: CES Function

Description

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

Usage

CES(sigma = 1 - 1/es, alpha, beta, x, theta = rep(1, length(beta)), es = NA)

Value

A scalar indicating the output or utility level.

Arguments

sigma

a scalar not greater than one.

alpha

a nonnegative scalar.

beta

a nonnegative n-vector.

x

a nonnegative n-vector consisting of the inputs.

theta

the all-ones n-vector (default) or a positive n-vector.

es

the elasticity of substitution. If es is not NA, the value of sigma (i.e. 1 - 1 / es) will be ignored.

Examples

# \donttest{
CES(0.5, 1, c(0.4, 0.6), c(1, 1), c(0.4, 0.6))
CES(0.5, 1, c(0.4, 0.6), c(1, 2))
# }