SCES: Standard CES Function

In GE: General Equilibrium Modeling

Standard CES Function

Description

Standard CES function, e.g. alpha * (beta1 * (x1 / beta1)^sigma + beta2 * (x2 / beta2)^sigma)^(1 / sigma) wherein beta1 + beta2 == 1.

Usage

SCES(sigma = 1 - 1/es, alpha, beta, x, es = NA)

Arguments

sigma	the sigma coefficient.
alpha	the alpha coefficient.
beta	a vector consisting of the beta coefficients.
x	a vector consisting of the inputs.
es	the elasticity of substitution. If es is not NA, the value of sigma will be ignored.

Value

The output or utility level.

Examples

beta <- c(0.6, 0.4)
SCES(alpha = 1, beta = beta, x = beta, es = 0.5)

GE documentation built on May 29, 2024, 2:52 a.m.