This paper reviews the status quo of the empirical and theoretical literature on the determinants of the elasticity of … substitution between capital and labor. Our focus is on the two-input constant elasticity of substitution (CES) production function … the CES production function. Second, we outline the construction of an aggregate elasticity of substitution (AES) in a …

The constancy of the elasticity of factor substitution (σ) makes its role as a driver of the labor income share … exogenous. The constant elasticity of substitution (CES) (Arrow et al., 1961) production function has predominantly been used to … capital-labor ratio and σ vary over time. I use a variable elasticity of substitution (VES) production framework that allows …

We characterize intertemporal utility functions over heterogeneous goods that feature (i) a constant elasticity of … substitution between goods at each point in time and (ii) a constant intertemporal elasticity of substitution for at least one of … and only if it either is of the intertemporal constant elasticity of substitution (ICES) form, that is, if all …