There are two troubling and largely unrecognized implications of the generalized CES production function when there are …

supply using generalized CES production functions. We formally derive the necessary and sufficient conditions under which … microeconomic perspective, the generalized CES model is preferable to quadratic models that have been used extensively in policy …, the generalized CES model can calibrate larger sets of supply elasticities than its quadratic counterpart. Our calibration …