Search Results - subject:"elasticity of substitution"

Long-Run Estimates of Interfuel and Interfactor Elasticities

Ma, Chunbo - 2016

Meta-analyses of interfuel and capital-energy elasticities of substitution show that elasticity estimates are dependent on the type of data – time series, panel, or crosssection – and the estimators used. Econometric theory suggests that the between estimator might generate the best...

Persistent link: https://www.econbiz.de/10013000169

Toward a Theory of Monopolistic Competition

Parenti, Mathieu - 2016

market outcome is still driven by the sole variable elasticity of substitution. We impose elementary conditions on this … attention to the constant elasticity of substitution (CES) based on its normative implications was misguided: constant mark … cope with heterogeneous firms once it is recognized that the elasticity of substitution is firm-specific. Finally, we show …

Persistent link: https://www.econbiz.de/10013000823

Monopolistic Competition Without Apology

Thisse, Jacques-François - 2016

right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although …

Persistent link: https://www.econbiz.de/10012988966

Complementarity and substitutability between tangible and intangible capital : evidence from Japanese firm-level data

Hosono, Kaoru; Miyakawa, Daisuke; Takizawa, Miho; … - 2016

Persistent link: https://www.econbiz.de/10012125910

Monetary Policy and Core Inflation

Lenza, Michele - 2016

This paper studies optimal monetary policy responses in an economy featuring sectorial heterogeneity in the frequency of price adjustments. It shows that a central bank facing heterogeneous nominal rigidities is more likely to behave less aggressively than in a fully sticky economy. Hence, the...

Persistent link: https://www.econbiz.de/10012991234

Trade between Creative Regions When the Input Elasticity of Substitution is Less than Unity

Batabyal, Amitrajeet A. - 2016

study the impacts of free trade in inputs when the elasticity of substitution between the traded inputs that are used to … discount rates will be relatively poor and hence worse off with trade when the above elasticity of substitution is less than …

Persistent link: https://www.econbiz.de/10012994833

Do Common Stocks Have Perfect Substitutes? Product Market Competition and the Elasticity of Demand for Stocks

Ahern, Kenneth R. - 2016

Though common stocks are one of the most important assets in an economy, little is known about their demand curves. I estimate demand curves for 144 NYSE stocks using a unique dataset of all orders, including off-equilibrium orders, during three months in 1990-1991. Connecting asset pricing with...

Persistent link: https://www.econbiz.de/10013008896

Interaction and Substitution between Capital, Labor, and Energy in the US Economy

Copeland, Cassandra C. - 2016

Estimates of price substitution among capital, labor, and energy are critical to numerous policy issues. Estimating factor share equations of the translog production function requires constant returns to scale and competitive factor markets. The present estimates find mixed evidence on these...

Persistent link: https://www.econbiz.de/10012978936

Estimates of Substitution Elasticities and Factor-Augmented Technical Changes

Wei, Taoyuan - 2016

The paper estimates substitution elasticity between labor and capital in a constant elasticity of substitution (CES …

Persistent link: https://www.econbiz.de/10014147137

Choosing an n-Pack of Substitutable Products

Fox, Edward; Norman, Laura; Semple, John H. - 2016

We develop a framework to model the shopping and consumption decisions of forward-looking consumers. Assuming that the consumer’s future utility for each product alternative can be characterized by a standard random utility model, we use dynamic programming to determine the optimal consumption...

Persistent link: https://www.econbiz.de/10014037027