The article is the second in a series that will treat underlying conditions to generate a production function. The importance of production functions is fundamental to analyze and forecast the various indicators that highlights different aspects of the production process. How often forgets that...

We generalize the normalized Constant Elasticity of Substitution (CES) production function by allowing the elasticity of substitution to vary isoelastically with (i) relative factor shares, (ii) marginal rates of substitution, (iii) capital–labor ratios, or (iv) capital–output ratios....