Home > Term: सीईएस क्रिया
सीईएस क्रिया
A function with constant elasticity of substitution. CES is popular for both production and utility functions. Used extensively in New Trade Theory as the Dixit-Stiglitz utility function for differentiated products under monopolistic competition. With arguments X = (X1,. . . ,Xn), the function is F(X) = A(iaiXi)1/, where ai, A are positive constants and = 1/(1-) is the elasticity of substitution. Due to Arrow et al. (1961).
- Part of Speech: noun
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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- mitraashutosh
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