| CES {GE} | R Documentation |
CES Function
Description
CES function, e.g. alpha * (beta1 * (x1 / theta1)^sigma + beta2 * (x2 / theta2)^sigma)^(1 / sigma).
Usage
CES(sigma = 1 - 1/es, alpha, beta, x, theta = rep(1, length(beta)), es = NA)
Arguments
sigma |
a scalar not greater than one. |
alpha |
a nonnegative scalar. |
beta |
a nonnegative n-vector. |
x |
a nonnegative n-vector consisting of the inputs. |
theta |
the all-ones n-vector (default) or a positive n-vector. |
es |
the elasticity of substitution. If es is not NA, the value of sigma (i.e. 1 - 1 / es) will be ignored. |
Value
A scalar indicating the output or utility level.
Examples
CES(0.5, 1, c(0.4, 0.6), c(1, 1), c(0.4, 0.6))
CES(0.5, 1, c(0.4, 0.6), c(1, 2))
[Package GE version 0.4.5 Index]