A NOTE ON A GENERALIZED CONSTANT ELASTICITY OF SUBSTITUTION (GCES) PRODUCTION FUNCTION,
RAND CORP SANTA MONICA CALIF
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In recent years, a number of generalizations of the classic CES production function as developed by Arrow, Chenery, Minhas and Solow have appeared. Uzawa, Dhrymes and Kurz, MacFadden, and Gorman have all treated some aspect of a specific generalization. The generalization which Dhrymes and Kurz employ is of particular interest, for this function encompasses all production functions which are strictly additive or strictly multiplicative hence the Cobb-Douglas and CES functions are special cases of the function. However, none of these authors have analyzed the constraints on the GCES production function in terms of traditional micro theory, nor have the returns to scale been explicitly delineated for the various parameter values of the GCES function. These matters are considered here.
- Economics and Cost Analysis
- Numerical Mathematics