Wolfram Demonstrations Project

13,000+ Open Interactive Demonstrations
Powered by Notebook Technology »

Constant Elasticity of Substitution Production

Initializing live version
Download to Desktop

Requires a Wolfram Notebook System

Interact on desktop, mobile and cloud with the free Wolfram Player or other Wolfram Language products.

This is a visualization of the constant elasticity of substitution (CES) production function. Commonly used in econometrics, it determines the output as given input factors (e.g. labor and capital) are changed. The amount of change seen in the inputs is described by the actual elasticity of substitution value.

Contributed by: Kevin Balch and Seth J. Chandler (March 2011)
Open content licensed under CC BY-NC-SA

Snapshots

Details

The actual equation is as follows:

= output; = factor productivity; = share parameter; & = primary production factors

; = Elasticity of substitution

At , the constant elasticity production function is equivalent to the Cobb–Douglas production function.

Embed Code

Take advantage of the Wolfram Notebook Emebedder for the recommended user experience.

Related Demonstrations More by Author
Browse all topics
Feedback (field required)
Email (field required) Name
Occupation Organization
Note: Your message & contact information may be shared with the author of any specific Demonstration for which you give feedback.
Send