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The Allen--Uzawa elasticity of substitution for nonhomogeneous production functions

Elena Burmistrova, Sergey Lobanov

arXiv 9 Feb 2018 · Econometrics

arXiv:1802.06885 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This note proves that the representation of the Allen elasticity of substitution obtained by Uzawa for linear homogeneous functions holds true for nonhomogeneous functions. It is shown that the criticism of the Allen-Uzawa elasticity of substitution in the works of Blackorby, Primont, Russell is based on an incorrect example.

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appendix boundary found by appendix_command · 78% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1C. Blackorby, D. Primont, and R.R. Russell (2007) The morishima gross elasticity of substitution1.00074100%
2Blackorby, C. and Russell R. R (1989) Will the Real Elasticity of Substitution Please Stand Up? (A comparison of the Allen/Uzawa and Morishima Elasticities)1.00073100%
3Hicks, John R (1963) The Theory of Wages0.84333100%
4Allen, R. G. D (1962) Mathematical Analysis for Economists0.81142100%
5Blackorby and R.R. Russell (1981) The morishima elasticity of substitution: symmetry, constancy, separability, and its relationship to the hicks and allen elastic…0.73732100%
6McFadden D (1963) Constant Elasticity of Substitution Production Functions0.51121100%
7D.I. Stern (2004) Elasticities of substitution and complementarity0.51121100%
8Arrow K. J., Chenery H. B., Minhas B. S. and Solow R. M (1961) Capital-Labor Substitution and Economic Efficiency0.40511100%
9Bertoletti, P (2005) Elasticities of substitution and complementarity: A synthesis0.40511100%
10G.C. Davis and C.R. Shumway (1996) To tell the truth about interpreting the morishima elasticity of substitution0.40511100%

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