IDEAS home Printed from https://ideas.repec.org/p/ags/copspp/266360.html
   My bibliography  Save this paper

THE NESTED BINARY CES COMPOSITE PRODUCTION FUNCTION: CRTS with different (but constant) pair-wise elasticities of substitution among three factors

Author

Listed:
  • Powell, Alan A.
  • Rimmer, Maureen T.

Abstract

The policy debate on global warming has raised the prospect of large taxes on Greenhouse pollutants leading to a very substantial rise in the price of energy. Models in which output is produced according to a technology in which capital (K), labour (L) and energy (E) are substitutable run into the difficulty of how to allow parsimoniously for the higher likely substitutability between K and E than between L and E. Nesting all three factors in a single CES aggregator function is unsatisfactory because of the constancy over pairs of factors of partial substitution elasticities. This paper is a variation on the CES theme. It presents a new composite three-input production function (based on CES and Leontief components) which allows the partial substitution elasticities between capital and labour, capital and energy, and between labour and energy, to differ but to remain individually constant.

Suggested Citation

Handle: RePEc:ags:copspp:266360
DOI: 10.22004/ag.econ.266360
as

Download full text from publisher

File URL: https://ageconsearch.umn.edu/record/266360/files/monash-033.pdf
Download Restriction: no
File URL: https://ageconsearch.umn.edu/record/266360/files/monash-033.pdf?subformat=pdfa
Download Restriction: no
File URL: https://libkey.io/10.22004/ag.econ.266360?utm_source=ideas
LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
---><---

More about this item

Keywords

;

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:copspp:266360. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.