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

2018/02/09 by Elena Burmistrova, Burmistrova, Elena, Sergey Lobanov +1
Economics, Econometrics and Finance · Mathematics · Social Sciences · #91B02 #91B38 #Econometrics (econ.EM) #Economic Growth and Productivity #Economic Theory and Policy #FOS: Economics and business #FOS: Mathematics #Optimization and Control (math.OC) #Political Economy and Marxism #econ.EM #math.OC #msc:91B02 #msc:91B38

paper · pdf · doi:10.48550/arxiv.1802.06885

arxiv created 2018/02/09 · openalex publication_date 2018/02/09 · arxiv updated 2018/02/21 · openalex created_date 2018/03/06 · openalex updated_date 2026/07/28

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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