Stern, David I (2008): Elasticities of Substitution and Complementarity.

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Abstract
This paper develops a classification scheme of the many different definitions of elasticities of substitution and complementarity in the production case based on duality, gross and net substitution, elasticity type, and four different basic concepts of substitution and complementarity is developed. The classic BerndtWood dataset is used to show how the various elasticities differ. This variation is considerable and shows that the correct elasticity should be used for the intended purpose – there is no one true elasticity of substitution. The paper also reintroduces and clarifies Pigou’s contributions to the debate on the elasticity of substitution after seventy years of obscurity in which they have not been cited.
Item Type:  MPRA Paper 

Original Title:  Elasticities of Substitution and Complementarity 
Language:  English 
Keywords:  Microeconomics, history of economic thought, production, substitution, elasticity 
Subjects:  B  History of Economic Thought, Methodology, and Heterodox Approaches > B2  History of Economic Thought since 1925 > B21  Microeconomics D  Microeconomics > D2  Production and Organizations > D24  Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity 
Item ID:  12454 
Depositing User:  David I. Stern 
Date Deposited:  01. Jan 2009 13:11 
Last Modified:  11. Feb 2013 16:49 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/12454 