Saturday, July 23, 2011

Elasticities of Substitution and Complementarity

Finally, my article in the Journal of Productivity Analysis has received page numbers. The full citation is:

Stern D. I. (2011) Elasticities of substitution and complementarity, Journal of Productivity Analysis 36(1): 79-89.

The article is mainly a review/survey article that organizes the literature on elasticities of substitution. It also proposes a couple of innovations along the way and gives estimates of all the various elasticities for the famous Berndt and Wood data set. Hopefully, it will be another step towards people using the appropriate elasticity of substitution for the question at hand and not using Allen elasticities of substitution when there are more than two inputs. In the latter case, they are not very meaningful beyond their signs.

1 comment:

  1. Thank you! I wasn't really aware that you had to calculate it differently