Browsing ITLS Working Papers 2009 by subject "JEL C68, D24, D58, Q43, Q54. Computable general equilibrium modelling, constant-elasticity-of-substitution production function, climate policy, marginal abatement cost."
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Constant elasticity of substitution (CES) production function can greatly overestimate the economic costs of climate policies.
Published 2009-07-01In this paper, we look at a modification to the conventional constant-elasticity-of-substitution (CES) production function to arrive at a more general specification which can allow for varying, or ‘flexible’ elasticity of ...Working Paper