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Standard CES function, e.g. alpha * (beta1 * (x1 / beta1)^sigma + beta2 * (x2 / beta2)^sigma)^(1 / sigma) wherein beta1 + beta2 == 1.
SCES(sigma = 1 - 1/es, alpha, beta, x, es = NA)the sigma coefficient.
the alpha coefficient.
a vector consisting of the beta coefficients.
a vector consisting of the inputs.
the elasticity of substitution. If es is not NA, the value of sigma will be ignored.
The output or utility level.
# NOT RUN {
beta <- c(0.6, 0.4)
SCES(alpha = 1, beta = beta, x = beta, es = 0.5)
# }
# NOT RUN {
# }
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