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Topic: relationship between cobb doug and CES
Conf: Chapter 3, Theory of the Firm, Msg: 11676
From: Allan Pollock (pollock.allan@fin.gc.ca)
Date: 10/17/2002 03:33 PM

relationship between cobb doug and CES Allan Pollock allan pollock.allan@fin.gc.ca question 3.15 shows that the special case of CES function (when: sum(alpha)=1 ) approaches Cobb Douglas as the elasticity of substitution approaches unity.

what happens to the CES with sum(alpha)><1 as the elasticity of substitution approaches unity?

Thanks very much for any pointers.

Cheers,
Allan Pollock