Arbeitspapier
The Elasticities of Complementarity and Substitution
This paper argues that the conventional definition of the elasticity of complementarity is not well suited to deal with the case of increasing returns. It proposes a slightly different formula, that uses a distance function formulation instead of a production function. The proposed definition coincides with the Hicksian measure in case the production function displays constant returns. It is more informative in case returns to scale are not constant, as it disentangles entry effects and substitution effects of factor supplies. The new definition is also preferable in that it is fully symmetric with the definition of the elasticity of substitution.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 04-101/1
- Klassifikation
-
Wirtschaft
Firm Behavior: Theory
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
- Thema
-
distance function
elasticity of complementarity
returns to scale
tangency condition
Substitutionselastizität
Skalenertrag
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Broer, Peter
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2004
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Broer, Peter
- Tinbergen Institute
Entstanden
- 2004
Ähnliche Objekte (12)
Aggregation Bias in Elasticities of Substitution and the Minimum Wage Paradox
Substitution and Complementarity under Comparative Advantage and the Accumulation of Human Capital
Materials, Capital, Direct/Indirect Substitution and Mass Balance Production Functions
Computing Integral Solutions of Complementarity Problems
Housing returns and intertemporal substitution in consumption: estimates for industrial economies
Explaining the Variation in Empirical Estimates of Tax Elasticities of Foreign Direct Investment
Electronic Commerce and Retail Channel Substitution
What explains the Variation in Estimates of Labour Supply Elasticities?
Limit Pricing, Climate Policies, and Imperfect Substitution
Price Elasticities of Demand for Passenger Air Travel
The complementarity of community-based water and sanitation interventions: evidence from Mozambique
A Meta-Analysis of Price Elasticities of Transport Demand in a General Equilibrium Framework
Aggregation Bias in Elasticities of Substitution and the Minimum Wage Paradox
Substitution and Complementarity under Comparative Advantage and the Accumulation of Human Capital
Materials, Capital, Direct/Indirect Substitution and Mass Balance Production Functions
Computing Integral Solutions of Complementarity Problems
Housing returns and intertemporal substitution in consumption: estimates for industrial economies
Explaining the Variation in Empirical Estimates of Tax Elasticities of Foreign Direct Investment
Electronic Commerce and Retail Channel Substitution
What explains the Variation in Estimates of Labour Supply Elasticities?
Limit Pricing, Climate Policies, and Imperfect Substitution
Price Elasticities of Demand for Passenger Air Travel
The complementarity of community-based water and sanitation interventions: evidence from Mozambique
A Meta-Analysis of Price Elasticities of Transport Demand in a General Equilibrium Framework
Aggregation Bias in Elasticities of Substitution and the Minimum Wage Paradox
Substitution and Complementarity under Comparative Advantage and the Accumulation of Human Capital
Materials, Capital, Direct/Indirect Substitution and Mass Balance Production Functions
Computing Integral Solutions of Complementarity Problems
Housing returns and intertemporal substitution in consumption: estimates for industrial economies
Explaining the Variation in Empirical Estimates of Tax Elasticities of Foreign Direct Investment
Electronic Commerce and Retail Channel Substitution
What explains the Variation in Estimates of Labour Supply Elasticities?
Limit Pricing, Climate Policies, and Imperfect Substitution
Price Elasticities of Demand for Passenger Air Travel
The complementarity of community-based water and sanitation interventions: evidence from Mozambique