Econometric estimation of the “Constant Elasticity of Substitution" function in R: package micEconCES
Publikation: Working paper › Forskning
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Econometric estimation of the “Constant Elasticity of Substitution" function in R : package micEconCES. / Henningsen, Arne; Henningsen, Geraldine.
Institute of Food and Resource Economics, University of Copenhagen, 2011.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Econometric estimation of the “Constant Elasticity of Substitution" function in R
T2 - package micEconCES
AU - Henningsen, Arne
AU - Henningsen, Geraldine
PY - 2011
Y1 - 2011
N2 - The Constant Elasticity of Substitution (CES) function is popular in several areas of economics, but it is rarely used in econometric analysis because it cannot be estimated by standard linear regression techniques. We discuss several existing approaches and propose a new grid-search approach for estimating the traditional CES function with two inputs as well as nested CES functions with three and four inputs. Furthermore, we demonstrate how these approaches can be applied in R using the add-on package micEconCES and we describe how the various estimation approaches are implemented in the micEconCES package. Finally, we illustrate the usage of this package by replicating some estimations of CES functions that are reported in the literature.
AB - The Constant Elasticity of Substitution (CES) function is popular in several areas of economics, but it is rarely used in econometric analysis because it cannot be estimated by standard linear regression techniques. We discuss several existing approaches and propose a new grid-search approach for estimating the traditional CES function with two inputs as well as nested CES functions with three and four inputs. Furthermore, we demonstrate how these approaches can be applied in R using the add-on package micEconCES and we describe how the various estimation approaches are implemented in the micEconCES package. Finally, we illustrate the usage of this package by replicating some estimations of CES functions that are reported in the literature.
M3 - Working paper
T3 - FOI Working Paper
BT - Econometric estimation of the “Constant Elasticity of Substitution" function in R
PB - Institute of Food and Resource Economics, University of Copenhagen
ER -
ID: 35161927