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CES Function |
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CES FunctionA function with constant elasticity of substitution. CES is popular for both production and utility functions. Used extensively in New Trade Theory as the Dixit-Stiglitz utility function for differentiated products under monopolistic competition. With arguments X = (X1,...,Xn), the function is F(X) = A[SiaiXir]1/r, where ai, A are positive constants and s = 1/(1-r) is the elasticity of substitution. Due to Arrow et al. (1961).Similar MatchesDixit-Stiglitz functionDixit-Stiglitz functionReally just a symmetric CES function, the innovation of Dixit and Stiglitz (1977) was to allow the number of arguments to be variable. Used originally as a utility function, with elasticity of substitution greater than one the function displays a preference for variety. Used as a component of a production function, the same property implies that costs fall with variety. Production functionProduction functionA function that specifies the output in an industry for all combinations of inputs. Probability functionProbability functionA measure that assigns a likelihood of occurrence to each and every possible outcome. Teams Cross FunctionalTeams Cross FunctionalA group of usually five to eight people from two or more areas of the organization who are addressing an issue which impacts the operations of each area. For example, the processes of meeting information requests might be addressed by a team involving PI,, managed care and marketing staff. Reaction functionReaction functionThe function specifying the choice of a strategic variable by one economic agent as a function of the choice of another agent. Most familiar specifying output choices of firms in a Cournot duopoly. Further SuggestionsTranslog functionHomogeneous function Utility function Multifunctionality Constant elasticity of substitution function Demand function Social welfare function Essential purpose (or function) bond SMAC function Utility function Conservative Social Welfare Function Bergsonian social welfare function Cost function Probability density function Teams Functional Supply function Functional distribution of income Cobb-Douglas function Neoclassical production function |
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