Constant elasticity of substitution function
Constant elasticity of substitution functionSee CES function
Same day substitutionSame day substitution
Offsetting changes in a margin account during the day that result in no overall change in the balance of the account.
Substitution swapSubstitution swap
A swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but that offers a higher yield.
Import substitution development strategyImport substitution development strategy
A development strategy followed by many Latin American countries and other LDCs that emphasize import substitution-accomplished through protectionism-as the route to economic growth.
Marginal rate of substitutionMarginal rate of substitution
In a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve.
Elasticity of substitutionElasticity of substitution
The elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities). With competitive demands, this is also the elasticity with respect to their price ratio. For example, with factors L,K and factor prices w,r, the elasticity of substitution of a production function F(K,L) is s = (wL/rK)d(K/L)/d(w/r).
Further SuggestionsAsset substitution