Počet záznamů: 1  

Curvature and elasticity of substitution: what is the link?

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    SYSNO ASEP0440570
    Druh ASEPJ - Článek v odborném periodiku
    Zařazení RIVJ - Článek v odborném periodiku
    Poddruh JOstatní články
    NázevCurvature and elasticity of substitution: what is the link?
    Tvůrce(i) Matveenko, Andrei (NHU-C)
    Matveenko, V. (RU)
    Zdroj.dok.Montenegrin Journal of Economics - ISSN 1800-5845
    Roč. 10, č. 2 (2014), s. 7-20
    Poč.str.14 s.
    Jazyk dok.eng - angličtina
    Země vyd.ME - Černá Hora
    Klíč. slovacurvature ; elasticity of substitution ; production function
    Vědní obor RIVAH - Ekonomie
    Institucionální podporaNHU-C - PRVOUK-P23
    AnotaceRelation between curvature and the elasticity of substitution is the old question important for economic theory. Opinions of economists concerning presence or absence of a link between these two concepts radically diverge. Also now there is a steady trend of the use of the Arrow- Pratt coefficient of relative risk aversion and the coefficient of relative prudence as characteristics of utility functions and production functions even in non-stochastic models, and these two coefficients are also commonly interpreted as measures of curvature. The purpose of the paper is to contribute to clarification of the links between all these concepts. We suggest a simple unifying approach based on the notions of prototype functions and osculating curves. In framework of this approach we easily derive the classic geometric curvature and show the relations between the Arrow-Pratt coefficient, the prudence coefficient, the elasticity and the elasticity of substitution. As an example, demonstrating the role of such relations in economic models, we study a simple macroeconomic model with a non-homothetic production function.
    PracovištěNárodohospodářský ústav - CERGE
    KontaktTomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122
    Rok sběru2015