The real effective exchange rate is an aggregation of several bilateral real exchange rates with respect to other countries. The aggregation is usually done under the assumption of constant elasticity ...

Konstantinos Drakos, The Elasticity of Substitution across Maturities in International Capital Markets: A Simple Test, Journal of Economic Integration, Vol. 20, No. 4 (December 2005), pp. 727-745 ...

Then we calibrate the model consistently with the empirical evidence, i.e. we set the elasticity of substitution between labour and capital below unity. We show that compared to the Cobb-Douglas case, ...

This paper offers a new interpretation of the elasticity of substitution in the constant elasticity of substitution (CES) utility function under discrete choice and separability. We model an economy ...

By not accounting for these features, the distance elasticity of transport costs is underestimated. However, by incorporating these features in our model and using empirical analysis and microlevel ...