Consumers make their choices based on their overall spending power and make constant adjustments ... At the core of substitution is price elasticity. Price elasticity of demand measures how ...

Arguments about the appropriate discount rate often start by assuming a Utilitarian social welfare function with isoelastic utility, in which the consumption discount rate is a function of the ...

In MACRO, capital stock, available labour, and energy inputs determine the total output of the economy according to a nested constant elasticity of substitution (CES) production function.

Absent the rise in market power, the labor share would have remained constant in the second half of the 20th century. Keywords: Capital accumulation, Elasticity of substitution, Labor share, Market ...

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 ...

The endogenous response to a rise in skill supply counters the traditional substitution effect and dampens its role in reducing wage inequality. The model re-enforces consensus estimates of the ...

Some Santa Monica residents are making their complaints known due to the constant noise that they say is the result of the Waymo charging station located near their homes. There's a constantly ...

One example of this forecasting of behavior that economists attempt is the price elasticity of demand ... demand means that demand remains constant regardless of price. Relatively inelastic ...

Citations: Nevo, Aviv, Arlene Wong. 2014. The Elasticity of Substitution between Time and Market Goods: Evidence from the Great Recession.

If firms are relatively good at using their growing piles of capital to replace labour—if, in the language of economics, the elasticity of substitution of capital for labour is greater than one ...