In economics, Constant elasticity of substitution (CES) is a property of some production functions and utility functions.
More precisely, it refers to a particular type of aggregator function which combines two or more types of consumption, or two or more types of productive inputs into an aggregate quantity. This aggregator function exhibits constant elasticity of substitution.
Read more about Constant Elasticity Of Substitution: CES Production Function, CES Utility Function
Famous quotes containing the words constant, elasticity and/or substitution:
“The tears of the world are a constant quality. For each one who begins to weep, somewhere else another stops. The same is true of the laugh.”
—Samuel Beckett (1906–1989)
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“To play is nothing but the imitative substitution of a pleasurable, superfluous and voluntary action for a serious, necessary, imperative and difficult one. At the cradle of play as well as of artistic activity there stood leisure, tedium entailed by increased spiritual mobility, a horror vacui, the need of letting forms no longer imprisoned move freely, of filling empty time with sequences of notes, empty space with sequences of form.”
—Max J. Friedländer (1867–1958)