Flexible Functional Forms and Demand Systems

  • Apostolos Serletis

Abstract

For many years, econometricians used globally regular functional forms such as the Cobb-Douglas and the Constant Elasticity of Substitution (CES) forms to approximate the generating functions (such as, for example, direct utility, indirect utility, production, and cost functions) of neoclassical microeconomic theory. Such functional forms satisfy everywhere the theoretical regularity conditions for rational neoclassical economic behavior, but do not provide the capability to attain arbitrary elasticities of substitution.

Keywords

Demand System Indirect Utility Budget Share Indirect Utility Function Share Equation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Apostolos Serletis
    • 1
  1. 1.University of CalgaryCanada

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