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Constant elasticity of transformation

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This is an old revision of this page, as edited by Yobot (talk | contribs) at 22:53, 23 January 2011 (WP:CHECKWIKI error fixes + general fixes, removed wikify tag using AWB (7567)). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Constant Elasticity of Transformation (CET) is firstly brought forward by Powell and Gruen (1968)[1], which is a new form of production-possibility frontier.

It turned out that CET frontier was algebraically identical with CES (Constant elasticity of substitution) isoquant, apart from different sign determining their concavity[disambiguation needed] (Arrow, Chenery, Minhas, and Solow, 1961[2]).

Given two products,x1 and x2,which are produced by the same resources combined in different proportions.

References

  1. ^ Powell and Gruen (1968)
  2. ^ Arrow, Chenery, Minhas, and Solow, 1961
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