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What does CES stand for?

CES stands for Constant Elasticity of Substitution

This definition appears very frequently and is found in the following Acronym Finder categories:

  • Business, finance, etc.

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We have 562 other meanings of CES in our Acronym Attic

Samples in periodicals archive:

The model used by Docquier, Ozden, and Peri makes four key assumptions: that aggregate labor is combined with physical capital to produce output, that there is constant elasticity of substitution (CES) at a value ranging from 1.
In addition, although substitution elasticities are generally not constant in an optimizing framework, they are often assumed to be constant in applications by using a single aggregate of consumption or a utility function that imposes a constant elasticity of substitution (e.
It shows how a utility function with a modified constant elasticity of substitution functional form that exhibits first-order risk aversion can be used for the purpose.
Given the assumption of the VES production function (4), it follows that a test of the hypothesis that the production function has constant elasticity of substitution is obtained by a t-test on the least-squares estimator for the coefficient of the logarithm of the capital-labour ratio.
Furthermore, in this section we allow the final good's production technology to be of the constant elasticity of substitution (CES) variety and study how the assumed value for the elasticity of substitution between final and intermediate goods affects our results in the steady state.