CURVATURE AND THE ELASTICITY OF SUBSTITUTION - STRAIGHTENING IT OUT

Authors
DELAGRANDVILLE O
Citation
O. Delagrandville, CURVATURE AND THE ELASTICITY OF SUBSTITUTION - STRAIGHTENING IT OUT, Journal of economics, 66(1), 1997, pp. 23-34
Citations number
19
Categorie Soggetti
Economics
Journal title
Journal of economics → ACNP
ISSN journal
09318658
Volume
66
Issue
1
Year of publication
1997
Pages
23 - 34
Database
ISI
SICI code
0931-8658(1997)66:1<23:CATEOS>2.0.ZU;2-J
Abstract
This paper demonstrates that, contrary to deeply rooted beliefs, there is no link between curvature and the elasticity of substitution. We s how that there is no direct, nor inverse, relationship between the two concepts, if curvature of the isoquant is defined either in its stric t mathematical sense or as the isoquant's second derivative. We finall y suggest to view the elasticity of substitution as an efficiency para meter.