Notes on Displaced CES Functional FormsUniversity of Virginia (1989)
AbstractThis document shows how to add another parameter to a Constant Elasticity of Substitution (CES) utility function, derive demand functions, and solve for indirect utility and expenditure functions for the evaluation of money metric utility welfare changes from a price or tax change. It also shows how to calibrate the model, by solving backwards for the parameters that must have existed to generate the observed data.
- models to find tax incidence in general equilibrium
Citation InformationDon Fullerton. "Notes on Displaced CES Functional Forms" University of Virginia (1989)
Available at: http://works.bepress.com/don_fullerton/39/