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Unpublished Paper
Notes on Displaced CES Functional Forms
University of Virginia (1989)
  • Don Fullerton, University of Illinois at Urbana-Champaign
This 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
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Citation Information
Don Fullerton. "Notes on Displaced CES Functional Forms" University of Virginia (1989)
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