Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24533
Authors: 
Klump, Rainer
Saam, Marianne
Year of Publication: 
2006
Series/Report no.: 
ZEW Discussion Papers 06-78
Abstract: 
Normalising CES production functions in the calibration of basic dynamic models allows to choose technology parameters in an economically plausible way. When variations in the elasticity of substitution are considered, normalisation is necessary in order to exclude arbitrary effects. As an illustration, the effect of the elasticity of substitution on the speed of convergence in the Ramsey model is computed with different normalisations.
Subjects: 
CES production functions
normalisation
calibration
Ramsey model
JEL: 
E27
E24
O41
Document Type: 
Working Paper

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