THE CONSTANT DIFFERENCE OF ELASTICITIES FUNCTION WITH APPLICATIONS TO THE EC ANIMAL FEED SECTOR
介绍了一种全局表现良好的‘弹性常数差’函数，并展示了其在丹麦、爱尔兰和英国饲料浓缩料市场的两个实证应用，包括估计需求函数和利用先验信息推导补偿价格弹性矩阵。
Unlike those flexible functional forms which are local approximations, the ‘Constant Difference of Elasticities’ (CDE) function is globally well‐behaved. Due to its properties and parsimony in the number of parameters, the CDE functional form offers many potential applications. Two empirical applications are presented. First, aggregate CDE input demand functions are specified and estimated econometrically for the feed concentrate markets in Denmark, Ireland and the United Kingdom. The second empirical application illustrates how a matrix of compensated price elasticities can be obtained with only a priori knowledge of its direct and diagonal elements. The suggested approach exploits some of the properties of the Allen elasticities of substitution associated with the CDE functional form.