Curvature and elasticity of substitution: what is the link?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F14%3A00440570" target="_blank" >RIV/00216208:11640/14:00440570 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Curvature and elasticity of substitution: what is the link?
Original language description
Relation between curvature and the elasticity of substitution is the old question important for economic theory. Opinions of economists concerning presence or absence of a link between these two concepts radically diverge. Also now there is a steady trend of the use of the Arrow- Pratt coefficient of relative risk aversion and the coefficient of relative prudence as characteristics of utility functions and production functions even in non-stochastic models, and these two coefficients are also commonly interpreted as measures of curvature. The purpose of the paper is to contribute to clarification of the links between all these concepts. We suggest a simple unifying approach based on the notions of prototype functions and osculating curves. In frameworkof this approach we easily derive the classic geometric curvature and show the relations between the Arrow-Pratt coefficient, the prudence coefficient, the elasticity and the elasticity of substitution. As an example, demonstrating the r
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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