Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Joyashree Roy

Abstract

Degree of substitutability between inputs is measured by the elasticity of substitution, one of the most fundamental measures in the theory of production. For multi-input production technology AES estimates has dominated the Applied Production Theory for quite a long and very crucial period of time. However, in the early eighties AES had been questioned on theoretical grounds and In lieu MES was suggested as an appropriate measure.

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