a vector of strings containing the names of the
explanatory variables.
data
data frame containing the explanatory variables.
coef
numeric vector containing the coefficients of the CES:
if the vector is unnamed,
the order of the coefficients must be
gamma, eventuelly lambda,
delta, rho,
and eventually nu
in case of two expanatory variables,
gamma, eventuelly lambda,
delta_1, ...,
delta_N, rho, and eventually nu
in case of the non-nested CES with N>2 explanatory variables,
gamma, eventuelly lambda,
delta_1, delta,
rho_1, rho, and eventually nu
in case of the nested CES with 3 explanatory variables,
and gamma, eventuelly lambda,
delta_1, delta_2,
delta, rho_1, rho_2,
rho, and eventually nu
in case of the nested CES with 4 explanatory variables,
where in all cases the nu is only required if the model
has variable returns to scale.
If the vector is named, the names must be "gamma",
"delta", "rho", and eventually "nu"
in case of two expanatory variables,
"gamma", "delta_1", ..., "delta_N",
"rho", and eventually "nu"
in case of the non-nested CES with N>2 explanatory variables,
and "gamma", "delta_1", "delta_2",
"rho_1", "rho_2", "rho", and eventually "nu"
in case of the nested CES with 4 explanatory variables,
where the order is irrelevant in all cases.
tName
optional character string specifying the name of the
time variable (t).
nested
logical. ;
if FALSE (the default), the original CES for n inputs
proposed by Kmenta (1967) is used;
if TRUE, the nested version of the CES
for 3 or 4 inputs proposed by Sato (1967) is used.
rhoApprox
if the absolute value of the coefficient rho
is smaller than or equal to this argument,
the endogenous variable of the non-nested CES is calculated
using the Kmenta approximation,
which is more precise than the non-linear CES formula
for very small values of rho
(and the CES formula cannot even be used for rho = 0).
This feature is not (yet) available for the nested CES.
Value
A numeric vector with length equal to the number of rows of the data set
specified in argument data.
Author(s)
Arne Henningsen and Geraldine Henningsen
References
Kmenta, J. (1967):
On Estimation of the CES Production Function.
International Economic Review 8, p. 180-189.
Sato, K. (1967):
A Two-Level Constant-Elasticity-of-Substitution Production Function.
Review of Economic Studies 43, p. 201-218.