Dear S-plus List Users,
Can any one help me about the estimation of parameters of C.E.S (Constant
Elasticity of Substitution) Production Function of the form:
Y = GAMA*((DELTA*K^(-BETA))+((1-DELTA)*L^(-BETA)))^(-PHI/BETA)
where PHI is greater than or equal to -1, DELTA lies between 0 and 1, BETA
being substitution parameter, GAMA being scale parameter. Here K is labor
input , L is capital input, Y is the output.
Any suggestion about how to get the initial values to use nls() or is there
any other function in S-plus to do this job? How can i make a grid search
on S-plus over the parameter spaces?
I am using the data http://www.angelfire.com/ab5/get5/klein.txt
to estimate this non-linear function. In fact, this problem has been posted
to many FAQs lately but till now no direct solutions! But i'm sure that
this economics related problem has been solved already (May be not in
S-plus till now!).
Any response / help / comment / suggestion / idea / web-link / replies will
be greatly appreciated.
Thanks in advance for your time.
_______________________
Mohammad Ehsanul Karim <wildscop@yahoo.com>
Institute of Statistical Research and Training
University of Dhaka, Dhaka- 1000, Bangladesh
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