Constant elasticity of transformation
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Constant Elasticity of Transformation (CET) was first advanced by Alan Powell and Fred Gruen in a 1968 publication.[1] It is a new form of production-possibility frontier. Following on that early work, George Philippidis made a detailed introduction of the CET function in 1999. The CET is the corollary CES function, where the production possibilities of the firm (industry) are a function of different combination of supply activities.
References
[edit]- ^ Powell, Alan A.; Gruen, F.H.G. (October 1968). "The Constant Elasticity of Transformation Production Frontier and Linear Supply System". International Economic Review. 9 (3). Wiley: 315–328. doi:10.2307/2556228. JSTOR 2556228.