Forum: help

RE: Negative deltas [ Reply ] By: Arne Henningsen on 2019-06-21 04:27	[forum:46807]
If the deltas are outside the (0,1) interval, the elasticities are rather meaningless.

RE: Negative deltas [ Reply ] By: Darius Ma on 2019-05-16 15:15	[forum:46734]
Thank you. Even if I get negative deltas, can I still you the elasticities? I have good estimations. I could use the deltas from my own computation and elasticities estimated from MicEconCes. I see some papers only exposing only the estimation of elasticities. Maybe they did encounter some problems as well for the deltas. Thanks again

RE: Negative deltas [ Reply ] By: Arne Henningsen on 2019-05-16 14:30	[forum:46732]
Unfortunately, it is not unusual to obtain CES estimates of delta outside the (0,1) range: https://doi.org/10.1016/j.eneco.2017.12.019 Only certain optimisation methods (e.g., L-BFGS-B, PORT, DE) can constrain the parameters to be in certain intervals, see documentation of cesEst().

Negative deltas [ Reply ] By: Darius Ma on 2019-05-14 13:33	[forum:46721]
Good evening again, When I estimate my CES function with 4 inputs, I always end up with a negative delta_2 and a more than 1 delta_1. Is it normal ? I thought micEconCES was constraining deltas on the range (0,1). Thank you again.