Is elasticity of substitution between goods empirically constant?

Answer 1

We can we can come up with numerical estimates using econometrics methods for the elasticity of substitution between goods however those are Point estimates there's no reason why the elasticity of substitution will be constant over the entire range. You sometimes assume constant elasticity of substitution to Aid in the mathematics and recognized it over a small range the elasticity of substitution will be relatively stable.

If you If you have any questions at all involving economics please don't hesitate to reach out I was a professor at Tufts long before I went out and started practicing this stuff in the real world. One of my favorite hobbies and solving economically puzzles.

Best,

Lenny