Example 8: Elasticity of transformation
 
Here we revise the data from previous model so that goods X and Y are each produced by sectors A and B.
 
 
 Production Sectors Consumers
 Markets | A B W | CONS
 ------------------------------------------------------
 PX | 80 20 -100 |
 PY | 20 80 -100 |
 PW | 200 | -200
 PL | -40 -60 | 100
  PK | -60 -40 | 100
 ------------------------------------------------------

On the first line of the production declaration, the "t:" field specifies the transformation elasticity between outputs: 
 

A = f * [ aX^(1+j)/j + (1-a)Y ^(1+j)j ] ^j/(1+j) = F * [ dK^{(s-1)/ s} + (1-d)L^{(s-1)/ s} ] ^s/(s-1)

A - production in sector A

X - production of X by sector A

Y - production of Y by sector A

j - elasticity of transformation between Y and X

s - elasticity of substitution between K and L

a and d - share parameters

f and F - shift parameters (technology improvement)