Elasticity of substitution

The elasticity of substitution between the two goods σ is equal to the inverse of the elasticity of the MRS with respect to the ratio between the level of consumption of good i and good j .

Elasticity of substitution describes how easily one input in the production process, such as LABOUR, can be substituted for another, such as machinery.
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"Elasticity of Substitution," by Morgan Rose.
Ricardo Reis on Keynes, Macroeconomics, and Monetary Policy EconTalk podcast, Apr. 27, 2009. Why is IS-LM still taught in the classroom?
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An elasticity of substitution is a scalar equal to or greater than one which measures the effect on consumption of each of two goods if the price of the other changes. (See elasticity for a definition of its measurement.) ...

VES
Variable Elasticity of Substitution
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Elasticity of substitution
The elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities).

Isoelastic function
Constant elasticity of substitution
Exponential utility
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See also: Elasticity, Substitution, Elastic, Perfect competition, Empirical