Figure 1. Performance measures of original and proposed CES estimators
Variance of idiosyncratic CES error Original CES estimate Proposed CES estimate (p = 0) Proposed CES estimate (p = 0.01) Proposed CES estimate (p = 0.1) Proposed CES estimate (p = 0.5) Proposed CES estimate (p = 1)

0.000010

0.003117 0.001409 0.001440 0.001692 0.002520 0.003272

0.000020

0.004408 0.001992 0.002037 0.002393 0.003564 0.004627

0.000030

0.005398 0.002440 0.002495 0.002931 0.004365 0.005666

0.000040

0.006233 0.002817 0.002881 0.003385 0.005040 0.006543

0.000050

0.006969 0.003150 0.003221 0.003784 0.005635 0.007315

0.000060

0.007634 0.003451 0.003528 0.004145 0.006173 0.008013

0.000070

0.008246 0.003726 0.003810 0.004477 0.006667 0.008654

0.000080

0.008815 0.003984 0.004074 0.004786 0.007127 0.009252

0.000090

0.009350 0.004225 0.004320 0.005076 0.007559 0.009812

0.000100

0.009856 0.004454 0.004554 0.005351 0.007968 0.010343

0.000250

0.015583 0.007042 0.007200 0.008459 0.012597 0.016355

0.000500

0.022038 0.009958 0.010182 0.011963 0.017816 0.023128

0.000750

0.026991 0.012195 0.012469 0.014650 0.021818 0.028328

0.001000

0.031167 0.014081 0.014398 0.016916 0.025193 0.032710

0.001250

0.034845 0.015745 0.016099 0.018913 0.028166 0.036572

0.001500

0.038171 0.017251 0.017639 0.020720 0.030858 0.040058

0.001750

0.041229 0.018622 0.019041 0.022371 0.033323 0.043265

0.002000

0.044076 0.019905 0.020352 0.023913 0.035623 0.046256

0.002250

0.046750 0.021114 0.021589 0.025366 0.037787 0.049064

0.002500

0.049279 0.022254 0.022754 0.026736 0.039830 0.051718

0.002750

0.051684 0.023336 0.023861 0.028039 0.041767 0.054240

0.003000

0.053982 0.024369 0.024918 0.029282 0.043623 0.056652

0.003250

0.056186 0.025365 0.025936 0.030478 0.045406 0.058965

0.003500

0.058307 0.026323 0.026915 0.031628 0.047122 0.061190

0.003750

0.060354 0.027246 0.027859 0.032736 0.048774 0.063337

0.004000

0.062333 0.028150 0.028782 0.033817 0.050384 0.065417

Note: CES = Current Employment Statistics.

Source: U.S. Bureau of Labor Statistics.