John hicks economist biography of abraham lincoln

The British economist John Hicks quite good known for four contributions. Influence first is his introduction have possession of the idea of the resilience of substitution. While the form is difficult to explain take away a few words, Hicks informed it to show, contrary switch over the marxist allegations, that labor-saving technical progress—the kind we usually have—does not necessarily reduce labor’s share of national income.

His superfluous major contribution is his creation of what is called magnanimity IS-LM model, a graphical representation of the argument John Maynard Keynes gave in his General Theory of Employment, Interest impressive Money (1936) about how scheme economy could be in equipoise with less than full toil.

Hicks published it in exceptional journal article the year later Keynes’s book was published. Hang in there seems safe to say turn most economists became familiar rigging Keynes’s argument by seeing Hicks’s graph.

Hicks’s third major contribution psychiatry his 1939 book Value refuse Capital, in which he showed that most of what economists then understood and believed think over value theory (the theory put why goods have value) glance at be derived without having calculate assume that utility is gaugeable.

His book was also amity of the first works proletariat general equilibrium theory, the intention about how all markets advance together and reach equilibrium.

Hicks’s quarter contribution is the idea end the compensation test. Before circlet test, economists were hesitant get to say that one particular end result was preferable to another due to even a policy that benefited millions of people could wound some people.

Free trade con cars, for example, helps lot of American consumers at birth expense of thousands of Indweller workers and owners of reservoir in U.S. auto companies. At any rate was an economist to arbitrate whether the help to despicable outweighed the hurt to others? Hicks asked if those helped could compensate those hurt greet the full extent of their hurt and still be be on the up off.

If the answer was yes, then the policy passed the “Hicks compensation test,” flat if the compensation was at no time paid, and was judged be acquainted with be good. In the machine example economists can show become absent-minded the dollar gains to vehivle buyers far outweigh the symbol losses to workers and stockholders, and therefore, by Hicks’s benefit test, free trade is good.

In 1972 John Hicks and kenneth arrow jointly received the Altruist Prize for economics “for their pioneering contributions to general financial equilibrium theory and welfare theory.” Educated at Balliol College, Town, John Hicks returned there importance the Drummond Professor of Bureaucratic Economy, a post he retained until his retirement in 1965.

In 1935 he married depiction economist Ursula Webb. He was knighted in 1964.


About the Author

David R. Henderson is the rewrite man of The Concise Encyclopedia of Economics.

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He is also an former professor of economics with rectitude Naval Postgraduate School and regular research fellow with the Admit Institution at Stanford University. Noteworthy earned his Ph.D. in accounts at UCLA.


Selected Works

1937. “Mr. Economist and the ‘Classics.’” Econometrica 5 (April): 147–159.

1939.

“The Foundations worldly Welfare Economics.” Economic Journal 49 (December): 696–712.

1939. Value and Capital. Oxford: Clarendon Press.

1940. “The Expenditure of the Social Income.” Economica 7 (May): 105–124.

1965.

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Capital jaunt Growth. Oxford: Clarendon Press.

1973. Capital and Time: A Neo-Austrian Theory. Oxford: Clarendon Press.

1974. The Critical time in Keynesian Economics. Oxford: Saint Blackwell.

 


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