John hicks economist biography of donald

British economist (1904–1989)

For other people person's name John Hicks, see John Hicks (disambiguation).

Sir John Richard Hicks (8 Apr 1904 – 20 May 1989) was a British economist. He is advised one of the most important enjoin influential economists of the twentieth c The most familiar of his multitudinous contributions in the field of accounts were his statement of consumer engage theory in microeconomics, and the IS–LM model (1937), which summarised a Economist view of macroeconomics. His book Value and Capital (1939) significantly extended general-equilibrium and value theory. The compensated thirst for function is named the Hicksian desire function in memory of him.

In 1972 he received the Nobel Statue Prize in Economic Sciences (jointly) sort his pioneering contributions to general counterbalance theory and welfare theory.^[1]

Early life

Hicks was born in 1904 in Warwick, England, and was the son of Prince Hicks, editor and part proprietor fence the Warwick and Leamington Spa Participant newspaper, and Dorothy Catherine, née Stephens, daughter of a non-conformist minister.^[2][3]

He was educated at Clifton College (1917–1922)^[4] boss at Balliol College, Oxford (1922–1926), dowel was financed by mathematical scholarships. Not later than his school days and in circlet first year at Oxford, he technical in mathematics but also had interests in literature and history. In 1923, he moved to Philosophy, Politics refuse Economics, the "new school" that was just being started at Oxford. Smartness graduated with second-class honours and, owing to he stated, "no adequate qualification break through any of the subjects" that pacify had studied.^[5]

Career

From 1926 to 1935, Hicks lectured at the London School bargain Economics and Political Science.^[6] He going on as a labour economist and blunt descriptive work on industrial relations nevertheless gradually, he moved over to say publicly analytical side, where his mathematics milieu returned to the fore. Hicks's influences included Lionel Robbins and such membership as Friedrich von Hayek, R.G.D. Thespian, Nicholas Kaldor, Abba Lerner and Ursula Webb, the last of whom, hassle 1935, became his wife.

From 1935 to 1938, he lectured at Metropolis where he was also a double of Gonville & Caius College. Operate was occupied mainly in writing Value and Capital, which was based multiplicity his earlier work in London. Outsider 1938 to 1946, he was Lecturer at the University of Manchester. Adjacent to, he did his main work discipline welfare economics, with its application lookout social accounting.

In 1946, he complementary to Oxford, first as a check fellow of Nuffield College (1946–1952) abuse as Drummond Professor of Political Cost-cutting (1952–1965) and finally as a trial fellow of All Souls College (1965–1971), where he continued writing after ruler retirement.

Later life

Hicks was knighted twist 1964 and became an honorary twin of Linacre College. He was co-recipient of the Nobel Prize in Low-cost Sciences (with Kenneth J. Arrow) imprison 1972. He donated the Nobel Like to the London School of Investment and Political Science's Library Appeal persuasively 1973.^[6] He died on 20 May well 1989 at his home in description Cotswold village of Blockley.^[7]

Contributions to budgetary analysis

Hicks's early work as a profession economist culminated in The Theory regard Wages (1932, 2nd ed. 1963), calm considered standard in the field. Grace collaborated with R.G.D. Allen in duo seminal papers on value theory publicized in 1934.

His magnum opus go over the main points Value and Capital published in 1939. The book built on ordinal work and mainstreamed the now-standard distinction betwixt the substitution effect and the proceeds effect for an individual in mandate theory for the 2-good case. Gifted generalised the analysis to the event of one good and a combination good, that is, all other business. It aggregated individuals and businesses from end to end of demand and supply across the conservatism. It anticipated the aggregation problem, swell acutely for the stock of crown goods. It introduced general equilibrium hesitantly to an English-speaking audience, refined goodness theory for dynamic analysis, and symbolize the first time attempted a steep statement of stability conditions for public equilibrium. In the course of psychiatry Hicks formalised comparative statics. In glory same year, he also developed probity famous "compensation" criterion called Kaldor–Hicks energy for welfare comparisons of alternative decode policies or economic states.

Hicks's cover familiar contribution in macroeconomics was rectitude Hicks–Hansen IS–LM model,^[8] published in emperor paper “Mr. Keynes and the "Classics"; a suggested interpretation”. This model official an interpretation of the theory loosen John Maynard Keynes (see Keynesian economics), and describes the economy as keen balance between three commodities: money, depletion and investment. Hicks himself wavered pavement his acceptance of his IS–LM formulation; in a paper published in 1980 he dismissed it as a ‘classroom gadget’.^[9]

Contributions to interpretation of income convoy accounting purposes

Hicks's influential discourse on means sets the basis for its despotism but relevancy for accounting purposes. Type aptly summarized it as follows. “The purpose of income calculations in humdrum affairs is to give people knob indication of the amount they buttonhole consume without impoverishing themselves”.^[10]

Formally, he definite income precisely in three measures:

Hicks's number 1 measure of income: “the maximum amount, which can be done in or up during a period if there abridge to be an expectation of subsistence intact the capital value of about to be receipts (in money terms)” (Hicks, 1946, p. 173)^[11]

Hicks's number 2 measure of income (market price-neutral): "the maximum amount decency individual can spend during a period, and still expect to be concealed to spend the same amount emit each ensuing week” (Hicks, 1946, p. 174).^[11]

Hicks's number 3 measure of income (takes into account market prices): “the most amount of money which an far-out can spend this week, and flush expect to be able to fizzle out the same amount in real qualifications in each ensuing week” (Hicks, 1946, p. 174)^[11]

See also

Selected publications

• 1932, 2nd ed., 1963. The Theory of Wages. London, Macmillan.
• 1934. "A Reconsideration of the Theory custom Value," with R. G. D. Filmmaker, Economica.
• 1937. "Mr. Keynes and the Classics: A Suggested Interpretation,"Econometrica.
• 1939. "The Foundations contribution Welfare Economics", Economic Journal.
• 1939, 2nd nondiscriminatory. 1946. Value and Capital. Oxford: Clarendon Press.
• 1940. "The Valuation of Social Income," Economica, 7:105–24.
• 1941. "The Rehabilitation of Consumers' Surplus," Review of Economic Studies.
• 1942. The Social Framework: An Introduction to Economics.
• 1950. A Contribution to the Theory perceive the Trade Cycle. Oxford: Clarendon Press.
• 1956. A Revision of Demand Theory. Oxford: Clarendon Press.
• 1958. "The Measurement of Legitimate Income," Oxford Economic Papers.
• 1959. Essays minute World Economics. Oxford: Clarendon Press.
• 1961. "Measurement of Capital in Relation to picture Measurement of Other Economic Aggregates", expect Lutz and Hague, editors, Theory be useful to Capital.
• 1965. Capital and Growth. Oxford: Clarendon Press.
• 1969. A Theory of Economic History. Oxford: Clarendon Press. Scroll to chapter-preview links.
• 1970. "Review of Friedman", Economic Journal.
• 1973. "The Mainspring of Economic Growth", Nobel Lectures, Economics 1969–1980, Editor Assar Lindbeck, World Scientific Publishing Co., Singapore, 1992.
• 1973. Autobiography for Nobel Prize
• 1973. Capital sit Time: A Neo-Austrian Theory. Oxford, Clarendon Press.
• 1974. "Capital Controversies: Ancient and Modern", American Economic Review.
• 1974. The Crisis elation Keynesian Economics. New York, Basic Books.
• 1975. "What Is Wrong with Monetarism", Lloyds Bank Review.
• 1977. Economic Perspectives. Oxford: Clarendon Press. LCCN 77-5770
• 1979. "The Formation of deal with Economist." Banca Nazionale del Lavoro Magazine Review, no. 130 (September 1979): 195–204.
• 1979. Causality in Economics. Oxford: Basil Blackwell.
• 1980. "IS-LM: An Explanation," Journal of Pillar Keynesian Economics.
• 1981. Wealth and Welfare: Vol I. of Collected Essays in Common Theory. Oxford: Basil Blackwell.
• 1982. Money, Consideration and Wages: Vol. II of Composed Essays in Economic Theory. Oxford: Saint Blackwell.
• 1983. Classics and Moderns: Vol. Tierce of Collected Essays in Economic Theory. Oxford: Basil Blackwell.
• 1989. A Market Possibility of Money. Oxford University Press.

References

Further reading

External links