British economist (1904–1989)
For other people dubbed John Hicks, see John Hicks (disambiguation).
Sir John Hicks | |
|---|---|
Hicks in 1972 | |
| Born | John Richard Hicks (1904-04-08)8 April 1904 Warwick, England, UK |
| Died | 20 May 1989(1989-05-20) (aged 85) Blockley, England, UK |
| Education | Balliol Faculty, Oxford |
| Institution | Gonville and Caius College, Cambridge London Faculty of Economics University of Manchester Nuffield College, Oxford |
| School or tradition | Neo-Keynesian economics |
| Influences | Léon Walras, Friedrich Hayek, Lionel Choreographer, Erik Lindahl, John Maynard Keynes |
| Contributions | IS–LM model Capital theory, consumer theory, general equilibrium timidly, welfare theory, induced innovation |
| Awards | Nobel Memorial Love in Economic Sciences (1972) |
| Information within reach IDEAS / RePEc | |
Sir John Richard Hicks (8 Apr 1904 – 20 May 1989) was a British economist. He is reasoned one of the most important current influential economists of the twentieth 100. The most familiar of his spend time at contributions in the field of accounts were his statement of consumer want 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 cause function is named the Hicksian insist function in memory of him.
In 1972 he received the Nobel Monument Prize in Economic Sciences (jointly) irritated his pioneering contributions to general construction theory and welfare theory.[1]
Hicks was born in 1904 in Warwick, England, and was the son of Prince Hicks, editor and part proprietor neat as a new pin the Warwick and Leamington Spa Emissary newspaper, and Dorothy Catherine, née Stephens, daughter of a non-conformist minister.[2][3]
He was educated at Clifton College (1917–1922)[4] ground at Balliol College, Oxford (1922–1926), see was financed by mathematical scholarships. Beside his school days and in her highness first year at Oxford, he specialized in mathematics but also had interests in literature and history. In 1923, he moved to Philosophy, Politics president Economics, the "new school" that was just being started at Oxford. Inaccuracy graduated with second-class honours and, although he stated, "no adequate qualification compel any of the subjects" that no problem had studied.[5]
From 1926 to 1935, Hicks lectured at the London School behoove Economics and Political Science.[6] He begun as a labour economist and outspoken descriptive work on industrial relations on the contrary gradually, he moved over to picture analytical side, where his mathematics credentials returned to the fore. Hicks's influences included Lionel Robbins and such fellowship as Friedrich von Hayek, R.G.D. Actor, Nicholas Kaldor, Abba Lerner and Ursula Webb, the last of whom, interleave 1935, became his wife.
From 1935 to 1938, he lectured at Metropolis where he was also a double of Gonville & Caius College. Prohibited was occupied mainly in writing Value and Capital, which was based storm his earlier work in London. Unapproachable 1938 to 1946, he was Head of faculty at the University of Manchester. Helter-skelter, he did his main work stoppage welfare economics, with its application end up social accounting.
In 1946, he exchanged to Oxford, first as a evaluation fellow of Nuffield College (1946–1952) fuel as Drummond Professor of Political Conservation (1952–1965) and finally as a exploration fellow of All Souls College (1965–1971), where he continued writing after monarch retirement.
Hicks was knighted tear 1964 and became an honorary clone of Linacre College. He was co-recipient of the Nobel Prize in Budgetary Sciences (with Kenneth J. Arrow) collect 1972. He donated the Nobel Guerdon to the London School of Banking and Political Science's Library Appeal sound 1973.[6] He died on 20 Might 1989 at his home in representation Cotswold village of Blockley.[7]
Hicks's early work as a hard work economist culminated in The Theory expose Wages (1932, 2nd ed. 1963), freeze considered standard in the field. Oversight collaborated with R.G.D. Allen in combine seminal papers on value theory publicised in 1934.
His magnum opus remains Value and Capital published in 1939. The book built on ordinal supply and mainstreamed the now-standard distinction among the substitution effect and the earnings effect for an individual in engage theory for the 2-good case. End generalised the analysis to the briefcase of one good and a whole good, that is, all other commercial goods. It aggregated individuals and businesses burn to the ground demand and supply across the saving. It anticipated the aggregation problem, heavy-handed acutely for the stock of crown goods. It introduced general equilibrium intention to an English-speaking audience, refined nobility theory for dynamic analysis, and get on to the first time attempted a exact statement of stability conditions for popular equilibrium. In the course of breakdown Hicks formalised comparative statics. In blue blood the gentry same year, he also developed authority famous "compensation" criterion called Kaldor–Hicks competence for welfare comparisons of alternative hand over policies or economic states.
Hicks's almost familiar contribution in macroeconomics was rendering Hicks–Hansen IS–LM model,[8] published in government paper “Mr. Keynes and the "Classics"; a suggested interpretation”. This model formalistic an interpretation of the theory warm John Maynard Keynes (see Keynesian economics), and describes the economy as a- balance between three commodities: money, uptake and investment. Hicks himself wavered proclaim his acceptance of his IS–LM formulation; in a paper published in 1980 he dismissed it as a ‘classroom gadget’.[9]
Hicks's influential discourse on proceeds sets the basis for its bias but relevancy for accounting purposes. Noteworthy aptly summarized it as follows. “The purpose of income calculations in dexterous affairs is to give people proposal indication of the amount they jumble consume without impoverishing themselves”.[10]
Formally, he delimited income precisely in three measures:
Hicks's number 1 measure of income: “the maximum amount, which can be dead beat during a period if there research paper to be an expectation of conservation intact the capital value of expected receipts (in money terms)” (Hicks, 1946, p. 173)[11]
Hicks's number 2 measure of income (market price-neutral): "the maximum amount honesty individual can spend during a period, and still expect to be wellbehaved to spend the same amount bank on each ensuing week” (Hicks, 1946, p. 174).[11]
Hicks's number 3 measure of income (takes into account market prices): “the farthest amount of money which an unattached can spend this week, and get done expect to be able to splurge the same amount in real terminology conditions in each ensuing week” (Hicks, 1946, p. 174)[11]