John R. Hicks
John Richard Hicks was a British neo-Keynesian economist. Hicks was brought into the world in the United Kingdom in 1904 and learned at Oxford University where he likewise addressed. During his career, Hicks turned out to be notable for his contributions to labor economics, utility and price theory, macroeconomics, and welfare economics. He received the 1972 Nobel Memorial Prize in Economics, sharing it with Kenneth Arrow for their progression of general equilibrium theory and welfare theory.
Key Takeaway
John R. Hicks was a neo-Keynesian economist.
He was noted for his wide-ranging contributions to microeconomic and macroeconomic theory.
His major contributions to economic theory remember the advances for microeconomic price and utility theory, the Hicks compensation test in welfare economics, and the IS-LM model in macroeconomics.
Hicks was awarded the Nobel Prize in 1972 for his work in everyday equilibrium and welfare economics.
Hicks was brought into the world in 1904 and kicked the bucket at 85 years old in 1989.
Early Life and Education
John R. Hicks was brought into the world in the United Kingdom in Warwick on April 8, 1904. He learned at Clifton College and Oxford University somewhere in the range of 1917 and 1926 where he zeroed in on economics, math, philosophy, and politics.
Subsequent to graduating, he addressed at the London School of Economics and Political Science from 1926 to 1935. He likewise educated at Cambridge University and the University of Manchester before getting back to Oxford in 1946.
Hicks married individual economist Ursula Webb in 1935. The couple had no children. He was knighted in 1964 for his work in economics and was awarded the Nobel Prize in 1972. Hicks passed on May 20, 1989.
Hicks' better half, Ursula Webb, was one of the founders of the Review of Economic Studies. The scholarly journal was established in 1933 for youthful economists.
Outstanding Accomplishments
Hicks made several important contributions to economic theory during his career. These contributions went from fundamental neoclassical price theory to macroeconomic modeling.
Praises and Awards
Hicks was awarded the Nobel Prize in 1972. He shared the distinction with Kenneth J. Arrow, another neoclassical economist. Their work on broad equilibrium analysis and welfare economics earned them the award. Before he was awarded the Nobel Prize, Hicks was knighted in 1964. He likewise received a number of privileged doctorate degrees from several universities in the U.K.
Published Works
Hicks' most memorable book, Theory of Wages, developed the microeconomics of wage determination in competitive and regulated labor markets. In this work, he presented the concept of elasticity of substitution among capital and labor, which turned into his basis to dispute Karl Marx theory by contending that labor-saving mechanical progress doesn't be guaranteed to reduce labor's share of income. This book turned into a standard textbook on labor economics for a really long time.
In his initial papers and his subsequent book, Value and Capital, he advanced the utility and price theory with his presentation of the Hicksian compensated demand curve. He additionally investigated the concept of composite goods to work on demand modeling alongside the exploration of the income effect and substitution effect.
Hicks likewise advanced the microeconomic analysis of communications in Value and Capital between markets by formalizing a model of comparative statics and acquainted Walrasian general equilibrium theory with the English-talking world. These models show what changes in markets mean for conditions in different markets and how every one of the individual markets in an economy communicate to yield an overall equilibrium for all markets.
Heritage
Hicks is notable for making four major contributions to the field of economics. His initially is the elasticity of substitution. It was utilized to show what labor-saving processes don't have a direct mean for on the reduction of the share of national income.
Hicks' IS-LM model formalized Keynesian macroeconomic theory to demonstrate the way that an economy can be in equilibrium with not exactly full employment. The IS-LM model portrays macroeconomic equilibrium as a product of the collaboration of financial markets and real goods markets. This model is a common study hall device in macroeconomics and is at times used to evaluate macroeconomic stabilization policies, as well as economic changes.
His book Value and Capital, which was published in 1939, is generally viewed as his third major accomplishment in economics. The Hicksian price and utility models he presented in the book mathematically show how consumer preferences, price changes, and income collaborate to shape demand for goods and are as yet utilized as fundamental components of price theory in microeconomics.
In welfare economics, Hicks is notable for his Hicks compensation principle, otherwise called Hicks productivity. This concept can be utilized as a criterion to judge the costs and benefits of changes to the economy and economic policy by contrasting the losses for the washouts and the gains for the victors.
The Bottom Line
John R. Hicks is much of the time thought about one of the most persuasive economists of the twentieth century. He is attributed with making huge contributions to several areas of the field, including labor economics and welfare economics. Yet, it was his work with Kenneth Arrow including general equilibrium theory and welfare theory that won the two men the Nobel Prize in 1972.
FAQ
What Was John R. Hicks' IS-LM Model?
Hicks' IS-LM Model is intended to show the relationship between the market for economic goods and loanable funds, which is otherwise called the money market. The former is called IS (or investment savings) while the last option is known as LM. The model is portrayed on a graph where the IS and LM converge at the point where between the short-run equilibrium and the interest rates and output. It is many times used to feature what market preference changes mean for the balance of interest rates and GDP.
For what reason Did John R. Hicks Win the Nobel Prize?
John Hicks won the Nobel Prize in Economics in 1972 with Kenneth J. Arrow. The two economists were awarded the prize for their work on broad equilibrium analysis and welfare economics.
What Is John R. Hicks Known for?
John R. Hicks is best known for critical work in the field of economics and is viewed as one of the most powerful economists of the twentieth century. His major accomplishments incorporate his contributions to labor economics, utility and price theory, and macroeconomics. He likewise took great steps in his hypotheses about welfare economics. Hicks was awarded the Nobel Prize with Kenneth Arrow for their work on broad equilibrium theory and welfare theory.
