Leonid Vitaliyevich Kantorovich
Who Was Leonid Vitaliyevich Kantorovich?
Leonid Vitaliyevich Kantorovich was a Russian mathematician and economist who won the 1975 Nobel Prize in Economics, alongside Tjalling Koopmans, for his research on the optimal allocation of resources. His 1959 book, The Best Use of Economic Resources, depicted optimal ways of addressing problems of centrally [planned economies](/centrally-arranged economy), like planning, pricing, and decision making. He likewise made important contributions to functional analysis, estimate theory, and operator theory, and he originated the technique of linear programming.
Grasping Leonid Vitaliyevich Kantorovich
Leonid Vitaliyevich Kantorovich was brought into the world in Russia in January 1912. After the death of his dad, Vitalij Kantorovich, in 1922, the 10-year-old maturing mathematician was raised alone by his mom, Paulina.
Kantorovich enrolled in Leningrad State University at 14 years old and graduated at the age of just 18. As Kantorovich noted in his collection of memoirs, he initially started digging into the more abstract fields of science during his second year of university. He noticed that his most huge research during that time span revolved around the insightful operations on sets and on projective sets as well as settling N.N. Lusin problems.
Kantorovich proceeded to report his discoveries to the First All-Union Mathematical Congress in Kharkov, Russia, in 1930. While at Congress, Kantorovich collaborated with other Soviet mathematicians, including S.N. Bernstein, P.S. Alexandrov, A.N. Kolmogorov, and A.O. Gelfond.
He turned into a full teacher in 1934 and received his doctoral degree in 1935 while working at Leningrad University and at the Institute of Industrial Construction Engineering. Kantorovich later proceeded to fill in as the director of mathematical economic methods at the Siberian Division of the Soviet Academy of Sciences and as the head of the research lab at the Institute of National Economic Management in Moscow. He likewise received the Order of Lenin in 1967.
Kantorovich was married to a physician named Natalie in 1938. The pair had two children, both of whom entered the fields of science as grown-ups. Kantorovich passed on in 1986.
Contributions
Kantorovich himself noticed that a lot of his work harmonized with Russia's growing industrialization; thusly, a considerable lot of his mathematical discoveries were utilized to assist with dealing with the Soviet economy, which zeroed in on state ownership, collective cultivating, and industrial manufacturing. The Soviet economy was an arranged economy zeroed in on the allocation of resources by the state rather than a free-market economy where the market decides resource allocation.
Linear Programming
While talking with the Soviet government's Laboratory of the Plywood Trust, Kantorovich was assigned to devise a method for distributing raw resources to expand output. As a mathematician, Kantorovich saw the problem with regards to how to mathematically expand a linear function subject to numerous imperatives. To tackle this problem, he developed a method known as linear programming.
Price and Production Theory
In his 1939 book, The Mathematical Method of Production Planning and Organization, Kantorovich contended that his math of obliged optimization could be applied to all problems of economic allocation. Comparable experiences were developed as part of neoclassical production theory and price theory by economists John Hicks in Britain and Paul Samuelson in the United States. In Kantorovich's models, he demonstrated the way that the coefficients on certain factors in the situations could be deciphered as information prices to arrange the allocation of resources.
Resource Allocation
Kantorovich further developed his theory in the book, The Best Uses of Economic Resources. He showed that the implicit relative prices of contributions from his models were critical even in centrally arranged economies where no genuine markets operated to generate market prices. He likewise contended that this remembered the implicit price of time for compromises among present and future production and consumption plans, which relates to the market interest rate in a capitalist economy. He attested that arranged economies ought to utilize interest rates as capitalist economies do.
Features
- Kantorovich distributed The Best Use of Economic Resources in 1959, which depicted the optimal allocation of resources.
- Kantorovich won the 1975 Nobel Prize in Economics for his research on the optimal allocation of resources.
- Leonid Vitaliyevich Kantorovich was a Russian mathematician and economist.
- Large numbers of Kantorovich's mathematical and economic discoveries were utilized to assist with dealing with the Soviet economy.
- Kantorovich's contributions to science and economics incorporate linear programming, price and production theory, and resource allocation.
