John Richard Hicks
Hicks John Richard (b. on April 8, 1904 in Leamington Spa, England d. May 20, 1989 in Blockley), an prominent English economist.
In 1972 together with Kenneth Arrow received the Nobel Prize in Economics "for pioneering contributions to general economic equilibrium theory and welfare theory." His first book, "The Theory of Wages"(1932) concerned the economics work. In a famous and often-quoted article "Mr Keynes and the Classics"(Econometria, 1937) introduced a new interpretation of macroeconomics.
He was a member of many prestigious scientific societies in the world. He is Doctor honoris causa of many universities in England and the Technical University of Lisbon. He dealt with the problems of general equilibrium and economic growth. One of the most outstanding representatives of mainstream mathematical economic theory, which draws on the achievements of the Austrian economic school - worked constantly with another representative of this trend, the RGD. Allen. Co-author of the so-called Kaldor's-Hick coefficient-Hicks used to compare the level of prosperity, and Hicks-Hansen model: description of the economy as the money balance, consumption and investment.
Another important Hicks contribution was the concept of compensatory test. Previously, economists were reluctant to argue that one specific result is more desirable than the other. This was due to the fact that even politics, which benefited millions of people, could prove prejudicial to other people. For example, free trade in the automotive market, helps millions of consumers at the expense of thousands of workers. Important question is how to compensate fully the losses to victims and continue to enjoy benefits of free trade? If the answer was Yes, then the policy passed Hicks compensation test, even if it were never to compensate, it was rated positively. For example, the car market economists can prove that the gains outweigh the losses far cars buyers, workers and shareholders..
Hicks emphasized the importance of available inventory. He stressed that the increase in production is only possible when there are stocks of goods and intermediate products that can be used immediately. In an open economy, this condition disappears, because you can always use imported goods. Hicks indicated that it is necessary to the existence of another category of resources, maintaining foreign exchange reserves running in order to finance imports.
In 1937 "Econometrica" Hicks presented diagrams that were the basis for the IS-LM model. The Hicks objective was to isolate the elements that divide followers of Keynes from neoclassical economists. To achieve this goal, He proposed a framework of analysis that allowed to make such a comparison. He collaborated with Roy G.D. Allen
- John Hicks (Wikipedia)