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
Examples of John Richard Hicks
- John Richard Hicks is known for his development of the IS-LM model, which is a macroeconomic model that is used to explain how the interaction of the real and money markets determine the level of economic activity. This model has become an integral part of macroeconomic theory and remains one of the most influential contributions to the field.
- In 1932, John Richard Hicks developed the concept of compensating wage differentials, which states that workers who work in dangerous or unpleasant conditions should be compensated with higher wages in order to incentivize them to continue working in such conditions.
- Hicks is also known for his work on welfare economics, which explores the implications of economic choices for the well-being of society. He published his book Value and Capital in 1939, which laid the foundation for welfare economics. In this book, Hicks introduced the concepts of consumer's surplus and producer's surplus.
- John Richard Hicks was awarded the Nobel Prize in Economics in 1972 for his contributions to welfare economics and general equilibrium theory. He was the first British economist to be awarded the Nobel Prize in Economics.
Advantages of John Richard Hicks
John Richard Hicks was a prominent English economist who was born on April 8, 1904 in Leamington Spa, England, and died on May 20, 1989 in Blockley. He was highly influential in the field of economics, making significant contributions in microeconomics, macroeconomics, and economic theory. He was known for his ability to synthesize different schools of thought and for his development of the concept of consumer demand theory. Below are some of the advantages of John Richard Hicks:
- He was highly influential in the field of economics, making significant contributions in microeconomics, macroeconomics, and economic theory. This enabled him to bridge the gap between the different schools of thought within the field and helped to create a more unified and comprehensive approach to economics.
- He is credited with the development of consumer demand theory which has been used to explain consumer behavior and the way in which consumers make purchasing decisions. This theory has had a lasting impact on the way businesses operate and has been used to inform marketing and pricing strategies.
- He was an accomplished mathematician and was able to use his skills to develop innovative models and theories that have had a lasting influence in the field of economics.
- He was highly respected by his peers and was awarded the Nobel Prize in Economics in 1972 for his work on welfare economics and general equilibrium theory. This has cemented his legacy as one of the most influential economists in history.
Limitations of John Richard Hicks
John Richard Hicks was a prominent English economist, born on April 8, 1904 in Leamington Spa, England and died on May 20, 1989 in Blockley. Despite his great contributions to economics, he was limited in his approach, as evidenced by the following:
- Hicks' ideas were largely rooted in the neoclassical theories of economics and he did not consider the implications of behavioral, institutional, or political economics.
- His work focused on the development of mathematical models of economic decision making, which could be considered limited for the complexity of the real-world environment.
- Hicks often failed to take into account the effects of externalities, such as the environment or public health, when making economic decisions.
- He was largely dismissive of Keynesian economics, which had a great influence on the development of modern economics.
- Hicks was a proponent of the quantity theory of money, which emphasizes the relationship between money supply and inflation and largely ignores other factors, such as economic growth, employment and wages.
John Richard Hicks was a renowned English economist whose works focused on microeconomic theory, welfare economics, and consumer theory. His contributions to economics are well known, and his influence has been felt in many fields. Here are some other approaches related to John Richard Hicks:
- Mathematical Economics: Hicks developed mathematical models to demonstrate and analyze economic theory. He was a pioneer in the use of mathematical equations and models to explain economic behavior.
- Value Theory: Hicks was interested in the concept of value and its implications for the economy. He used the concept of consumer surplus to analyze the value of goods and services.
- General Equilibrium Theory: Hicks was one of the first economists to develop a general equilibrium theory, which examines how different economic agents interact to balance supply and demand in an economy.
- Welfare Economics: Hicks developed a theory of welfare economics, which seeks to understand how economic policies can improve the social welfare of a society.
In summary, John Richard Hicks was an important figure in the field of economics and his works touched on many aspects of the field, including mathematical economics, value theory, general equilibrium theory, and welfare economics.
| John Richard Hicks — recommended articles |
| Austrian theory of money — Alfred Marshall — Vilfredo Pareto — Endogenous growth theory — David Ricardo — Gary S. Becker — Arthur Okun — Market dynamics — Global demand |
References
- John Hicks (Wikipedia)
