John Richard Hicks was a British neo-Keynesian economist. Hicks was born in the United Kingdom in 1904 and studied at Oxford School where he moreover lectured. All the way through his occupation, Hicks was widely known for his contributions to laborious paintings economics, software and worth thought, macroeconomics, and welfare economics. He received the 1972 Nobel Memorial Prize in Economics, sharing it with Kenneth Arrow for their construction of standard equilibrium thought and welfare thought.
Key Takeaway
- John R. Hicks was a neo-Keynesian economist.
- He was well-known for his wide-ranging contributions to microeconomic and macroeconomic thought.
- His number one contributions to monetary thought include the advances in microeconomic value and alertness thought, the Hicks compensation check out in welfare economics, and the IS-LM taste in macroeconomics.
- Hicks was awarded the Nobel Prize in 1972 for his artwork typically equilibrium and welfare economics.
- Hicks was born in 1904 and died at the age of 85 in 1989.
Investopedia / Alison Czinkota
Early Life and Coaching
John R. Hicks was born in the United Kingdom in Warwick on April 8, 1904. He studied at Clifton Faculty and Oxford School between 1917 and 1926 where he taking into consideration economics, math, philosophy, and politics.
After graduating, he lectured at the London School of Economics and Political Science from 1926 to 1935. He moreover taught at Cambridge School and the School of Manchester quicker than returning to Oxford in 1946.
Hicks married fellow economist Ursula Webb in 1935. The couple had no children. He was knighted in 1964 for his artwork in economics and was awarded the Nobel Prize in 1972. Hicks died on Would in all probability 20, 1989.
Hicks’ partner, Ursula Webb, was probably the most the most important founders of the Evaluate of Monetary Analysis. The learning mag was established in 1933 for more youthful economists.
Notable Accomplishments
Hicks made quite a lot of crucial contributions to monetary thought right through his occupation. The ones contributions ranged from fundamental neoclassical value thought to macroeconomic modeling.
Honors and Awards
Hicks was awarded the Nobel Prize in 1972. He shared the distinction with Kenneth J. Arrow, another neoclassical economist. Their artwork on customary equilibrium analysis and welfare economics earned them the award. Forward of he was awarded the Nobel Prize, Hicks was knighted in 1964. He moreover received quite a lot of honorary doctorate ranges from quite a lot of universities throughout the U.Good enough.
Printed Works
Hicks’ first ebook, Thought of Wages, developed the microeconomics of wage resolution in competitive and regulated laborious paintings markets. In this artwork, he presented the idea that that of elasticity of substitution between capital and tough paintings, which was his basis to dispute Karl Marx’s thought via arguing that labor-saving technological construction does not necessarily reduce laborious paintings’s share of income. This ebook was an unusual textbook on laborious paintings economics for a few years.
In his early papers and his 2d ebook, Value and Capital, he sophisticated the appliance and worth thought in conjunction with his creation of the Hicksian compensated name for curve. He moreover explored the idea that that of composite pieces to simplify name for modeling along with the exploration of the income affect and substitution affect.
Hicks moreover sophisticated the microeconomic analysis of interactions in Value and Capital between markets via formalizing a method of comparative statics and presented Walrasian customary equilibrium thought to the English-speaking world. The ones models show how changes in markets impact prerequisites in several markets and the best way all of the specific individual markets in an financial machine engage to yield an normal equilibrium for all markets.
Legacy
Hicks is widely known for making 4 number one contributions to the field of economics. His first is the elasticity of substitution. It was used to expose how labor-saving processes don’t have a direct impact on the aid of the share of national income.
Hicks’ IS-LM taste formalized Keynesian macroeconomic thought to show how an financial machine can be in equilibrium with less-than-full employment. The IS-LM taste depicts macroeconomic equilibrium as a comprised of the interaction of economic markets and precise pieces markets. This taste is a now not abnormal classroom tool in macroeconomics and is once in a while used to judge macroeconomic stabilization insurance coverage insurance policies, along with monetary fluctuations.
His ebook Value and Capital, which was printed in 1939, is generally considered his third number one accomplishment in economics. The Hicksian value and alertness models he presented throughout the ebook mathematically disclose how consumer preferences, value changes, and income engage to shape name for for pieces and are nevertheless used as foundational elements of value thought in microeconomics.
In welfare economics, Hicks is widely known for his Hicks compensation principle, regularly known as Hicks efficiency. This concept can be used as a criterion to judge the costs and benefits of changes to the industrial machine and monetary protection via comparing the losses for the losers with the really helpful homes for the winners.
What Is John R. Hicks Identified for?
John R. Hicks is best possible known for necessary artwork throughout the field of economics and is thought of as probably the most the most important influential economists of the 20th century. His number one accomplishments come together with his contributions to laborious paintings economics, software and worth thought, and macroeconomics. He moreover made great strides in his theories about welfare economics. Hicks was awarded the Nobel Prize with Kenneth Arrow for their artwork on customary equilibrium thought and welfare thought.
Why 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 artwork on customary equilibrium analysis and welfare economics.
What Used to be as soon as John R. Hicks’ IS-LM Type?
Hicks’ IS-LM Type is designed to show the relationship between the market for monetary pieces and loanable funds, which is regularly known as the money market. The former is known as IS (or investment monetary financial savings) while the latter is known as LM. The manner is depicted on a graph where the IS and LM intersect at the degree where between the short-run equilibrium and the interest rates and output. It is continuously used to concentrate on how market need changes affect the steadiness of interest rates and GDP.
The Bottom Line
John R. Hicks is continuously considered probably the most the most important influential economists of the 20th century. He is credited with making necessary contributions to quite a lot of areas of the field, in conjunction with laborious paintings economics and welfare economics. But it surely certainly was his artwork with Kenneth Arrow involving customary equilibrium thought and welfare concept that won the two men the Nobel Prize in 1972.
