Contributions to economic analysis

Sir John Richard Hicks

Early life

Sir John Richard Hicks(April 8 1904 - May 20 1989) was one of the most important and influential economists of the twentieth century. Hicks was born in 1904 at Warwick, England. His father was a journalist at a local newspaper.

He was educated at Clifton College (1917–1922) and at Balliol College, Oxford (1922–1926). During his school days, and in his first year at Oxford, he specialised in mathematics and economics but also had interests in literature and history.

Career and honors

From 1926 to 1935 Hicks lectured at the London School of Economics and Political Science. He started as an economist and did descriptive work on industrial relations but gradually he moved over to the analytical side, where his mathematics background returned to the fore.

From 1935 to 1938, he lectured at Cambridge where he was also a fellow of Gonville & Caius College. He was mainly occupied in writing Value and Capital, which was based on the work he had done in London. From 1938 to 1946, he was Professor at the University of Manchester. It was there that he did his main work on welfare economics, with its application to social accounting.

In 1946 he returned to Oxford, first as a research fellow of Nuffield College (1946–1952), then as Drummond Professor of Political Economy (1952–65), and finally as a research fellow of All Souls College (1965–71) where he continued writing after retirement. He was also an honorary fellow of Linacre College. He died in 1989.

He was awarded Nobel Prize in 1972 for economics. The Nobel Prizes are awarded annually to people who have done outstanding research, invented groundbreaking techniques or equipment, or made outstanding contributions to society. It is generally regarded as the supreme commendation in the world today. He donated the Nobel Prize to the London School of Economics and Political Science's Library Appeal in 1973.

Contributions to economic analysis

Hicks was a professor at The University of Oxford, situated in the city of Oxford, England,the oldest university in the English-speaking world. He was awarded Nobel Prize in 1972 for economics. The Nobel Prizes are awarded annually to people who have done outstanding research, invented groundbreaking techniques or equipment, or made outstanding contributions to society. It is generally regarded as the supreme commendation in the world today. Hicks developed the famous "compensation" criteria called Kaldor-Hicks efficiency (named for Nicholas Kaldor and John Hicks) is a type of economic efficiency that occurs only if the economic value of social resources is maximized. A Kaldor-Hicks improvement is any alternative that increases the economic value of social resources. The idea is related to Pareto efficiency. Under Pareto efficiency, an outcome is more efficient if at least one person is made better off and nobody is made worse off. Under Kaldor-Hicks efficiency, a more efficient outcome can leave some people worse off. Here, an outcome is more efficient if those that are made better off could in theory compensate those that are made worse off and lead to a Pareto optimal outcome. It is named after the River Leam which flows through the town. Hickss most influential contribution has come to be called the Hicks-Hansen IS-LM Model which, based on the theories of John Maynard Keynes. John Maynard Keynes (June 5, 1883 in Cambridge - April 21, 1946 in Sussex) was an English economist, whose radical ideas had a major impact on modern economic and political thought. He is particularly remembered for advocating interventionist government policy, by which the government would use fiscal and monetary measures to aim to mitigate the adverse effects of economic recessions and booms. His ideas have been further developed by the school of Keynesian economics, an economic theory based on the his ideas, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936.

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