John hicks economist biography of william

The British economist John Hicks is known for four contributions.

Sir John R. Hicks, 1904-1989 - HET Website

The first is his introduction of the idea of the elasticity of substitution. While the concept is difficult to explain in a few words, Hicks used it to show, contrary to the marxist allegations, that labor-saving technical progress—the kind we generally have—does not necessarily reduce labor’s share of national income.

His second major contribution is his invention of what is called the IS-LM model, a graphical depiction of the argument John Maynard Keynes gave in his General Theory of Employment, Interest and Money () about how an economy could be in equilibrium with less than full employment.

Hicks published it in a journal article the year after Keynes’s book was published. It seems safe to say that most economists became familiar with Keynes’s argument by seeing Hicks’s graph.

Hicks’s third major contribution is his book Value and Capital, in which he showed that most of what economists then understoo Sir John R.

Hicks | Nobel Prize, Economic Theory ... BUBOR