J.R. contribution

Sir John Richard Hicks (1904 - 1989) was an English neo-Keynesian economist who won the 1972 Nobel Prize in Economics "for his pioneering contributions to general equilibrium theory and welfare theory."

Hicks was born in England to a newspaper journalist's family. The future economist graduated from Clifton College and Balliol College, Oxford University. All his life, Hicks was engaged in scientific and teaching activities. He has taught at the University of Oxford, the London School of Economics and Political Science, the University of Manchester, and the University of Cambridge.

Hicks was married to Ursula K. Webb, who also worked scientific activity and released a number of well-known scientific works co-authored with Hicks.

In 1964, Hicks became a nobleman, receiving a knighthood. In 1972, the scientist, together with K. J. Arrow, became Nobel Laureate. Hicks donated his monetary reward to the London School of Economics and Political Science.

Remark 1

It is worth noting that in addition to the Nobel Prize, Hicks received many honorary titles, degrees and awards. In addition, he was a member of the academies of sciences in Great Britain, Sweden, Italy, and the USA.

Contribution to the development of the economy

Initially, Hicks was a labor economist studying labor relations, but over time he moved to analytical studies using mathematical knowledge. Hicks' views were influenced by such famous people like Lionel Robbins, Friedrich von Hayek, Roy George Douglas Allen, etc.

Hicks' first major work is " Theory wages ”, published in 1932. The work is devoted to the study of the mechanisms of the functioning of the labor market and the establishment of wages in conditions of imperfect competition. Hicks outlined in this work the theory of industrial conflict, which states that the theory of wages is a special case of the general theory of value. The main factor that disrupts the free interaction of market forces in the labor market, according to Hicks, are trade unions. Hicks' research largely influenced the subsequent development of production function theory and neoclassical theories of unemployment. It is worth noting that the Theory of Wages is currently the standard in the field of state regulation of the level of wages.

One year after the release General Theory of Employment, Interest and Money» Keynes, in 1937, Hicks published the book « Mr. Keynes and the "classics where he attempted to mathematically interpret Keynes's concept. Shortly after its release, Hicks' work replaced Keynes's original work in scientific circles and became the accepted embodiment of his theory. Unlike Keynes, whose reasoning was wordy, incoherent, incoherent, and obscure, Hicks' reasoning was clear, coherent, logical, and concise. Of course, Hicks is not such a famous economist as Keynes, and he is considered simply an interpreter of Keynes' brilliant ideas. However, in history economics Hicks left an equally noticeable mark.

Hicks' main work is the book " Cost and capital”, published in 1939. In it, Hicks, for the first time since Alfred Marshall, attempted a consistent analysis of the foundations of neoclassical economic theory. This book laid the foundations of modern microeconomics (ordinal theory of prices, general theory of equilibrium, etc.). Hicks proved that many provisions of the Austrian theory of value do not depend on supply and demand in the market. It was this work of Hicks that was awarded the Nobel Prize.

Sir John Richard Hicks (English) Sir John Richard Hicks April 8, 1904, Warwick - May 20, 1989, Blockley) - English economist.

Laureate of the Nobel Prize in 1972 (together with K. Arrow) “for his innovative contribution to general theory equilibrium and welfare theory.

Studied at Oxford; received a Master of Arts (MA) and taught there, as well as at the London School of Economics and the University of Manchester. His wife, Lady Ursula K. Webb, daughter of the famous Fabians Sydney and Beatrice Webb, was the author of a series famous works, including "Public Finance in National Income" ( Public Finance in National Income, 1939) - co-authored with her husband.

Scientific achievements

The range of Hicks's scientific interests was quite wide, but he focused on the study fundamental problems modern economic science - issues of cost, supply and demand, prices, wages, capital and profits, economic growth, cyclical development, inflation.

First big work Hicks - "The Theory of Wages" - is devoted to the study of the functioning of the labor market and the mechanism for setting wages in conditions of imperfect competition. Here the scientist outlined his theory of industrial conflict, according to which the theory of wage establishment is special case the general theory of value, and the main factor that violates the free interaction of market forces in the labor market are trade unions. Within the framework of this theory, Hicks tried to prove that wage rates are determined by the intersection of the “concession curve” of entrepreneurs and the “resistance curve” of trade unions, put forward the idea of ​​the possibility of replacing labor with capital and the elasticity of such substitution, gave a definition of the neutrality of technological progress, in which innovation does not lead to change in the proportions of the distribution of the product between the factors of production. Hicks's work had a notable influence on the subsequent development of the theory of production functions and neoclassical theories of unemployment, in particular the theory of the natural rate of unemployment.

In the main work of Hicks - the book "Value and Capital" - for the first time after A. Marshall, an attempt was made to consistently analyze the foundations of neoclassical theory. The book is distinguished by the breadth of the problems considered and lays the foundations of modern microeconomic theory. The paper outlines the foundations of the ordinalist theory of prices, develops the fundamental provisions of the general theory of equilibrium. Hicks first raised the question of the stability of competitive equilibrium in large economic systems and proved that many of the most important concepts of the Austrian subjective theory of value, such as the law of diminishing utility, measurability absolute value utilities, etc., are not really related to fluctuations in supply and demand in the market.

Hicks made a significant contribution to the theory of cyclic development. The scientist abandoned the psychological concepts of the cycle of A. Pigou and other representatives of the Cambridge school and proposed a theoretical scheme of the cycle, in which he identified 4 main phases. In his interpretation, the cycle is a set of deviations from the equilibrium trajectory of economic development.

Hicks' concept of inflation is most fully set forth in the work Essays on the World Economy and boils down to the introduction of the concept of "labor standard" and the thesis of the "wage-price" spiral.

In the 1970s, Hicks paid much attention to the development of methodological problems in the development of economic theory and the revision of Keynesian economic theory. In several later works, primarily in The Crisis in the Development of Keynesian Theory, he clarified and supplemented the constructions and statements of Keynes, abandoned a number of important provisions of his theory and tried to adapt Keynes's theory to modern conditions, becoming the founder of "Hicksian Keynesianism".

Scientific works

Equilibrium and welfare economics.

This analysis effects of substitution and income was carried out according to the methodology of John Hicks, in which a given level of real income is defined as providing a given level of consumer welfare (a given level of utility). Evgeny Evgenievich Slutsky, who developed the main provisions of this analysis (his research was carried out two decades earlier, but became known to the world economic community later than Hicks' results), used a less rigorous utility theory, but more empirically easy and therefore more pragmatic way to determine this level of real income. He suggested that real income be considered unchanged in the case when, after a change in prices, the consumer can buy the same set of goods as before. this change. Therefore, with Slutsky's approach, the intermediate budget line must pass through a point representing the initial optimal set of goods (Fig. 7.9).

English economist, Nobel Prize winner John Hicks proposed to divide technological progress into neutral, labor-saving and capital-saving. Neutral technological progress provides a simultaneous increase in the productivity of labor and capital. Labour-saving technical progress ensures the economy of both labor and capital, but above all labor. Capital-saving technical progress increases the efficiency of the use of both capital and labor, but above all capital.

Hicks, Sir John Richard, 1904-1989

IGOR But we already know this dependence as the law of demand. ANTON Of course, Igor, witches are getting closer to a more complete understanding of demand. Let's quote John Hicks from his book Value and Capital A fall in the price of a commodity actually determines the demand for it in two ways. different ways. On the one hand, it makes the consumer richer, increases his "real income" - a fall in prices in this sense leads to consequences similar to those of an increase in income. On the other hand, it leads to a change in relative prices, so that regardless of the change in real income, there is a tendency to replace all other goods with the goods whose price has decreased. Ultimately, the change in demand is the result of the two trends noted.

WARNING For me, no matter how you look at this curved line, you will not see anything additional. ANTON Now we will deal with the simultaneous influence on the demand for substitution and changes in income discovered by John Hicks.

John Hicks, English economist, Nobel laureate

Famous scientists John Hicks (Great Britain) and Alvin Hansen (USA) developed the standard equilibrium market model on the basis of Keynesian theory. The general equilibrium in the real and money markets is studied using the apparatus of IS-LM curves.

John Hicks (1904-1989, UK) - for research on the theory of general economic equilibrium and welfare theory.

Consider the patterns that govern the elasticity of demand for labor. British economists Alfred Marshall and John Hicks identified these patterns. The bottom line here is that, other things being equal, the direct elasticity of demand for labor of a particular category of workers with respect to wages will be higher under the following conditions

Many Western economists consider profit as a global financial result, because, in their opinion, the traditional indicators of gross profit, profitability, net profit do not cover the entire activity of the enterprise, but characterize only certain aspects or stages of calculation (gross, net profit). The first authors to develop a general concept of global profit were Adam Smith, John Hicks, Jean-Baptiste Say, and others. Adam Smith was the first to characterize profit as an amount that can be spent without encroaching on capital. The global financial result was defined as the increase or decrease in the value of property at constant capital at the beginning and end of the period, assuming that accounts payable were repaid at the beginning and end of the period. The English economist, Nobel Prize winner John Hicks clarified this definition, stating that profit is the amount that a person can spend over a certain period of time without changing his wealth. The novelty of the idea of ​​J. Hicks was that he was able to extend the concept of profit, which characterizes the activities of enterprises, to the individual activities of citizens, which was the basis for tax control over income and expenses individuals and entrepreneurs without forming a legal entity. If you declare and inventory all property at the beginning and end of the taxable period and declare all income for this period, and then organize control over expenses, you can easily establish income hidden from taxation.

John Hicks (1904-1989) believed that profit is what the owner recognizes as such, i.e. what he believes in. This statement is shared by the vast majority of practicing accountants. They are convinced that the profit calculated by them in accordance with the requirements of regulatory documents is the correct profit, unless, of course, they (accountants) deliberately distorted it. However, at the same time, Hicks argued that profit is what the owner can consume without worsening his well-being, i.e. believed that the owner can withdraw from the enterprise the entire difference between the final and initial value of the funds invested in the enterprise, which thereby determines the amount of profit.

John Hicks (Hiks) was the first to draw the LM chart back in 1937. He gave it this name because the chart represents a set of points at which the demand for real cash balances, i.e. liquidity L, is equal to their supply (L/) from the Fed.

The AS graph represents the locus of points, including the two points shown in Fig. 20-16. This designation for this graph, like the LM graph, was given by John Hicks in 19-7, who was the first to build it for a model of an economy without a public sector. Since income is equal to expected expenditures along the IS schedule, it is also true that in a model of an economy without a public sector, the leakage of funds in the form of savings from the income-expenditure stream is equal to the return injections of funds in the form of investments, i.e. / = S hence the term schedule IS.

Another famous neoclassicist was L. Walras. His main job Elements of Pure Economic Theory (1874) became a sort of charter of exact economics. It contains a deep economic and mathematical justification for the theory of general equilibrium, which was picked up by economists new wave who made a great contribution to the development and improvement of this problem. Among these economists were Vilfredo Pareto (1848-1923), Enrique Barone (1859-1924), Gustav Cassel (1866-1945), John Hicks] 904-1988), Abraham Wald (1902-1950), Paul Samuelson (1915) , Kenneth Arrow (1921), Gerard Debre (1921).

Hicks (Hiks) John Richard (1904-1989), English economist, Nobel laureate (1972). He was educated at Oxford and has taught and researched at the London School of Economics, the University of Manchester and Oxford. Works in general equilibrium theory, welfare economics theory, business cycle theory, consumption and growth. Hicks came up with the idea of ​​analyzing IS-LM curves, which has become one of the important tools of Keynesian theory (otherwise, the Hicks-Hansen curve). He was awarded the Nobel Prize "for his pioneering contributions to the theory of general economic equilibrium and welfare theory."

Keynes's theory and the budgetary policy based on it gained immense popularity in subsequent years. Most economists could call themselves Keynesians and statesmen working in the field of macroeconomic problems. It should be noted that the General Theory ... of Keynes is not written clearly and strictly enough, so it is not always clear what exactly the author had in mind. Therefore, the further development of Keynesian theory went along different directions. The most influential of these saw Keynesianism as an important but still addition to neoclassical theory, which explains the possible instability of the economy by inflexible wage rates and a liquidity trap. This direction was called neoclassical synthesis (meaning the synthesis of neoclassics and Keynesianism). Important role the English economist John Richard Hicks (1904-89), who built the so-called ISLM model, and the American Paul Samuelson (Samuelson, born in 1915) played here. Other Keynesians (R. Klauer, A. Leyonhufvud, and others) believed that Keynes's teaching was distorted in the neoclassical synthesis. In their opinion, in principle, it cannot be synthesized with neoclassical theory, since it comes from a situation of uncertainty and disequilibrium, the expectations of entrepreneurs play a large role in it, and neoclassicism, on the contrary, assumes complete information and equilibrium.

Hicks (Hiks) John (1904-1989), English economist. Proceedings in the field of modeling economic growth, the theory of demand, prices. Nobel Prize winner (1972).

ANTON It is possible to add, as it seems to me, that Pareto proclaimed the rejection of the measurability of utility and proposed to perceive consumer preferences as an observable fact. In the words of John Hicks, Pareto only opens the door through which we may or may not enter. Further development of the ordinalist approach belongs to Evgeny Evgenievich Slutsky, Roy Allen and John Hicks.

Hicks (Hiks) John Richard (1904-1989), English economist. Educated at Oxford. He taught at the London School of Economics (1926-35). Engaged in scientific research at Cambridge (1935-38) and Oxford (1946-52 and 1965-71). In 1938-46. Professor of Manchester, and in 1952-65. Oxford Universities. Hicks' main work is on consumption theory, economic growth, monetary theory, as well as economic history. His most famous book was Value and Capital (1939) (Russian translation - 1988).

HIKKS (Hiks) John Richard (b. 8.4. 1904), English economist. Educated at Oxford. He taught at the London economy school (192B - 35), led the I.-I. work in Cambridge (1935-38) and Oxford (194I -51, 1965 - 71), prof. Manchester (1938-40) and Oxford (1952-65) Univ.

; received a Master of Arts (MA) degree and taught there, as well as at the London School of Economics and the University of Manchester. His wife Lady Ursula K. Webb (H.), daughter of the famous Fabians S. and B. Webb, was the author of a number of well-known works, including Public Finance in National Income (1939) - co-authored with husband.

Compositions

• The Theory of Wages (1932);
• Value and Capital: An Inquiry into some Fundamental Principles of Economic Theory, 1939;
• "Essays in World Economics" (Essays in World Economics, 1959);
• "Collection of Essays on Economic Theory" in 3 vols. (Collected Essays in Economic Theory, 1981-83).

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Wikipedia has articles on other people with this last name, see Hicks. John Richard Hicks John Richard Hicks Date of birth: April 8, 1904 (1904 04 08) Place of birth: Warwick ... Wikipedia

Sir John Richard Hicks (Eng. Sir John Richard Hicks, April 8, 1904, Warwick May 20, 1989, Blockley) English economist 1972 Nobel Prize winner "for his pioneering contributions to general equilibrium theory and welfare theory." Studied at Oxford; ... ... Wikipedia

Sir John Richard Hicks (Eng. Sir John Richard Hicks, April 8, 1904, Warwick May 20, 1989, Blockley) English economist 1972 Nobel Prize winner "for his pioneering contributions to general equilibrium theory and welfare theory." Studied at Oxford; ... ... Wikipedia

Sir John Richard Hicks (Eng. Sir John Richard Hicks, April 8, 1904, Warwick May 20, 1989, Blockley) English economist 1972 Nobel Prize winner "for his pioneering contributions to general equilibrium theory and welfare theory." Studied at Oxford; ... ... Wikipedia

Sir John Richard Hicks (Eng. Sir John Richard Hicks, April 8, 1904, Warwick May 20, 1989, Blockley) English economist 1972 Nobel Prize winner "for his pioneering contributions to general equilibrium theory and welfare theory." Studied at Oxford; ... ... Wikipedia

Hicks is a surname. Notable speakers: Hicks, Bill (1961-1994) American stand-up comedian and social critic. Hicks, John Richard (1904-1989) English economist. Hicks, David Matthew (b. 1975) Australian, Islamic terrorist. Hicks, ... ... Wikipedia

John Hicks (April 8, 1904, Warwick May 20, 1989, Blockley), English economist, representative of neo-Keynesianism. Works in the field of modeling economic growth, the theory of demand, prices. Nobel Prize (1972) … encyclopedic Dictionary

English Keynesian economist; made a great contribution to the theory of general equilibrium, the theory of value, the theory of interest, the theory of the trading cycle. Main works: lCost and capital Dictionary of business terms. Akademik.ru. 2001 ... Glossary of business terms

- (1904 89) English economist, representative of neo-Keynesianism. Works in the field of modeling economic growth, the theory of demand, prices. Nobel Prize (1972) ... Big Encyclopedic Dictionary

Books

• Transurfing practical course in 78 days. Reality Maker. How to defeat inner dragons. Dreams Come True (4 book set), Vadim Zeland, John F. Demartini, Esther and Jerry Hicks. For more information about the books included in the kit, you can find out by clicking on the links: "Practical course of Transurfing in 78 days" "The arbiter of reality" "How to defeat the inner…

English economist John Richard Hicks was born in Warwick, near Birmingham. His father, Edward Hicks, was a journalist for the local newspaper. At school and during the first year of study at Clifton College, Oxford, where X. entered in 1917, he majored in mathematics. From 1922 to 1926 he continued his studies at Balliol College. Also interested in literature and history, X. moved in 1923 to the newly opened Oxford School of Philosophy, Politics and Economics, but his studies there proceeded without any special results. Hicks's academic success did not augur his future achievements in the scientific field and, by his own candid admission, he graduated from the university "with a second-class degree and without sufficient knowledge in any of the subjects studied."

Hicks easily got a temporary lecture course at the London School of Economics (LSE). He began to specialize in labor economics and the analysis of industrial relations, but soon switched to economic theory, discovering that his mathematical background, by then rather forgotten, could come in handy. Biggest Influence the formation of Hicks's theoretical views was influenced by the works of the creator mathematical method economic analysis and the theory of general equilibrium by L. Walras and his follower V. Pareto. While working on his first book, "The Theory of Wages" ("The Theory of Wages", 1932), Hicks, in his own words, had a vague idea of ​​the activities of J. M. Keynes and his group in Cambridge. Only thanks to the discussion around the book by F. von Hayek "Prices and Production" ("Prices and Production"), which took place at the LSE in 1931, Hicks turned to macroeconomic analysis.

In 1935, Mr.. X. moved to the staff of Conville and Keyyus College, Cambridge University. That same year he married Ursula Webb, an economist at the LSE; for many years the Hicks spouses have worked extensively and creatively together, mainly on problems economic policy. From 1939 to 1946 Hicks was professor of economics at the University of Manchester. There he carried out his main work in the field of welfare economics. In 1946, Mr.. X. returned to Oxford, first as a research fellow at Nuffield College. Since 1952 he has been a professor of political economy at Oxford University. He remained in this position until his retirement in 1965. During these years, X. performed work in many areas of economic theory. He has written on the theory of money, international trade, economic growth, cyclical fluctuations in the economy, and the problems of developing countries, some of which he visited with his wife, who specializes in this field.

Hicks' The Theory of Wages (1932) was an attempt to apply the theory ultimate performance to payroll analysis. In addition, he attracted to the study of this issue the so-called theory of bargaining - a softened version of the theory of free competition. With the help of the "concessions of the entrepreneur" curve and the "demands of the trade union" curve, X. determined the maximum wage that the trade union can achieve with skillful negotiation by the trading parties, arguing that the gain in any case will be nullified, since the principle will eventually prevail ultimate performance. Central to the analysis of X. occupies the thesis of the possibility of interchangeability of capital and labor.

He introduced into economic analysis the concept of "coefficient of substitution" (or "elasticity of substitution") - an indicator that determines the relative ease of substituting one factor of production for another. To show the impact of technological change on wages, a rigorous analysis of the role of inventions was undertaken. X. showed that if the interchangeability factor (elasticity factor) zero, then this indicates the neutrality of inventions that do not change the shares of labor and capital. Labor-saving inventions reduce the workers' share of income, which may increase in absolute terms. X. showed. that inventions which reduce the cost of labor especially sharply and are, from this point of view, the most profitable, can have a detrimental effect, since in this case there will be both a relative and an absolute reduction in the share of workers. X. was primarily interested in the impact of relative changes in the size of the remuneration of each of the factors of production on the quantitative ratios between them in production. So, according to X., fungibility becomes significant as soon as a small drop in wages leads to a wider use of labor compared to capital. In this case, the share of the working class in the national income increases. At the same time, X. implied the conditions of free competition and a fairly quick reaction to changes in the situation on the market, both on the part of labor and on the part of capital, which in itself is very problematic.

Between 1935 and 1938 X. wrote his most significant work, "Value and Capital" ("Value and Capital"). Published in 1939, it was in a certain sense an attempt to develop the theory of general equilibrium by L. Walras and V. Pareto. The book is considered early British version"Foundations of Economic Analysis" by Samuelson. The starting point of the theory of X. was the idea of ​​the subjective nature of value and needs. The initial chapters of the book substantiate what in modern economic theory is called the orthodox theory of the behavior of consumers and producers. X. created a logical system, rooted in the ideas of free competition XVIII century .. Created by him the theory of general equilibrium was generally static in nature, since it considered economic dynamics as a series of states of static equilibrium. In the theory of X. was absent and the time factor, so the economic dynamics in his analysis, in essence, remained unexplored.