John Hicks received the Nobel Memorial Prize in Economic Sciences in 1972, jointly with Kenneth J. Arrow, for their pioneering contributions to general equilibrium theory and welfare theory. He donated the prize money to the Library Appeal of the London School of Economics and Political Science in 1973.
What is the IS-LM model and who created it?
The IS-LM model was created by John Hicks and published in his 1937 paper "Mr. Keynes and the 'Classics'; a suggested interpretation". It describes the economy as a balance among money, consumption, and investment, and formalised an interpretation of John Maynard Keynes's macroeconomic theory. Hicks himself later called it a classroom gadget in a 1980 paper.
What is Hicksian demand?
The Hicksian demand function, named after John Hicks, is a compensated demand function used in microeconomics to measure consumer demand while holding utility constant. It isolates the substitution effect from the income effect, a distinction Hicks formalised in Value and Capital in 1939.
What is John Hicks's book Value and Capital about?
Value and Capital, published in 1939, extended general equilibrium and value theory for English-speaking economists. It established the standard distinction between the substitution effect and the income effect in demand theory, formalised comparative statics, and introduced general equilibrium theory to a broad audience for the first time.
What are the three Hicksian measures of income?
Hicks defined three measures of income in Value and Capital (1946). The first is the maximum spendable amount that leaves capital value intact in money terms. The second is the maximum weekly spending that allows the same nominal amount to be spent in every following week. The third adjusts for real purchasing power, defining income as the maximum spending this week while maintaining the same real spending capacity in each subsequent week.
Where was John Hicks born and when did he die?
John Hicks was born on the 8th of April 1904 in Warwick, England. He died on the 20th of May 1989 at his home in the Cotswold village of Blockley.