Bertil ohlin biography of rory hamilton

Swedish economist and politician (–)

Bertil Gotthard Ohlin (Swedish:[ˈbæ̌ʈːɪlʊˈliːn]) (23 April – 3 August ) was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from to He was also leader of the People's Party, a social-liberal party which at the time was the largest party in opposition to the governing Social Democratic Party, from to He served briefly as Minister of Commerce and Industry from to in the Swedish coalition government during World War II.

He was President of the Nordic Council in and

Ohlin's name lives on in one of the standard mathematical models of international free trade, the Heckscher–Ohlin model, which he developed together with Eli Heckscher. He was jointly awarded the Nobel Memorial Prize in Economic Sciences in together with the British economist James Meade "for their pathbreaking contribution to the theory of international trade and international capital movements".

Biography

Bertil Ohlin was raised in Klippan, Scania with seven siblings, where his father Elis was a civil servant and bailiff. His mother Ingeborg influenced him with her left-liberal views on the society, with Nordic partnership and Karl Staaff as her role model.

Bertil Ohlin – Wikipedia tiếng Việt

Clear

Bertil Ohlin - Wikipedia, den frie encyklopædi

Bertil Ohlin | Biography & Theory of International Trade ...

Item 1 of 1

He received his B.A. from Lund University at the age of 18 and his MSc. from Stockholm School of Economics in ^[1]

He obtained an M.A. from Harvard University in and his doctorate from Stockholm University a year after in at the age of ^[1] In , he became a professor at the University of Copenhagen.

In , he debated with John Maynard Keynes and contradicted the latter's view on the consequences of the heavy war reparations payments imposed on Germany. (Keynes predicted a war caused by the burden of debt, but Ohlin thought that Germany could afford the reparations.) The debate was important in the modern theory of unilateralinternational payments.

In , Ohlin succeeded Eli Heckscher, his teacher, as a professor of economics, at the Stockholm School of Economics.^{[citation needed]}

In , Ohlin spent half a year at the University of California, Berkeley, as a visiting professor.^[2][3][4] He also worked as an outside expert for the Economic and Financial Organization of the League of Nations, together with Oskar Morgenstern and Jacques Rueff, supporting the EFO's work on economic depressions in the late s.^[5]:&#;29&#;

Ohlin was party leader of the liberalLiberal People's Party from to , the main opposition party to the Social Democrat Governments of the era, and from to was Minister of Commerce and Industry in the wartime government.

His daughter Anne Wibble, representing the same party, served as Minister for Finance from to ^{[citation needed]}

Heckscher–Ohlin theorem

Main article: Heckscher–Ohlin theorem

In , Ohlin published Interregional and International Trade.^[1][6][7][8] Ohlin built in it an economic theory of international trade from earlier work by Heckscher and his own doctoral thesis.^[1] It is now known as the Heckscher–Ohlin model, one of the standard model economists use to debate trade theory.

The model was a breakthrough because it showed how comparative advantage might relate to general features of a country's capital and labor, and how those features might change through time. The model provided a basis for later work on the effects of protection on real wages, and has been fruitful in producing predictions and analysis; Ohlin himself used the model to derive the Heckscher–Ohlin theorem, which predicts that capital-abundant countries export capital-intensive goods, while labor-abundant countries export the labor-intensive goods.

The Heckscher–Ohlin Theorem, which is concluded from the Heckscher–Ohlin model of international trade, states: trade between countries is in proportion to their relative amounts of capital and labor. In countries with an abundance of capital, wage rates tend to be high; therefore, labor-intensive products, e.g. textiles, simple electronics, etc., are more costly to produce internally.

In contrast, capital-intensive products, e.g. automobiles, chemicals, etc., are less costly to produce internally. Countries with large amounts of capital will export capital-intensive products and import labor-intensive products with the proceeds.

Bertil ohlin biography of rory van: From the autumn of , I served for one year as assistant secretary to the Economic Council which, under the chairmanship of the Minister of Finance, included nine economic leaders from banking, industry and agriculture, and Gustav Cassel as representative of economic science.

Countries with high amounts of labor will do the reverse.

The following conditions must be true:

• The major factors of production, namely labor and capital, are not available in the same proportion in both countries.
• The two goods produced either require more capital or more labor.
• Labor and capital do not move between the two countries.
• There are no costs associated with transporting the goods between countries.
• The citizens of the two trading countries have the same needs.

The theory does not depend on total amounts of capital or labor, but on the amounts per worker.

This allows small countries to trade with large countries by specializing in production of products that use the factors which are more available than its trading partner. The key assumption is that capital and labor are not available in the same proportions in the two countries. That leads to specialization, which in turn benefits the country's economic welfare.

The greater the difference between the two countries, the greater the gain from specialization.

Bertil ohlin biography of rory allen He began as a scholar, then wandered back and forth for a time across the boundary between the academic and political worlds, eventually becoming a full-time politician. His work on macroeconomics , with its use of such concepts as the propensity to consume, the liquidity preference and the multiplier, made him an important precursor of Keynes. Ohlin's name will, however, always remain associated with the standard mathematical model of international free trade, the Hecksher-Ohlin model. This theory, based on work with his colleague and former professor Eli Heckscher , states that countries naturally produce and export goods that make the most use of the factor of production in greatest abundance within the country. As such, it predicts a natural equilibration of the economic exchange between countries in harmony, allowing economic growth and subsequent prosperity for all.

Wassily Leontief made a study of the theory that seemed to invalidate it. He noted that the United States had a lot of capital; therefore, it should export capital-intensive products and import labor-intensive products. Instead, he found that it exported products that used more labor than the products it imported.

This finding is known as the Leontief paradox.

Awards and decorations

See also

Significant publications

Sources

References

Further reading

External links