Huw Dixon

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Huw David Dixon
Professor Huw Dixon.jpg
Huw Dixon 2005
BornJuly 1958
Nationality British
Institution Cardiff Business School
University of York
Swansea University
Essex University
Birkbeck College
Field Economics
School or
New Keynesian Economists
Alma mater Balliol College, Oxford
Nuffield College, Oxford
Influences James Mirrlees, Don Patinkin, Robert Axelrod, Herbert Simon
ContributionsPrice Micro-data in Macroeconomic Models, Introducing Imperfect Competition in Macroeconomics, [1] Equilibria in Bertrand–Edgeworth models with Convex Costs, [2] The Evolution of Consistent Conjectures [3]
Information at IDEAS / RePEc

Huw David Dixon (/hju: devəd dɪksən/), [4] born 1958, is a British economist. He has been a professor at Cardiff Business School since 2006, [5] having previously been Head of Economics at the University of York (2003–2006) after being a professor of economics there (1992–2003), [6] and the University of Swansea (1991–1992), [7] a Reader at Essex University (1987–1991) and a lecturer at Birkbeck College (University of London) 1983–1987.



He graduated from his first degree in Philosophy and Economics from Balliol College, University of Oxford in 1980, and he went on to do his PhD at Nuffield College, University of Oxford under the supervision of Nobel Laureate Sir James Mirrlees [8] graduating in 1984.


Huw Dixon 1992, Chair of Royal Economic Society Conference, with Jagdish Bhagwati (invited speaker) and Sir David Hendry (President of RES) Huw Dixon 1992.JPG
Huw Dixon 1992, Chair of Royal Economic Society Conference, with Jagdish Bhagwati (invited speaker) and Sir David Hendry (President of RES)

Dixon was a fellow of the CEPR from 1991–2001, [9] a member of the Royal Economic Society council (1996–2001), and a fellow of the Ces-ifo institute since 2000. [10] He has been on the Editorial Board of the Review of Economic Studies (1986–1993), [11] the Journal of Industrial Economics. He edited the Controversies section of the Economic Journal (1994-9) and has been the Chair of the Royal Economic Society Conference 1992. [12]

Dixon has a wide scope in terms of the areas of economics he has researched and published in and he has been described as one of Europe's leading economists. [13] The topics include:

  1. Bertrand–Edgeworth models with strictly convex costs. Francis Edgeworth developed the analysis of the model of Bertrand competition in a setting where firms had constant marginal cost up to capacity. Dixon explored how this could be generalized to the case of convex costs. He established the existence of a mixed-strategy Nash equilibrium, [14] and of an Epsilon-equilibrium in a large market, [15] and in other aspects. [16] [17] [18] [19]
  2. Strategic investment Models. The use of capital to alter the way firms compete in oligopoly by altering their marginal cost, [20] or conjectural variations. [21]
  3. Bounded rationality. Dixon explored the implications of evolutionary ideas for oligopoly theory and learning. [22] He also developed one of the first models of endogenous aspirations in economics. [23]
  4. New Keynesian Macreconomics. Dixon was one of the first economists to examine the effect of imperfect competition on the effectiveness of fiscal policy in his paper A simple model of imperfect competition with Walrasian features. [24] This is an idea that was much explored in many other papers by him [25] and more recently. [26] This paper was the first to demonstrate in a simple general equilibrium model that the fiscal multiplier could be increasing with the degree of imperfect competition in the output market. The reason for this is that imperfect competition in the output market tends to reduce the real wage, leading to the household substituting away from consumption towards leisure. When government spending is increased, the corresponding increase in lump-sum taxation causes both leisure and consumption decrease (assuming that they are both a normal good). The greater the degree of imperfect competition in the output market, the lower the real wage and hence the more the reduction falls on leisure (i.e. households work more) and less on consumption. Hence the fiscal multiplier is less than one, but increasing in the degree of imperfect competition in the output market.

Other topics include imperfect competition in macroeconomics, nominal rigidity. Most of his work is New Keynesian. Dixon supports the High Speed 2 development for the United Kingdom, and expressed his support in a Financial Times article on 6 January 2012, along with other leading economists. [27] He has contributed to The Times Higher Education Supplement multiple times regarding economics. [28] [29]


He has authored a book Surfing Economics, which explores New Keynesian economics, the Natural Rate, Bounded Rationality, Social Learning and the meaning of Economics.

Related Research Articles

An oligopoly is a market structure in which a market or industry is dominated by a small number of large sellers or producers. Oligopolies often result from the desire to maximize profits, leading to collusion between companies. This reduces competition, leading to higher prices for consumers and lower wages for employees.

In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium. General equilibrium theory contrasts to the theory of partial equilibrium, which analyzes a specific part of an economy while its other factors are held constant. In general equilibrium, constant influences are considered to be noneconomic, therefore, resulting beyond the natural scope of economic analysis. The noneconomic influences is possible to be non-constant when the economic variables change, and the prediction accuracy may depend on the independence of the economic factors.

<span class="mw-page-title-main">New Keynesian economics</span> School of macroeconomics

New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroeconomics.

This aims to be a complete article list of economics topics:

In economics and commerce, the Bertrand paradox — named after its creator, Joseph Bertrand — describes a situation in which two players (firms) reach a state of Nash equilibrium where both firms charge a price equal to marginal cost ("MC"). The paradox is that in models such as Cournot competition, an increase in the number of firms is associated with a convergence of prices to marginal costs. In these alternative models of oligopoly, a small number of firms earn positive profits by charging prices above cost. Suppose two firms, A and B, sell a homogeneous commodity, each with the same cost of production and distribution, so that customers choose the product solely on the basis of price. It follows that demand is infinitely price-elastic. Neither A nor B will set a higher price than the other because doing so would yield the entire market to their rival. If they set the same price, the companies will share both the market and profits.

The natural rate of unemployment is the name that was given to a key concept in the study of economic activity. Milton Friedman and Edmund Phelps, tackling this 'human' problem in the 1960s, both received the Nobel Memorial Prize in Economic Sciences for their work, and the development of the concept is cited as a main motivation behind the prize. A simplistic summary of the concept is: 'The natural rate of unemployment, when an economy is in a steady state of "full employment", is the proportion of the workforce who are unemployed'. Put another way, this concept clarifies that the economic term "full employment" does not mean "zero unemployment". It represents the hypothetical unemployment rate consistent with aggregate production being at the "long-run" level. This level is consistent with aggregate production in the absence of various temporary frictions such as incomplete price adjustment in labor and goods markets. The natural rate of unemployment therefore corresponds to the unemployment rate prevailing under a classical view of determination of activity.

<span class="mw-page-title-main">Effective demand</span> Demand in a constrained marketplace

In economics, effective demand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market. It contrasts with notional demand, which is the demand that occurs when purchasers are not constrained in any other market. In the aggregated market for goods in general, demand, notional or effective, is referred to as aggregate demand. The concept of effective supply parallels the concept of effective demand. The concept of effective demand or supply becomes relevant when markets do not continuously maintain equilibrium prices.

Bertrand competition is a model of competition used in economics, named after Joseph Louis François Bertrand (1822–1900). It describes interactions among firms (sellers) that set prices and their customers (buyers) that choose quantities at the prices set. The model was formulated in 1883 by Bertrand in a review of Antoine Augustin Cournot's book Recherches sur les Principes Mathématiques de la Théorie des Richesses (1838) in which Cournot had put forward the Cournot model. Cournot's model argued that each firm should maximise its profit by selecting a quantity level and then adjusting price level to sell that quantity. The outcome of the model equilibrium involved firms pricing above marginal cost; hence, the competitive price. In his review, Bertrand argued that each firm should instead maximise its profits by selecting a price level that undercuts its competitors' prices, when their prices exceed marginal cost. The model was not formalized by Bertrand; however, the idea was developed into a mathematical model by Francis Ysidro Edgeworth in 1889.

In economics, the menu cost is a cost that a firm incurs due to changing its prices. It is one microeconomic explanation of the price-stickiness of the macroeconomy put by New Keynesian economists. The term originated from the cost when restaurants print new menus to change the prices of items. However economists have extended its meaning to include the costs of changing prices more generally. Menu costs can be broadly classed into costs associated with informing the consumer, planning for and deciding on a price change and the impact of consumers potential reluctance to buy at the new price. Examples of menu costs include updating computer systems, re-tagging items, changing signage, printing new menus, mistake costs and hiring consultants to develop new pricing strategies. At the same time, companies can reduce menu costs by developing intelligent pricing strategies, thereby reducing the need for changes.

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<span class="mw-page-title-main">Kinked demand</span>

The Kinked-Demand curve theory is an economic theory regarding oligopoly and monopolistic competition. Kinked demand was an initial attempt to explain sticky prices.

Dynamic stochastic general equilibrium modeling is a macroeconomic method which is often employed by monetary and fiscal authorities for policy analysis, explaining historical time-series data, as well as future forecasting purposes. DSGE econometric modelling applies general equilibrium theory and microeconomic principles in a tractable manner to postulate economic phenomena, such as economic growth and business cycles, as well as policy effects and market shocks.

<span class="mw-page-title-main">Microfoundations</span> Understanding of macroeconomic phenomena based on economic agents actions

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<span class="mw-page-title-main">History of macroeconomic thought</span> Aspect of history

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In microeconomics, the Bertrand–Edgeworth model of price-setting oligopoly looks at what happens when there is a homogeneous product where there is a limit to the output of firms which are willing and able to sell at a particular price. This differs from the Bertrand competition model where it is assumed that firms are willing and able to meet all demand. The limit to output can be considered as a physical capacity constraint which is the same at all prices, or to vary with price under other assumptions.

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  1. Dixon, Huw; Rankin, Neil (1994). "Imperfect Competition and Macroeconomics: A Survey". Oxford Economic Papers. 46 (2): 171–199. doi:10.1093/oxfordjournals.oep.a042122. JSTOR   2663646 . Retrieved 31 October 2021 via JSTOR.
  2. "The Competitive Outcome as the Equilibrium in an Edgeworthian Price-Quantity Model – The Economic Journal Vol. 102 No. 411 March 1992". The Economic Journal. 102 (411): 301. 1992. ISSN   0013-0133. JSTOR   2234515 . Retrieved 31 October 2021.
  3. "The evolution of consistent conjectures – Journal of Economic Behavior and Organization, Volume 51, Number 4, August 2003, pp. 523–536(14)". 1 August 2003. Retrieved 10 March 2012.
  4. "Huw" is a Welsh spelling of the English name "Hugh" and is pronounced /hju:/.
  5. "Cardiff Business School – Huw D Dixon". Retrieved 10 March 2012.[ permanent dead link ]
  6. "Wisdom in a set of blue boxes". Times Higher Education. 28 May 2004. Retrieved 10 March 2012.
  7. [ bare URL image file ]
  8. "Controversies in Macroeconomics (Book) by Huw David Dixon | Global Investor Bookshop". Archived from the original on 7 July 2012. Retrieved 10 March 2012.
  9. "Imperfect Competition Macroeconomic effects". Archived from the original on 3 May 2005. Retrieved 10 March 2012.
  10. "CESifo Research Network Member Page". Archived from the original on 2 August 2012. Retrieved 6 June 2022.
  11. "Approximate Bertrand Equilibria in a Replicated Industry". 30 August 1983. Retrieved 10 March 2012.
  12. "Programme Chair and Committee". Retrieved 10 March 2012.
  13. "Surfing Economics | Huw David Dixon | Macmillan". 4 December 2009. Retrieved 10 March 2012.
  14. The existence of mixed strategy equilibria in a price-setting oligopoly, Economics Letters, 1984, 16, 205–212
  15. Approximate Bertrand equilibria in a replicated industry, Review of Economic Studies, 1987, 54, 47–62
  16. The general theory of household and market contingent demand, The Manchester School of Economic and Social Studies, 1987, 45, 287–304
  17. Bertrand–Edgeworth equilibria when firms avoid turning customers away, Journal of Industrial Economics, 1990, 39, 131–146
  18. The Perfectly competitive outcome as the equilibrium in an Edgeworthian price-quantity game, Economic Journal, 1992, 102, 301–309
  19. Bertrand–Edgeworth Equilibria when firms set discrete prices, Bulletin of Economic Research, 1993, 45, 257–268
  20. Strategic investment in a competitive industry, Journal of Industrial Economics, 1985, 33, 483–500
  21. Strategic investment with consistent conjectures, Oxford Economic Papers,1986, (38), 111–128
  22. Huw Dixon. "DONUT WORLD AND THE DUOPOLY ARCHIPELAGO: SOCIAL LEARNING AND THE EVOLUTION OF COMPETITION" (PDF). Retrieved 31 October 2021. Chapter 8 of Surfing Economics
  23. Dixon H (2000) keeping up with the Joneses: competition and the evolution of collusion, Journal of Economic Behaviour and Organization, volume 43, pp. 223–238
  24. A simple model of imperfect competition with Walrasian features, Oxford Economic Papers, 1987, 39, 134–160
  25. Imperfect competition and macroeconomics: a survey" Huw Dixon and Neil Rankin, Oxford Economic Papers, 1994, 46, 171–199
  26. Luís F. Costa and Huw David Dixon (2011) Fiscal Policy under Imperfect Competition with Flexible Prices: An Overview and Survey. Economics: The Open-Access, Open-Assessment E-Journal, Vol. 5, 2011–3
  27. "Push ahead with HS2 plans as soon as possible". 6 January 2012. Retrieved 10 March 2012.
  28. "Taking stock of the market". Times Higher Education. 25 January 2002. Retrieved 10 March 2012.
  29. "Oikonomikos grows up". Times Higher Education. 31 May 2002. Retrieved 10 March 2012.