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Sir John Richard Hicks was a British economist. He is considered one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS–LM model (1937), which summarised a Keynesian view of macroeconomics. His book Value and Capital (1939) significantly extended general-equilibrium and value theory. The compensated demand function is named the Hicksian demand function in memory of him.
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In macroeconomics, the Keynes–Ramsey rule is a necessary condition for the optimality of intertemporal consumption choice. Usually it is expressed as a differential equation relating the rate of change of consumption with interest rates, time preference, and (intertemporal) elasticity of substitution. If derived from a basic Ramsey–Cass–Koopmans model, the Keynes–Ramsey rule may look like
References
- ↑ David Cass; Karl Shell (1983). "Do Sunspots Matter?". Journal of Political Economy. 91 (2): 193–227. doi:10.1086/261139. JSTOR 1832054. S2CID 1981980.
- ↑ Shell, Karl. "Sunspot Equilibrium". karlshell.com.
