Winner of the Nobel Prize in 1972, Hicks is acknowledged as one of the leading economists in general equilibrium theory.
He is credited with the introduction of the notion of elasticity of substitution and the decomposition of demand into
income and subtituion effects. Hicks recognized that a number of allocations or outcomes are not comparable by Vilfredo
Pareto's optimality condition. His notion of Hicks Optimality provided a
set of compensation criteria to differentiate between Pareto optimality outcomes.
updated: 12 August 2005
HOW TO CITE THIS ENTRY
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