Review of John Hicks Article a Suggested Interpretation...

A Review of Mr. Keynes and the â€Å"Classics†; A Suggested Interpretation By J. R. Hicks Word count: 2,932, (excluding mathematical equations) We aim to examine the British economist Sir John Hick’s article ‘Mr Keynes and the â€Å"classics†; A suggested interpretation (April 1937)’ in which Hicks seeks to devise a simpler more cruder ‘classical’ model of the imperial, however complicated work of Professor Pigou’s ‘The theory of unemployment’ that will rightfully disagree with Mr Keynes’s mystifying but accepted proposal in his ‘General theory of unemployment.’ We seek to explore the proposed model by Hicks with the support of mathematics, economic behaviour and theory from his own independent views as well established economists. I†¦show more content†¦The assumption to neglect depreciation is ‘dangerous’ as described by Sir Hicks himself. The danger occurs as most investment goods may experience depreciation of assets and capital, which will in turn affect the cost of production resulting in firms having less profit. This could be a big factor in the number of people a firm can employ, consequently affecting the unemployment rate. This shows the danger can be off vast effect. However, the assumption of such danger is of necessity to devise a simple model. Taking into account appreciation of assets and goods is of too much complication and will be almost impossible to calculate and formulate with consistency and reliability. A model characteristic Hicks seeks to avoid. The rational and fair views of Hicks’ new approach can be further fortified where he refers to â€Å"Classical economics† and â€Å"Keynesian† in the same sentence, ‘thus I assume that I am dealing with a short period in which the quantity of physical equipment of all kinds available can be taken as fixed. Hicks generates ‘three fundamental equations’ denoting: w = Rate of money wages/person There are only 2 industries; Investment goods and consumption goods x = Output of investment goods (PQx) y = Output of consumption goods (PQy) There are 2 Factors of production in short run (Labour and Capital) as Land and Enterprise are fixed, so our output function including labour and capital is shown by: x=fx(Nx,C) y=fy(Ny,C)Show MoreRelatedGame Theory and Economic Analyst83847 Words   |  336 Pagesrole† was sketched out by Borel (1924), who was himself co-author of a treatise on bridge. Nothing about this singular and rather marginal branch of mathematics would at this time have suggested its later encounter with economics.1 The analogy between economic activity and what goes on in casinos was only suggested much later, in a far diï ¬â‚¬erent economic environment than that which these two mathematicians would have been able to observe. One could say that J. Von Neumann was the person who bothRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pages1 1 Introduction What Is Organizational Behavior? 3 The Importance of Interpersonal Skills 4 What Managers Do 5 Management Functions 6 †¢ Management Roles 6 †¢ Management Skills 8 †¢ Effective versus Successful Managerial Activities 8 †¢ A Review of the Manager’s Job 9 Enter Organizational Behavior 10 Complementing Intuition with Systematic Study 11 Disciplines That Contribute to the OB Field 13 Psychology 14 †¢ Social Psychology 14 †¢ Sociology 14 †¢ Anthropology 14 There Are Few Absolutes inRead MoreMarketing Management130471 Words   |  522 PagesTo satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix. 3.4 THE MARKETING MIX (THE 4 P S OF MARKETING) The term marketing mix became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940 s after James Culliton had described the marketing manager as a mixer of ingredients. The ingredients in Borden s marketing mix included product planningRead MoreDamodaran Book on Investment Valuation, 2nd Edition398423 Words   |  1594 Pagesinvestments, though to varying degrees. When analysts change their valuations, they will undoubtedly be asked to justify them. In some cases, the fact that valuations change over time is viewed as a problem. The best response may be the one that Lord Keynes gave when he was criticized for changing his position on a major economic issue: â€Å"When the facts change, I change my mind. And what do you do, sir?† Myth 3.: A good valuation provides a precise estimate of value Even at the end of the most careful