Bertil Ohlin - Wikipedia Bertil Ohlin From Wikipedia, the free encyclopedia Jump to navigation Jump to search Bertil Ohlin Bertil Ohlin Minister for Trade In office 1944–1945 Prime Minister Per Albin Hansson Preceded by Herman Eriksson Succeeded by Gunnar Myrdal Leader of the People's Party In office 1944–1967 Preceded by Gustaf Andersson Succeeded by Sven Wedén Member of the Swedish Parliament for Stockholm Municipality In office 1938–1970 President of the Nordic Council In office 1959–1959 Preceded by Nils Hønsvald Succeeded by Gísli Jónsson In office 1964–1964 Preceded by Nils Hønsvald Succeeded by Sigurður Bjarnason Personal details Born (1899-04-23)23 April 1899 Klippan, Skåne County Died 3 August 1979(1979-08-03) (aged 80) Åre, Jämtland County Nationality Sweden Political party People's Party Alma mater B.A. Lund University (1917) MSc. Stockholm School of Economics (1919) M.A. Harvard University (1923) PhD Stockholm University (1924) Bertil Ohlin Known for Heckscher–Ohlin model Heckscher–Ohlin theorem Awards Nobel Memorial Prize in Economic Sciences (1977) Scientific career Fields Economics Institutions University of Copenhagen (1925–1930) Stockholm School of Economics (1930–1965) Doctoral advisor Gustav Cassel Bertil Gotthard Ohlin (Swedish: [ˈbæ̌ʈːɪl ʊˈliːn]) (23 April 1899 – 3 August 1979) was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. 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 1944 to 1967. He served briefly as Minister for Trade from 1944 to 1945 in the Swedish coalition government during World War II. He was President of the Nordic Council in 1959 and 1964. 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 1977 together with the British economist James Meade "for their pathbreaking contribution to the theory of international trade and international capital movements". Contents 1 Biography 2 Heckscher–Ohlin theorem 3 See also 4 Significant publications 5 Sources 6 References 7 Further reading 8 External links Biography[edit] Having received his B.A. from Lund University 1917 and his MSc. from Stockholm School of Economics in 1919. He obtained an M.A. from Harvard University in 1923 and his doctorate from Stockholm University in 1924. In 1925 he became a professor at the University of Copenhagen. In 1929 he debated with John Maynard Keynes, contradicting 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, Ohlin thought that Germany could afford the reparations.) The debate was important in the modern theory of unilateral international payments. In 1930 Ohlin succeeded Eli Heckscher, his teacher, as a professor of economics, at the Stockholm School of Economics. In 1933 Ohlin published a work that made him world-renowned, Interregional and International Trade. In this Ohlin built an economic theory of international trade from earlier work by Heckscher and his own doctoral thesis. It is now known as the Heckscher–Ohlin model, one of the standard model economists use to debate trade theory. The model was a break-through because it showed how comparative advantage might relate to general features of a country's capital and labor, and how these 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, that nations would specialize in industries most able to utilize their mix of national resources efficiently. Today, the theory has been largely disproved, yet it is still a useful framework by which to understand international trade. In 1937, Ohlin spent half a year at the University of California, Berkeley, as a visiting professor.[1][2][3] Later, Ohlin and other members of the "Stockholm school" extended Knut Wicksell's economic analysis to produce a theory of the macroeconomy anticipating Keynesianism. Ohlin was party leader of the liberal Liberal People's Party from 1944 to 1967, the main opposition party to the Social Democrat Governments of the era, and from '44 to '45 was minister of commerce in the wartime government. His daughter Anne Wibble, representing the same party, served as Minister of Finance from 1991 to 1994. In 2009, a street adjacent to the Stockholm School of Economics was named after Ohlin: "Bertil Ohlins Gata". Heckscher–Ohlin theorem[edit] Main article: Heckscher–Ohlin theorem 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. 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. 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. See also[edit] Contributions to liberal theory Ohlin Report (1956) Faustman–Ohlin theorem Significant publications[edit] Interregional and international trade, 1933 The German Reparations Problem, 1930 The Cause and Phases of the World Economic Depression. Report presented to the Assembly of the League of Nations Geneva: Secretariat of the League of Nations; 1931. Interregional and International Trade, 1933 Mechanisms and Objectives of Exchange Controls, 1937 Sources[edit] Encyclopædia Britannica Online "International trade" NobelPrize.org "Why Trade?" Chapter 60 The Heckscher–Ohlin (Factor Proportions) Model References[edit] ^ "BERTH OHLIN'S CONTRIBUTIONS TO ECONOMIC THEORY" (PDF). ^ Findlay, Ronald; Jonung, Lars; Lundahl, Mats (2002). Bertil Ohlin: A Centennial Celebration, 1899–1999. MIT Press. ISBN 9780262062282. ^ Toporowski, J. (29 July 2013). Michał Kalecki: An Intellectual Biography: Volume I Rendezvous in Cambridge 1899–1939. Springer. ISBN 9781137315397. Further reading[edit] John Cunningham Wood (1995). Bertil Ohlin: Critical Assessments. Routledge. ISBN 978-0-415-07492-6. External links[edit] Wikiquote has quotations related to: Bertil Ohlin Bertil Ohlin on Nobelprize.org including the Prize Lecture on December 8, 1977 1933 and 1977 – Some Expansion Policy Problems in Cases of Unbalanced Domestic and International Economic Relations Bertil Ohlin Bertil Ohlin Institute Ohlin's life Academician RACEF, Spain Presentation: THE YOUNG OHLIN ON THE THEORY OF INTERREGIONAL AND INTERNATIONAL TRADE IDEAS/RePEc Bertil Gotthard Ohlin (1899–1979). The Concise Encyclopedia of Economics. Library of Economics and Liberty (2nd ed.). Liberty Fund. 2008. Newspaper clippings about Bertil Ohlin in the 20th Century Press Archives of the ZBW Party political offices Preceded by Gustaf Andersson Chairman of the People's Party 1944–1967 Succeeded by Sven Wedén Political offices Preceded by Herman Eriksson Minister for Trade 1944–1945 Succeeded by Gunnar Myrdal Awards Preceded by Milton Friedman Laureate of the Nobel Memorial Prize in Economics 1977 Served alongside: James E. Meade Succeeded by Herbert A. Simon v t e Presidents of the Nordic Council Hans Hedtoft Einar Gerhardsen Nils Herlitz Erik Eriksen Lennart Heljas Nils Hønsvald Bertil Ohlin Gísli Jónsson Erik Eriksen Karl-August Fagerholm Nils Hønsvald Bertil Ohlin Sigurður Bjarnason Harald Nielsen Eino Sirén Svenn Stray Leif Cassel Matthías Á. Mathiesen Jens Otto Krag V. J. Sukselainen Kåre Willoch Johannes Antonsson Ragnhildur Helgadóttir Knud Enggaard V. J. Sukselainen Trygve Bratteli Olof Palme Matthías Á. Mathiesen Knud Enggaard Elsi Hetemäki-Olander Jo Benkow Karin Söder Páll Pétursson Anker Jørgensen Elsi Hetemäki-Olander Jan P. Syse Karin Söder Páll Pétursson Anker Jørgensen Ilkka Suominen Jan P. Syse Sten Andersson Per Olof Håkansson Geir Haarde Knud Enggaard Olof Salmén Berit Brørby Larsen Gun Hellsvik Sigríður Anna Þórðardóttir Svend Erik Hovmand Outi Ojala Inge Lønning Gabriel Romanus Rannveig Guðmundsdóttir Ole Stavad Dagfinn Høybråten Erkki Tuomioja Sinikka Bohlin Helgi Hjörvar Henrik Dam Kristensen Kimmo Sasi Marit Nybakk Karin Åström Hans Wallmark Höskuldur Þórhallsson Henrik Dam Kristensen Britt Lundberg Michael von Tetzschner v t e Laureates of the Sveriges Riksbank Prize in Economic Sciences 1969–1975 1969: Ragnar Frisch / Jan Tinbergen 1970: Paul A. Samuelson 1971: Simon Kuznets 1972: John R. Hicks / Kenneth J. Arrow 1973: Wassily Leontief 1974: Gunnar Myrdal / Friedrich August von Hayek 1975: Leonid Vitaliyevich Kantorovich / Tjalling C. Koopmans 1976–2000 1976: Milton Friedman 1977: Bertil Ohlin / James E. Meade 1978: Herbert A. Simon 1979: Theodore W. Schultz / Sir Arthur Lewis 1980: Lawrence R. Klein 1981: James Tobin 1982: George J. Stigler 1983: Gérard Debreu 1984: Richard Stone 1985: Franco Modigliani 1986: James M. Buchanan Jr. 1987: Robert M. Solow 1988: Maurice Allais 1989: Trygve Haavelmo 1990: Harry M. Markowitz / Merton H. Miller / William F. Sharpe 1991: Ronald H. Coase 1992: Gary S. Becker 1993: Robert W. Fogel / Douglass C. North 1994: John C. Harsanyi / John F. Nash Jr. / Reinhard Selten 1995: Robert E. Lucas Jr. 1996: James A. Mirrlees / William Vickrey 1997: Robert C. Merton / Myron S. Scholes 1998: Amartya Sen 1999: Robert A. Mundell 2000: James J. Heckman / Daniel L. McFadden 2001–present 2001: George A. Akerlof / A. Michael Spence / Joseph E. Stiglitz 2002: Daniel Kahneman / Vernon L. Smith 2003: Robert F. Engle III / Clive W.J. Granger 2004: Finn E. Kydland / Edward C. Prescott 2005: Robert J. Aumann / Thomas C. Schelling 2006: Edmund S. Phelps 2007: Leonid Hurwicz / Eric S. Maskin / Roger B. Myerson 2008: Paul Krugman 2009: Elinor Ostrom / Oliver E. Williamson 2010: Peter A. Diamond / Dale T. Mortensen / Christopher A. Pissarides 2011: Thomas J. Sargent / Christopher A. Sims 2012: Alvin E. Roth / Lloyd S. Shapley 2013: Eugene F. Fama / Lars Peter Hansen / Robert J. Shiller 2014: Jean Tirole 2015: Angus Deaton 2016: Oliver Hart / Bengt Holmström 2017: Richard H. Thaler 2018: William Nordhaus / Paul Romer 2019: Abhijit Banerjee / Esther Duflo / Michael Kremer 2020: Paul Milgrom / Robert B. Wilson v t e Swedish Nobel laureates Chemistry 1903: Svante Arrhenius 1926: Theodor Svedberg 1929: Hans von Euler-Chelpin 1948: Arne Tiselius 2015: Tomas Lindahl Literature 1909: Selma Lagerlöf 1916: Verner von Heidenstam 1931: Erik Axel Karlfeldt (posthumously) 1951: Pär Lagerkvist 1966: Nelly Sachs 1974: Eyvind Johnson / Harry Martinson 2011: Tomas Tranströmer Peace 1908: Klas Pontus Arnoldson 1921: Hjalmar Branting 1930: Nathan Söderblom 1961: Dag Hammarskjöld (posthumously) 1982: Alva Myrdal Physics 1912: Gustaf Dalén 1924: Manne Siegbahn 1970: Hannes Alfvén 1981: Kai Siegbahn Physiology or Medicine 1911: Allvar Gullstrand 1955: Hugo Theorell 1967: Ragnar Granit 1970: Ulf von Euler 1981: Torsten Wiesel 1982: Sune Bergström / Bengt I. Samuelsson 2000: Arvid Carlsson Economic Sciences 1974: Gunnar Myrdal 1977: Bertil Ohlin Authority control BIBSYS: 90113890 BNF: cb12277816h (data) CANTIC: a10131668 GND: 119096684 ISNI: 0000 0001 0931 3044 LCCN: n79106758 LNB: 000015218 NDL: 00451680 NKC: jn20000604251 NTA: 068361688 PLWABN: 9810673808205606 SELIBR: 358756 SNAC: w6hf1296 SUDOC: 031593453 Trove: 938121 VIAF: 66527069 WorldCat Identities: lccn-n79106758 Retrieved from "https://en.wikipedia.org/w/index.php?title=Bertil_Ohlin&oldid=983716685" Categories: 1899 births 1979 deaths People from Klippan Municipality Swedish economists Liberals (Sweden) politicians Members of the upper house of the Riksdag Leaders of political parties in Sweden Lund University alumni Harvard University alumni Stockholm University alumni University of Copenhagen faculty Stockholm School of Economics faculty Trade economists Nobel laureates in Economics Swedish Nobel laureates Stockholm School of Economics alumni Members of the lower house of the Riksdag Monetary economists Financial economists Keynesians Macroeconomists Fellows of the Econometric Society Hidden categories: Use dmy dates from March 2020 Articles with hCards Nobelprize template using Wikidata property P8024 Wikipedia articles with BIBSYS identifiers Wikipedia articles with BNF identifiers Wikipedia articles with CANTIC identifiers Wikipedia articles with GND identifiers Wikipedia articles with ISNI identifiers Wikipedia articles with LCCN identifiers Wikipedia articles with LNB identifiers Wikipedia articles with NDL identifiers Wikipedia articles with NKC identifiers Wikipedia articles with NTA identifiers Wikipedia articles with PLWABN identifiers Wikipedia articles with SELIBR identifiers Wikipedia articles with SNAC-ID identifiers Wikipedia articles with SUDOC identifiers Wikipedia articles with Trove identifiers Wikipedia articles with VIAF identifiers Wikipedia articles with WORLDCATID identifiers Navigation menu Personal tools Not logged in Talk Contributions Create account Log in Namespaces Article Talk Variants Views Read Edit View history More Search Navigation Main page Contents Current events Random article About Wikipedia Contact us Donate Contribute Help Learn to edit Community portal Recent changes Upload file Tools What links here Related changes Upload file Special pages Permanent link Page information Cite this page Wikidata item Print/export Download as PDF Printable version In other projects Wikimedia Commons Wikiquote Languages العربية Asturianu Azərbaycanca تۆرکجه Беларуская Български Català Čeština Dansk Deutsch Eesti Español Euskara فارسی Français Gàidhlig Galego 한국어 Հայերեն Ido Bahasa Indonesia Italiano עברית ქართული Latina Magyar Македонски Malagasy مصرى Bahasa Melayu Монгол Nederlands 日本語 Norsk bokmål Oʻzbekcha/ўзбекча پنجابی Polski Português Română Русский Slovenčina Српски / srpski Suomi Svenska Türkçe Українська اردو Tiếng Việt Winaray Yorùbá 中文 Edit links This page was last edited on 15 October 2020, at 20:51 (UTC). 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