Simon Kuznets

Simon Smith Kuznets (/ˈkʌznɛts/; Russian: Семён Абра́мович Кузне́ц, IPA: [sʲɪˈmʲɵn ɐˈbraməvʲɪtɕ kʊzʲˈnʲɛts]; April 30, 1901 – July 8, 1985) was an American economist and statistician who received the 1971 Nobel Memorial Prize in Economic Sciences "for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development."

Kuznets made a decisive contribution to the transformation of economics into an empirical science and to the formation of quantitative economic history.[2]

Simon Kuznets
Simon Kuznets 1971b
Kuznets in 1971
BornApril 30, 1901
DiedJuly 8, 1985 (aged 84)
NationalityAmerican
InstitutionNBER
Columbia University,
Harvard University (1960–1971)
Johns Hopkins University (1954–1960)
University of Pennsylvania (1930–1954)
FieldEconometrics, development economics
School or
tradition
Institutional economics
Alma materColumbia University,
Kharkiv Institute of Commerce
Doctoral
advisor
Wesley Clair Mitchell
Doctoral
students
Milton Friedman
Richard Easterlin
Stanley Engerman
Robert Fogel
Subramanian Swamy
Lance Taylor
ContributionsNational income data
Empirical business cycle research
Characteristics of economic growth
AwardsNobel Memorial Prize in Economic Sciences (1971)
Information at IDEAS / RePEc

Biography

Early life

Simon Smith Kuznets was born in Belarus in the town of Pinsk to Lithuanian-Jewish parents, in the year 1901. He completed his schooling, first at the Rivne, then, Kharkiv Realschule of present-day Ukraine. In 1918, Kuznets entered the Kharkiv Institute of Commerce where he studied economic sciences, statistics, history and mathematics under the guidance of professors P. Fomin (political economy), A. Antsiferov (statistics), V. Levitsky (economic history and economic thought), S. Bernstein (probability theory), V. Davats (mathematics), and others. Basic academic courses at the Institute helped him to acquire "exceptional" erudition in economics, as well as in history, demography, statistics and natural sciences. According to the Institute's curriculum, development of the national economies had to be analyzed in the wider context of changes in connected spheres and with involvement of proper methods and empirical data.[3] There he began to study economics and became exposed to Joseph Schumpeter's theory of innovation and the business cycle.[4][5][6][7][8][9]

At the turn of 1920–1921 years, the normal course in the Institute was interrupted by the events of the Civil War and reorganizations undertaken by the Soviet authorities in the sphere of the higher education. There is no precise information whether Kuznets continued his studies at the Institute, but it is known that he joined the Department of Labor of UZHBURO (South Bureau) of the Central Council of Trade Unions. There he published his first scientific paper, "Monetary wages and salaries of factory workers in Kharkov in 1920"; he explored the dynamics of different types of wages by industries in Kharkov and income differentiation, depending on the wage system.[10]

Emigration to the United States

In 1922, the Kuznets family emigrated to the United States. Kuznets then studied at Columbia University under the guidance of Wesley Clair Mitchell. He graduated with a B.S. in 1923, M.A. in 1924, and Ph.D. in 1926.[5] As his magister thesis, he defended the essay "Economic system of Dr. Schumpeter, presented and analyzed", written in Kharkiv. From 1925 to 1926, Kuznets spent time studying economic patterns in prices as the Research Fellow at the Social Science Research Council. It was this work that led to his book "Secular Movements in Production and Prices", defended as a doctoral thesis and published in 1930.

In 1927, he became a member of the research staff of the National Bureau of Economic Research (NBER), where he worked until 1961. From 1931 until 1936, Kuznets was a part-time professor at the University of Pennsylvania. In 1937 he was elected as a Fellow of the American Statistical Association.[11] He was elected to the Pi Gamma Mu social science honor society chapter at the University of Pennsylvania and actively served as a chapter officer in the 1940s; becoming a full-time professor 1936 until 1954. In 1954, Kuznets moved to Johns Hopkins University, where he was Professor of Political Economy until 1960. From 1961 until his retirement in 1970, Kuznets taught at Harvard.

Apart from that, Kuznets collaborated with a number of research organizations and government agencies. In 1931–1934, at Mitchell's behest, Kuznets took charge of the NBER's work on U.S. national income accounts, given the first official estimation of the US national income. In 1936, Kuznets took the lead in establishing the Conference on Research Income and Wealth, which brought together government officials and academic economists, engaged in the development of the U.S. national income and product accounts, and in 1947 helped to establish its international counterpart, the International Association for Research in Income and Wealth.

During the World War II, in 1942–1944 Kuznets became the associate director of the Bureau of Planning and Statistics, War Production Board. He took part in works aimed to assess the capacity to expand military production. Researchers used national income accounting together with a rough form of linear programming to measure the potential for increased production and the sources from which it would come and to identify the materials that were binding constraints on expansion.[12]

After the War, he worked as an advisor for the governments of China, Japan, India, Korea, Taiwan, and Israel in the establishment of their national systems of economic information. Kuznets cooperated with the Growth Center of Yale University, the Social Science Research Council (SSRC). He guided extensive research holding a number of positions in research institutions, such as the Chairman of the Falk Project for Economic Research in Israel, 1953–1963; member of the Board of Trustees and honorary chairman, Maurice Falk Institute for Economic Research in Israel, from 1963; and Chairman, Social Science Research Council Committee on the Economy of China, 1961–1970.

Kuznets was elected as the President of the American Economic Association (1954), President of the American Statistical Association (1949), an honorable member of the Association of Economic History, the Royal Statistical Society of England and a member of the Econometric Society, the International Statistical Institute, the American Philosophical Society, the Royal Swedish Academy, a corresponding member of the British Academy. He was awarded the Medal of Francis Walker (1977).

Simon Kuznets died on July 8, 1985, at the age of 84. In 2013 The Kharkiv National University of Economics where he studied in 1918–1921 was named after him (Semen Kuznets Kharkiv National University of Economics).

Impact on economics

His name is associated with the formation of the modern economic science such as an empirical discipline, the development of statistical methods of research and the emergence of quantitative economic history. Kuznets is credited with revolutionising econometrics, and this work is credited with fueling the so-called Keynesian revolution".

Kuznets' views and scientific methodology were highly influenced by methodological settings received by him in Kharkiv and fully shared by Mitchell for the statistical, inductive construction of hypotheses in economics and its empirical testing. Kuznets treated a priori and speculative conceptions with deep skepticism. At the same time, Kuznets tended to analyze economy in connection and with the wider context of historical situation, demographic, social processes that was peculiar for the Kharkiv academics at the beginning of the 20th century. Kuznets was influenced by the work of such leading theorists as Joseph A. Schumpeter (who probed the relationship between technological change and business cycles), A. C. Pigou (who identified circumstances under which markets failed to maximize economic welfare), and Vilfredo Pareto (who propounded a law governing the distribution of income among households).[12] Kuznets was closely familiar with the economics of Russia and Ukraine of the early 20th century. In the 1920s, he reviewed and translated the little known in the West papers of Kondratiev, Slutsky, Pervushin, Weinstein.[13]

Historical series of economic dynamics and Kuznets cycles, or "long swings"

The first major research project in which Kuznets was involved was the study of long series of economic dynamics in the USA undertaken in the mid-1920s. The collected data covered the period from 1865 to 1925, and for some indices achieved 1770. Applying for the analysis of time series approximating Gompertz and logistic curves, Kuznets found that the characteristics of the curves with reasonable accuracy described the majority of economic processes. Fitting trend curves to data and analysis of the time series, comparison of theoretical and empirical levels, allowed him to identify medium-term extended cycles of economic activity, which lasted 15–25 years and had an intermediate position between the Kondratyev "long waves" and short business cycles. Aspiring to determine the nature of these cycles, Kuznets analyzed the dynamics of population, the construction industry performance, capital, national income data and other variables. These movements became known among economists and economic historians as "Kuznets cycles", and alternatively as "long swings" in the economy's growth rate (following the work of Moses Abramovitz [1912–1999]).[14][15]

National income accounts

In 1931, at Mitchell's behest, Kuznets took charge of the NBER's work on U.S. national income accounts. In 1934, an assessment of the national income of the United States for the period 1929–1932 was given; further, it was extended to 1919–1938, and then, until 1869. Although Kuznets was not the first economist to try this, his work was so comprehensive and meticulous that it set the standard in the field.

Kuznets had success to solve numerous problems ranging from lack of sources of information and bias assessments, to the development of the theoretical concept of national income. Kuznets achieved a high precision in calculations. His works allowed us to analyze the structure of the national income, and expose to detailed study a number of specific problems of the national economy. Improved methods for calculating the national income and related indicators have become classics and formed the basis of the modern system of national accounts. Having analyzed the distribution of income among different social groups, Kuznets put forward the hypothesis that in countries, which were on the early stages of economic development, income inequality increased first, but as far as national economy was growing, it tended to decrease. This assumption formed the basis of so-called "Kuznets curve" empirical conception.

Kuznets helped the U.S. Department of Commerce to standardize the measurement of GNP. He disapproved, however, of its use as a general indication of welfare,[16] writing that "the welfare of a nation can scarcely be inferred from a measure of national income."[17]

Exploring the formation of the national income, Kuznets studied proportions between output and income, consumption and savings, etc. After analyzing the long-term data sets of economic conditions for 20 countries, Kuznets revealed long-term trends in capital / output ratios, shares of net capital formation, net investment, and so on. Collected and systematized data allowed exposing to empirical testing a number of existing hypotheses. In particular, this concerned premises of the Keynes theoryKeynes' 1936 Absolute Income Hypothesis.

The hypothesis gave birth to what would become the first formal consumption function. However Kuznets shook the economic world by finding that Keynes' predictions, while seemingly accurate in short-run cross-sections, broke down under more rigorous examination. In his 1942 tome Uses of National Income in Peace and War, published by the National Bureau of Economic Research, Kuznets became the first economist to show that the Absolute Income Hypothesis gives inaccurate predictions in the long run (by using time-series data). Keynes had predicted that as aggregate income increases, so will marginal savings. Kuznets used new data to show that, over a longer span of time (1870's – 1940's) the savings ratio remained constant, despite large changes in income. This paved the way for Milton Friedman's Permanent Income Hypothesis, and several more modern alternatives such as the Life cycle hypothesis and the Relative Income Hypothesis.

Economic growth

By the end of the Second World War Kuznets moved into a new research area, related to the tie between changes in income and growth. He proposed research program that involved extensive empirical studies on the four key elements of economic growth. The elements were demographic growth, growth of knowledge, in-country adaptation to growth factors, and external economic relations between the countries. The general theory of economic growth should explain the development of advanced industrial countries, and the reasons that prevent the development of backward countries, include both market and planned economies, large and small, developed and developing countries, consider the impact on growth of foreign economic relations.

He collected and analyzed statistical indicators of economic performance of 14 countries in Europe, the U.S. and Japan for 60 years. Analysis of the materials led to the advancement of a number of hypotheses relating to various aspects of the mechanism of economic growth, concerning the level and variability of growth, structure of the GNP and distribution of labor, the distribution of income between households, the structure of foreign trade. Kuznets founded the historically grounded theory of economic growth. The central theme of these empirical studies is that the growth of the aggregated product of the country necessarily implies a profound transformation of the whole of its economic structure. This transformation affects many aspects of economic life – the structure of production, sectoral and occupational structure of employment, the division of occupations among family and market activities, the income structure, size, age structure and spatial distribution of the population, cross-country flows of goods, capital, labor and knowledge, the organization of industry and governmental regulation. Such changes, in his opinion, are essential for overall growth and, once started, shape, constrain or support the subsequent economic development of the country. Kuznets made a profound analysis of the impact on economic growth by demographic processes and characteristics.

His major thesis, which argued that underdeveloped countries of today possess characteristics different from those that industrialized countries faced before they developed, helped put an end to the simplistic view that all countries went through the same "linear stages" in their history and launched the separate field of development economics – which now focused on the analysis of modern underdeveloped countries' distinct experiences.

Kuznets curve

Among his several discoveries which sparked important theoretical research programs was the Kuznets curve, an inverted U-shaped relation between income inequality and economic growth (1955, 1963). In poor countries, economic growth increased the income disparity between rich and poor people. In wealthier countries, economic growth narrowed the difference. By noting patterns of income inequality in developed and underdeveloped countries, he proposed that as countries experienced economic growth, the income inequality first increases and then decreases. The reasoning was that in order to experience growth, countries had to shift from agricultural to industrial sectors. While there was little variation in the agricultural income, industrialization led to large differences in income. Additionally, as economies experienced growth, mass education provided greater opportunities which decreased the inequality and the lower income portion of the population gained political power to change governmental policies. He also discovered the patterns in savings-income behavior which launched the Life-Cycle-Permanent-Income Hypothesis of Modigliani and Friedman. He conducted his research for many years and finally published his findings in 1963

Historical and economic works of the 1970s

In his historical and economic studies of the 1970s, Kuznets expressed the idea of an interaction between science and technology (innovations), and institutional shifts, as well as the role of factors external to the economy, such as those caused by the moral and political climate in society, and their impact on the progress and results of economic growth.

Kuznets was awarded by the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 1971 "for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development".

Selected publications

  • "Secular Movements in Production and Prices: Their Nature and Their Bearing upon Cyclical Fluctuations". (1930)
  • "National Income and Capital Formation, 1919–1935". (1937)
  • "National Income and Its Composition, 1919–1938". (1941)
  • "Economic Growth and Income Inequality". American Economic Review 45 (March): 1–28. (1955)
  • "Quantitative aspects of the economic growth of nations, VIII: The distribution of income by size", Economic Development and Cultural Change, 11, pp. 1–92. (1963)
  • "Modern Economic Growth: Rate, Structure, and Spread". (1966)
  • "Toward a Theory of Economic Growth, with Reflections on the Economic Growth of Modern Nations". (1968)
  • "Economic Growth of Nations: Total Output and Production Structure". (1971)
  • "Population, Capital and Growth". (1973)

See also

References

  1. ^ Noble Prize Laureate Database
  2. ^ Abramovitz, Moses (2009). "Simon Kuznets 1901–1985". The Journal of Economic History. 46: 241–246. doi:10.1017/S0022050700045642.. He has been called "one of the most important economists of the twentieth century" by Robert Whaples in a recent interview.
  3. ^ Moskovkin V. M. and Mikhailichenko D. Yu. (2013). "Саймон Кузнец и харьковская высшая экономическая школа начала ХХ ст." (PDF). In Ponomarenko, V. S. (ed.). Кузнец С. Экономическая система д-ра Шумпетера, излагаемая и критикуемая. Kharkiv: ИД «ИНЖЕК». pp. 7–34. Archived from the original (PDF) on 2013-11-11. Retrieved 2013-11-15.
  4. ^ Goldthwaite, Richard; Abramovitz M. (1986). "Association Notes: In Memoriam: Frederic C. Lane 1900–1984, Simon Kuznets 1901–1985". The Journal of Economic History. 46 (1): 239–246. doi:10.1017/S0022050700045630. JSTOR 2121281.
  5. ^ a b Weyl, E. Glen (2007). "Simon Kuznets: Cautious Empiricist of the Eastern European Jewish Diaspora" (PDF). Harvard University Society of Fellows; Toulouse School of Economics. p. 8. Archived from the original (PDF) on 2013-10-17. Retrieved 2012-02-04.
  6. ^ Харківський національний університет імені В.Н. Каразіна. "Про університет. Історична довідка". Retrieved 2012-02-04.
  7. ^ Perlman, Mark (2001). "Schumpeter and Schools of Economic Thoughts". In Chaloupek, Günther; Guger, Alois; Nowotny, Ewald; Schwödiauer, Gerhard (eds.). Ökonomie in Theorie und Praxis: Festschrift für Helmut Frisch (in German and English) (German ed.). Springer. p. 286. ISBN 978-3540422402.
  8. ^ Pressman, Steven (2006). Fifty Major Economists. Routledge. p. 181. ISBN 978-0415366489.
  9. ^ Simon, Kuznetz (2011). Weyl, E. Glen; Lo, Stephanie H. (eds.). Jewish Economies: Development and Migration in America and Beyond. I. Transaction Publishers. p. xix. ISBN 978-1412842112.
  10. ^ Кузнец С. Денежная заработная плата рабочих и служащих фабрично-заводской промышленности г. Харькова в 1920 г. // Материалы по статистике труда на Украние. Под ред. Зав. отд. труда И. Н. Дубинской. – Вып. 2. – Июль 1921 г. – С. 53–64. (Репринтная публикация Бизнес Информ. – № 9 – 10. – 2002 г.)
  11. ^ View/Search Fellows of the ASA, accessed 2016-07-23.
  12. ^ a b Fogel, Robert (2000). "Simon S. Kuznets: April 30, 1901 – July 9, 1985". Biographical Memoirs. 79. doi:10.3386/w7787.
  13. ^ Filatov, I. V. (2002). Теоретическое наследие С. Кузнеца и проблемы модернизации постсоциалистических стран // Социально-экономическая трансформация в России (PDF). Moscow. p. 80.
  14. ^ Abramovitz, Moses (1961). "The Nature and Significance of Kuznets Cycles". Economic Development and Cultural Change. 9 (3): 225–248. doi:10.1086/449905. JSTOR 1151797.
  15. ^ Abramovitz, Moses (1968). "The passing of the Kuznets cycle". Economica. 35 (140): 349–367. doi:10.2307/2552345. JSTOR 2552345.
  16. ^ Rowe, Jonathan (June 2008) Our Phony Economy. Harper's Magazine
  17. ^ Simon Kuznets, 1934. "National Income, 1929–1932". 73rd US Congress, 2d session, Senate document no. 124, page 7. http://library.bea.gov/u?/SOD,888 Archived 2008-12-16 at the Wayback Machine

Further reading

  • Ben-Porath Y. Simon Kuznets in Person and in Writing // Economic Development and Cultural Change, Vol. 36, No. 3 (Apr., 1988), pp. 435–447.
  • Fogel, Robert W. (2000). "Simon S. Kuznets: April 30, 1901 – July 9, 1985". NBER Working Paper No. W7787.
  • Fogel, Robert William; Fogel, Enid M.; Guglielmo, Mark; Grotte, Nathaniel (2013). Political Arithmetic: Simon Kuznets and the Empirical Tradition in Economics. Chicago: University of Chicago Press. ISBN 978-0-226-25661-0.
  • Grinin, L., Korotayev, A. and Tausch A. (2016) Economic Cycles, Crises, and the Global Periphery. Springer International Publishing, Heidelberg, New York, Dordrecht, London, ISBN 978-3-319-17780-9; https://www.springer.com/de/book/9783319412603
  • Hoselitz B. F. Bibliography of Simon Kuznets // Economic Development and Cultural Change, Vol. 31, No. 2 (Jan., 1983), pp. 433–454.
  • Kapuria-Foreman V., Perlman M. An Economic Historian's Economist: Remembering Simon Kuznets // The Economic Journal, 105 (November), 1995, p. 1524–1547.
  • Syed, Munir Khasru; Mohammad, Muaz Jalil (2004). "Revisiting Kuznets Hypothesis: An Analysis with Time Series and Panel Data". Bangladesh Development Studies. 30 (3–4): 89–112.
  • Lundberg, Erik (1971). "Simon Kuznets contributions to Economics". The Swedish Journal of Economics. 73 (4): 444–459. doi:10.2307/3439225. JSTOR 3439225.
  • Street J. H. The Contribution of Simon S. Kuznets to Institutionalist Development Theory // Journal of Economic Issues, Vol. 22, No. 2 (Jun., 1988), pp. 499–509.

External links

Awards
Preceded by
Paul A. Samuelson
Laureate of the Nobel Memorial Prize in Economics
1971
Succeeded by
John R. Hicks
Kenneth J. Arrow
American Economic Association

The American Economic Association (AEA) is a learned society in the field of economics, headquartered in Nashville, Tennessee. It publishes one of the most prestigious academic journals in economics: the American Economic Review. The AEA was established in 1885 in Saratoga, New York by younger progressive economists trained in the German historical school, including Richard T. Ely, Edwin Robert Anderson Seligman and Katharine Coman, the only woman co-founder; since 1900 it has been under the control of academics.The purposes of the Association are: 1) The encouragement of economic research, especially the historical and statistical study of the actual conditions of industrial life; 2) The issue of publications on economic subjects; 3) The encouragement of perfect freedom of economic discussion. The Association as such will take no partisan attitude, nor will it commit its members to any position on practical economic questions.

Once composed primarily of college and university teachers of economics, the Association now attracts an increasing number of members from business and professional groups. Today the membership is about 18,000, over half of whom are academics. About 15% are employed in business and industry, and the remainder largely by federal, state, and local government or other not-for-profit organizations.

Association of European Border Regions

The Association of European Border Regions (AEBR) is an organization of European regions and deals with cross-border cooperation in Europe and other continents. AEBR's main office is based in Gronau (North Rhine-Westphalia), Germany. It also has a Project's Office in Berlin, an Antenna in Brussels (at the Office of Extremadura) and Info Centres for Ukraine in Kharkiv (in collaboration with the Simon Kuznets National University of Economics) and for the Balkans in Novi Sad (in collaboration with CESCI Balkans). It represents the interests of the European border and cross-border regions at European, national and regional levels.

Columbia University School of General Studies

The School of General Studies, Columbia University (GS) is a liberal arts college and one of the undergraduate colleges of Columbia University, situated on the university's main campus in Morningside Heights, New York City. GS is known primarily for its traditional B.A. degree program for mature students (those who have had an academic break of one year or more, or are pursuing dual-degrees). GS students make up approximately 30% of the Columbia undergraduate population (the three Columbia undergraduate colleges, CC, GS and SEAS).

GS offers dual-degree programs with multiple leading universities around the world. It offers dual degree programs with Sciences Po in France, the City University of Hong Kong, Trinity College Dublin (University of Dublin) in Ireland, and List College of the Jewish Theological Seminary. It also offers dual degree programs with the School of Engineering and Applied Sciences, the School of International and Public Affairs, and Columbia Business School. GS is the historical home to dual-degree programs at Columbia University, and the Post-baccalaureate Premedical Program, the oldest program of its kind.

Notable alumni include Nobel Prize winners Simon Kuznets and Baruj Benacerraf, as well as Isaac Asimov, J.D. Salinger, Amelia Earhart, and Princess Firyal of Jordan.

Dorothy Swaine Thomas

Dorothy Swaine Thomas (October 24, 1899 – May 1, 1977) was an American sociologist and economist. She was the 42nd President of the American Sociological Association and the first woman in that role.

Economic cost

Economic cost is the combination losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another. The goods to be taken into consideration are e.g. money, time and resources.

The comparison includes the gains and losses precluded by taking a course of action, as those of the course taken itself. Economic cost differs from accounting cost because it includes opportunity cost.

Economic history

Economic history is the study of economies or economic phenomena of the past. Analysis in economic history is undertaken using a combination of historical methods, statistical methods and the application of economic theory to historical situations and institutions. The topic includes financial and business history and overlaps with areas of social history such as demographic and labor history. The quantitative—in this case, econometric—study of economic history is also known as cliometrics.

George Kuznets

George M. Kuznets (; July 28, 1909 – August 3, 1986) was a Belarusian American economist. A member of the University of California, Berkeley's department of agricultural and resource economics, he specialized in agricultural economics. Regarded by his peers as a pioneer in quantitative research, Kuznets was appointed a fellow of the American Agricultural Economics Association in 1982, the highest honor of his profession.

He was also elected as a Fellow of the American Statistical Association, in 1960.Born in into a Jewish family at Pinsk, Russian Empire (now in Belarus), Kuznets moved to the US with his family in the 1920s and obtained a Ph.D. in psychometrics from Stanford University. His older brother Simon Kuznets was also an economist and won the 1971 Nobel Memorial Prize in Economic Sciences.

Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period, often annually.GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore using a basis of GDP per capita at purchasing power parity (PPP) is arguably more useful when comparing differences in living standards between nations.

Joseph Kitchin

Joseph Kitchin (1861–1932) was a British businessman and statistician. Analysing American and English interest rates and other data, Kitchin found evidence for a short business cycle of about 40 months. His publications led to other business cycle theories by later economists such as Nikolai Kondratieff, Simon Kuznets, and Joseph Schumpeter.

The Kitchin cycle is believed to be accounted for by time lags in information movements affecting the decision making of commercial firms. Firms react to the improvement of commercial situation through the increase in output through the full employment of the extent fixed capital assets. As a result, within a certain period of time (ranging between a few months and two years) the market gets ‘flooded’ with commodities whose quantity becomes gradually excessive. The demand declines, prices drop, the produced commodities get accumulated in inventories, which informs entrepreneurs of the necessity to reduce output.

However, this process takes some time. It takes some time for the information that the supply exceeds significantly the demand to get to the businessmen. Further, it takes entrepreneurs some time to check this information and to make the decision to reduce production, some time is also necessary to materialize this decision (these are the time lags that generate the Kitchin cycles). Another relevant time lag is the lag between the materialization of the above-mentioned decision (causing the capital assets to work well below the level of their full employment) and the decrease of the excessive amounts of commodities accumulated in inventories. Yet, after this decrease takes place one can observe the conditions for a new phase of growth of demand, prices, output, etc.

Kharkiv National University of Economics

Simon Kuznets Kharkiv National University of Economics (Ukrainian: Харківський національний економічний університет імені Семена Кузнеця) is the largest economic higher educational and research institution in Eastern Ukraine. Established in 1912, since 2013 the University is named after Simon Kuznets, its noted alumnus.

KhNUE provides a full range of undergraduate and postgraduate educational programs implementing multistage training, retraining and upgrading of qualification in 26 specialties in economy and business, management, public administration, informatics and cybernetics, computer sciences, publishing business and printing industry, tourism.

Kuznets

Kuznets or Kusnets (Russian: Кузнец, meaning "blacksmith") is a gender-neutral Russian surname that may refer to:

Albert Kusnets (1902–1942), Estonian wrestler

George Kuznets (1909–1986), Belarusian-American economist

Lois Rostow Kuznets, American professor of English literature

Simon Kuznets (1901–1985), American economist, statistician, demographer and economic historian

Kuznets curve

In economics, a Kuznets curve graphs the hypothesis that as an economy develops, market forces first increase and then decrease economic inequality. The hypothesis was first advanced by economist Simon Kuznets in the 1950s and '60s.One explanation of such a progression suggests that early in development, investment opportunities for those who have money multiply, while an influx of cheap rural labor to the cities holds down wages. Whereas in mature economies, human capital accrual (an estimate of cost that has been incurred but not yet paid) takes the place of physical capital accrual as the main source of growth; and inequality slows growth by lowering education levels because poorer, disadvantaged people lack finance for their education in imperfect credit-markets.

The Kuznets curve implies that as a nation undergoes industrialization – and especially the mechanization of agriculture – the center of the nation’s economy will shift to the cities. As internal migration by farmers looking for better-paying jobs in urban hubs causes a significant rural-urban inequality gap (the owners of firms would be profiting, while laborers from those industries would see their incomes rise at a much slower rate and agricultural workers would possibly see their incomes decrease), rural populations decrease as urban populations increase. Inequality is then expected to decrease when a certain level of average income is reached and the processes of industrialization – democratization and the rise of the welfare state – allow for the benefits from rapid growth, and increase the per-capita income. Kuznets believed that inequality would follow an inverted “U” shape as it rises and then falls again with the increase of income per-capita.Kuznets curve diagrams show an inverted U curve, although variables along the axes are often mixed and matched, with inequality or the Gini coefficient on the Y axis and economic development, time or per-capita incomes on the X axis.Since 1991 the environmental Kuznets curve (EKC) has become a standard feature in the technical literature of environmental policy, though its application there has been strongly contested.

Kuznets swing

The Kuznets swing (or Kuznets cycle) is a claimed medium-range economic wave with a period of 15–25 years identified in 1930 by Simon Kuznets. Kuznets connected these waves with demographic processes, in particular with immigrant inflows/outflows and the changes in construction intensity that they caused, that is why he denoted them as "demographic" or "building" cycles/swings. Kuznets swings have been also interpreted as infrastructural investment cycles.Some modern economic commentators argue the Kuznets swing reflects an 18-year cycle in land values. Fred Harrison argues this cycle of boom and bust could be smoothed or avoided altogether by levying an annual tax on the value of land (land value tax).Kuznets' analysis was criticized by Howrey (1968). Howrey claimed that the apparent business cycle found by Kuznets was an artifact of the filter Kuznets used. Howrey suggested that the same cyclical pattern could be found in white noise series when the Kuznets filter was applied. However, Kuznets claims swings can be found in the world GDP dynamics even without the application of the Kuznets filter.

List of Jewish American economists

This is a list of famous Jewish American economists. For other famous Jewish Americans, see List of Jewish Americans. For other economists, see List of Jewish economists.

Alan Greenspan, former Chair of the US Federal Reserve Bank

Alvin E. Roth, Nobel Prize (2012)

Amy Finkelstein, Professor of Economics at the Massachusetts Institute of Technology (MIT), the co-Director and research associate of the Public Economics Program at the National Bureau of Economic Research, and the co-Scientific Director of J-PAL North America.

Anna Schwartz, economist who published A Monetary History of the United States, 1867–1960 (1963), which laid a large portion of the blame for the Great Depression at the door of the Federal Reserve System. President of the Western Economic Association International (1988)

Arthur F. Burns, economic adviser to the Eisenhower administration (1953) and Chairman to the Federal Reserve (1970)

Barry Eichengreen, professor at University of California, Berkeley

Ben Bernanke, former Chair of the US Federal Reserve Bank

Daniel Kahneman, Nobel Prize (2002)

David D. Friedman, son of Milton Friedman

Edwin Robert Anderson Seligman

Eric Maskin, Nobel Prize (2007)

Franco Modigliani, Nobel Prize (1985)

Gary Becker, Nobel Prize (1992)

George Akerlof, Nobel Prize (2001)

Harry Markowitz, Nobel Prize (1990)

Henry Schultz

Herbert A. Simon, Nobel Prize (1978)

Herbert Stein

Hyman Minsky

Israel Meir Kirzner

Janet Yellen, Chair of the US Federal Reserve Bank

Jeffrey Sachs, director of the Earth Institute at Columbia University

John Harsanyi, Nobel Prize (1994)

Joseph Stiglitz, Nobel Prize (2001)

Kenneth Arrow, Nobel Prize (1972)

Lawrence Klein, Nobel Prize (1980)

Leonid Hurwicz, Nobel Prize (2007)

Martin Feldstein, Harvard Professor; Chair of the Council of Economic Advisors in the Reagan Administration

Mary M. Cohen, social economist, writer

Merton Miller, Nobel Prize (1990)

Milton Friedman, Nobel Prize (1976)

Murray Rothbard, writer, Austrian School economist, anarcho-capitalist, libertarian writer

Myron Scholes, Nobel Prize (1997)

Nouriel Roubini, Iranian-American macroeconomist

Paul Krugman, Nobel Prize (2008)

Paul Samuelson, Nobel Prize (1970)

Peter Diamond, Nobel Prize (2010)

Rashi Fein, health economist

Robert Aumann, Nobel Prize (2005)

Robert Fogel, Nobel Prize (1993)

Robert O. Mendelsohn, environmental economist

Robert Solow, Nobel Prize (1987)

Roger Myerson, Nobel Prize (2007)

Russ Roberts, host of EconTalk

Simon Kuznets, Nobel Prize (1971)

Stanley Fischer, economist and the vice chair of the U.S. Federal Reserve System

Toby Moskowitz, financial economist

Walter Block, Harold E. Wirth Endowed Chair in Economics at Loyola University in New Orleans

Wassily Leontief, Nobel Prize (1973)

Yoram Barzel

National University of Kharkiv

The Karazin University (Ukrainian: Каразінський університет) or officially V. N. Karazin Kharkiv National University (Ukrainian: Харківський національний університет імені В. Н. Каразіна) is one of the major universities in Ukraine, and earlier in the Russian Empire and Soviet Union. It was founded in 1804 through the efforts of Vasily Karazin becoming the second oldest university in modern-day Ukraine after the University of Lviv.

Review of Income and Wealth

The Review of Income and Wealth is a peer-reviewed academic journal published by Wiley-Blackwell on behalf of the International Association for Research in Income and Wealth. It was established in 1951 and published annually until 1966, when it became a quarterly. Its aim is to provide a venue for research on income and wealth in terms of national and international, economic and social accounting. Its scope includes not only research on the "development of concepts and definitions for measurement and analysis", the development and "integration of systems of economic and social statistics", and "related methodological problems", but also more applied areas such as to allow international comparisons and to understand the use economic and social accounting for "budgeting and policy analysis" in different economies. Its current editors are Conchita D'Ambrosio (University of Luxembourg), Robert J. Hill (University of Graz), and Stephan Klasen (University of Göttingen), and its previous editors have included Erik Lundberg, Simon Kuznets, Richard Stone, Raymond Goldsmith, Phyllis Deane, and Colin Clark.

The World Wealth and Income Database

The World Wealth and Income Database (WID), also known as WID.world, is an extensive, open and accessible database "on the historical evolution of the world distribution of income and wealth, both within countries and between countries".

Wesley Clair Mitchell

Wesley Clair Mitchell (August 5, 1874 – October 29, 1948) was an American economist known for his empirical work on business cycles and for guiding the National Bureau of Economic Research in its first decades.

Mitchell was referred to as Thorstein Veblen's "star student."Paul Samuelson named Mitchell (along with Harry Gunnison Brown, Allyn Abbott Young, Henry Ludwell Moore, Frank Knight, Jacob Viner, and Henry Schultz) as one of the several "American saints in economics" born after 1860.

Wharton School of the University of Pennsylvania

The Wharton School of the University of Pennsylvania ( WHAWR-tən; also known as Wharton Business School, The Wharton School or simply Wharton) is the business school of the University of Pennsylvania, a private Ivy League university in Philadelphia, Pennsylvania. Established in 1881 through a donation from Joseph Wharton, the Wharton School is the world's oldest collegiate school of business. Furthermore, Wharton is the business school that has produced the highest number of billionaires in the US.The Wharton School awards Bachelor of Science in Economics degrees at the undergraduate level and Master of Business Administration degrees at the postgraduate level, both of which require the selection of a major. Wharton also offers a doctoral program and houses, or co-sponsors, several diploma programs either alone or in conjunction with the other schools at the university.Wharton's MBA program is ranked No. 1 in the United States according to Forbes and No. 1 in the United States according to the 2020 U.S. News & World Report ranking. Meanwhile, Wharton's MBA for Executives and undergraduate programs are also ranked No. 2 and No. 1, respectively, in the United States by the same publications. According to US News, MBA graduates of Wharton earn an average $159,815 first year base pay not including bonuses, the highest at leading schools. Wharton's MBA program is tied for the highest in the United States average GMAT score of 732 (97th percentile) for its entering class. In general, Wharton has over 95,000 alumni in 153 countries, with notable figures such as Donald Trump, Jeremy Rifkin, Elon Musk, Warren Buffett, Sundar Pichai, Nassim Nicholas Taleb, Aditya Mittal, Steven A. Cohen, Jeff Weiner, Anil Ambani, John Sculley, Walter Annenberg, Leonard Lauder, Laurence Tisch, Michael Moritz, Ruth Porat, Kunal Bahl, and William Wrigley Jr. II. Its alumni include the CEOs of Google, LinkedIn, The Blackstone Group, CBS, General Electric, Boeing, Pfizer, Comcast, Oracle, DHL, UPS, Pepsi, Time, Inc, BlackRock, Johnson & Johnson, UBS AG, Wrigley Company, and Tesco.

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