Katharine Ellis Coman was an American historian, sociologist and social activist. Coman worked at Wellesley College for 35 years as an instructor and dean. Believing that the field of political economy could be harnessed to solve the pressing social problems of the day, Coman created new courses in the discipline, she specialized in research and teaching about the development of the American West, British and American industrialism. In her work, she supported the labor movement, she wrote the first history of American industry as well as the first paper published in The American Economic Review. She was the first female statistics professor in the US and the only woman co-founder of the American Economics Association. Throughout her life, she traveled to conduct her economics research. A social activist, Coman supported the settlement movement and the labor movement, she shared a home with poet Katharine Lee Bates for 25 years, the two women traveled together. Coman died of breast cancer in 1915.
Wellesley College created the Katharine Coman Professorship of Industrial History in her honor. Coman was born on November 23, 1857, to Martha Ann Seymour Coman and Levi Parsons Coman in Newark, Ohio, her mother had graduated from an Ohio female seminary, her father had been educated at Hamilton College, thus Coman received much of her early education at home. She attended the University of Michigan for two years, left college to teach in Ottawa, Illinois for two years, returned to university, she earned a Bachelor of Philosophy degree in one of only a handful of women to do so. She was influenced by the work of John Stuart Mill, evident in her work as economist and historian. Coman attended lectures about socialism. In her career, she was influenced by Alfred Marshall, Francis Amasa Walker, social Darwinism. While at the University of Michigan, Coman studied under Professors Charles Kendall Adams of the German Historical School. After earning her PhB, she joined the faculty at Wellesley College, a newly established private college for women.
Angell recommended her for the position. She first taught English rhetoric, in 1881 became an instructor in history. In 1883, she was promoted to full professor of history; because Coman believed that economics could address social problems, she urged the Wellesley administration to offer courses on the subject, in 1883, she taught the college's first political economy class. Coman was the first American woman to teach statistics and Wellesley became the only American women's college to offer statistics courses before 1900. Coman developed and taught several new courses in economics and rhetoric, including Statistical Study of Economic Problems, Industrial History of the United States, Conservation of Our Natural Resources, all framed by sociological insights related to social justice. To teach students about the practicality of applying economic theory to real world economic and social problems, Coman escorted her students on field trips to Boston's tenement houses, labor union meetings and sweatshops.
In 1885, at the age of 28, she became professor of history and economics. That same year, she turned down the offer of a position as dean of women at the University of Michigan, stating that she preferred to remain at Wellesley and continue teaching, she was acting dean from 1899 to 1900, during which time she established a new department of economics and sociology, becoming its head in 1900. According to historian Melinda Ponder, Coman was a popular teacher. Two of her students, Helen Frances Page Bates and Helen Laura Sumner Woodbury, were among the first American women to earn PhDs in economics. Woodbury is recognized as an important historian of labor and a noted economist, while Helen Bates became a noted social worker, she retired from full-time teaching at Wellesley in 1913. In writing about the farewell dinner held in her honor, the New York Times said: "Miss Coman has been so associated with the history and development of Wellesley for so long a time that her loss is felt deeply by the whole college."
Coman continued to research and write until her death in 1915. Coman's papers are held by the Wellesley College Archives. In 1921, the college established the Katharine Coman Professorship of Industrial History to honor her service. Coman and Elizabeth Kendall coauthored the 1902 book A Short History of England for School Use based on research that Coman conducted in England between 1886 and 1894. Coman published The Industrial History of the United States in 1910, the first industrial history of the United States, it was reprinted nine times before 1915. Her 1911 article, "Some Unsettled Problems of Irrigation," was the first article published in the newly formed journal The American Economic Review, her 1912 work Economic Beginnings of the Far West: How We Won the Land Beyond the Mississippi was considered by contemporaneous scholars to be her magnum opus, "one of the most important fruits of the Carnegie Foundation for the Advancement of Teaching." The book outlined the economic history of the American West.
In this work, Coman describes the historical economic processes that led to the Far West coming under the control of settlers. She found that settlers were more economically successful than explorers, traders and indigenous peoples because the settlers built permanent settlements, reproduced at a higher rate, established networks of collaboration. Settlement
Richard T. Ely
Richard Theodore Ely was an American economist and leader of the Progressive movement who called for more government intervention in order to reform what they perceived as the injustices of capitalism regarding factory conditions, compulsory education, child labor, labor unions. Ely is best remembered as a founder and the first Secretary of the American Economic Association, as a founder and secretary of the Christian Social Union, as the author of a series of read books on the organized labor movement and other social questions. Richard Theodore Ely was born on April 13, 1854, in Ripley, New York, the eldest of three children of Ezra Sterling and Harriet Gardner Ely. Soon after Ely's birth, his father moved the family to a 90-acre farm near Fredonia, New York, where Ely would spend the next 16 years; the elder Ely was a self-taught engineer and lacked the skills and knowledge to farm relying too on popular, sometimes erroneous, information he obtained from farm magazines. Although harsh weather and fluctuating market prices provided further hardship to the family, Ely credited his early farm life with instilling in him many valuable qualities.
From a young age he had numerous responsibilities in maintaining the farm, including carrying wood, churning butter, picking up rocks out of the fields, milking the cows. His parents were Presbyterian but Ely transferred his affiliation to the Episcopal Church when in college. Ely attended Columbia University in New York City, from which he received a bachelor's degree in 1876 and a master's degree in 1879, he received a Doctor of Philosophy degree in economics from the University of Heidelberg in that same year, where he had studied with Karl Knies, who belonged to the historical school of economics, Johann Kaspar Bluntschli. He received a Doctorate of Laws from Hobart College, receiving the degree in 1892. Ely was a professor and head of the Department of Political Economy at Johns Hopkins University in Baltimore, Maryland from 1881 to 1892. In 1885, Ely was a founder of the American Economic Association, serving until 1892 as the group's Secretary, he served a term as President of the organization, holding that position from 1899 to 1901.
AEA still entitles the keynote address at its annual meeting the Richard T. Ely Lecture and honored him in the association's annual Economists' Calendar. Ely founded Lambda Alpha International in 1930, its purposes included the encouragement of the study of land economics in universities. Richard T. Ely is known as the "Father of Land Economics". In April 1891, Ely was a founder and the first Secretary of the Christian Social Union, a membership organization advocating the application of Christian principles to the social problems of the world. From 1892 until 1925, he was professor of Political Economy and director of the School of Economics, Political Science, History at the University of Wisconsin in Madison. In 1894 an unsuccessful attempt was made to depose him from his chair at Wisconsin for purportedly teaching socialistic doctrines; this effort failed, with the Wisconsin state Board of Regents issuing a ringing proclamation in favor of academic freedom, acknowledging the necessity for "sifting and winnowing" among competing claims of truth.
In 1925, Ely moved to Northwestern University in Chicago, where he accepted a position as professor of Economics. He remained at Northwestern until his retirement in 1933. Although regarded as a radical by his detractors on the political right, Ely was in fact opposed to socialism. "I condemn alike," he declared, "that individualism that would allow the state no room for industrial activity, that socialism which would absorb in the state the functions of the individual." He argued that socialism was not needed, "the alternative of socialism is our complex socio-economic order, based, in the main, upon private property." He warned that the proper "balance between private and public enterprise" is "menaced by socialism, on the one hand, by plutocracy, on the other."Ely's critique of socialism made him a political target of the socialists themselves. In his 1910 book, Ten Blind Leaders of the Blind, Arthur Morrow Lewis acknowledged that Ely was a "fair opponent" who had "done much to obtain a hearing for among the unreasonable," but charged he was one of those "bourgeois intellectuals" who were "not sufficiently intellectual to grasp the nature of our position."Ely was a product of the German historical school with an emphasis on evolution to new forms, never accepted the marginalist revolution, transforming economic theory in Britain and the U.
S. He was influenced by Herbert Spencer and favored competition over monopoly or state ownership, with regulation to "secure its benefits" and "mitigate its evils." What was needed was "to raise its moral and ethical level." However, whereas Herbert Spencer believed that free competition was best served by deregulation and a smaller state, Richard Ely believed that more regulation and a more interventionist state was the policy to follow. On social Darwinism, Herbert Spencer believed that the state should not get involved in supporting one ethnic group over another — whereas Richard Ely believed that the state should support white "Nordic" people against people of other races. Ely did support labor unions and opposed child labor, as did many leaders of the Progressive Movement
Charles P. Kindleberger
Charles Poor "Charlie" Kindleberger was an economic historian and author of over 30 books. His 1978 book Manias and Crashes, about speculative stock market bubbles, was reprinted in 2000 after the dot-com bubble, he is well known for hegemonic stability theory. He has been referred to as "the master of the genre" on financial crisis by The Economist. Kindleberger was born in New York City on October 12, 1910, he graduated from the Kent School in 1928, the University of Pennsylvania in 1932, received a PhD from Columbia University in 1937. During the summer of 1931, he traveled to Europe and attended a seminar hosted by Salvador de Madariaga, when the latter was appointed Spanish Ambassador to the United States, Kindleberger attended lectures at the Institute for International Studies in Geneva led by Sir Alfred Zimmern. While writing his thesis, Kindleberger was employed temporarily in the international division of United States Treasury under the direction of Harry Dexter White, he joined the Federal Reserve Bank of New York full-time.
Subsequently, he worked at the Bank for International Settlements in Switzerland, the Board of Governors of the Federal Reserve System. During World War II, he served in the Office of Strategic Services. From 1945 to 1947 he was Chief of the Division of Economic Affairs of Germany and Austria at the United States Department of State. Kindleberger was a leading architect of the Marshall Plan. In 1945–1947 he served at the Department of State as Acting Director of the Office of Economic Security Policy, from 1947-48 as counselor for the European Recovery Program, he described his around-the-clock work to develop and launch the Marshall Plan with singular passion in a 1973 interview: We were conscious of a great sense of excitement about the plan. Marshall himself was a great, great man—funny, odd but great—Olympian in his moral quality. We'd stay up all night, night after night; the first work done that I know about in economics on computers used the Pentagon's computers at night for the Marshall Plan.
I had a tremendous sense of gratification from working so hard on it. Though he himself was spared anti-communist investigation during the 1950s, he recalled:... I worked in the Treasury under Harry Dexter White; that gave me a lot of trouble on because he got in trouble, anybody, infected by him got into trouble, too. The FBI listened to my phone calls and things I said in the course of my work at the State Department and gave gossip and some misrepresentations to columnists like George Sokolsky. J. Edgar Hoover fed them such gossip. After 1948, Kindleberger was appointed Professor of International Economics at MIT, he retired from a full-time position in 1976 and continued as a senior lecturer until full retirement from teaching in 1981. He partook in working groups of the Council on Foreign Relations, he held the position of Ford International Professor of Economics at the Massachusetts Institute of Technology. 1944 Bronze Star 1945 Legion of Merit 1966 Dr. h.c. University of Paris 1977 Dr. h.c.
University of Ghent 1978 Harms Prize, Institut für Weltwirtschaft, Kiel 1984 Dr. Sci. h.c. University of Pennsylvania 1989 Bicentennial Medal, Georgetown University Kindleberger was married to Sarah Miles Kindleberger for 59 years, they had four children: Charles P. Kindleberger III, Richard S. Kindleberger, Sarah Kindleberger, E. Randall Kindleberger, he died of a stroke on July 7, 2003, in Massachusetts. Kindleberger wrote 30 books, International Short-Term Capital Movements, in 1937 and the other 29 beginning in 1950; as economic historian Kindleberger used a narrative approach to knowledge and not based on mathematical models to prove his point. In the preface to The Great Depression 1929-1939, he wrote "It's the story told, without tables of squares..."His book Manias and Crashes is still used in programs Master of Business Administration in the United States. His 1973 and 1986 book The World in Depression 1929–1939 advances an idiosyncratic, internationalist view of the causes and nature of the Great Depression.
Blaming the peculiar length and depth of the Depression on the hesitancy of the US in taking over leadership of the world economy when Britain was no longer up to the role after World War I, he concludes that "for the world economy to be stabilized, there has to be a stabilizer—one stabilizer", by which, in the context of the interwar years at least, he means the United States. In the last chapter "An Explanation of the 1929 Depression", Kindleberger lists the five responsibilities the US would have had to assume in order to stabilize the world economy: maintaining a open market for distress goods. Kindleberger was skeptical of Milton Friedman and Anna Schwartz's monetarist view of the causes of the Depression, seeing it as too narrow and dogmatic, dismisses out of hand what he characterized as Paul Samuelson's "accidental" or "fortuitous" interpretation; the World in Depression was praised by John Kenneth Galbraith as'the best book on the subject'. International Short-term Capital Movements Economic Development International Economics Foreign Trade and the National Economy Europa and the Dollar Europe's Postwar Growth.
Thomas Crombie Schelling was an American economist and professor of foreign policy, national security, nuclear strategy, arms control at the School of Public Policy at University of Maryland, College Park. He was co-faculty at the New England Complex Systems Institute, he was awarded the 2005 Nobel Memorial Prize in Economic Sciences for "having enhanced our understanding of conflict and cooperation through game-theory analysis." Schelling was born on April 1921 in Oakland, California. Schelling graduated from San Diego High, he received his bachelor's degree in economics from the University of California, Berkeley in 1944. He received his PhD in economics from Harvard University in 1951. Schelling served with the Marshall Plan in Europe, the White House, the Executive Office of the President from 1948 to 1953, he wrote most of his dissertation on national income behavior working at night while in Europe. He left government to join the economics faculty at Yale University. In 1956, "...he joined the RAND Corporation as an adjunct fellow, becoming a full-time researcher for a year after leaving Yale, returning to adjunct status through 2002."
In 1958 Schelling was appointed professor of economics at Harvard. That same year, he "co-founded the Center for International Affairs, renamed the Weatherhead Center for International Affairs."In 1969 Schelling joined Harvard's John F. Kennedy School of Government, where he was the Lucius N. Littauer Professor of Political Economy, he was among the "founding fathers" of the "modern" Kennedy School, as he helped to shift the curriculum's emphasis away from administration and more toward leadership. He conducted research at the International Institute for Applied Systems Analysis, in Laxenburg, between 1994 and 1999. In 1990 he left Harvard and joined the University of Maryland School of Public Policy and University of Maryland Department of Economics. In 1991, he accepted the presidency of the American Economic Association, an organization of which he was a Distinguished Fellow. In 1995, he accepted the presidency of the Eastern Economic Association. Schelling was a contributing participant of the Copenhagen Consensus.
In 1977, Schelling received The Frank E. Seidman Distinguished Award in Political Economy. In 1993 he was awarded the Award for Behavior Research Relevant to the Prevention of Nuclear War from the National Academy of Sciences, he received honorary doctorates from Erasmus University Rotterdam in 2003, Yale University in 2009, RAND Graduate School of Public Analysis, as well as an honorary degree from the University of Manchester in 2010. He was awarded the 2005 Nobel Memorial Prize in Economic Sciences, along with Robert Aumann, for "having enhanced our understanding of conflict and cooperation through game-theory analysis." Schelling was married to Corinne Tigay Saposs from 1947 with whom he had four sons. In 1991 he married Alice M. Coleman, who brought two sons to the marriage. Schelling died on December 13, 2016 in Bethesda, Maryland from complications following a hip fracture at the age of 95. Schelling's family auctioned his Nobel award medal, fetching $187,000, they donated this money to the Southern Poverty Law Center, a nonprofit that fights hate and bigotry, advocates for civil rights through litigation.
Alice Schelling said her late husband had credited Smoky the Cowhorse by Will James, the winner of the Newbery Medal in 1927, as the most influential book he had read. The Strategy of Conflict, which Schelling published in 1960, pioneered the study of bargaining and strategic behavior in what he refers to as "conflict behavior." The Times Literary Supplement in 1995 ranked it as one of the hundred most influential books in the 50 years since 1945. In this book Schelling introduced concepts such as "focal point" and "credible commitment." Chapter headings include "A Reorientation of Game Theory," "Randomization of Promises and Threats," and "Surprise Attack: A Study of Mutual Distrust." The strategic view toward conflict that Schelling encourages in this work is "rational" and "successful." He believes that it cannot be based on one's intelligence, but must address the "advantages" associated with a course of action. The advantages gleaned, he says, should be fixed in a value system, both "explicit" and "consistent."Conflict too has a distinct meaning.
In Schelling's approach, it is not enough to defeat your opponent. Instead, one must seize opportunities to cooperate, and in most cases, there are many. Only on the rarest of occasions, in what is known as "pure conflict," he points out, will the interests of participants be implacably opposed, he uses the example of "a war of complete extermination" to illustrate this phenomenon. Cooperation, where available, may take many forms, thus could involve everything from "deterrence, limited war, disarmament" to "negotiation." Indeed, it is through such actions that participants are left with less of a conflict and more of a "bargaining situation." The bargaining itself is best thought of in terms of the other participant's actions, as any gains one might realize are dependent upon the "choices or decisions" of their opponent. Communication between parties, though, is another matter entirely. Verbal or written communication is known as "explicit," and involves such activities as "offering concessions."
What happens, when this type of communication becomes impossible or improbable? This is. Think of this as action-based communication. Schelling uses the example of one's occupation or evacuation of strategic territory to illustrate this latter communication method. In an article celebrating Schellin
Edwin Robert Anderson Seligman
Edwin Robert Anderson Seligman, was an American economist who spent his entire academic career at Columbia University in New York City. Seligman is best remembered for his pioneering work involving public finance. Edwin Seligman was born April 1861 in New York City, the son of banker Joseph Seligman. Seligman attended Columbia University, from which he graduated in 1879 with a A. B.. Seligman continued his studies in Europe, attending courses for three years at the universities of Berlin, Heidelberg and Paris, he earned his M. A. and LL. B. degrees in 1885 and defended a Ph. D. in 1885. He was awarded a LL. D. in 1904. Seligman spent his entire academic career at Columbia University, first joining as a lecturer in 1885, he was made an adjunct professor of political economy in 1888. He became the first McVickar Professor of Political Economy at the same university in 1904, a position which he occupied until 1931. Seligman's academic work dealt with matters of taxation and public finance, he was regarded as a leading proponent of the progressive income tax.
He taught courses at Columbia in the field of economic history. From 1886 Seligman was one of the editors of the Political Science Quarterly, he edited Columbia's series in history and public law from 1890. Seligman was a founder of the American Economic Association and served as president of that organization from 1902 to 1904, he was a key figure behind the formation of the American Association of University Professors, serving as that group's president from 1919 to 1920. Seligman dedicated a great deal of effort to the question of public finance during World War I and was a prominent advocate of the establishment of a progressive income tax as a basis for the funding of government operations. Although a proponent of the economic interpretation of history associated with Marxism, Seligman was an opponent of socialism and appeared in public debates opposing prominent radical figures during the early 1920s, including such figures as Scott Nearing and Harry Waton. Seligman's academic work revolved around questions of tax policy and consumer finance.
Among his students was B. R. Ambedkar, the principal architect of the Constitution of India. Edwin Seligman died July 18, 1939, his beliefs were influential with Charles A. Beard, an academic colleague at Columbia. In particular, Seligman's economic viewpoints to history helped inform Beard's work An Economic Interpretation of the Constitution of the United States. Railway Tariffs and the Interstate Commerce Act. Boston: Ginn and Company, 1887; the General Property Tax. Boston: Ginn and Company, 1890. Progressive Taxation in Theory and Practice. Second Edition. Princeton, NJ: Princeton University Press, 1908; the Shifting and Incidence of Taxation. Second Edition. New York: Macmillan, 1902. Report of the Committee of Economists on the dismissal of Professor Ross from Leland Stanford Junior University. Detroit?: The Committee?, 1901. The Economic Interpretation of History. New York: Macmillan, 1902. Essays in Taxation. New York: Macmillan, 1905. Principles of Economics: With Special Reference to American Conditions.
New York: Longmans, Green and Co. 1905. The Income Tax: A Study of the History and Practice of Income Taxation at Home and Abroad. New York: Macmillan, 1911; the Social Evil: With Special Reference to Conditions Existing in the City of New York. New York: G. P. Putnam's Sons, 1912. An Economic Interpretation of the War. New York: D. Appleton and Co. 1915. The Next Step in Tax Reform: Presidential Address of Edwin R. A. Seligman, LL. D. Delivered at the Ninth Annual Conference of the National Tax Association, San Francisco, August 11, 1915. New York: National Tax Association, 1915. A University School of Business. New York: Columbia University Press, 1916. How to Finance the War. With Robert Murray Haig. New York: Division of Intelligence and Publicity of Columbia University, 1917. Financial Mobilization for War: Papers Presented at a Joint Conference of the Western Economic Society and the City Club of Chicago, June 21 and 22, 1917. Chicago: University of Chicago Press, 1917; the House Revenue Bill: A Constructive Criticism.
New York: Division of Intelligence and Publicity of Columbia University, 1917. Currency Inflation and Public Debts: An Historical Sketch. New York: Equitable Trust Company of New York, 1921. A Public Debate: Capitalism vs. Socialism: Professor Edwin R. A. Seligman, Columbia University, vs. Professor Scott Nearing, Rand School of Social Science. New York: The Fine Arts Guild, 1922. Stenographer's Report of the Waton Debate. New York: Marx-Engels Institute, 1922. Studies in Public Finance. New York: Macmillan, 1925. Essays in Economics. New York: Macmillan, 1925; the Economics of Instalment Selling: A Study in Consumers' Credit, with Special Reference to the Automobile. New York: Harper and Brothers, 1927; the Economics of Farm Relief: A Survey of the Agricultural Problem. New York: Columbia University Press, 1929. Price Cutting and Price Maintenance: A Study in Economics. With Robert Alonzo Love. New York: Harper and Brothers, 1932. A Report on the Revenue System of Cuba. With Carl S. Shoup. Havana: Talleres tipográficos de Carasa y cía. 1932 "Economists," in Cambridge History of English and American Literature, 1907.
"The Crisis of 1907 in the Light of History," in Edwin R. A. Seligman, The Currency Problem and the Present Financial Situation: A Series of Addresses Delivered at Columbia University 1907-1908. New York: Columbia University Press, 1908. "Recent Reports on State and Local Taxation," American Economic Review, 1911. "The Crisis in Social Evolution," in Albert Bushnell Hart, et al. Problems of Readjustment After the War. New York: D. Appleton & Co. 1915. "Tax Exemption Thro
W. Arthur Lewis
Sir William Arthur Lewis was an economist well known for his contributions in the field of economic development. In 1979 he was awarded the Nobel Memorial Prize in Economic Sciences, he had dual Saint British citizenships. Arthur Lewis was born in Castries, Saint Lucia still part of the British Windward Islands federal colony, as the fourth of five children of George and Ida Lewis, his parents had migrated from Antigua shortly after the turn of the century. George Lewis died when Arthur turned seven, Ida raised their five children alone. Arthur was promoted two classes ahead of his age. After finishing school at the age of 15, Lewis worked as a clerk, while waiting to take his university entrance exam. During this time he became friends with Eric Williams, the future first prime minister of Trinidad and Tobago, the two remained lifelong friends. After gaining his Bachelor of Science degree in 1937 and a Ph. D. degree in 1940 at the London School of Economics under supervision of Arnold Plant, Lewis worked as a member of the staff at the LSE until 1948.
In 1947, he married Gladys Jacobs, they had two daughters together. That year he was selected as a lecturer at the University of Manchester, moved there with his family, he taught at Manchester until 1957. During this period, he developed some of his most important concepts about the patterns of capital and wages in developing countries, he became known for his contributions to development economics, of great interest as former colonies began to gain independence from European nations. When Ghana gained independence in 1957, its government appointed Lewis as their first economic advisor, he helped draw up its first Five-Year Development Plan. In 1959 Lewis returned to the Caribbean region when appointed Vice Chancellor of the University of the West Indies. In 1963 he was knighted for his contributions to economics; that year, he was appointed a University Professor at Princeton University and moved to the United States. Lewis worked at Princeton for the next two decades, teaching generations of students until his retirement in 1983.
In 1970 Lewis was selected as the first president of the Caribbean Development Bank, serving in that capacity until 1973. Lewis received the Nobel prize in Economics in 1979, he died on 15 June 1991 in Barbados. He was buried in the grounds of the St Lucian community college named in his honour, he was survived by his wife, Gladys Jacobs, Lady Lewis of Barbados and Princeton, NJ. Arthur Lewis Community College, St. Lucia, was named in his honour; the Arthur Lewis Building at the University of Manchester was named for him, as he had lectured there for several years before entering governmental positions. Sir Arthur Lewis Institute of Social and Economic Studies at The University of the West Indies. Sir Arthur Lewis portrait appears on the 100 dollar East Caribbean Bill. Lewis published in 1954 what was to be his most influential development economics article, "Economic Development with Unlimited Supplies of Labour". In this publication, he introduced what came to be called the dual sector model, or the "Lewis model".
Lewis combined an analysis of the historical experience of developed countries with the central ideas of the classical economists to produce a broad picture of the development process. In his theory, a "capitalist" sector develops by taking labour from a non-capitalist backward "subsistence" sector; the subsistence sector is governed by informal institutions and social norms so that producers do not maximise profits and workers can be paid above their marginal product. At an early stage of development, the "unlimited" supply of labour from the subsistence economy means that the capitalist sector can expand for some time without the need to raise wages; this results in higher returns to capital. In turn, the increase in the capital stock leads the "capitalists" to expand employment by drawing further labour from the subsistence sector. Given the assumptions of the model, the process becomes self-sustaining and leads to modernization and economic development; the point at which the excess labour in the subsistence sector is absorbed into the modern sector, where further capital accumulation begins to increase wages, is sometimes called the Lewisian turning point.
It has been discussed in the context of economic development in China. Lewis published The Theory of Economic Growth in 1955 in which he sought to “provide an appropriate framework for studying economic development,” driven by a combination of “curiosity and of practical need.” Black Nobel Prize laureates Arthur Lewis Papers at the Seeley G. Mudd Manuscript Library, Princeton University Saint Lucian Nobel Laureates Biography available in Nobel Laureates of Saint Lucia Nobel e-Museum: Arthur Lewis Sir Arthur Lewis Community College, Saint Lucia Sir Arthur Lewis – Nobel Prize Lecture IDEAS/RePEc "W. Arthur Lewis". JSTOR; the Lewisian Turning Its Implications to Labor Protection W. Arthur Lewis; the Concise Encyclopedia of Economics. Library of Economics and Liberty. Liberty Fund. 2008
Richard H. Thaler is an American economist and the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. In 2015, Thaler was president of the American Economic Association, he is a theorist in behavioral economics, collaborated with Daniel Kahneman, Amos Tversky and others in further defining that field. In 2018, he was elected a member in the National Academy of Sciences. In 2017, he was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to behavioral economics. In its Nobel prize announcement, the Royal Swedish Academy of Sciences said that his "contributions have built a bridge between the economic and psychological analyses of individual Decision-making, his empirical findings and theoretical insights have been instrumental in creating the new and expanding field of behavioral economics." Thaler was born in New Jersey to a Jewish family. His mother, was a teacher, a real estate agent while his father, Alan Maurice Thaler, was an actuary at the Prudential Financial in Newark, New Jersey, was born in Toronto.
He grew up with two younger brothers. His great-great grandfather, Selig Thaler was from Ukraine, he is married to France Leclerc, a former marketing professor at the University of Chicago and avid photographer. He has three children from his first marriage, he graduated from Newark Academy, before going on to receive his B. A. degree in 1967 from Case Western Reserve University, his M. A. in 1970 and Ph. D. degree in 1974 from the University of Rochester, writing his thesis on "The Value of Saving A Life: A Market Estimate" under the supervision of Sherwin Rosen. After completing his studies, Thaler began his career as a professor at the University of Rochester. Between 1977 and 1978, Thaler spent a year at Stanford University collaborating and researching with Daniel Kahneman and Amos Tversky, who provided him with the theoretical framework to fit many of the economic anomalies that he had identified, such as the endowment effect. From 1978 to 1995, he was a faculty member at the SC Johnson College of Business at Cornell University.
After gathering some attention with a regular column in the respected Journal of Economic Perspectives and the publication of these columns by Princeton University Press, Thaler was offered a position at the University of Chicago's Booth School of Business in 1995, where he has taught since. Thaler has written a number of books intended for a lay reader on the subject of behavioral economics, including Quasi-rational Economics and The Winner's Curse, the latter of which contains many of his Anomalies columns revised and adapted for a popular audience. One of his recurring themes is that market-based approaches are incomplete: he is quoted as saying, "conventional economics assumes that people are highly-rational—super-rational—and unemotional, they can calculate like a computer and have no self-control problems."Thaler is coauthor, with Cass Sunstein, of Nudge: Improving Decisions About Health and Happiness. Nudge discusses how public and private organizations can help people make better choices in their daily lives.
"People make poor choices—and look back at them with bafflement!" Thaler and Sunstein write. "We do this because as human beings, we all are susceptible to a wide array of routine biases that can lead to an wide array of embarrassing blunders in education, personal finance, health care and credit cards and the planet itself." Thaler and his co-author coined the term choice architect. In 2015 Thaler wrote Misbehaving: The Making of Behavioral Economics, a history of the development of behavioral economics, "part memoir, part attack on a breed of economist who dominated the academy—particularly, the Chicago School that dominated economic theory at the University of Chicago—for the much of the latter part of the 20th century." Thaler gained some attention in the field of mainstream economics for publishing a regular column in the Journal of Economic Perspectives from 1987 to 1990 titled Anomalies, in which he documented individual instances of economic behavior that seemed to violate traditional microeconomic theory.
In a 2008 paper and colleagues analyzed the choices of contestants appearing in the popular TV game show Deal or No Deal and found support for behavioralists' claims of path-dependent risk attitudes. He has studied cooperation and bargaining in the UK game shows Golden Balls and Divided; as a columnist for The New York Times News Service, Thaler has begun a series of economic solutions for some of America's financial woes, beginning with "Selling parts of the radio spectrum could help pare US deficit," with references to Thomas Hazlett's ideas for reform of the U. S. Federal Communications Commission and making television broadcast frequency available for improving wireless technology, reducing costs, generating revenue for the US government. Thaler was the 2017 recipient of the Nobel Memorial Prize in Economics for "incorporat psychologically realistic assumptions into analyses of economic decision-making. By exploring the consequences of limited rationality, social preferences, lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes."Immediately following the announcement of the 2017 prize, Professor Peter Gärdenfors, Member of the Economic Sciences Prize Committee, said in an interview that Thaler had "made economics more human".
After learning that he had won the Nobel Prize, Thaler said that his most important contribution to economics "was the recognit