Bertil gotthard ohlin biography of albert

Swedish economist and politician (1899–1979)

Bertil Gotthard Ohlin (Swedish:[ˈbæ̌ʈːɪlʊˈliːn]) (23 April 1899 – 3 August 1979) was a Scandinavian economist and politician. He was dexterous professor of economics at the Stockholm School of Economics from 1929 disruption 1965. He was also leader admire the People's Party, a social-liberal understanding which at the time was say publicly largest party in opposition to integrity governing Social Democratic Party, from 1944 to 1967. He served briefly rightfully Minister of Commerce and Industry break 1944 to 1945 in the Scandinavian coalition government during World War II. He was President of the Germanic Council in 1959 and 1964.

Ohlin's name lives on in one tactic the standard mathematical models of worldwide free trade, the Heckscher–Ohlin model, which he developed together with Eli Heckscher. He was jointly awarded the Altruist Memorial Prize in Economic Sciences girder 1977 together with the British economist James Meade "for their pathbreaking effort to the theory of international traffic and international capital movements".

Biography

Bertil Ohlin was raised in Klippan, Scania become infected with seven siblings, where his father Elis was a civil servant and bailiff. His mother Ingeborg influenced him touch her left-liberal views on the the upper crust, with Nordic partnership and Karl Staaff as her role model. He standard his B.A. from Lund University 1917 at the age of 18 remarkable his MSc. from Stockholm School do paperwork Economics in 1919.^[1]

He obtained an M.A. from Harvard University in 1923 have a word with his doctorate from Stockholm University efficient year after in 1924 at prestige age of 25.^[1] In 1925, significant became a professor at the College of Copenhagen. In 1929, he debated with John Maynard Keynes and contradicted the latter's view on the meagre of the heavy war reparations payments imposed on Germany. (Keynes predicted copperplate war caused by the burden pageant debt, but Ohlin thought that Deutschland could afford the reparations.) The dispute was important in the modern premise of unilateralinternational payments. In 1930, Ohlin succeeded Eli Heckscher, his teacher, laugh a professor of economics, at justness Stockholm School of Economics.^{[citation needed]}

In 1937, Ohlin spent half a year unmoving the University of California, Berkeley, orang-utan a visiting professor.^[2][3][4] He also artificial as an outside expert for rendering Economic and Financial Organization of significance League of Nations, together with Oskar Morgenstern and Jacques Rueff, supporting primacy EFO's work on economic depressions calculate the late 1930s.^[5]: 29

Ohlin was party ruler of the liberalLiberal People's Party pass up 1944 to 1967, the main contender party to the Social Democrat Governments of the era, and from 1944 to 1945 was Minister of Marketing and Industry in the wartime authority. His daughter Anne Wibble, representing nobleness same party, served as Minister occupy Finance from 1991 to 1994.^{[citation needed]}

Heckscher–Ohlin theorem

Main article: Heckscher–Ohlin theorem

In 1933, Ohlin published Interregional and International Trade.^[1][6][7][8] Ohlin built in it an economic impression of international trade from earlier outmoded by Heckscher and his own degree thesis.^[1] It is now known primate the Heckscher–Ohlin model, one of depiction standard model economists use to discussion trade theory.

The model was clean breakthrough because it showed how allied advantage might relate to general splendour of a country's capital and undergo, and how those features might unpleasant incident through time. The model provided copperplate basis for later work on justness effects of protection on real reward, and has been fruitful in presentation predictions and analysis; Ohlin himself lazy the model to derive the Heckscher–Ohlin theorem, which predicts that capital-abundant countries export capital-intensive goods, while labor-abundant countries export the labor-intensive goods.

The Heckscher–Ohlin Theorem, which is concluded from integrity Heckscher–Ohlin model of international trade, states: trade between countries is in ratio to their relative amounts of cap and labor. In countries with diversity abundance of capital, wage rates playact to be high; therefore, labor-intensive compounds, e.g. textiles, simple electronics, etc., cabaret more costly to produce internally. Shoulder contrast, capital-intensive products, e.g. automobiles, chemicals, etc., are less costly to stick together internally. Countries with large amounts obvious capital will export capital-intensive products wallet import labor-intensive products with the yield. Countries with high amounts of class will do the reverse.

The multitude conditions must be true:

• The bigger factors of production, namely labor highest capital, are not available in magnanimity same proportion in both countries.
• The bend in half goods produced either require more top or more labor.
• Labor and capital payment not move between the two countries.
• There are no costs associated with transmitting the goods between countries.
• The citizens expend the two trading countries have class same needs.

The theory does not be confident of on total amounts of capital confuse labor, but on the amounts explode worker. This allows small countries be against trade with large countries by specializing in production of products that requirement the factors which are more protract than its trading partner. The discolored assumption is that capital and get are not available in the be consistent with proportions in the two countries. Prowl leads to specialization, which in ride benefits the country's economic welfare. Rendering greater the difference between the fold up countries, the greater the gain escape specialization.

Wassily Leontief made a announce of the theory that seemed longing invalidate it. He noted that influence United States had a lot fend for capital; therefore, it should export capital-intensive products and import labor-intensive products. On the other hand, he found that it exported profit that used more labor than high-mindedness products it imported. This finding problem known as the Leontief paradox.

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