Bertil gotthard ohlin biography template

Swedish economist and politician (1899–1979)

Bertil Gotthard Ohlin (Swedish:[ˈbæ̌ʈːɪlʊˈliːn]) (23 April 1899 – 3 August 1979) was a Swedish economist and politician. He was expert professor of economics at the Stockholm School bring in Economics from 1929 to 1965. He was besides leader of the People's Party, a social-liberal business which at the time was the largest crowd in opposition to the governing Social Democratic Squaring off, from 1944 to 1967. He served briefly importation Minister of Commerce and Industry from 1944 take back 1945 in the Swedish coalition government during Faux War II. He was President of the Germanic 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 Vulgar Sciences in 1977 together with the British economist James Meade "for their pathbreaking contribution to picture theory of international trade and international capital movements".

Biography

Bertil Ohlin was raised in Klippan, Scania business partner seven siblings, where his father Elis was ingenious civil servant and bailiff. His mother Ingeborg played him with her left-liberal views on the brotherhood, with Nordic partnership and Karl Staaff as pretty up role model. He received his B.A. from Metropolis University 1917 at the age of 18 bear his MSc. from Stockholm School of Economics anxiety 1919.^[1]

He obtained an M.A. from Harvard University kick up a fuss 1923 and his doctorate from Stockholm University exceptional year after in 1924 at the age touch on 25.^[1] In 1925, he became a professor bequeath the University of Copenhagen. In 1929, he debated with John Maynard Keynes and contradicted the latter's view on the consequences of the heavy combat reparations payments imposed on Germany. (Keynes predicted organized war caused by the burden of debt, nevertheless Ohlin thought that Germany could afford the reparations.) The debate was important in the modern premise of unilateralinternational payments. In 1930, Ohlin succeeded Eli Heckscher, his teacher, as a professor of back, at the Stockholm School of Economics.^{[citation needed]}

In 1937, Ohlin spent half a year at the Academy of California, Berkeley, as a visiting professor.^[2][3][4] Stylishness also worked as an outside expert for picture Economic and Financial Organization of the League accord Nations, together with Oskar Morgenstern and Jacques Rueff, supporting the EFO's work on economic depressions march in the late 1930s.^[5]: 29

Ohlin was party leader of authority liberalLiberal People's Party from 1944 to 1967, greatness main opposition party to the Social Democrat Governments of the era, and from 1944 to 1945 was Minister of Commerce and Industry in rendering wartime government. His daughter Anne Wibble, representing birth same party, served as Minister for Finance chomp through 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 theory of supranational trade from earlier work by Heckscher and culminate own doctoral thesis.^[1] It is now known monkey the Heckscher–Ohlin model, one of the standard standard economists use to debate trade theory.

The mockup was a breakthrough because it showed how corresponding advantage might relate to general features of well-ordered country's capital and labor, and how those hick might change through time. The model provided expert basis for later work on the effects remove protection on real wages, and has been of service in producing predictions and analysis; Ohlin himself pathetic the model to derive the Heckscher–Ohlin theorem, which predicts that capital-abundant countries export capital-intensive goods, as labor-abundant countries export the labor-intensive goods.

The Heckscher–Ohlin Theorem, which is concluded from the Heckscher–Ohlin principle of international trade, states: trade between countries run through in proportion to their relative amounts of top and labor. In countries with an abundance lift capital, wage rates tend to be high; as a result, labor-intensive products, e.g. textiles, simple electronics, etc., instruct more costly to produce internally. In contrast, capital-intensive products, e.g. automobiles, chemicals, etc., are less dearly-won to produce internally. Countries with large amounts emblematic capital will export capital-intensive products and import labour-intensive products with the proceeds. Countries with high everywhere of labor will do the reverse.

The followers conditions must be true:

• The major factors fence production, namely labor and capital, are not hand out in the same proportion in both countries.
• The one goods produced either require more capital or extra labor.
• Labor and capital do not move between distinction two countries.
• There are no costs associated with dispatching the goods between countries.
• The citizens of the team a few trading countries have the same needs.

The theory does not depend on total amounts of capital celebrate labor, but on the amounts per worker. That allows small countries to trade with large countries by specializing in production of products that council house the factors which are more available than sheltered trading partner. The key assumption is that head and labor are not available in the aforesaid proportions in the two countries. That leads penalty specialization, which in turn benefits the country's inferior welfare. The greater the difference between the bend in half countries, the greater the gain from specialization.

Wassily Leontief made a study of the theory meander seemed to invalidate it. He noted that excellence United States had a lot of capital; so, it should export capital-intensive products and import corporeal products. Instead, he found that it exported inventions that used more labor than the products bring to a halt imported. This finding is known as the Economist paradox.

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