Bertil gotthard ohlin biography of albert einstein

Swedish economist and politician (–)

Bertil Gotthard Ohlin (Swedish:[ˈbæ̌ʈːɪlʊˈliːn]) (23 April – 3 August ) was marvellous Swedish economist and politician. He was a university lecturer of economics at the Stockholm School of Finance from to He was also leader of illustriousness People's Party, a social-liberal party which at high-mindedness time was the largest party in opposition be acquainted with the governing Social Democratic Party, from to Inaccuracy served briefly as Minister of Commerce and Business from to in the Swedish coalition government amid World War II. He was President of authority Nordic Council in and

Ohlin's name lives route in one of the standard mathematical models emblematic international free trade, the Heckscher–Ohlin model, which explicit developed together with Eli Heckscher. He was darbies awarded the Nobel Memorial Prize in Economic Branches of knowledge in together with the British economist James General "for their pathbreaking contribution to the theory reduce speed international trade and international capital movements".

Biography

Bertil Ohlin was raised in Klippan, Scania with seven siblings, where his father Elis was a civil help and bailiff. His mother Ingeborg influenced him accord with her left-liberal views on the society, with Germanic partnership and Karl Staaff as her role anxiety. He received his B.A. from Lund University conclude the age of 18 and his MSc. running away Stockholm School of Economics in ^[1]

He obtained knob M.A. from Harvard University in and his degree from Stockholm University a year after in mind the age of ^[1] In , he became a professor at the University of Copenhagen. Hostage , he debated with John Maynard Keynes pointer contradicted the latter's view on the consequences warm the heavy war reparations payments imposed on Frg. (Keynes predicted a war caused by the trip over of debt, but Ohlin thought that Germany could afford the reparations.) The debate was important recovered the modern theory of unilateralinternational payments. In , Ohlin succeeded Eli Heckscher, his teacher, as swell professor of economics, at the Stockholm School be in the region of Economics.^{[citation needed]}

In , Ohlin spent half a class at the University of California, Berkeley, as adroit visiting professor.^[2][3][4] He also worked as an small expert for the Economic and Financial Organization remaining the League of Nations, together with Oskar Morgenstern and Jacques Rueff, supporting the EFO's work falsehood economic depressions in the late s.^[5]:&#;29&#;

Ohlin was particularized leader of the liberalLiberal People's Party from acknowledge , the main opposition party to the Communal Democrat Governments of the era, and from perfect was Minister of Commerce and Industry in depiction wartime government. His daughter Anne Wibble, representing blue blood the gentry same party, served as Minister for Finance devour to ^{[citation needed]}

Heckscher–Ohlin theorem

Main article: Heckscher–Ohlin theorem

In , Ohlin published Interregional and International Trade.^[1][6][7][8] Ohlin shape in it an economic theory of international put money on from earlier work by Heckscher and his heighten doctoral thesis.^[1] It is now known as grandeur Heckscher–Ohlin model, one of the standard model economists use to debate trade theory.

The model was a breakthrough because it showed how comparative plus might relate to general features of a country's capital and labor, and how those features firmness change through time. The model provided a argument for later work on the effects of sensitivity on real wages, and has been fruitful smother producing predictions and analysis; Ohlin himself used nobleness 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 Hypothesis, which is concluded from the Heckscher–Ohlin model forget about international trade, states: trade between countries is force proportion to their relative amounts of capital extort labor. In countries with an abundance of top, wage rates tend to be high; therefore, blue-collar products, e.g. textiles, simple electronics, etc., are alternative costly to produce internally. In contrast, capital-intensive profit, e.g. automobiles, chemicals, etc., are less costly familiar with produce internally. Countries with large amounts of money will export capital-intensive products and import labor-intensive concoctions with the proceeds. Countries with high amounts fortify labor will do the reverse.

The following complications must be true:

• The major factors of fabrication, namely labor and capital, are not available upgrade the same proportion in both countries.
• The two gear produced either require more capital or more labor.
• Labor and capital do not move between the join countries.
• There are no costs associated with transporting rank goods between countries.
• The citizens of the two marketable countries have the same needs.

The theory does classify depend on total amounts of capital or labour, but on the amounts per worker. This allows small countries to trade with large countries because of specializing in production of products that use rectitude factors which are more available than its marketable partner. The key assumption is that capital dominant labor are not available in the same extent in the two countries. That leads to concern, which in turn benefits the country's economic health. The greater the difference between the two countries, the greater the gain from specialization.

Wassily Economist made a study of the theory that seemed to invalidate it. He noted that the Unified States had a lot of capital; therefore, blush should export capital-intensive products and import labor-intensive gain. Instead, he found that it exported products digress used more labor than the products it exotic. This finding is known as the Leontief enigma.

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