Kenneth Arrow
Kenneth Arrow | |
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Born | Kenneth Joseph Arrow August 23, 1921 New York City, U.S. |
Died | February 21, 2017 Palo Alto, California, U.S. |
Education |
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Academic career | |
Institution | Stanford University University of Chicago Harvard University |
Field | |
School or tradition | Neoclassical economics |
Doctoral advisor | Harold Hotelling |
Doctoral students | |
Influences | |
Contributions |
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Awards |
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Information at IDEAS / RePEc | |
Website | healthpolicy |
Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American
In economics, Arrow was a major figure in post-World War II
Education and early career
Arrow was born on August 23, 1921, in New York City.[3] Arrow's mother, Lilian (Greenberg), was from Iași, Romania, and his father, Harry Arrow, was from nearby Podu Iloaiei.[4][5] The Arrow family were Romanian Jews.[3][6][7] His family was very supportive of his education.[3] Growing up during the Great Depression, he embraced socialism in his youth. He would later move away from socialism, but his views retained a left-leaning philosophy.[8]
He graduated from Townsend Harris High School and then earned a bachelor's degree in mathematics from the City College of New York in 1940, where he was a member of Sigma Phi Epsilon. He then attended Columbia University for graduate studies, obtaining a master's degree in mathematics in June 1941.[9] At Columbia, Arrow studied under Harold Hotelling, who influenced him to switch fields to economics.[8] He served as a weather officer in the United States Army Air Forces from 1942 to 1946.[10][3]
Academic career
From 1946 to 1949 Arrow spent his time partly as a graduate student at Columbia and partly as a research associate at the
Arrow returned to Stanford in 1979 and became the Joan Kenney Professor of Economics and Professor of Operations Research. He retired in 1991. As a Fulbright Distinguished Chair, in 1995 he taught economics at the University of Siena. He was also a founding member of the Pontifical Academy of Social Sciences and a member of the Science Board of Santa Fe Institute. At various stages in his career he was a Fellow of Churchill College, Cambridge.[9] He was one of the founding editors of the Annual Review of Economics, which was first published in 2009.[12]
Four of his former students have gone on to become Nobel Prize winners, namely John Harsanyi, Eric Maskin, Roger Myerson, and Michael Spence.[13] A collection of Arrow's papers is housed at the Rubenstein Library at Duke University.[14]
Arrow's impossibility theorem
Arrow's monograph Social Choice and Individual Values derives from his 1951 PhD thesis.
If we exclude the possibility of interpersonal comparisons of utility, then the only methods of passing from individual tastes to social preferences which will be satisfactory and which will be defined for a wide range of sets of individual orderings are either imposed or dictatorial.[15]
In what he named the General Impossibility Theorem, he theorized that, unless we accept to compare the levels of utility reached by different individuals, it is impossible to formulate a social preference ordering that satisfies all of the following conditions:[16]
- Nondictatorship: The preferences of an individual should not become the group ranking without considering the preferences of others.
- Individual Sovereignty: each individual should be able to order the choices in any way and indicate ties
- Unanimity: If every individual prefers one choice to another, then the group ranking should do the same
- Freedom From Irrelevant Alternatives: If a choice is removed, then the others' order should not change
- Uniqueness of Group Rank: The method should yield the same result whenever applied to a set of preferences. The group ranking should be transitive.
The theorem has implications for
General equilibrium theory
Work by Arrow and
In 1974, The American Economic Association published the paper written by Kenneth Arrow, General Economic Equilibrium: Purpose, Analytic Techniques, Collective Choice, where he states:
From the time of Adam Smith's Wealth of Nations in 1776, one recurrent theme of economic analysis has been the remarkable degree of coherence among the vast numbers of individual and seemingly separate decisions about the buying and selling of commodities. In everyday, normal experience, there is something of a balance between the amounts of goods and services that some individuals want to supply and the amounts that other, different individuals want to sell. Would-be buyers ordinarily count correctly on being able to carry out their intentions, and would-be sellers do not ordinarily find themselves producing great amounts of goods that they cannot sell. This experience of balance is indeed so widespread that it raises no intellectual disquiet among laymen; they take it so much for granted that they are not disposed to understand the mechanism by which it occurs.[20]
Fundamental theorems of welfare economics
In 1951, Arrow presented the first and second fundamental theorems of welfare economics and their proofs without requiring differentiability of utility, consumption, or technology, and including corner solutions.[21]
Endogenous-growth theory
Arrow was one of the precursors of
Information economics
In other pioneering research, Arrow investigated the problems caused by
Awards and honors
Arrow was awarded the
He has received
Personal life and death
Arrow was a brother to the economist Anita Summers, uncle to economist and former Treasury Secretary and Harvard President Larry Summers, and brother-in-law of the late economists Robert Summers and Paul Samuelson.[34] In 1947, he married Selma Schweitzer, graduate in economics at the University of Chicago[35] and psychotherapist, who died in 2015; they had two children, David Michael (b. 1962), an actor,[36] and Andrew Seth (b. 1965), an actor/singer.[9]
Arrow was well known for being a polymath, possessing prodigious knowledge of subjects far removed from economics. On one occasion (recounted by Eric Maskin), in an attempt to artificially test Arrow's knowledge, the junior faculty agreed to closely study the breeding habits of gray whales — a suitably obscure topic — and discuss it in his presence. To their surprise, Arrow already was familiar with the work they had studied and, in addition, thought it had been refuted by other research.[34]
Arrow died in his Palo Alto, California, home on February 21, 2017, at the age of 95.[34]
Publications
- Arrow, Kenneth J. (1951a). "Alternative approaches to the theory of choice in risk-taking situations". JSTOR 1907465.
- Arrow, Kenneth J. (1951b). OCLC 892549124.
- Reprinted as: Arrow, Kenneth J. (1963). ISBN 9780300013641.
- Reprinted as: Arrow, Kenneth J. (1963).
- Arrow, Kenneth J.; S2CID 51766626.
- Arrow, Kenneth J.; Hurwicz, Leonid (1953). Hurwicz's optimality criterion for decision making under ignorance. Technical Report 6. Stanford University.
- Also available as: Arrow, Kenneth J.; ISBN 9780511752940.
- and as: Arrow, Kenneth J.; ISBN 9780521215220.
- Also available as: Arrow, Kenneth J.;
- Arrow, Kenneth J.; JSTOR 1907353.
- Arrow, Kenneth J. (February 1959a). "Functions of a theory of behaviour under uncertainty". Metroeconomica. 11 (1–2). Wiley: 12–20. .
- Arrow, Kenneth J. (1959b), "Toward a theory of price adjustment", in OCLC 490147128.
- Arrow, Kenneth J. (1960), "Price-quantity adjustments in multiple markets with rising demands", in Arrow, Kenneth J.; ISBN 9780804700214.
- Arrow, Kenneth J.; ISBN 9780804700214.
- Including: Arrow, Kenneth J. Price-quantity adjustments in multiple markets with rising demands, pp. 3–15.
- Arrow, Kenneth J. (June 1962). "The economic implications of learning by doing". S2CID 155029478.
- Arrow, Kenneth J. (December 1963). "Uncertainty and the welfare economics of medical care" (PDF). JSTOR 1812044. Archived from the original(PDF) on May 11, 2011.
- Arrow, Kenneth J. (1968), "Economic equilibrium", in OCLC 310091393.
- Arrow also published an article, along with Robert M. Solow, pseudonymously under the name Archen Minsol, who it was claimed was at the University of Lower Slobbovia. The publication produced was: Minsol, A (1968). "Some Tests of the International Comparisons of Factor Efficiency with the CES Production Function: A Reply". The Review of Economic Studies', 477–479.s. 50 (4 (Nov.)): 477–479..[37]
- Arrow, Kenneth J. (1969), "The organization of economic activity: issues pertinent to the choice of market versus non-market allocations", in {Papers} (ed.), OCLC 26897.
- Reprinted as: Arrow, Kenneth J. (1983b), "The organization of economic activity: issues pertinent to the choice of market versus non-market allocations", in Arrow, Kenneth J. (ed.), Collected papers of Kenneth J. Arrow, volume 2: general equilibrium, Cambridge, Massachusetts: Belknap Press, pp. 133–55, ISBN 9780674137615.
- Also reprinted as a pdf.
- Reprinted as: Arrow, Kenneth J. (1983b), "The organization of economic activity: issues pertinent to the choice of market versus non-market allocations", in Arrow, Kenneth J. (ed.), Collected papers of Kenneth J. Arrow, volume 2: general equilibrium, Cambridge, Massachusetts: Belknap Press, pp. 133–55,
- Arrow, Kenneth J. (1970). Essays in the theory of risk-bearing. Amsterdam: ISBN 9780720430479.
- Arrow, Kenneth; ISBN 9780816202751.
- Arrow, Kenneth J.; ISBN 9780631141709.
- Arrow, Kenneth J. (1974). The limits of organization. New York: Norton. ISBN 9780393093230.
- Arrow, Kenneth J. (February 1977). "Extended sympathy and the possibility of social choice". JSTOR 1815907.
- Reprinted as: Arrow, Kenneth J. (1983a), "Extended sympathy and the possibility of social choice", in Arrow, Kenneth J. (ed.), Collected papers of Kenneth J. Arrow, volume 1: social Choice and justice, Cambridge, Massachusetts: Belknap Press, ISBN 9780674137608.
- Reprinted as: Arrow, Kenneth J. (1983a), "Extended sympathy and the possibility of social choice", in Arrow, Kenneth J. (ed.), Collected papers of Kenneth J. Arrow, volume 1: social Choice and justice, Cambridge, Massachusetts: Belknap Press,
- Arrow, Kenneth J.; ISBN 9780444861269.
- Arrow, Kenneth J. Collected papers of Kenneth J. Arrow. Cambridge, Massachusetts: Harvard University Press.:
- Arrow, Kenneth J. (1983a). Collected papers of Kenneth J. Arrow, volume 1: social Choice and justice. Cambridge, Massachusetts: Belknap Press. ISBN 9780674137608.
- Arrow, Kenneth J. (1983b). Collected papers of Kenneth J. Arrow, volume 2: general equilibrium. Cambridge, Massachusetts: Belknap Press. ISBN 9780674137615.
- Arrow, Kenneth J. (1984a). Collected papers of Kenneth J. Arrow, volume 3: individual choice under certainty and uncertainty. Cambridge, Massachusetts: Belknap Press. ISBN 9780674137622.
- Arrow, Kenneth J. (1984b). Collected papers of Kenneth J. Arrow, volume 4: the economics of information. Cambridge, Massachusetts: Belknap Press. ISBN 9780674137639.
- Arrow, Kenneth J. (1985a). Collected papers of Kenneth J. Arrow, volume 5: production and capital. Cambridge, Massachusetts: Belknap Press. ISBN 9780674137776.
- Arrow, Kenneth J. (1985b). Collected papers of Kenneth J. Arrow, volume 6: applied economics. Cambridge, Massachusetts: Belknap Press. ISBN 9780674137783.
- Arrow, Kenneth J. (1983a). Collected papers of Kenneth J. Arrow, volume 1: social Choice and justice. Cambridge, Massachusetts: Belknap Press.
- Arrow, Kenneth J. (1987), "Rationality of self and others in an economic system", in Hogarth, Robin M.; Reder, Melvin W. (eds.), Rational choice: the contrast between economics and psychology, Chicago: ISBN 9780226348575.
- Arrow, Kenneth J.; ISBN 9780201156850. Book details.
- Arrow, Kenneth J.; .
- Arrow, Kenneth J. (May 1994). "Methodological individualism and social knowledge (Richard T. Ely Lecture)" (PDF). JSTOR 2117792.
- Arrow, Kenneth J. (2008), "Arrow's theorem", in ISBN 9780333786765.
- Also available online as: Arrow, Kenneth J. (2008). "Arrow's theorem". ISBN 978-0-333-78676-5.
- Also available online as: Arrow, Kenneth J. (2008). "Arrow's theorem".
- Arrow, Kenneth J. (2008), "ISBN 9780333786765.
- Also available online as: Arrow, Kenneth J. (2008). "Hotelling, Harold (1895–1973)". ISBN 978-0-333-78676-5.
- Also available online as: Arrow, Kenneth J. (2008). "Hotelling, Harold (1895–1973)".
- Arrow, Kenneth J.; ISBN 9781840645699.
- Arrow, Kenneth J. (June 2009). "Some developments in economic theory since 1940: an eyewitness account". Annual Review of Economics. 1. Wiley: 1–16. .
- Arrow, Kenneth J.; ISBN 9780201156850.
- Arrow, Kenneth J.; Bensoussan, Alain; Feng, Qi; PMID 17984059.
See also
- Arrow information paradox
- Arrow-Lind principle
- List of economists
- List of Jewish Nobel laureates
- List of think tanks
References
- ISBN 978-1-284-05462-0.
- ISBN 978-1-138-67606-0.
- ^ S2CID 164272068.
- ^ S2CID 186214334.
- ISBN 978-1-349-07357-3.
- ISBN 0-313-32073-X.
- ISBN 0-415-13480-3.
- ^ a b Klein, Daniel B. (2013). "Kenneth J. Arrow [Ideological Profiles of the Economics Laureates]" (PDF). Econ Journal Watch. 10 (3): 268–281. Retrieved March 28, 2023.
- ^ a b c d e f g Kenneth Arrow on Nobelprize.org
- ^ "Kenneth J. Arrow, MA, PhD". Stanford University. Retrieved November 1, 2014.
- ^ D., S. (February 25, 2010). "The best since the 1960s?". The Economist. Retrieved March 28, 2023.
- .
- ^ Stefancic, Mitja (July 2021). "Review of J. Maesse et al. (2022) "Power and Influence of Economists: Contributions to the Social Studies of Economics" | World Economics Association". WEA Commentaries. 11 (2): 11–12. Retrieved March 28, 2023.
- ^ "Kenneth J. Arrow Papers, 1939–2009". Rubenstein Library, Duke University.
- S2CID 13923619.
- ^ a b Morreau, Michael (January 1, 2016). "Arrow's Theorem". The Stanford Encyclopedia of Philosophy. Metaphysics Research Lab, Stanford University. Retrieved February 25, 2017.
- ISBN 0-19-507340-1.
- ^ "Gerard Debreu – Biographical". nobelprize.org. Retrieved February 25, 2017.
- ^ Smith, Adam, and Andrew S. Skinner. The wealth of nations. London: Penguin Books, 1999. Print.
- JSTOR 1808881.
- ^ "Kenneth Arrow (1921– )". Concise Encyclopedia of Economics. Liberty Fund. 2008. Retrieved June 18, 2017.
- S2CID 6818002.
- S2CID 155029478.
- ISBN 0-262-02553-1.
- PMID 15042237. Retrieved March 27, 2023.
- ^ "John Bates Clark Medal". American Economic Association. Retrieved February 25, 2017.
- ^ "Kenneth Joseph Arrow". American Academy of Arts and Sciences. Retrieved April 25, 2011.
- ^ "Kenneth J. Arrow". National Academy of Sciences. Retrieved September 16, 2022.
- ^ "Dr. Kenneth J. Arrow". American Philosophical Society Member History. Retrieved September 16, 2022.
- ^ "The President's National Medal of Science: Recipient Details". National Science Foundation. Retrieved March 28, 2023.
- ^ "Honorary Doctors of the Faculty of Social Sciences - Uppsala University, Sweden". Uppsala University. Retrieved March 27, 2023.
- ^ "Central Secretariat and Library and Information Services List of Fellows of the Royal Society 1660 - 201" (PDF). The Royal Society. February 2020. Retrieved March 28, 2023.
- ^ "INFORMS Fellows: Class of 2002". INFORMS. Retrieved March 27, 2023.
- ^ a b c Weinstein, Michael M. (February 21, 2017). "Kenneth Arrow, Nobel-Winning Economist Whose Influence Spanned Decades, Dies at 95". The New York Times. Retrieved February 21, 2017.
- ISBN 0-521-30454-7.
- IMDb
- ^ See page 236 in Düppe, T., & Weintraub, E. R. (2014). Finding equilibrium: Arrow, Debreu, McKenzie and the problem of scientific credit. Princeton University Press.
External links
- Kenneth J. Arrow papers, 1921-2017, Duke University
- Biography of Kenneth J. Arrow from the Institute for Operations Research and the Management Sciences
- Kenneth Arrow on Nobelprize.org
- Kenneth Arrow: An Oral History, Stanford Historical Society Oral History Program, 2011
- Kenneth J. Arrow: An Oral History, Stanford Historical Society Oral History Program, 2016