Sir John R. Hicks, (born April 8, 1904, Leamington Spa, Warwickshire, England—died May 20, 1989, Blockley, Gloucestershire), English economist who made pioneering contributions to general economic equilibrium theory and, in 1972, shared (with Kenneth J. Arrow) the Nobel Prize for Economics. He was knighted in 1964.

Hicks made major contributions to many areas of 20th-century economics; four, in particular, stand out. First, he showed that, contrary to what Karl Marx had believed, labour-saving technological progress does not necessarily reduce labour’s share of the income. Second, he devised a diagram—the IS-LM diagram—that graphically depicts John M. Keynes’s conclusion that an economy can be in equilibrium with less-than-full employment. Third, through his book Value and Capital (1939), Hicks showed that much of what economists believe about value theory (the theory about why goods have value) can be reached without the assumption that utility is measurable. Fourth, he came up with a way to judge the impact of changes in government policy. He proposed a compensation test that could compare the losses for the losers with the gains for the winners. If those who gain could, in principle, compensate those who lose—even if they do not actually and directly compensate them—then, claimed Hicks, the change in policy would be efficient.

from Encyclopedia Brittanica

Value and Capital is considered a classic exposition of microeconomic theory. Central results include:

  1. Extension of consumer theory for individual and market equilibrium as to goods demanded with explicit use of only ordinal utility for individuals, rather than requiring interpersonal utility comparisons
  2. Analysis of the 2-good case as to the effects of a price change and mathematical extension to any number of goods without loss of generality
  3. Parallel results for production theory
  4. Extension of general equilibrium theory of markets and adaptation of static-equilibrium theory to economic dynamics in distinguishing temporary and long-run equilibrium through the expectations of agents.

Link to Nobel Prize Page on John Richard Hicks