B.A. (Hons), M.A (Econ). Ph.D., Hon. D.Sc Europe).

distinguished Indian Economist

NOBEL ECONOMISTS Lives and Contributions (1995)

  • Overview
  • Foreword
  • Preface
  • Index
  • Impressions

NOBEL ECONOMISTS Lives and Contributions(1995)

Foreword by Jan Tinbergen,
The first Nobel Laureate in Economics

This book presents in detail the authenticated accounts of the lives and contributions of all the thirty-seven economists who have been awarded the Nobel Prize in Economics from 1969 to 1994. This book, set in three volumes, is a great effort by the author, which presents an encyclopaedic survey of the work done by these Nobel laureates. Uptodate lists of contributions of each of the thirty-seven laureates have been annexed to the respective chapters, which enhance the value of the book.
Prof. Jan Tinbergen, the first Nobel laureate in Economics in his 'Foreword' has said that: "I feel that to have conceived the idea of writing on the economic ideas of all the Nobel Prize winning economists was an ambitious object on the part of the author and he has eminently succeeded in his effort. The scattered material of the various economists are not only brought together in one place but are also presented in an analytical- and lucid manner. . . . The book gives a kind of thinking and changes which the subject of economics has witnessed over the years. The presentation of the life sketches of the economists is well-done.... The economists all over the world will find this work very useful .... This
book is the first of its kind in the entire world—a pioneering landmark in the field of history of  contemporary economic thought." The economists, teachers and students all over the world will find this Pioneering encyclopaedic work very informative and useful.

The Nobel Prizes were initiated in 1901 by Alfred Nobel and are being awarded in Physics, Chemistry,Medicine or Physiology, Literature and Peace. Alfred Nobel in his short Will had mentioned that the prizes should be given to the most important discovery or invention in the field of Physics; the most important discoveries in other scientific fields like Chemistry and Medicine and the prizes to be awarded for Literature and Peace. The Central Bank of Sweden instituted the Central Bank of Sweden Prize in Economic Science in Memory of Alfred Nobel in 1968. This Award has the same principles and rules as the original Nobel Prizes. Since the first Nobel Prize was shared by Ragnar Frisch and myself, till today, 25 prizes have been awarded to 34 economists in various specialised fields in economic science (1994 prize was not yet awarded when the 'Foreword' was written. Thus, there are thirty seven laureates inclu ing 1994 prize).
This work is a very ambitious work of Dr. K. Puttaswamaiah, an eminent Indian economist, who has taken up this task of presenting the lives and contributions of the Nobel laureates. The method followed by him is to devote one chapter on each of these laureates and each chapter is annexed with the list of contributions made by them which is well updated. The presentation of 'Nobel Economists' in this book gives an encyclopaedic survey of work by these economists and the author has studied an enormous volume of literature.
I am quite familiar with the works of Dr. K. Puttaswamaiah ever since (1977) I read his small monograph on this subject containing only twelve economists at that time. Though, contributions of economists were briefly presented in that monograph, I felt even then that they were eminently suitable to economists as well as laymen, to have an idea of the lives and contributions of laureates in one place. This work is an extension of that work and he has spent over two decades to author this work.
Dr. K. Puttaswamaiah who has had a brilliant academic career, has to his credit over thirty works on various aspects of planning, project appraisal, evaluation and cost-benefit analysis, regional economics and other allied subjects. I have gone through almost all of his works, thanks to the publishers who were promptly sending, at the (reques't of the author, his publications as and when they are brought out and my admiration to him went on increasing by leaps and bounds. His two-volumes treatise on the Economic Development of Karnataka—A Treatise in Continuity and Change in about 2000 pages has been presented
admirably and in a highly scientific manner. It is almost like the Asian Drama, the Nobel Prize winning work of Gunnar Myrdal, in content, quality and style of presentation. I have seen many reviews of this work where this magnum-opus of Dr. Puttaswamaiah has been received as an admirable contribution by
economists, journals and other communication medias. His work on Micro-Plan for Full Employment is yet an another work which is the result of a systematic survey of a region in Karnataka, India and which was commissioned by the Government of India. I have gone through this work and it is, as has been rightly said by one of the reviewers, an 'Indian Classic'. Among his other works, I have chosen to mention here his works on evaluation and cost-benefit analysis. In these areas, he has five books in all, out of which I have chosen two here. The Fundamentals of Applied Evaluation is die single man's effort which should have been done by an institution like Indian Planning Commission. This work of his provides concepts of evaluation, goes into the methodology in conducting it and the whole process of evaluation including tabulation, statistical techniques involved and the methods of presenting the report are contained in this work. Therefore, it is a very useful guide to any evaluator not only in India but anywhere in the world. It may be correctly styled as "a guide to evaluators". The other book, I have chosen relates to the Cost- Benefit Analysis—A Theoretical and Applied ¹Matter in brackets added by the Author.
Critique of Alternate Methodologies (with S. Venu, who is a co-author). Probably, this is a novel work I have come across wherein all the five methods used in conducting cost-benefit analysis are theorised and the applications are presented. The LM Method, the Mishan's Approach, the World Bank and
UNIDO methods and my own Value-added Approach to CBA are presented with theoretical backgrounds and applications. The book has a very good introduction which may rightly be considered as a fine piece on weijare economies'. The merits and demerits of these methods of CBA are
presented, compared and contrasted. This book on cost-benefit analysis is a very useful work for project evaluation; especially since it mentions, as described above, the methods used by various agencies which have to evaluate many projects. The above are illustrative examples of Dr. K. Puttaswamaiah's works.
Of these works, The Economic Development bf Karnataka and the present
comprehensive work on the Lives and Contributions of Nobel Laureates in Economics, titled 'Nobel Economists'' are his ambitious magnum-opuses. His specialisation has also been in project evaluation and cost-benefit analysis. With his high academic background, Dr. Puttaswamaiah has authored this ambitious work relating to the Nobel Laureates in Economics.
I have gone through most of die chapters contained in this work at the draft stages and I have all appreciation for die very hard efforts put-in by die author widi all his analytical skill. It is not easy to present works, for example, of Koopmans, Frisch and others, whose works are madiematically-oriented and not easy to make accessible to those who lack mathematical background. In this respect, he has eminently succeeded in his effort and made die presentation useful not only to economists but also to die laymen. The descriptions of works of Kuznets and Myrdal are very useful. He has presented well the works of Sir John Hicks and Samuelson who have made enormous contributions to die science of economics. His treatment of works of Wassily Leontief is extremely well done. The Nobel laureates who are not economists in die true sense of the term like die men like Herbert A. Simon who has specialised in administrative science, James M. Buchanan, whose work are related to contractual and constitutional aspects and, thus prominent not only in economics but also in political decision-making have been well presented by him. The study of the contributions of all the laureates contained in this work, as a whole, covers all aspects of economics and the entire world of the science of economics as it were. This way, he has exhibited  extraordinary skill and studied enormously and put-in hard work. His knowledge of the work of these
economists is well seen. When Dr. Puttaswamaiah requested me to write die 'Foreword" for this work, I readily agreed since he had also sent the draft chapters on my suggestion which impressed me. I feel that to have conceived the idea of writing on the economic ideas of all the Nobel prize winning Economists was an ambitious object on the part of the author and he has eminently succeeded in his effort. The scattered material of the various economists are not only brought together in one place and are also presented in an analytical and lucid manner.

I appreciate his work on Nobel Economists. The book also gives a kind of thinking and changes which the subject of economics has witnessed over the years. The presentation of the life sketches of the economists, as said earlier, are well-done and I am sure the economists all over the world will find this work very useful and, from chapter to chapter, they will derive great pleasure in knowing the lives and contributions. This book, it will not be wrong if I say, is
the first of its kind in the entire world—a pioneering landmark in the field of history of contemporary economic thought. I am sure, every economist will intensely adore this publication.My best wishes are always there to Dr. K. Puttaswamaiah along with this Foreword.

February4, 1994                                                                        JAN TINBERGEN
                                                                                              Emeritus Professor
                                                                                              Erasmus University
                                                                                      Rotterdam, Netherlands 

Eminent men either in the field of Science or Humanities are honoured by some way or the other. The Nobel Prize instituted in the name of Alfred Nobel is the highly recognised honour in the world. When Alfred Nobel died in 1896, he had left behind more than thirty-three million Kronar or nine million American dollars (in the present day currency rates this is a very big amount). His Will specified that the bulk of the estate be put aside in a fund, and the annual income to be divided among five prizes, three in science—physics, chemistry, and medicine or physiology, one in literature and one to advance cause of world peace. Nobel when he instituted these prizes 'could not, of course, have foreseen that they would become the ultimate symbol of excellence for scientists and laymen alike and that those in literature and peace, although more controversial than the others, would also carry their share of international prestige' (Zuckerman, Harriet, Scientific Elite—Nobel Laureate in the United States, The Free Press, 1977). The Nobel Prize was initiated in 1901 and the prize for these disciplines were being awarded to the most accomplished scientists.

In conjunction with its tricentenary celebration in 1968, the Central Bank of Sweden (Sveriges Riksbank) instituted a new award "The Central Bank of Sweeten Prize in Economic Science in Memory of Alfred Nobel". The principles and rules for this award to economists were the same as those which were already there in respect of original Nobel Prizes which were being awarded since 1901.

Since the inception of this award to Science of Economics and subjects related to it, thirty-seven eminent men have received the Nobel Prizes in economic science from 1969 to 1994. These economists are Jan Tinbergen and Ragnar Frisch (1969), Paul A. Samuelson (1970), Simon Kuznets (1971), Sir John Hicks and Kenneth J. Arrow (1972), Wassily Leontief (1973), Gunnar Myrdal and Friedrich von Hayek (1974), Leonid Kantorovich and Tjalling Koopmans (1975), Milton Friedman (1976), James E. Meade and Bertil Ohlin (1977), Herbert A. Simon (1978), Theodore W. Schultz and Sir W. Arthur Lewis (1979), Lawrence R. Klein (1980), James Tobin (1981), George J. Stigler (1982), Gerard Debreu (1983), Sir Richard Stone (1984), Franco Modigliani (1985), James Buchanan (1986), Robert M. Solow (1987), Maurice Allais (1988), Trygve Haavelmo (1989), Harry M. Markowitz, Merton H. Miller, William F. Sharpe (1990), Ronald H. Coase (1991), Gary S. Becker (1992), Douglass C. North and Robert William Fogel (1993) and John C. Harsanyi, John F. Nash and Reinhard Selten (1994). Of the above thirty-seven laureates in economics, twenty-three are from USA, five are from Britain and the remaining nine economists are from other parts of the world. For instance, Jan Tinbergen (1969) is from Netherlands, Ragnar Frisch (1969) and Trygve Haavelmo (1989) are from Norway, Leonid Kantorovich (1975) is from Soviet Union, Gunnar Myrdal (1974) and Bertil Ohlin (1977) are from Sweden, and Maurice Allais (1988) and Reinhard Selten (1994) are from France and Germany respectively. Thus, all the laureates in economics have so far been from the West viz., USA, U.K. and Europe and Kantorovich is the only one from Soviet Union and none from the Eastern world.

Since the inception of the prize, i.e., first award of the Nobel Prize in 1969, during the twenty-six years upto 1994, there have been thirty-seven eminent men receiving the prizes. Of the thirty-seven prizes awarded since its institution upto 1994, seventeen persons, namely, Paul A. Samuelson, Simon Kuznets, Wassily Leontief, Milton Friedman, Herbert A. Simon, Lawrence R. Klein, James Tobin, George J. Stigler, Gerard Debreu, Richard Stone, Franco Modigliani, James M. Buchanan, Robert M. Solow, Maurice Allais, Trygve Haavelmo, Ronald H. Coase and Gary S. Becker have received the prize themselves. The remaining nine prizes have been shared by two or three persons. Jan Tinbergen and Ragnar Frisch have shared the Nobel Prize in 1969. Similarly, Sir John Hicks and Kenneth J. Arrow in 1972, Gunnar Myrdal and Friedrich von Hayek in 1974, Leonid V. Kantorovich and Tjalling Koopmans in 1975, James E. Meade and Bertil Ohlin in 1977, Theodore W. Schultz and Arthur Lewis in 1979, Harry M. Markowitz, Merton H. Miller and William F. Sharpe in 1990, Douglass C. North and Robert William Fogel in 1993 and John C. Harsanyi, John F. Nash and Reinhard Selten in 1994 have shared the prize for their contributions. In the 'Statutes'' of the Nobel Foundation, there is provision to award the Nobel Prize also to those who are not pure economists but have done pioneering contributions which help in further research in economics—theory or applied. For instance, Herbert A. Simon (1978) has been awarded for his specialisation in administration science for his research into decision-making process within the economic organisations. Richard Stone (1984) has been awarded for his specialisation in national income accounting which has improved greatly the maintenance of national accounts, James Buchanan (1986) has been awarded for his specialisation in the new political economy for his contribution in the development of contractual and constitutional basis for the theory of economic and political decision-making. These are some

In this work, which is presented in three volumes, an effort is made to present as extensively as possible the lives and contributions of each of the laureates in economics. The first chapter, 'Introduction', describes the origin of the Nobel Prize in Economic Science and related subjects. The 'Introduction' provides how economics came to be regarded as a science which should attract Nobel Prize by the 'Statutes' issued by the Nobel Foundation. This 'Statutes' relating to "The Prize in Economic Science in Memory of Alfred Nobel" was approved by the Crown of Sweden on the
19th day of December 1968 and the first prize was thus awarded in 1969.

The lives and contributions of the laureates are presented in detail with critical analyses of their contributions in each chapter. Every chapter relating to the laureates contains at the end an Annex which lists out their contributions arranged year-wise in a chronological order to enable further researches to go into the original sources.

This work owes its origin to the inspiration given to me by Prof. Jan Tinbergen, who shared the first Nobel Prize with Prof. Ragnar Frisch (1969), when he praised my first attempt published in 1977 under the title 'Nobel. Economists' in which I had made a humble attempt to delineate briefly the lives and contributions of nobel laureates in economics from 1969 to 1977, in a small monograph. On going through this monograph, he said in his personal letter in 1977 that: "The author gives an encyclopaedic survey of the work of these economists and has studied an enormous volume of literature. The description of works of Kuznets and Myrdal will be very useful to many economists or also laymen". Since then, he has been following-up my works and providing whatever guidance I needed from him. He has favoured me by writing a 'Foreword' for this work after going through most of the chapters which were ready on the day of his writing the 'Foreword'. I am very grateful to him for this act of his kindness. Later, just three months earlier to his death, he wrote an another 'Foreword' to my another book (edited) "Econometric Models— Techniques and Applications" already published (1994) before his death. He has been one of the Founder Members of the Advisory Committee of an International Quarterly Economic Journal entitled Indian Journal of Applied Economics started by me from Bangalore (India) and for which I am the Chief Editor. His valuable guidance for running the Journal along with other members, is gratefully acknowledged. His last letter to me dated June 7, 1994 was received by me after his death of June 9, 1944 in which he has said "You will soon receive my article on 'World Government' for the publication in the Journal. Am I still indebted on any other issues! Please let me know." This letter, written two days earlier to his death, has really touched my heart very much and developed a sense of feeling and my affection for him which was there since 1977, as also my respects and devotion to his words grew. I was really lucky to have such a close and affectionate relation with a laureate, the father of econometrics. The other Nobel laureates who had appreciated the earlier monograph which similarly inspired me are Kenneth J. Arrow who has said that "you have done very useful service to economics" and Milton Friedman who had similarly appreciated
that small work saying that what ever I had written on him was "certainly accurate and fair".

Apart from the above great personalities, who inspired me to author this work, there are inspirations from other quarters too. That small monograph was also well received by the press and the leading journals both in India and abroad. Some of the Indian universities are teaching about contributions of Nobel laureates from the pre-university level to the post-graduation. Professors from many universities who were using my earlier small monograph, which contains only twelve laureates, were repeatedly requesting me to bring out a work containing all the laureates in the interest of academic community in general and students in particular. Therefore, this work is expected to be helpful to the teachers and students of many universities in India and similarly it will
also be useful in universities abroad.

The three-volume set of this work, "Nobel Economists" is a new attempt to bring together the lives and contributions of all the Nobel Laureates in Economics from 1969-1994 anywhere in the world. The twelve chapters contained in the earlier small monograph have been completely rewritten as those laureates have done much contributions to the science of economics after they received the Nobel Prize. The remaining chapters relating to twenty-five other economists are altogether new contributions. Therefore, this is a new work and the result of an effort put forth for
nearly two decades.

It could be seen from the 'Introduction' that majority of the economists have received Nobel prizes for their path-breaking contributions to macro as well as micro economics and some of them have received for their applied works too. As mentioned above, some of them have received the prize for their specialisations in fields related to economics like the administrative behaviour (Herbert A. Simon), new political economy (James M. Buchanan) and national income accounting (Richard Stone). The purpose of mentioning this is to emphasise the fact that most of the economists have worked on macro econometrics in general, and general equilibrium theory in particular. In this context, it cannot be forgotten to mention that the basis for their works was the General Theory of Keynes which is a landmark in the history of economic thought. It is this work of Keynes which has stimulated other economists to do further research on Keynes' work even disagreeing with him on certain concepts. Hicks' Value and Capital probably would not have been authored by him but for the fact that he had lot of agreements and disagreements on the General Theory. He himself said once when the Kannada translated version (translated by me) of his Value and Capital was released by him in February 1980 that he had lot of differences in some of the concepts contained in his General Theory of Employment, Interest and Money of J.M. Keynes. He further said that he himself has changed his own ideas contained in the Value and Capital. Hence, his new books on the Revision of the Demand Theory, Causality in Economics, and so on. In this connection, it is fair to say that Samuelson could be called the American Keynes. He has been a staunch supporter of the General Theory and most of the works including his Foundations (1948) support Keynesian ideas. His followers have also worked and supported die Keynes' contributions and did further researches. Many of them are now Nobel laureates. In this context, it is necessary to recollect what Samuelson had emphasised about the role of Swedish economists to science of economics. While talking about the Scandinavian economists and in particular about Bertil Ohlin, Samuelson has said that "if Scaendndinavia had not existed, economics have had to invent it". It may be further quoted what Samuelson has again said: "For an economist, century's end was a good time to be born—the best since the century's middle".To have been born in 1875 would have been to be born too early. Bertil told me he began his serious economic study in 1915, the year of my birth. By the time he was 20, he was rubbing elbows with the members of Stockholm's Political Economy Club, where gathered around a single table were all the great minds of Swedish economists. Ohlin saw Knut Wicksell plain—very heaven in my envious view . . . Had Scandinavia not existed, we should have had to invent it—to run our international agencies and provide the cosmopolitan binding between the disparate language empires. Bertil Ohlin early earned the right to serve such organisations as the League of Nations. I .would suppose he knew personally all the great economists of his day. (Samuelson, Paul A., Bertil Ohlin: 1899-1979, Scandinavian Journal of Economics, Vol. 83, No. 3, 1981, p. 369). It will not be wrong if said that half of economics what it is today would have been in wilderness if contributions of Keynes which are vital to the subject of economics were not mere. Thus, Keynes' works have been rightly described as "open door" or "gateway" to many later contributors on this subject. Keynes has written so much about the early economists, which are also the basis for later economists who have won the prize. It has been described that Keynes himself has triggered the biographical cottage industry. His works of R.F. Harrod and Robert Skidelsky may be mentioned in this context. When we study the contributions of these thirty-seven Nobel economists, we find agreements and disagreements among them, which goes with David Hume's dictum: "there is man, but heap of contradictions" but we find simple consistencies among some economists like Samuelson whom I consider as a "King of the Keynesian
School” and his followers.

The Nobel Prize has attracted many fields of economics; of late, the economic history and the games theory. Economic history is an important subject to know the development of the science. In fact, Schumpeter himself expressed regret on some occasions that he had not become an economic historian. In this sense, Douglass North and Robert W. Fogel are lucky economic historians even in the expression of Joseph Schumpeter. Each one of the earlier economists from Adam Smith to Keynes have made good contributions to science of economics. Marshall's "Principles" is a landmark and the next landmark, I consider, is me Value and Capital of J.R. Hicks. Fifty percent of the later contributions by economists are offshoots of this General Theory But, it is somewhat surprising to know that Maurice Allais, Nobel laureate of 1988 who in the midst of three hundred and odd economists assembled in Edinburgh on July 16th and 17th 1990 to celebrate Adam Smith's centenary of whom there were eight Nobel prize winners too. Maurice Allais in this gathering has claimed that "Adam Smith borrowed most of his ideas from Frenchmen and there is no objective right to consider him as the father of political economy" (Economic Times, India, dated July 29, 1990). This not only upset the Scots, but many other economists too. In this very gathering, Wassily Leontief has rightly attacked: Modem economists for letting abstract mathematics take over from- an analysis of facts. His solution—"governments should spend still more money on economics" is to be noted (Ibid, dated July 29, 1990). James Buchanan and Franco Modigliani were also present, among others in this context. During the period from 1969-1994, as said earlier, thirty-seven economists have received the nobel prizes for their specialisations in various fields of economics and related subjects. These specialised fields cover macro and micro economics and econometrics, financial economics and allocation theory, development economics, industrial economics, political economy, input-output technique and statistical subjects like probability theory and other aspects of econometrics, economic history, administrative behaviour as related to the economy and the games theory. All these subjects put together cover the whole world of economics, the understanding of which is not possible in short duration. My two decades' efforts to prepare these three volumes might have left out some areas within these subjects; but I can fairly say that I have endeavoured to do the best that is possible. The list of contributions annexed to each chapter would provide scope for those professors, scholars and students interested to do much more elaborate research in their chosen areas of interest. This way, I am satisfied that I have'done my best. Prof. Jan Tinbergen has said in this 'Foreword7 that the presentation of 'Nobel Economists' in these volumes gives an encyclopaedic survey of the work of these economists and the author has studied an enormous volume of literature. It has also meant
consumption of time and hard work for nearly two decades. After having gone through the chapters,Tinbergen has observed as above.

I have tried to present in each of the chapters, the economists as innovators, their products of theoretical and applied researches are presented for the use of not only professors and teachers of the universities, but an attempt is made to present them as far as possible, as understandable to laymen who, I am sure, are also interested to know about the Nobel laureates in economics. The Nobel Prize is a tool which elevated many economists to scientific parity with neo-Newtonian

Development economics has also given Nobel prizes to economists like Simon Kuznets, Theodore W. Schultz and Sir Arthur Lewis who have contributed widely on the subject. Their contribution to development economics is a powerful landmark in the history of economic thought. Maurice Allais has received the prize for his specialisation in market equilibrium in 1988 and Trygve Haavelmo for his probability theory and econometrics (1989). Next prize in 1990 has been shared by Harry Markowitz, Merton H. Miller and William F. Sharpe for their specialisations in
financial economics.

Gary S. Becker received the Nobel prize for his Treatise on the . Family, which basically contains the economics of the households and the evaluation of die family economics. Though the prize is awarded to this work, he has made contributions to many other subjects like Crime and Punishment: The Economic Approach, Essays in the Crime and Punishment and many other subjects. According to Joseph Schumpeter, Becker was never a beginner. If economics was made for Becker, Becker was clearly made for economics. He has had successful careers in mathematics, physics, physiology and even history. His teacher Jacob Viner has considered Becker as his best student and Milton Friedman was quick enough to find Becker as having a brilliant analytical mindand great originality.

Ronald Coase though got the Nobel prize for his theory of firm and transaction costs has also many contributions to the science of economics as Gary S. Becker has done. It may be quoted from his Nobel Lecture, which shows his humility. Coase has said: "I have made no innovations in high theory. My contribution to economics has been to urge the inclusion in our analysis of features of the economic system so obvious that, like the postman in G.K. Chesterton's Fadier Brown tale, The Invisible Man, they have tended to be overlooked. Nonetheless, once included in the analysis, they will, as I believe, bring about a complete change in the structure of economic theory, at least in what is called price theory or microeconomics. What I have done is to show the importance of the working of the economic system of what may be termed the institutional structure of production." (Coase, R.H, 'The Institutional Structure of Production', The American Economic Review, Vol. 82, No. 4, September 1992, p. 713).

Many laureates have written about the economic history, inter alia along their other subjects like Milton Friedman on the American economic history. Douglass C. North and Robert W. Fogel, as said earlier, have demonstrated in their renewed research in economic history by applying economic theory and quantitative methods to explain economic and institutional changes. The 1994 prize has been shared by John C. Harsanyi, John F. Nash and Reinhard Selten for their specialisations in games theory. Though they have not done the original work in this field of games theory, they have received the prize for their continued efforts in the analysis of equilibrium in the theory of non-cooperative games.

Apart from Jan Tinbergen who has allthrough followed up this work and was to its almost logical end to whom I lack words to express gratitude, as said earlier, the inspiration is also from other laureates like Kenneth J. Arrow, Milton Friedman and Gunnar Myrdal who encouraged me. I owe a debt of gratitude to all these laureates.

Further, I had the opportunity of being in close association with Sir John Hicks ever since he received the Nobel Prize for his Value and Capital in 1972. The reason was that the University of Mysore had asked me to translate his Value and Capital into Kannada (one of the leading Indian languages) five years earlier to the award of (the prize to Hicks and I had almost completed my translation work and was under pre-publication review by the Institute of Kannada Studies of me University of Mysore, India. I was not aware that the Value and Capital would get the Nobel Prize when I took up the task of translation. Therefore, as a matter of duty, I got in touch with Sir John Hicks and he and his wife Prof. Ursula Hicks became very close with me since then and were supporting my academic works. The Kannada version of Value and Capital was ready for release by the end of 1979 and Sir John Hicks and Ursula Hicks were in India in early 1980 when they happen to visit Bangalore. There was a release function of the Kannada version of Value and Capital in the campus of the Mysore University at Mysore. Among other facts. Hicks mentioned in the function that it was the first occasion in which both his wife and he shared the same platform in a function. In fact, it was a very colourful day for them and till Hicks died in 1989, Hicks couple was very close to me— both personally and on academic matters. Thus, he was also an important inspiration for this work. I
am extremely grateful to them for their kindness in following up my research career and I was fortunate to have translated Value and Capital of Hicks.

In addition to the above, laureates who had appreciated the original small monograph in their personal letters and in addition to reviews by leading periodicals and newspapers, there have been many encouraging letters by many other eminent economists—in India and abroad. I wish to express my gratitude to Sir John Hicks and Prof. Ursula Hicks for their whole-hearted appreciation of my academic works and the other researchers who inspired me to author this magnum opus. Any work of this magnitude requires help and encouragement from innumerable sources which are difficult to acknowledge individually.

These are a few examples of leading laureates with whom I have had intimate contacts. I had to get in touch with many other Nobel laureates for some information, clarification or guidance who have whole-heartedly supported me. For instance, even recently, Prof. John C. Harsanyi who is one of the current year laureates has sent his full life history as well as his contributions and other information I required—similarly others.

However, after expressing my gratitude to the laureates mentioned above, it is my first duty to express gratitude to the NobelFoundation who made available the background materials relating tothe Nobel Prizes in general, and the Nobel Prizes in the Science of Economics in particular, like the 'Statutes' for the Sveriges Riksbank (Bank of Sweden) Prize in Economic Sciences in Memory of Alfred Nobel with Special Regulations concerning the Award, approved by the Crown on the 19th day of December 1968, details regarding right of submission of proposals and so on. I express my gratitude to the Nobel Foundation and, in particular, to Prof. Karl-Goran Maler, Professor of Economics at the Stockholm School of Economics, who has been a Member of the Prize Committee and to Michael Sohlman, Executive Director and Kristina Fallenius, Information Department of the Nobel Foundation. They have also been kindly sending to me on acontinuing basis the press releases issued after the Nobel prizes were awarded including die 'Information' issued on October 11, 1994 after the Nobel Prize in Economic Science in Memory of Alfred Nobel was awarded (1994) to Prof. John C. Harsanyi, Dr. John F. Nash and Prof. Reinhard Selten for their pioneering analysis of equilibria on the theory of non-cooperative games. I am grateful to the Nobel Foundation for sending the photographs of John. F. Nash and Reinhard Selten. John C. Harsanyi sent his photograph himself. I am grateful to the U.S.I.S., Madras for sending photographs of most of the American laureates. The photographs of rest of the laureates are received from the concerned Embassies of the countries they belong or directly from the laureates. Prompt help by them in this regard is gratefully acknowledged. Secondly, Prof. Assar Lindbeck, Professor of International Economics at Stockholm University, who was Chairman of the Committee from 1980 to 1993 has encouraged me a lot by appreciating my work and permitting me to use, quote or reproduce his paper The Prize in Economic Science in Memory of Alfred Nobel published by the Institute of International Economic Studies, University of Stockholm, (reprint series No. 273) and originally published in the Journal of Economic Literature, Vol. 23, March 1985. This paper which contains the background of Nobel Prize in Economic Science and Procedures adopted to select the laureates and other general matters relating to the Nobel Prizes in Economic Sciences has been very helpful and has been used in the 'Introduction' of this work by almost reproducing major portion of it (pp. 29-52 in this work). Since that paper was published in 1985, nearly a decade ago, it had to be updated wherever necessary, which has been done. Additions and deletions were also necessitated keeping in view of the 1994 position. However, this has certainly served the purpose of a backdrop and has helped to set the 'Introduction'' to this work appropriately. Prof. Assar Lindbeck's permission is gratefully acknowledged.

As said earlier, this work is an effort of two decades and I had to study an enormous volume of literature—books and journals—as Prof. Jan Tinbergen has rightly pointed out. Several eminent professors including many Nobel laureates have helped me by providing materials and sources in completing my work. The Department of Economics of the University of Oslo, University of Chicago and the libraries of a number of universities in USA, U.K. and Australia have given me valuable assistance which is gratefully acknowledged. My particular thanks are to Prof. G. Bramness of University of Oslo and Prof. Teun Kloek, Professor of Econometrics, Econometric Institute of the Erasmus University at Rotterdam for their help in making available two notes, viz., 'What is Peace Economics?' and 'Global Governance for the 21st Century' written by Prof. Jan Tinbergen just before his death. These notes have been made use of in the introductory chapter, as the chapter relating to him had already been completed. I acknowledge with gratitude their assistance in this regard. One of the important features of this work relates to the fact that each chapter is devoted to an economist and at the end of the chapter, their contributions are listed. These contributions are based on several sources, the main source being the Scandinavian Journal of Economics. Gracious permission was given to use these lists of contributions published in various issues of the Scandinavian Journal of Economics by me Editor, through a letter from Ms. Julie Sundqvist, the Editorial Secretary of die Journal, Department of Economics, University of Stockholm. This is gratefully acknowledged. I have not made use of all the bibliographies published in this Journal. Since I had occasion to get permission in respect of some laureates from their own sources. For instance, Prof. George J. Stigler has granted permission to use the contributions listed in his book, The Economist as Preacher and Other Essays (pp. 245-254). Similar permission has been received in respect of Prof. Simon Kuznets whose contributions are listed in the Journal, Economic Development and Cultural Change (1983, pp. 433-455), which was a special issue brought out in honour of Kuznets, edited by Bert F. Hoselitz, on the occasion of the 80th birthday of Kuznets. Sir John Hicks had given the list of his contributions and it is found in the book The Economics of John Hicks (Basil Blackwell, 1984, pp. 291-301). Since this list was published in 1984, as John Hicks died in 1989 and as also a few of his books came after his death, this list had to be brought up-to-date, which, in fact, is a common feature in respect of published lists of contributions of many laureates. I have updated Sir John Hicks bibliography as of today. I am grateful to his permission to use this list and as also many of his works which he made available and reproduce this list of contributions which however had to be recast. Similarly, I have obtained permission to use Bibliography from Bertil Ohlin himself to use it which was published in the Scandinavian Journal of Economics. He was, in fact, the Chairman of the Prize awarding Committee of the Nobel Prize in Economics from 1969-1974, who, according to some sources, had played his part in the institution of the prize itself. He had similarly permitted me to use the Bibliography of James Meade compiled by him.

In respect of other laureates, we have made use of bibliographies contained in the various issues
of Scandinavian Journal of Economics. In this context, it is pertinent to mention that bibliographies relating to James Tobin, Richard Stone, James Buchanan, Robert M. Solow, Franco Modigliani, Lawrence R. Klein, and Kenneth J. Arrow have been compiled by laureates themselves and made available to the Scandinavian Journal for publication. Most of these laureates have directly given permission to me, in addition to the permission obtained from the Scandinavian Journal of Economics. Milton Friedman had sent directly his own bibliography which was more up-to-date than the one published in the Scandinavian Journal of Economics; similarly were those relating to Gunnar Myrdal and Friedrich von Hayek. While Jan Tinbergen has sent bibliography compiled by himself and also permitted me to use the list of contributions contained in Econometrics and Economic Theory—Essays in Honour of Jan Tinbergen, edited by Willy Sellekaerts, (Macmillan, 1974, pp. 284- 295), the same had to be brought up-to-date as the list was published in the year 1974 and Tinbergen continued to contribute till June 1994. I obtained from the University of Oslo, the bibliography relating to Ragnar Frisch and Trygve Haavelmo. The bibliography relating to William Sharpe was made available to me by the Graduate School of Business, Stanford University and I have had the benefit of going through the one published in the Scandinavian Journal of Economics also. Similarly is the case of the bibliography relating to Merton H. Miller. Regarding the bibliography relating to Maurice Allais published in the Scandinavian Journal of Economics, since it is excerpted from M. Boiteux T. de Montbrial and B. Munier (eds), Marches, Capital at Inceretitude, Economica, Paris, 1986, reproduced with the permission of the publishers, though I have based my bibliography on it, it had to be updated as it related to the year 1986 and this work is being published in the year 1994. I made use of the bibliography of Prof. Theodore W. Schultz published in the Scandinavian Journal of Economics in conjunction with the one received from the Department of Economics, University of Chicago and updated myself as earlier one was incomplete and out of date. The bibliography of Prof. Herbert A. Simon is based on one published in the Bell Journal of Economics (Autumn 1978, Vol. 9, No. 2, pp. 491-610). Though I have read that along with the one published in Scandinavian Journal of Economics, I have made it up-to-date. The contributions of Samuelson have been taken from the Foundations of Economic Analysis and I have updated it by other sources of his works. The bibliography of Markowitz was made available by the Department of Economics and Finance, Baruch College, City University of New York, which has also been updated. I have had the real help from the Scandinavian Journal of Economics, in respect of Ronald Coase, Gary S. Becker, Douglass C. North, Robert William Fogel and Gerard Debreu. In these instances also, every effort has been made to bring the lists of contributions as up-to-date as possible. The bibliography of Koopmans as has been published in the Scandinavian Journal of Economics is incomplete and has had to be brought up-to-date. Among 1994 laureates, Prof. John C. Harsanyi sent the list of contributions compiled by himself directly at my request, as also others. Since the bibliographies whether taken from the Scandinavian Journal with their permission or from departments of economics of the concerned universities where the laureates are/were working or whether they are taken from some books relating to them with their permission. Two actions were necessary from my end: 1. Presenting the bibliographies in the chronological order of their publications, i.e., arranging them—whether books or articles—according to the years of their publications; and 2. Updating them since most of them were out of date and many works—books or articles—have been published by each of the laureates every year.

In fact, some laureates have done more work after they received the award. I wish to place on record my heart-felt gratitude for the generous permission given by the Scandinavian Journal of Economics to use the bibliographies and to the departments of economics and other sources mentioned above. I have also been benefited very much by the articles published in die Scandinavian Journal on the contributions of Nobel laureates in their various issues as also in the Economic Journal of the Royal Academic Society, The Journal of Mathematical Economics, Oxford Bulletin of Economics and Statistics, Journal of Economic Literature, Econometrica, The Public Choice have come to my rescue to a very large extent. I wish to place on record my gratitude to these journals and in particular to the Scandinavian Journal of Economics.

Two volume books on Economic Science—Nobel Lectures: 1969-1980 edited by Assar Lindbeck, Economic Science-—Nobel Lectures: 1981-1990, edited by Karl-Goran Maler, were very useful as Nobel Lectures of economists upto 1990 could be found in one place (later ones I obtained from Journals and authors and the facts relating to the lives of laureates. The latter are of course available in many sources and vast differences were found in the data published. Since the bio-data published in the above two publications are from the direct sources of laureates, they are authentic. The biographical data contained in the Economic Sciences published by die World Scientific for the Nobel Foundation thus helped me to cross-check their biodata while writing about the lives of laureates in each of the chapters for accuracy. I wish to place on record my gratitude to the editors and publishers of the Economic Sciences. The Lives of the Laureates edited by Breit William and Roger W. Spencer published by MIT (second edition) was very useful as the lives of the laureates contained therein have been presented by the laureates themselves. Eminent Economists edited by Michael Szenberg published by Cambridge has helped me while writing about a few economists contained therein. This is also an important source of reference since the writings have come from laureates themselves. I wish to express my gratitude to the authors of these books. The Transaction Cost Economics and Beyond—Towards a New Economics of the Firm by Michael Dietrich has helped me while presenting contributions of Ronald Coase. The book John R. Hicks—The Economists' Economist by O.F. Hamouda, Basil Blackwell, 1993 which came for review in the Indian Journal of Applied Economics at the last moment helped me in giving finishing touches to the chapter on Sir John Hicks which was already at the proof stage. Similar is the book Hayek on Hayek—An Autobiographical Dialogue, edited by Stephen Kresge and Leif Wenar published by Routledge in 1994 provided me the full idea of the inner life of Hayek in all its reality and helped me to give finishing touches to the chapter relating to Hayek at the proof stage. There are many other similar books which came for review to the Indian Journal of Applied Economics which helped me a lot and are too many to mention. I have been benefited by the contributions of the laureates annexed to each chapter as also publications listed—both books and articles—in the General Bibliography. I have mentioned many sources in the footnotes. I acknowledge all these sources which have helped me in making this work more comprehensive, accurate and useful. Prof. Jagadish Gandhi, Voorhees College, Vellore, India has written a small monograph on 'Franco Modigliani'. He was happy to agree to permit me to reproduce some portions from that

monograph and has taken it as "a privilege to get associated with this work". I have used only portions relating to Life Cycle Hypothesis and Theory of Financial Markets and added whatever -was necessary. I am very grateful to him for his generous permission which has avoided the duplication of my work in a work of this magnitude. Ever since 1969, when the first prize was awarded to Jan Tinbergen and Ragnar Frisch, I was contributing articles regularly to Southern Economist for couple of years. The material from those articles are made use of. Similarly, I have gone through the other articles authored by others and published in the same periodical. Wherever I felt necessary, I might have used some, part of them in a very few cases. Late Sri. K.N. Subramanya,' one of my best friends had permitted me to use anything I want from that periodical when he was alive and later, the present Editor, Ms. K.N. Subramanya has concurred with it. I am thankful to Mr. Subramanya and Ms. Subramanya for this generosity and continued support and appreciation, as 1 have authored many articles on various subjects to this periodical for over two decades. I am particularly happy that articles on laureates, though brief, are being published regularly in the Southern Economist and providing the readers the information about the laureates. Comprehensive technical approach to the contributions of laureates is not possible in short duration hence, at times, it may become sketchy but useful to economists as also to laymen. The chapters relating to George J. Stigler and Herbert A. Simon are the revised and enlarged versions of the articles authored by me and published in the Indian Journal of Applied Economics (Vol. 1, Nos.'l & 2, Oct. 1991—March 1992, pp. 155-161 and Vol. 1, Nos. 3 & 4, April 1992—Sept. 1992, pp. 79-89 respectively). There are some annexes to some chapters, apart from the list of contributions annexed to every chapter. Annex I to chapter II by Jan Tinbergen is reproduced with his permission. Annex II to this chapter is reproduced with permission from Oxford Economic Papers. Similarly, the Annexes I and IIto chapter X by Gunnar Myrdal are reproduced with his permission and Annex III by Eric D'Costa,titled In Memory of Gunnar Myrdal: 1889-1987 published in the Monthly Commentary, May 1987 is reproduced with his permission, who is also Editor for that periodical.

Mr. S. Venu has been very helpful to me in the initial stages in the preparation of this work. He had occasion to see the earlier four or five chapters and given his suggestions. His small note Economics of Coasian Perspectives published in Financial Express on July 2, 1992 has been made use of with his permission. I am thankful to him for all the very friendly support. I am sure, he would have been cooperative till the last and unfortunately we have lost touch with each other due to heavy work and distance for the last two years. Similarly, Prof. P.R. Brahmananda, Emeritus Professor of the Bombay University (retd) has been a source of inspiration. Whatever he has published about two or three economists, he discussed with me and asked me to freely use whatever I feel appropriate. This gesture of his and moral support is gratefully acknowledged.

I had to tour a lot and visit the leading libraries in India many times, I particularly acknowledge with gratitude the help and assistance given by Ms. Indira Soman, Library Director, United States Information Service, Madras for her spontaneous and continued help. I am grateful to her and the staff of the library for their whole-hearted cooperation in my work in all these years. Similarly, the library of Institute of Economic Growth at New Delhi and Mr. V.K. Jain, the Librarian of the Institute for Social and Economic Change, Bangalore and the library staff of the Connemara Public Library, Madras, The British Council Library, Bangalore, The Library of the Administrative Staff College of India, Hyderabad have also rendered valuable assistance which is acknowledged.

As I mentioned earlier, this three-volume book on 'Nobel Economists'' containing lives and contributions of Nobel laureates in Economics from 1969-1994 has meant constant hardwork for over two decades. I am happy atleast that it has seen the light of the day, thanks to Sri. M.L. Gidwani of Indus Publishing Company, New Delhi for his very high degree of cooperation and enthusiasm in bringing out this work as fast as possible. I owe deep debt of gratitude to him for taking up this tremendous task and bringing out these volumes in an excellent manner. It is hoped that this work containing the background of the institution of the Nobel Prize in Economics and the lives and contributions of laureates from inception of the award to 1994 will be useful to all the economists, prefessors and students in universities both in India and abroad. This is the first attempt to bring the lives and contributions of all the laureates in economics at one place and in that needed depth and comprehensiveness. It is felt that this will be useful to the students of economics in India and some other countries where it is part of the curriculum from the undergraduate to postgraduate levels in many universities. It is also a fact that a Master degree in economics without a complete knowledge of the contributions of laureates in the subject will not be meaningful and, therefore, it is hoped that the professors of universities will take advantage of this book while teaching about the laureates to their students. As I said earlier, some professors have been pressing me to bring out this work and, it is hoped, that this would fill the gap in the science of economics. It is very lively to study the lives of laureates and interesting to know their contributions. As Prof. Jan Tinbergen has said in his "Foreword”, understanding contributions of each of these economists is not a simple matter and covers almost all the subjects in economics. The 'world of economies' is thus covered, according to him, in this work. It is hoped that this work will be useful to the teaching economists and students in economics, as also interesting to the laymen who wish to know about these laureates.
March 1, 1995                                                       K. PUTTASWAMAIAH
Bangalore, India

Foreword by Jan Tinbergen                                               7
Preface                                                                             11
Chapter I. INTRODUCTION                                                29 
Chapter 2. JAN TINBERGEN —1969                                  111
Chapter 3. RAGNAR FRISCH —1969                                 165
Chapter 4. PAUL A. SAMUELSON —1970                          185
Chapter 5. SIMON KUZNETS —1971                                 227
Chapter 6. KENNETH J. ARROW —1972                            277
Chapter 7. SIR JOHN R. HICKS —1972                             309
Chapter 8. WASSILY LEONTIEF —1973                            345
Chapter 9. FRIEDRICH VON HAYEK —1974                       363
Chapter 10. GUNNAR MYRDAL —1974                              395
Chapter 11. TJALLING KOOPMANS —1975                        439
Chapter 12. LEONID KANTOROVICH —1975                     451
Chapter 13. MILTON FRIEDMAN —1976                            461
Chapter 14. JAMES E. MEADE — 1977                               541
Chapter 15. BERTIL OHLIN — 1977 563
Chapter 16. HERBERT A. SIMON — 1978                           591
Chapter 17. SIR W. ARTHUR LEWIS — 1979                      641
Chapter 18. THEODORE W. SCHULTZ — 1979                   661
Chapter 19. LAWRENCE R. KLEIN — 1980                         693
Chapter 20. JAMES TOBIN —1981                                     725
Chapter 21. GEORGE J. STIGLER — 1982                          757
Chapter 22. GERARD DEBREU — 1983                              781
Chapter 23. SIR RICHARD STONE — 1984                        795
Chapter 24. FRANCO MODIGLIANI — 1985                       833
Chapter 25. JAMES BUCHANAN —1986                             889
Chapter 26. ROBERT M. SOLOW —1987                           945
Chapter 27. MAURICE ALLAIS — 1988                              983
Chapter 28. TRYGVE HAAVELMO —1989                          1019
Chapter 29. HARRY M. MARKOWITZ — 1990                    1037
Chapter 30. MERTON H. MILLER — 1990                         1053
Chapter 31. WILLIAM F. SHARPE — 1990                        1069
Chapter 32. RONALD H. COASE —1991                           1085
Chapter 33. GARY S. BECKER — 1992                              1137
Chapter 34. DOUGLASS C. NORTH — 1993                      1161
Chapter 35. ROBERT WILLIAM FOGEL — 1993                 1187
Chapter 36. JOHN C. HARSANYI —1994                           1205
Chapter 37. JOHN F. NASH — 1994                                  1243
Chapter 38. REINUARD SELTEN — 1994                           1261
General Bibliography                                                        1273
Index                                                                                1327

"The author gives an encyclopedic survey of the work of these economists »nd have studied an enormous volume of literature. The descriptions of works of Kuznets and Myrdal will be very useful to many economists or also laymen. "
                                                                                          Prof. J. TINBERGEN
" A very useful service ".
                                                                                   Prof. KENNETH J. ARROW
" I appreciate the book Nobel Economists. The article in there on me is certainly accurate and fair".
                                                                                     Prof. MILTON FRIEDMAN
".........The author has laid us under an obligation for the Portrait Gallery of the Nobel Economists .................extremely illuminating book".
                                                                                    SOUTHERN ECONOMIST.
".........To -have conceived the idea .of writing on the economic ideas of all the Nobel Prize winning economists was an ambitious project on the part of the author and he has attained success.......................... a good introductory book".
                                                                                    EASTERN ECONOMIST
" The book gives the kind of thinking and changes that the subject of economics has witnessed over the years".
                                                                                    FINANCIAL EXPRESS
" Dr. K. Puttaswamaiah has done a very good job in organising a lot of scattered material on these economists and their contributions and in writing a "lucid chapter on each of these".
                                                                                    THE ECONOMIC TIMES
"The book is the first of its type in the entire world......................................pioneering land-mark in the field of' history of contemporary economic thought".
                                                                                THE WELFARE ECONOMIST
"........it does have a reference value"
" This is an account of the economists who have won the Nobel Prize. It gives personal backgrounds of the laureates as well as brief explanation of their work ".
                                                                                   ASIAWEEK, HONGKONG
" .......a rare publication. The style is superb ...................... The book throws sufficient light on modern economists".
                                                                                    KANNADA PRABHA " 
“Every Economist will intensely adore this publication “.
                                                                 THE MYSORE ECONOMIC REVFEW
".........Spectacular developments in economic science find their description in this book of recognition".
                                                                       , MONTHLY COMMENTARY.
The Indian Institute of Public Opinion "Will be read with keen interest by the teachers and students of economics everywhere ".
                                                                                 DECCAN HERALD