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Wassily Leontief

Wassily Wassilyevich Leontief (Russian: Васи́лий Васи́льевич Лео́нтьев; August 5, 1905 – February 5, 1999), was a Soviet-American economist known for his research on input–output analysis and how changes in one economic sector may affect other sectors.[5]

Wassily Leontief

Wassily Wassilyevich Leontief

(1905-08-05)August 5, 1905[2]

February 5, 1999(1999-02-05) (aged 93)

New York City, U.S.[3]

Russian, Soviet, American

Estelle Marks (since 1932)[4]

Wirtschaft als Kreislauf (The economy as a circular flow)  (1928)

Leontief won the Nobel Memorial Prize in Economic Sciences in 1973, and four of his doctoral students have also been awarded the prize (Paul Samuelson 1970, Robert Solow 1987, Vernon L. Smith 2002, Thomas Schelling 2005).

Biography[edit]

Early life[edit]

Wassily Leontief was born on August 5, 1905, in Munich, German Empire, the son of Wassily W. Leontief (professor of Economics) and Zlata (German spelling Slata; later Evgenia) Leontief (née Becker).[6][7] Wassily Leontief Sr. belonged to a family of Russian old-believer merchants living in St. Petersburg since 1741.[8] Evgenia (Genya) Becker belonged to a wealthy Jewish family from Odessa.[9] At 15 in 1921, Wassily Jr. entered University of Leningrad in present-day St. Petersburg. He earned his Learned Economist degree (equivalent to Master of Arts) in 1925 at the age of 19.

Opposition in USSR[edit]

Leontief sided with campaigners for academic autonomy, freedom of speech and in support of Pitirim Sorokin. As a consequence, he was detained several times by the Cheka. In 1925, he was allowed to leave the USSR, mostly because the Cheka believed that he was mortally ill with a sarcoma, a diagnosis that later proved false.[8] He continued his studies at the Friedrich Wilhelm University in Berlin and, in 1928, earned a Ph.D. degree in economics under the direction of Werner Sombart, writing his dissertation on The Economy as Circular Flow (original German title: Die Wirtschaft als Kreislauf).

Early professional life[edit]

From 1927 to 1930, he worked at the Institute for the World Economy of the University of Kiel. There he researched the derivation of statistical demand and supply curves. In 1929, he traveled to China to assist its ministry of railroads as an advisor.


In 1931, he went to the United States and was employed by the National Bureau of Economic Research.


During World War II, Leontief served as consultant at the U. S. Office of Strategic Services.[10]

Harvard[edit]

Leontief joined Harvard University's department of economics in 1932 and in 1946 became professor of economics there.


In 1949, Leontief used an early computer at Harvard and data from the U.S. Bureau of Labor Statistics to divide the U.S. economy into 500 sectors. Leontief modeled each sector with a linear equation based on the data and used the computer, the Harvard Mark II, to solve the system, one of the first significant uses of computers for mathematical modeling,[11][12][13][14] along with George W. Snedecor's usage of the Atanasoff–Berry computer.


Leontief set up the Harvard Economic Research Project in 1948 and remained its director until 1973. Starting in 1965, he chaired the Harvard Society of Fellows.

New York University[edit]

In 1975, Leontief joined New York University and founded and directed the Institute for Economic Analysis. He taught graduate and undergraduate classes.

Personal life[edit]

In 1932, Leontief married the poet Estelle Marks (1908-2005). Their only child, Svetlana Leontief Alpers, was born in 1936. Estelle wrote a memoir, Genia and Wassily,[9] of their relations with his parents after they came to the US as émigrés.


As hobbies Leontief enjoyed fly fishing, ballet, and fine wines. He vacationed for years at his farm in West Burke, Vermont, but after moving to New York in the 1970s moved his summer residence to Lakeville, Connecticut.[15][10]


Leontief died in New York City on Friday, February 5, 1999, at the age of 93.[16]

Major contributions[edit]

Leontief is credited with developing early contributions to input–output analysis and earned the Nobel Prize in Economics for his development of its associated theory. He has also made contributions in other areas of economics, such as international trade where he documented the Leontief paradox. He was also one of the first to establish the composite commodity theorem.


Leontief earned the Nobel Prize in economics for his work on input–output tables. Input–output tables analyze the process by which inputs from one industry produce outputs for consumption or for inputs for another industry. With the input–output table, one can estimate the change in demand for inputs resulting from a change in production of the final good. The analysis assumes that input proportions are fixed; thus the use of input–output analysis is limited to rough approximations rather than prediction. Input–output was novel and inspired large-scale empirical work; in 2010 its iterative method was recognized as an early intellectual precursor to Google's PageRank.[17][18][19]


Leontief used input–output analysis to study the characteristics of trade flow between the U.S. and other countries, and found what has been named Leontief's paradox; "this country resorts to foreign trade in order to economize its capital and dispose of its surplus labor, rather than vice versa", i.e., U.S. exports were relatively labor-intensive when compared to U.S. imports. This is the opposite of what one would expect, considering the fact that the U.S.'s comparative advantage was in capital-intensive goods. According to some economists, this paradox has since been explained as due to the fact that when a country produces "more than two goods, the abundance of capital relative to labor does not imply that the capital intensity of its exports should exceed that of imports."[20]


Leontief was also a very strong proponent of the use of quantitative data in the study of economics. Throughout his life Leontief campaigned against "theoretical assumptions and non-observed facts".[20] According to Leontief, too many economists were reluctant to "get their hands dirty" by working with raw empirical facts. To that end, Wassily Leontief did much to make quantitative data more accessible, and more indispensable, to the study of economics.

1925: Баланс народного хозяйства СССР. ("Balans narodnogo khozyaystva SSSR") in ; translated into Italian in Spulber N.(Ed.) as "Il Bilancio dell'economia nazionale dell'URSS." in La Strategia Sovietica per Sviluppo Economico 1924–1930, Giulio Einaudi ed., Torino [discussing the Soviet "Balance of the National Economy", 1923–4]

Planovoe Khozyaystvo

1928: Die Wirtschaft als Kreislauf, Tübingen: Mohr: re-published as The economy as a circular flow, pp. 181–212 in: Structural Change and Economic Dynamics, Volume 2, Issue 1, June 1991; this translation is abridged to avoid controversial statements.

Wassily W. Leontief (Aug 1936). "Quantitative Input and Output Relations in the Economic System of the United States". . 18 (3): 105–125. doi:10.2307/1927837. JSTOR 1927837.

Review of Economics and Statistics

Wassily W. Leontief (Aug 1937). "Interrelation of Prices, Output, Savings and Investment: A Study in Empirical Application of Economic Theory of General Interdependence". Review of Economics and Statistics. 19 (3): 109–132. :10.2307/1927343. JSTOR 1927343.

doi

1941: Structure of the American Economy, 1919–1929

1953: Studies in the Structure of the American Economy

1966: Input-Output Economics

[21]

1966: Essays in Economics

Wassily W. Leontief (Aug 1967). "An Alternative to Aggregation in Input-Output Analysis and National Accounts". Review of Economics and Statistics. 49 (3): 412–419. :10.2307/1926651. JSTOR 1926651.

doi

Wassily W. Leontief (Aug 1970). "Environmental repercussions and the economic structure: an input-output approach". Review of Economics and Statistics. 52 (3): 262–271. :10.2307/1926294. JSTOR 1926294.

doi

Wassily W. Leontief (1970). "The Dynamic Inverse". In A.P. Carter and A. Brody (ed.). Contributions to Input-Output Analysis: Proc. 4th Int. Conf. on Input-Output Techniques (1). North-Holland Publishing Company. pp. 17–46.

1977: Essays in Economics, II

1977: The Future of the World Economy

1983: Military Spending: Facts and Figures, Worldwide Implications and Future Outlook co-authed with F. Duchin.

1983: The Future of Non-Fuel Minerals in the U. S. And World Economy co-authed with J. Koo, S. Nasar and I. Sohn

1986: The Future Impact of Automation on Workers co-authored with F. Duchin

Wassily W. Leontief (1986). (2nd ed.). New York: Oxford University Press. ISBN 9780195035278.

Input-Output Economics

1953: Order of the Cherubim,

University of Pisa

1962: Dr honoris causa,

University of Brussels

1967: Dr of the University,

University of York

1968: Officer of the French Légion d'honneur

1970: Bernhard-Harms Prize Economics,

West Germany

1971: Dr honoris causa,

University of Louvain

1972: Dr honoris causa, (Sorbonne)

University of Paris

1973: , a.k.a. Nobel Prize in Economics

Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel

1976: Dr honoris causa,

University of Pennsylvania

1980: Dr honoris causa, , France

University of Toulouse

1980: Dr honoris causa, , Kentucky

University of Louisville

1980: Doctor of Social Sciences,

University of Vermont

1980: Doctor of Laws, C. W. Post Center,

Long Island University

1980:

Russian-American Hall of Fame

1981: , Budapest, Hungary

Karl Marx University

1984: , Japan

Order of the Rising Sun

1985: Commandeur,

French Order of Arts and Letters

1988: Dr honoris causa,

Adelphi College

1988: Foreign member,

USSR Academy of Sciences

1989: Society of the Optimate, , New York

Italian Cultural Institute

1990: Dr honoris causa, , Spain

University of Córdoba

1991: Takemi Memorial Award, , Japan

Institute of Seizon & Life Sciences

1995: Harry Edmonds Award for Life Achievement, , New York

International House

1995: Dr honoris causa, , Berlin, Germany

Humboldt University

Award of Excellence, The International Center in New York

In honor[edit]

The Global Development and Environment Institute at Tufts University awards the Leontief Prize in Economics each year in his honor.


Leontief is listed in the Russian-American Chamber of Fame of Congress of Russian Americans, which is dedicated to Russian immigrants who made outstanding contributions to American science or culture.[22][23][24]

1954: President of the

Econometric Society

1968: Corresponding Member of the

Institut de France

1970: President of the

American Economic Association

1970: Corresponding Fellow of the

British Academy

1974:

US-USSR Commission on the Social Sciences and Humanities of the International Research and Exchanges Board

1975:

American Committee on East-West Accord

1975: , Italy

Accademia Nazionale dei Lincie

1976: President and Section F. of the

British Association for the Advancement of Science

1976: Honorary Member of the

Royal Irish Academy

1977: Fellow of the

American Association for the Advancement of Science

1978:

Commission to Study the Organization of Peace

1978–1986: Board of Trustees of

North Carolina School of Science and Mathematics

1979:

Century Club

1979:

Issues Committee of the Progressive Alliance

1980:

Committee for National Security

1981: Board of Visitors, College of Liberal Arts,

Boston University

1981: Board of Editors,

Journal of Business Strategy

1982:

International Advisory Council of the Delian Institute of International Relations

1982: , Italy

Accademia Mediterranea Delle Scienze

1983: Board of Advisors,

Environmental Fund

1983: Board of Directors,

Tolstoy Foundation

1985: International Committee,

Carnegie Mellon University

1990: , USSR

Academy of Creative Endeavors

1992: , Russia

International Charitable Foundation

1993:

Academie Europeenne

1993: Honorary President of the , Italy

World Academy for the Progress of Planning Science

1993: Member of the , France

Academie Universelle des Cultures

1994: Fellow of the

New York Academy of Sciences

1995: Member of the , Mt. Sinai Hospital

International Leadership Center on Longevity & Society

American Philosophical Society

American Academy of Arts and Sciences

International Statistical Institute

Honorary Member of the , Tokyo

Japan Economic Research Center

Honorary Fellow of the , London

Royal Statistical Society

Trustee of Economists for Peace and Security

List of economists

List of Jewish Nobel laureates

on Nobelprize.org

Wassily Leontief

Information from www.iioa.org

Article by James K. Galbraith

Interview with W.Leontief by S.A.Kalyadina (in Russian)

IDEAS/RePEc

on C-SPAN

Appearances