Maurice Allais

About Maurice Allais

Who is it?: Economist
Birth Day: May 31, 1911
Birth Place: Paris, France, French
Died On: 9 October 2010(2010-10-09) (aged 99)\nSaint-Cloud, near Paris, France
Birth Sign: Gemini
Field: Macroeconomics Behavioral economics
School or tradition: Walrasian economics
Alma mater: École Polytechnique École Nationale Supérieure des Mines de Paris University of Paris
Influences: Léon Walras Irving Fisher Vilfredo Pareto
Contributions: Overlapping generations model golden rule of optimal growth Transaction demand for money rule Allais paradox
Awards: Nobel Prize in Economics (1988)

Maurice Allais Net Worth

Maurice Allais was bornon May 31, 1911 in Paris, France, French, is Economist. Maurice Allais was a French economist and a Nobel Laureate, well-known for his work on the efficient use of resources and understanding of market behavior. Born into a working class family in the early twentieth century, he lost his father in the First World War when he was barely four years old. Despite his difficult early life, he went on to qualify as an engineer and began his career at Nantes Mines and Quarries Service. During the German occupation of France in the early 1940s, he had very little work and seized the opportunity to teach himself economics. Subsequently, he moved to teaching and began publishing papers, which had more than theoretical value. In the years following the Second World War, his works proved particularly important and helped the state owned monopolies to expand at a tremendous speed. Because he wrote in French and did not encourage translation, it took him a long time to get international recognition, which was his due. Outside economics, he also worked on physics and history and was one of the driving forces behind establishing the European Economic Community.
Maurice Allais is a member of Intellectuals & Academics

💰 Net worth: Under Review

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Biography/Timeline

1929

In his opinion, crisis and globalization are linked: "The financial and banking crisis which, is only the spectacular symptom of a deeper economic crisis: the deregulation of competition in the global labor market". "Current unemployment is due to this total liberalization of trade[...] As such, it constitutes a major foolishness, starting from an unbelievable contradiction. Just as attributing the crisis of 1929 to protectionist causes is a historical contradiction. The true origin was already in the careless development of credit in the years preceding it."

1940

In the 1940s, Allais worked on "decision theory" (or "theory of choice") under uncertainty and developed a theory of cardinal utility. Due to war conditions and his commitment to publish in French, his work was undertaken independently of Theory of games and economic behavior developed by John von Neumann and Oskar Morgenstern. He formulated the Allais paradox in 1953, which questions the traditional model of rationality of choices and contradicts the expected utility hypothesis. It shows that when confronted with a lottery, an individual does not maximize his hoped-for gains, but rather aims at certainty.

1941

His first book develops the microeconomic aspect. With Traité d'économie pure, which he wrote between January 1941 and July 1943, these pairs considered that Maurice Allais could have been recognized, along with Hicks and Samuelson, as the principal Architect of the neoclassical synthesis. He anticipates several of the propositions and theorems put forward by Hicks, Samuelson and others, sometimes giving them a more general and rigorous formulation. In particular, he demonstrates the equivalence theorems that Kenneth Arrow and Gerard Debreu will find in 1954: "Every equilibrium situation in a market economy is a situation of maximum efficiency, and reciprocally, every situation of maximum efficiency Is a equilibrium situation in a market economy. " The market thus ensures economic efficiency and optimal distribution of income in the nation. At the same time, Samuelson exposed the process of trial and error which leads to the equilibrium of markets.

1944

Born in Paris, France, Allais attended the Lycée Lakanal, graduated from the École Polytechnique in Paris and studied at the École nationale supérieure des mines de Paris. His academic and other posts have included being Professor of Economics at the École Nationale Supérieure des Mines de Paris (since 1944) and Director of its Economic Analysis Centre (since 1946). In 1949, he received the title of doctor-engineer from the University of Paris, Faculty of Science. He also held teaching positions at various institutions, including at the University of Paris X-Nanterre. His first works oriented him towards the sciences of the concrete and the experiments of fundamental physics, on which he will also publish numerous works, notably on pendular oscillations and the laws of gravitation. It's after a trip in 1933 to the United States during the Great Depression, that he decides to make the economy. Allais died at his home in Saint-Cloud, near Paris, at the age of 99.

1947

In 1947, in the second part of his work Économie et Intérêt, Allais introduced time and currency and thus tackled the dynamics and growth of capitalist economies. Again, he made several proposals, Whose discovery will be later attributed to other economists. He introduced the first overlapping generations model(OLG model) (later popularized and attributed to Paul Samuelson in 1958), introduced the golden rule of optimal growth before Trevor Swan and Edmund Phelps, show that an interest rate equal to the growth rate maximizes consumption, he described the transaction demand for money rule before william Baumol and James Tobin He was also responsible for early work in Behavioral economics, which in the US is generally attributed to Daniel Kahneman and Amos Tversky.

1952

Besides his career in economics, he performed experiments between 1952 and 1960 in the fields of gravitation, special relativity and electromagnetism, to investigate possible links between the fields. He reported three effects:

1990

On the first page, he dedicates his book La mondialisation: destruction des emplois et de la croissance (1990), Globalization: destruction of jobs and growth, "To the countless victims worldwide of the free-trade ideology, ideology as fatal as it is erroneous, and to all those who are not blind to some partisan passion". Allais believes that Ricardo's theory is valid only in a steady state, but disappears when the specializations evolve and when the capital is mobile.

1992

In 1992, Maurice Allais criticised the Maastricht Treaty for its excessive emphasis on free trade. He also expressed reservations on the single European currency. In 2005, he expressed similar reservations concerning the European constitution.

2019

Allais’s Hereditary, Relativist and Logistic (HRL) theory of monetary dynamics contains an original theory of expectations formation that is a genuine alternative to both adaptive and rational expectations. It was praised by Milton Friedman in 1968 with the following words: "This work [the HRL formulation] introduces a very basic and important distinction between psychological time and chronological time. It is one of the most important and original paper that has been written for a long time … for its consideration of the Problem of the formation of expectations". Allais's contribution has nevertheless been "lost": it has been absent from the debate about expectations.