Frank Hyneman Knight 101: American Econometrician

Frank Hyneman Knight 101: Who is an American Econometrician? in our article of Zatrun.com, we will cover in detail everything you need to know about the American econometrist Frank Hyneman Knight, who our readers are curious about.

Who is Frank Hyneman Knight?

Frank Hyneman Knight was born in McLean County, Illinois in 1885 to Julia Ann (Hyneman) and Winton Cyrus Knight. He received his bachelor’s degree from Milligan College in 1911, his bachelor’s and master’s degrees from the University of Tennessee in 1913, and his Ph.D. from Cornell.

He spent a significant part of his academic career at the University of Chicago, where he was one of the world’s leading economists, Morton D. in Social Sciences and Philosophy. Hull spent his time as Distinguished Service Professor and made significant contributions to both economic theory and economics. social philosophy. He is best known for his work on the role of the entrepreneur in economic life with his book “Risk, Uncertainty and Profit”.

April November 7, 1885 – April 15, 1972), also known as Frank Hyneman Knight, was an American economist who spent most of his career at the University of Chicago, where he was one of the founders of the Chicago School. Also, Nobel laureates Milton Friedman, George Stigler and James M. Buchanan was among Knight’s students in Chicago.

Ronald Coase said that Knight had a great influence on him, although he did not teach him directly. FA Hayek considered Knight to be one of the most important figures in preserving and advancing classical liberal thought in the twentieth century. Paul Samuelson referred to Knight (along with Harry Gunnison Brown, Allyn Abbott Young, Henry Ludwell Moore, Wesley Clair Mitchell, Jacob Viner, and Henry Schultz) as one of the “few American saints in economics born after 1860”.

His Career Life and Achievements

in 1950, Frank Hyneman Knight served as president of the American Economic Association. At the same time, in 1957, the prestigious Francis A. He was also the recipient of the Walker Prize, awarded every five years to the living (American) economist who, in the opinion of the award committee, has made the greatest contribution to economics during their career.

Knight is best known as the author of Risk, Uncertainty and Profit, based on his doctoral thesis at Cornell University. In this book, he Deciphered carefully between economic risk and Knight uncertainty. He argued that risky situations are situations where probabilities can be calculated but the results are unknown, while uncertain situations are situations where even probability models are unknown. Frank Hyneman Knight believed that uncertainty creates economic profits by destroying complete competition.

Although most economists today accept Knight’s Decoupling between risk and uncertainty, this has not led to much theoretical modelling or empirical research. However, his concept of ambiguity has been widely accepted and discussed in various works, including those written by John Maynard Keynes, Armen Alchian, Paul Davidson, and GLS Shackle. in 2002, sociologist Harrison White developed the “Sundays from Networks” model, a more model-oriented contribution based on Knight’s ideas. After Knight’s death, his ashes were interred in the cellar of the First Unitarian Church in Chicago.