Alvin Harvey Hansen American economist Date of Birth: 23.08.1887 Country: USA

1. Biography of Alvin Harvey Hansen
2. Early Career
3. Contributions and Influences
4. Government Work and Recognition

Biography of Alvin Harvey Hansen

Alvin Harvey Hansen was an American economist known for his contribution to the field of economics and his influential role as a government advisor. He was born on August 23, 1887, in Viborg, South Dakota, to Danish immigrant parents. Hansen obtained a degree in English from Yankton College and went on to earn a doctorate in economics from the University of Wisconsin-Madison in 1918.

Early Career

Hansen started his career working with proponents of institutional economics, such as John R. Commons and Richard T. Ely. However, he did not fully embrace their approach. He taught at the University of Minnesota, specializing in economic cycles, and advised government bodies in Washington, D.C., including assisting Edwin E. Witte on the Social Security Act of 1935. After his doctoral studies, Hansen taught at Brown University before joining the University of Minnesota in 1923.

Contributions and Influences

Hansen's major works were rooted in the neoclassical economic tradition. In 1937, he became a professor of political economy at Harvard University. Interestingly, Hansen initially approached John Maynard Keynes' "General Theory of Employment, Interest, and Money" with skepticism. However, by December 1938, he embraced Keynesian theory and advocated for government intervention during economic downturns. Hansen popularized Keynes' ideas among his numerous graduate students at Harvard and his books, such as "Full Recovery or Stagnation" (1938) and "A Guide to Keynes" (1953), played a significant role in spreading Keynesian economics in America and post-war Europe.

One of Hansen's notable contributions to economics was the IS-LM model, which he co-developed with John Hicks. This model explained general macroeconomic equilibrium and illustrated how fiscal and monetary policies could be used to influence national income. Hansen's influential students include Paul Samuelson and James Tobin, both Nobel laureates. Hansen excelled in both scholarly and popular writing, making economic concepts like business cycles and deficit financing accessible to the general public. He educated and influenced hundreds of students, many of whom went on to hold important government positions.

Government Work and Recognition

Throughout his career, Hansen served on numerous government committees on economic matters and frequently testified before Congress. During the Roosevelt and Truman administrations, he acted as a consultant to the Federal Reserve Board, the United States Department of the Treasury, and the National Resources Planning Board. In 1967, Hansen was awarded the Walker Medal by the American Economic Association. He passed away on June 6, 1975, in Alexandria, Virginia.