Kenneth Arrow

Date of Birth: August 23, 1921

Zodiac Sign: Virgo

Date of Death: February 21, 2017

Biography

Kenneth Joseph Arrow was an American economist, recognized widely for his significant contributions to general equilibrium theory and welfare economics. Born in New York City on August 23, 1921, Arrow’s early academic journey was marked by a keen interest in mathematics and statistics, eventually leading him to the field of economics. He earned his Bachelor’s degree from the City College of New York and later received his Ph.D. from Columbia University. Arrow’s most notable work, “Arrow’s Impossibility Theorem,” revolutionized social choice theory by demonstrating the difficulties in crafting a social welfare function that fairly represents individual preferences. In 1972, he was awarded the Nobel Memorial Prize in Economic Sciences, sharing the honor with Sir John Hicks for their pioneering contributions to general equilibrium theory and welfare theory. Throughout his career, Arrow held prestigious academic positions at several institutions, most notably Stanford University and Harvard University. His extensive research and publications covered various aspects of economics, including risk-bearing, information asymmetry, and innovation. Beyond his academic achievements, Arrow was an influential voice in public policy, contributing to discussions on healthcare, environmental economics, and social welfare. Kenneth Arrow passed away on February 21, 2017, leaving behind a legacy of intellectual rigor and profound impact on economic thought.

5 Interesting Facts about Kenneth Arrow

1. Kenneth Arrow was the youngest person ever to receive the Nobel Prize in Economic Sciences, winning it at the age of 51.

2. Arrow’s doctoral dissertation, “Social Choice and Individual Values,” laid the groundwork for his famous Impossibility Theorem.

3. He co-authored the seminal work “Uncertainty and the Welfare Economics of Medical Care,” which is considered foundational in the field of health economics.

4. Arrow was a mentor to several prominent economists, including Nobel laureates like Eric Maskin and Roger Myerson.

5. He served as President of the American Economic Association and the Econometric Society, reflecting his leadership in the field.

5 Most Interesting Quotes from Kenneth Arrow

1. “In the absence of information, we make assumptions.”

2. “Virtually every commercial transaction has within itself an element of trust.”

3. “Health is a complicated and very personal matter.”

4. “The economist’s job is to see the consequences of policies and events that are not immediately obvious.”

5. “Innovation is the central issue in economic prosperity.”

Highest Net Worth Achieved

Kenneth Arrow’s highest net worth is not well-documented, as his contributions were primarily academic rather than commercial. However, his influence and legacy in economics are invaluable.