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Kenneth J. Arrow

Kenneth J. Arrow

Kenneth Joseph Arrow (born August 23, 1921) is an American economist, winner of the Bank of Sweden Prize in Economic Sciences in 1972. He is considered one of the founders of modern (post World War II) neo-classical economics. His most significant works are his contributions to social choice theory, notably "Arrow's impossibility theorem", and his work on general equilibrium analysis. He has also provided foundational work in many other areas of economics, including endogenous growth theory and information economics. He earned a Bachelor's degree from the City College of New York in 1940. At Columbia University, he received a Master's degree in 1941 and Ph.D. in 1951.

General possibility theorem

Arrow's impossibility theorem was set out in his Ph.D. thesis, Social choice and individual values. In its final form it states the following: given the conditions of Pareto optimality (P), Unbounded social choice (S), Independence of choices (I) and non-Dictatorship (D), it is impossible to formulate a social choice function which satisfies all of them. This has tremendous implications for welfare economics and theories of justice. It was extended by Amartya Sen to the liberal paradox which argued that given a status of "Minimal Liberty" there was no way to obtain Pareto optimality, nor to avoid the problem of social choice of neutral but unequal results. An example of this would be to have the following choices to divide a cake between three people. Let us call them A, B and C. Choice 1: A gets nothing, B and C get half each. Choice 2: B gets nothing, A and C get half each. Choice 3: C gets nothing, A and B get half each. Choice 4: divide the cake equally. Thus choice 4 would be third from the bottom in everyone's list, and would, in any direct choice lose 2 to 1 against an unequal distribution. Since all of these choices are Pareto-optimal - no one's welfare can be improved without reducing the welfare of others - choice 4 would not be chosen, since there would always be other preferred choices.

General equilibrium theory

Working with Gerard Debreu (who won the Nobel prize for this work in 1983), Arrow produced the first rigorous proof of the existence of a market clearing equilibrium, given certain restrictive assumptions. See general equilibrium. Arrow went on to extend the model to deal with issues relating to uncertainty, stability of the equilibrium, and whether a competitive equilibrium is efficient.

Endogenous growth theory

Arrow was instrumental in kick-starting research into endogenous growth theory (also known as new growth theory) which sought to explain the source of technical change, which is a key driver of economic growth. Until this theory came to prominence, technical change was assumed to occur exogenously - that is, it was assumed to occur with no explanation of why it occurred. Endogenous growth theory provided standard economic reasons for why firms innovate - so innovation and technical change are determined endogenously - that is, within the model (hence the name). A vast literature on this theory has developed subsequently to Arrow's pioneering work.

Information economics

In yet more pioneering research, Arrow investigated the problems caused by asymmetric information in markets. In many transactions, one party (usually the seller) has more information about the product being sold than the other party. Asymmetric information creates incentives for the party with more information to cheat the party with less information; as a result, a number of market structures have developed, including warranties and third party authentication, which enable markets with asymmetric information to function. Arrow analysed this issue for medical care (a 1963 paper entitled "Uncertainty and the Welfare Economics of Medical Care," in the American Economic Review); later researchers investigated many other markets, particularly second-hand assets, online auctions and insurance.

Works

- The Economic Implications of Learning by Doing Review of Economic Studies 29 (June 1962) pp 155-73
- Essays in the Theory of Risk-Bearing 1971
- Existence of a Competitive Equilibrium for a Competitive Economy Econometrica 22, no 3 (July 1954) pp 265-90, with Gerard Debreu
- General Competitive Analysis 1971, with Frank Hahn
- Uncertainty and the Welfare Economics of Medical Care American Economic Review 1963
- Existence of an equilibrium for a competitive economy Econometrica (1954) Vol 22 No 3, with Gerard Debreu
- Social Choice and Individual Values 1951
- The Limits of Organization 1974 ISBN 0393093239

External links

- http://www-econ.stanford.edu/faculty/arrow.html
- http://www.nobel.se/economics/laureates/1972/arrow-autobio.html
- http://cepa.newschool.edu/het/profiles/arrow.htm
- [http://www.geocities.com/econ_111ment/arrow-autobio.html Kenneth J. Arrow – Autobiography] Arrow, Kenneth Arrow, Kenneth Arrow, Kenneth Arrow, Kenneth Arrow, Kenneth Arrow, Kenneth Arroa, Kenneth ja:ケネス・アロー

1921

1921 (MCMXXI) was a common year starting on Saturday (see link for calendar).

Events

- January 1 - In American football, California defeats Ohio State 28-0 in the Rose Bowl.
- January 2 - The first religious radio broadcast (KDKA AM in Pittsburgh, Pennsylvania)
- January 2 - Spanish liner Santa Isabel sinks off Villa Garcia - 244 dead
- January 2 - DeYoung Museum in Golden Gate Park San Francisco opens.
- January 20 - Royal Navy K-boat K5 sinks in the English Channel with all 56 hands
- February 25 - The Democratic Republic of Georgia is occupied by Bolshevist Russia.
- February 27 - The International Working Union of Socialist Parties is formed in Vienna
- February 28 - Russian sailors rebel in Kronstadt - On March 17 the Red Army crushes the rebellion and number of sailors flee to Finland
- March 1 - The city Kiryu, located in Gunma, Japan, is founded.
- March 6 - The Portuguese Communist Party is founded.
- March 8 - Spanish Premier Eduardo Dato Iradier is assassinated while exiting the parliament building in Madrid.
- March 13 - Mongolia declares its independence from China
- March 17 - Marie Stopes opens the first birth control clinic in London, England. The Second Republic of Poland adopts the March Constitution.
- March 18 - The second Peace of Riga between Poland and Soviet Union ending Polish-Soviet war. Despite the recent Polish successes, Soviets annex Ukraine and Belarus.
- April 11 - The Emirate of Transjordan is created, with Abdullah I as emir.
- April 14 - In Britain, labour unions for mining, railway and transportation workers call for a strike - government threatens to call in the army
- April 24 - Referendum in Tyrol supports joining to Germany
- May 1-May 7 - Riots in Palestine of May, 1921
- 2 May-5 July - Third Silesian Uprising, the Poles in Upper Silesia rise against the Germans
- May 5 - Only 13 spectators attend the soccer match between Leicester City and Stockport County, the lowest attendance in The Football League's history.
- May 6 - General strike begins in Norway
- May 8 - Death penalty abolished in Sweden
- May 14 - May 17 - Violent anti-European riots in Cairo and Alexandria
- May 19 - The Emergency Quota Act passes the U.S. Congress establishing national quotas on immigration.
- May 31 - Race riots in Tulsa, Oklahoma
- May 24 - Elections are held for the first time for the new Northern Ireland Parliament.
- June 1 - Tulsa Race Riot of 1921: A race riot in Tulsa, Oklahoma kills 85 people.
- June 26 - In Britain, rain ends 100 days of drought
- July 1 - Coal strike ends in England
- July 11 - The Irish War of Independence comes to an end when a truce is signed between the British Government and the Irish forces.
- July 11 - Mongolia becomes independent of China
- July 14 - A Massachusetts jury finds Nichola Sacco and Bartolomeo Vanzetti guilty of first degree murder following a widely-publicized trial.
- July 18 - The first BCG vaccination against tuberculosis
- July 22 - Irish Truce declared in Britain
- July 26 - US President Warren G. Harding receives Princess Fatima of Afghanistan - and Stanley Clifford Weyman...
- July 29 - Adolf Hitler becomes Chairman of the Nazi Party
- July 27 - Researchers at the University of Toronto led by biochemist Frederick Banting announce the discovery of the hormone insulin.
- August - The United States formally ends World War I, declaring a peace with Germany
- August 5 - First radio broadcast of baseball game; Harold Arlin announced Pirates-Phillies game from Forbes Field over Westinghouse KDKA Pittsburgh
- August 11 - 35 degree Celsius in Breslau - heat wave continues elsewhere in Europe as well
- August 23 - King Faisal is crowned in Baghdad
- August 24 - Airship ZR 2 explodes during a test flight near Hull, England - 41 dead
- August 26 - Rising prices cause riots in Munich
- August 29 - Assassination of German politician Matthias Erzberger causes the government to declare martial law
- September 1 - Poplar Strike in London - 9 members of Poplar borough council are arrested
- September 7 - In Atlantic City, New Jersey, the first Miss America Pageant is held.
- September 8 - 16-year-old Margaret Gorman won the Atlantic City Pageant's Golden Mermaid trophy; pageant officials later dubbed her the first Miss America.
- September 12 - Lotta Svärd founded in Finland.
- September 21 - Oppau explosion happened at BASF's nitrate factory in Oppau, Germany - 500—600 dead.
- October 10 - Teaching at the University of Szeged started in Hungary.
- October 21 - Peace conference between Irish and United Kingdom begins in London.
- October 24 - Spanish army defeats rifkabyls.
- October 29 - Construction of the Link River Dam, a part of the Klamath Reclamation Project completed.
- November 9 - Riots in Reykjavík - most of the small police force is injured.
- November 11 - During an Armistice Day ceremony at Arlington National Cemetery, the Tomb of the Unknowns is dedicated by US President Warren G. Harding.
- December 1 - Rising prices cause riots in Vienna.
- December 16 - The Anglo-Irish Treaty establishing the Irish Free State is signed in London. See Ireland/History.
- December 13 - In the Four Power Treaty on Insular Possessions Japan, the United States, United Kingdom, and France agree to recognize the status quo in the Pacific.
- December 29 - William Lyon Mackenzie King becomes Canada's tenth prime minister.
- Agnes Macphail becomes the first woman to enter Canadian parliament
- Change of US presidency from Woodrow Wilson (1913-1921) to Warren G. Harding (1921-1923)
- Invention of the vibraphone.
- Abkhazia becomes an autonomous republic within the Soviet Union.

Fictitious Events

1921 is a song on the album Tommy by The Who.

Births

Date unknown

- Norma Macmillan, voice actress (d. 2001)

January

- January 5 - Friedrich Dürrenmatt, Swiss writer (d. 1990)
- January 5 - Jean, Grand Duke of Luxembourg
- January 10 - Rodger Ward, American race car driver (d. 2004)
- January 19 - Patricia Highsmith, American author (d. 1995)
- January 27 - Donna Reed, American actress (d. 1986)
- January 31 - Carol Channing, American actress
- January 31 - Mario Lanza, American tenor (d. 1959)

February

- February 4 - Betty Friedan, American feminist
- February 4 - K. R. Narayanan, President of India (d. 2005)
- February 5 - John Pritchard, English conductor (d. 1989)
- February 11 - Eva Gabor, Hungarian actress (d. 1996)
- February 11 - Lloyd Bentsen, American politician
- February 14 - Hugh Downs, American game show host and journalist
- February 22 - Wayne Booth, American literary critic (d. 2005)
- February 25 - Pierre Laporte, Canadian statesman (assassinated) (d. 1970)

March

- March 1 - Jack Clayton, British film director
- March 1 - Terence Cardinal Cooke, American Catholic archbishop (d. 1983)
- March 1 - Richard Wilbur, American poet
- March 2 - Robert Simpson, English composer (d. 1997)
- March 3 - Paul Guimard, French writer (d. 2004)
- March 5 - Elmer Valo, Czech Major League Baseball player (d. 1998)
- March 8 - Cyd Charisse, American actress and dancer
- March 11 - Frank Harary, American mathematician (d. 2005)
- March 12 - Giovanni Agnelli, Italian auto executive (d. 2003)
- March 12 - Gordon MacRae, American singer and actor (d. 1986)
- March 13 - Al Jaffee, American cartoonist
- March 13 - Cyril Poole, English cricketer (d. 1996)
- March 20 - Sister Rosetta Tharpe, American singer (d. 1973)
- March 21 - Arthur Grumiaux, Belgian violinist (d. 1986)
- March 25 - Simone Signoret, French actress (d. 1985)
- March 28 - Dirk Bogarde, English actor (d. 1999)

April-May

- April 1 - Beau Jack, American boxer (d. 2000)
- April 8 - Franco Corelli, Italian tenor (d. 2003)
- April 10 - Sheb Wooley, American actor and singer (d. 2003)
- April 14 - Thomas Schelling, American economist, Nobel Prize laureate
- April 15 - Georgi Beregovoi, Soviet cosmonaut (d. 1995)
- April 16 - Peter Ustinov, English actor and director (d. 2004)
- April 23 - Warren Spahn, baseball player (d. 2003)
- May 2 - Satyajit Ray, Indian filmmaker (d. 1992)
- May 5 - Arthur Leonard Schawlow, American physicist, Nobel Prize laureate (d. 1999)
- May 6 - Erich Fried, Austrian author (d. 1988)
- May 9 - Sophie Scholl, resistance fighter in Nazi Germany (d. 1943)
- May 9 - Mona Van Duyn, American poet (d. 2004)
- May 11 - Hildegard Hamm-Brücher, German politician
- May 12 - Joseph Beuys, German artist (d. 1986)
- May 12 - Farley Mowat, Canadian writer and naturalist
- May 17 - Dennis Brain, English French horn player (d. 1957)
- May 18 - Sir Michael Epstein, British medical researcher
- May 19 - Karel van het Reve, Dutch writer (d. 1999)
- May 20 - Wolfgang Borchert, German writer (d. 1947)
- May 20 - Hal Newhouser, baseball player (d. 1998)
- May 21 - Andrei Sakharov, Russian physicist and activist, recipient of the Nobel Peace Prize (declined) (d. 1989)
- May 23 - James Blish, American science fiction author (d. 1975)
- May 25 - Jack Steinberger, German-born physicist, Nobel Prize laureate
- May 25 - James C. Quayle, American newspaper publisher
- May 26 - Stan Mortensen, English footballer (d. 1991)
- May 28 - Heinz G. Konsalik, German author (d. 1999)

June-August

- June 1 - Nelson Riddle, American bandleader (d. 1985)
- June 8 - Alexis Smith, Canadian actress (d. 1993)
- June 10 - Prince Philip, Duke of Edinburgh
- June 15 - Errol Garner, American jazz musician (d. 1977)
- June 25 - Celia Franca, Canadian ballet dancer
- June 26 - Violette Szabo, French World War II heroine (d. 1945)
- June 28 - P. V. Narasimha Rao, Prime Minister of India (d. 2004)
- July 4 - Gerard Debreu, French economist, Nobel Prize laureate (d. 2004)
- July 4 - Tibor Varga, Hungarian violinist and conductor (d. 2003)
- July 6- Nancy Davis Reagan, wife of U.S President Ronald Reagan
- July 10 - Harvey Ball, American designer (d. 2001)
- July 11 - Ilse Werner, German actress (d. 2005)
- July 13 - Friedrich Peter, Austrian poltitician (d. 2005)
- July 14 - Leon Garfield, English children's author (d. 1996)
- July 14 - Geoffrey Wilkinson, English chemist, Nobel Prize laureate
- July 15 - Robert Bruce Merrifield, American chemist, Nobel Prize laureate
- July 17 - František Zvarík, Slovakian actor
- July 17 - Hannah Szenes, Hungarian World War II heroine (d. 1944)
- July 19 - Rosalyn Sussman Yalow, American physicist, recipient of the Nobel Prize in Physiology or Medicine
- July 22 - William Roth, U.S. Senator (d. 2003)
- July 30 - Grant Johannesen, American concert pianist (d. 2005)
- August 4 - Maurice Richard, Canadian hockey player (d. 2000)
- August 8 - John Herbert Chapman, Canadian physicist (d. 1979)
- August 9 - J. James Exon Governor of Nebraska and U.S. Senator (d. 2005)
- August 19 - Gene Roddenberry, American television producer (d. 1991)
- August 23 - Kenneth Arrow, American economist, Nobel Prize laureate
- August 25 - Monty Hall, Canadian actor and game show host

September-December

- September 3 - Thurston Dart, English harpsichordist and conductor (d. 1971)
- September 8 - Harry Secombe, Welsh entertainer (d. 2001)
- September 12 - Stanisław Lem, Polish science fiction writer
- October 2 - Robert Runcie, Archbishop of Canterbury (d. 2000)
- October 5 - Bill Willis, American football player
- October 13 - Yves Montand, French singer and actor (d. 1991)
- October 18 - Jesse Helms, U.S. Senator from North Carolina
- October 19 - Gunnar Nordahl, Swedish footballer (d. 1995)
- October 25 - King Michael of Romania
- November 3 - Charles Bronson, American actor (d. 2003)
- November 5 - Princess Fawzia of Egypt
- November 11 - Ron Greenwood, English football manager
- November 14 - Brian Keith, American actor (d. 1997)
- November 22 - Rodney Dangerfield, American actor and comedian (d. 2004)
- November 23 - Fred Buscaglione, Italian singer and actor (d. 1960)
- December 3 - Phyllis Curtin, American soprano
- December 6 - Otto Graham, American football player (d. 2003)
- December 26 - Steve Allen, American actor, composer, comedian, and author (d. 2000)

Deaths

- February 8 - Peter Kropotkin, Russian anarchist (b. 1842)
- February 26 - Carl Menger, Austrian economist (b. 1840)
- February 27 - Schofield Haigh, English cricketer (b. 1871)
- March 2 - King Nicholas I of Montenegro (b. 1841)
- April 27 - Arthur Mold, English cricketer (b. 1863)
- May 5 - Alfred Hermann Fried, Austrian writer and pacifist, recipient of the Nobel Peace Prize (b. 1864)
- June 5 - Georges Feydeau, French playwright (b. 1862)
- August 2 - Enrico Caruso, Italian tenor (b. 1873)
- September 2 - Henry Austin Dobson, English poet (b. 1840)
- September 11 - Subramanya Bharathy, Tamil poet (b. 1882)
- September 27 - Engelbert Humperdinck, German composer (b. 1854)
- October 25 - Bat Masterson, American gunfighter
- November 28 - `Abdu'l-Bahá, Persian religious leader (b. 1844)
- December 16 - Camille Saint-Saëns, French composer (b. 1835)
- December 31 - Boies Penrose, United States Senator from Pennsylvania (b. 1860)

Nobel Prizes

- Physics - Albert Einstein
- Chemistry - Frederick Soddy
- Medicine - not awarded
- Literature - Anatole France
- Peace - Karl Hjalmar Branting, Christian Lous Lange
- ko:1921년 ms:1921 ja:1921年 simple:1921 th:พ.ศ. 2464

Economist

:This article discusses the profession of studying economics; for the news journal published in London, see The Economist. An economist is an individual who studies economics. Within this field of study, there are many sub-fields, ranging from the broad philosophical theories propounded by thinkers such as Adam Smith and Karl Marx to focused study of minutiae within specific markets, involving statistical analysis and mathematical economics. Any person within any of these fields can properly claim to be an economist, although the broad range of matters coming under this head makes it a practical impossibility for any individual to master all of them. Most major universities have an economics department, where courses are offered in support of potential professional economists. Many economists, however, come from a background in business, sociology, or mathematics.

1972

1972 (MCMLXXII) was a leap year that started on a Saturday.

Events

- International year of the book

January

- January 2 - The Pierre Hotel Heist - Six men rob the safety deposit boxes of the Pierre Hotel in New York City. Loot is at least $4 million.
- January 4 - Rose Heilbron becomes the first woman judge at the Old Bailey in London.
- January 5 - President of the United States Richard Nixon orders the development of a space shuttle program.
- January 4 - Kurt Waldheim becomes the Secretary General of the United Nations.
- January 7 - Iberian Airlines passenger planes crashes into an 800' peak on island of Ibiza - 104 dead.
- January 9 - Howard Hughes speaks by telephone to denounce Clifford Irving's supposed biography about him.
- January 9 - RMS Queen Elizabeth is destroyed by fire (Hong Kong harbor).
- January 11 - East Pakistan becomes independent with the name Bangladesh.
- January 14 - King Frederick IX of Denmark dies - his daughter Queen Margaret II of Denmark ascends to the throne at January 16.
- January 19 - Libertarian enclave Minerva on a platform in the South Pacific, sponsored by the Phoenix Foundation, declares independence. Soon neighboring Tonga annexes the area and dismantles the platform
- January 22 - Denmark, Ireland and the United Kingdom join the EEC.
- January 23 - New Delhi bootlegger sells wood alcohol to a wedding party - 100 dead
- January 24 - Japanese soldier Shoichi Yokoi is discovered in Guam. He had spent 28 years in the jungle.
- January 25 - Shirley Chisholm, the first African American woman elected to US Congress, announces her candidacy for US president.
- January 26 - Yugoslavian air stewardress Vesna Vulovic is the only survivor when her plane crashes in Czechoslovakia. She survives after falling about 30,000' in the tail section of the aircraft.
- January 28 - Richard Chanfray claims he is Count of St Germain on French television.
- January 30 - Bloody Sunday - the British Army kills 13 unarmed Roman Catholic civil rights marchers in Derry, Ireland.
- January 30 - Pakistan withdraws from the British Commonwealth.
- January 31 - King Mahendra of Nepal dies, becoming the second king to die that month, and is succeeded by his son, Birendra.

February

- February 1 - First scientific hand-held calculator (HP-35) introduced (price $395).
- February 2 - A bomb explodes in British Yacht Club in West Berlin. Only casualty is Irwin Beelitz, a German boat builder. Movement 2 June announces it is in support of Irish Republican Army.
- February 2 - Anti-British riots throughout Ireland take place. The British Embassy in Dublin is burned to the ground as are several British owned businesses.
- February 3 - The Winter Olympics begin in Sapporo, Japan.
- February 4 - Mariner 9 sends pictures from Mars.
- February 5 - US airlines begin mandatory inspection of passengers and baggage.
- February 5 - Bob Douglas becomes the first African American elected to the Basketball Hall of Fame.
- February 9 - The British government declares a state of emergency over a miners' strike.
- February 15 - President of Ecuador José María Velasco Ibarra is deposed for the fourth time.
- February 15 - Phonorecords granted U.S. Federal copyright protection for the first time.
- February 17 - Sales of the Volkswagen Beetle model exceed those of Ford Model-T (15 million).
- February 18 - The California Supreme Court invalidates the state's death penalty and commutes the sentences of all death row inmates to life in prison.
- February 21-February 27 - President Richard M. Nixon makes an unprecedented eight-day visit to the People's Republic of China and meets with Mao Zedong.
- February 21 - The Soviet unmanned spaceship Luna 20 lands on the Moon.
- February 22 - IRA bomb in Aldershot - 7 dead.
- February 23 - Angela Davis is released from jail.
- February 23 - A Lufthansa plane is hijacked and taken to Aden. Passengers are released after a ransom of 16 million D-marks is agreed.
- February 24 - North Vietnamese negotiators walk out of the peace talks in Paris to protest US air raids.
- February 26 - A coal sludge spill kills 125 in Buffalo Creek.
- February 26 - Luna 20 comes back to Earth with a cargo of moon rocks.

March

- March 1 - Thai province Yasothon created after being split off from the Ubon Ratchathani Province.
- March 1 - British 14-year-old schoolboy Timothy Davey is sentenced in Turkey for "conspiring to sell cannabis."
- March 1 - The Club of Rome publishes report "Boundaries on the Growth."
- March 2 - Launch of the Pioneer 10 spacecraft.
- March 2 - Jean-Bedel Bokassa becomes the president of the Central African Republic.
- March 3 - Sculpted figures of Jefferson Davis, Robert E. Lee, and Stonewall Jackson are completed at Stone Mountain, Georgia.
- March 4 - Libya and the Soviet Union sign a cooperation treaty.
- March 5 - Greek composer Mikis Theodorakis leaves the Greek Communist Party.
- March 13 - The United Kingdom and the People's Republic of China elevate diplomatic exchanges to the ambassadorial level after 22 years.
- March 13 - Clifford Irving admits to a New York court that he had fabricated Howard Hughes "autobiography."
- March 16 - The first building of the Pruitt-Igoe housing development is destroyed.
- March 19 - India and Bangladesh sign a friendship treaty.
- March 24 - To prevent further unionist misrule, Britain takes over direct rule of Northern Ireland.
- March 26 - 19 climbers on Mount Fuji die in an avalanche.
- March 30 - Vietnam War: The Eastertide Offensive begins after North Vietnamese forces cross into the Demilitarized Zone (DMZ) of South Vietnam.

April

- April 3 - First call was made with a cell phone (cellular phone) in New York.
- April 7 - US Mafioso Joe Gallo shot in Umberto's Clam House in Little Italy.
- April 10 - The USA and the Soviet Union join some 70 nations in signing an agreement to ban biological warfare.
- April 10 - A 7.0 Richter scale earthquake kills 1/5 of the population of Iranian province of Fars.
- April 13 - The Universal Postal Union decides to recognize the People's Republic of China as the only legitimate Chinese representative, effectively expelling the Republic of China administering Taiwan.
- April 16 - Apollo 16 launched.
- April 16 - Vietnam War: Nguyen Hue Offensive – Prompted by the North Vietnamese offensive, the United States resumes bombing of Hanoi and Haiphong.
- April 18 - The Roland Corporation is founded in Osaka.
- April 22 - Sylvia Cook and John Fairfax have rowed across the Pacific.
- April 27 - Constructive Vote of No Confidence against German Chancellor Willy Brandt fails under obscure circumstances.
- April 29 - The fourth anniversary of the Broadway musical Hair is celebrated with a free concert at a Central Park bandshell, followed by dinner at the Four Seasons. There, thirteen Black Panther protesters and the show's co-author, Jim Rado, are arrested for disturbing the peace and marijuana use.

May

- May 5 - An Alitalia DC-8 crashes west of Palermo, Sicily – 115 dead.
- May 13 - Fire in a nightclub atop the Sennichi department store in Osaka, Japan – 115 dead.
- May 15 - Governor George Wallace of Alabama is shot by Arthur Herman Bremer at a Laurel, Maryland political rally.
- May 17 - The closing notice is posted for the Broadway musical Hair.
- May 18 - Four troopers of both SAS and SBS are parachuted onto the HMS Queen Elizabeth II, 1000 miles off Britain in the Atlantic, after a bomb threat and demand for ransom. It turns out to be bogus.
- May 19 - Three out of six bombs explode in the Springer Press building in Hamburg, Germany - 17 injured. The Red Army Faction claims responsibility.
- May 21 - In Rome, Laszlo Toth attacks Michelangelo's Pieta statue with a sledgehammer shouting that he is Jesus Christ
- May 22 - Earthquake lasting 20 seconds destroys most of Bingol, Turkey - more than 1000 dead, 10.000 made homeless
- May 22 - Ceylon becomes the republic of Sri Lanka under prime minister Sirimavo Bandaranaike when its new constitution is ratified.
- May 24 - A RAF bomb explodes in the Campbell Barracks of the US Army Supreme European Command in Heidelberg. Two US soldiers dead.
- May 26 - Richard Nixon and Leonid Brezhnev sign SALT I treaty in Moscow (including Anti-Ballistic Missile Treaty; also other agreements were made).
- May 26 - Willandra National Park is established in Australia.
- May 30 - The Angry Brigade goes on trial.
- May 30 – 3 members of Japanese Red Army kill 24 and injure 100 in Lod Airport, Israel.

June

- June - Iraq nationalizes the Iraq Petroleum Company.
- June 2 - Andreas Baader, Jan-Carl Raspe, Holger Meins and some other members of Red Army Faction are arrested in Frankfurt am Main after a shootout.
- June 3 - Sally Priesand becomes the first female US rabbi.
- June 4 - Angela Davis found not guilty of murder.
- June 14 - June 23 - Hurricane Agnes kills 117 in US east coast.
- June 15 - Ulrike Meinhof and Gerhard Müller of Red Army Faction are arrested in a teacher's apartment in Langenhagen, West Germany.
- June 17 - Watergate scandal: Five White House operatives are arrested for burglarizing the offices of the Democratic National Committee.
- June 17 - Return of Okinawa from United States' control to Japan.
- June 17 - Chilean president Salvador Allende forms a new government.
- June 18 - West Germany beat the Soviet Union 3-0 to win Euro 72.
- June 23 - Watergate Scandal: U.S. President Richard M. Nixon and White House chief of staff H. R. Haldeman are taped talking about using the Central Intelligence Agency to obstruct the Federal Bureau of Investigation's investigation into the Watergate break-ins.
- June 25 - Juan Peron is elected president of Argentina.
- June 26 - Nolan Bushnell and Ted Dabney found Atari.
- June 28 - US president Nixon announces that no new draftees will be sent to Vietnam.
- June 29 - Supreme Court of the United States rules that the death penalty is unconstitutional.

July

- July 1 - The Broadway production of the musical Hair closes after 1,752 performances.
- July 2 - Following Pakistan's surrender to India in the Indo-Pakistani War of 1971, both nations sign the historic Simla Agreement agreeing to settle their disputes bilaterally.
- July 4 - The first Rainbow Gathering held in Colorado.
- July 8 - The USA sells grain to the Soviet Union for $750 million.
- July 10 - A stampede of elephants kills 24 in the Chandka Forest in India.
- July 15 - The Pruitt-Igoe housing development is demolished.
- July 18 - Anwar Sadat expels 20.000 soviet advisors from Egypt
- July 21 - Bloody Friday — 22 bombs explode in Belfast, Ireland. 9 people were killed and a further 130 seriously injured.
- July 23 - The United States launches LANDSAT 1, first Earth-resources satellite.
- July 25 - US Health officials admit that blacks were used as guinea pigs in a syphilis experiment.
- July 29 - National dock strike begins in Britain.

August

- August 4 - Arthur Bremer jailed for 63 years for shooting George Wallace.
- August 4 - Dictator Idi Amin declares that Uganda will expel 50,000 Asians with British passports to Britain within three months.
- August 11-August 12 - Last US ground troops withdrawn from Vietnam.
- August 16 - The Royal Moroccan Air Force mistakenly fires upon, but fails to bring down, Hassan II of Morocco's plane while he was traveling back to Rabat.
- August 23 - R.J (Dick) Hamer replaces Henry Boltie As Victorian Premier.
- August 28 - Prince William of Gloucester dies in an air crash.

September

- September 1 - Bobby Fischer defeats Boris Spassky in a chess match at Reykjavik, Iceland, and becomes the first American chess champion (see Match of the Century).
- September 5-September 6 - Munich Massacre: Eleven Israeli athletes at the Summer Olympic Games in Munich are killed after eight members of the Arab terrorist group Black September invade the Olympic Village; five guerillas and one policeman are also killed in a failed hostage rescue.
- September 14 - West Germany and Poland renew diplomatic relations.
- September 17 - Uganda announces that there are Tanzanian troops in its territory.
- September 17 - M
- A
- S
- H debuts on CBS.
- September 19 - Parcel bomb sent to Israeli Embassy in London kills one diplomat.
- September 21 - Philippine president Ferdinand Marcos issued Proclamation No. 1081 placing the entire country under martial law.
- September 25 - Norwegian EC referendum, 1972 - the people of Norway reject membership into the European Economic Commission.
- September 27 - Joint Communique of the Government of Japan and the Government of the People's Republic of China.
- September 28 - The goal heard round the world. Canada wins the summit series with a goal by Paul Henderson.
- September 29 - Sino-Japanese relations: Japan normalized diplomatic relations with the People's Republic of China after breaking official ties with the Republic of China.

October

- October 1 - First publication reporting the production of a recombinant DNA molecule, marking the birth of modern molecular biology methodology. :: Jackson, David A.; Symons, Robert H.; and Berg, Paul. (1972). [http://www.pnas.org/cgi/content/abstract/69/10/2904 Biochemical Method for Inserting New Genetic Information into DNA of Simian Virus 40: Circular SV40 DNA Molecules Containing Lambda Phage Genes and the Galactose Operon of Escherichia coli]. Proceedings of the National Academy of Sciences (USA) 69(10), 2904-2909.
- October 2 - Denmark joins the EEC. The Faroe Islands stay out.
- October 5 - The United Reformed Church is founded out of the Congregational and Presbyterian Churches.
- October 6 - Train crash in Saltillo, Mexico – 208 dead.
- October 12 - En route to her station in the Gulf of Tonkin, a racial brawl involving more than 100 sailors breaks out aboard the United States Navy aircraft carrier USS Kitty Hawk. Nearly 50 sailors are injured.
- October 13 - A Fairchild passenger plane transporting a rugby union team crashes at about 14,000' in the Andes mountain range, near the Argentina/Chile border. Sixteen of the survivors are found alive December 20 but they have had to resort to cannibalism to survive (see Uruguayan Air Force Flight 571).
- October 16 - A plane carrying US congressman Hale Boggs of Louisiana and three other men vanishes in Alaska. The wreckage has never been found, despite a massive search at the time.
- October 16 - Rainbow, a British television programme for children, debuts.
- October 16 - Rioting inmates of the Maze prison cause a fire that destroys most of the camp
- October 17 - Queen Elizabeth II of the United Kingdom visits Yugoslavia.
- October 25 - First female FBI agents hired.
- October 25 - Belgian cyclist Eddy Merckx sets a new world hour record in Mexico City.
- October 29 - The Black September group hijacks a Lufthansa Boeing 727 over Turkey and demands the release of three of their comrades still held for the massacre of Israeli athletes at the Olympic games
- October 30 - US President Richard Nixon approves legislation to increase Social Security spending by US$5.3 billion.

November

- November ? - At a scientific meeting in Honolulu, over [http://bancroft.berkeley.edu/ROHO/projects/biosci/symposium/cohen/text.html corned beef sandwiches], Herbert Boyer and Stanley N. Cohen conceived the concept of recombinant DNA. They published their results in November 1973 in PNAS. Separately in 1972, Paul Berg also recombined DNA in a test tube. Recombinant DNA technology has dramatically changed the field of biological sciences, especially biotechnology, and opened the door to genetically modified organisms.
- November 5 - Group of Amerindians occupies the Bureau of Indian Affairs.
- November 7 - U.S. presidential election, 1972: Republican incumbent Richard Nixon defeats Democratic Senator George McGovern (the election had the lowest voter turnout since 1948 with only 55 percent of the electorate voting).
- November 11 - Vietnam War: Vietnamization - The United States Army turns over the massive Long Binh military base to South Vietnam.
- November 14 - The Dow Jones Industrial Average closes above 1,000 (1,003.16) for the first time.
- November 16 - The United Nations Educational, Scientific and Cultural Organization adopts the [http://whc.unesco.org/pg.cfm?cid=182 Convention Concerning the Protection of the World Cultural and Natural Heritage].
- November 17 - Juan Perón returns to Argentina.
- November 22 - Vietnam War: The United States loses its first B-52 Stratofortress of the war.
- November 30 - Vietnam War: White House Press Secretary Ron Ziegler tells the press that there will be no more public announcements concerning American troop withdrawals from Vietnam due to the fact that troop levels are now down to 27,000.

December

- December 2 - Gough Whitlam becomes the first Labour Party Prime Minister of Australia for 23 years. He is famously sworn in on the election night and his first action using executive power is to withdraw all Australian personnel from the Vietnam War.
- December 7 - PIRA kidnaps Jean McConville in Belfast.
- December 7 - Apollo 17, the last manned mission to the moon, is launched.
- December 7 - Imelda Marcos is stabbed and seriously wounded by an assailant; her bodyguards shoot him.
- December 15 - The Commonwealth of Australia ordains equal pay to women.
- December 21 - East Germany and West Germany recognize each other.
- December 21 - ZANLA troopers attack Altera Farm in north-east Rhodesia
- December 22 - 6.25 Richter scale earthquake in Managua, the capital of Nicaragua – over 12,000 dead. President Somoza is later accused of pocketing millions of dollars worth of foreign aid.
- December 22 - Australia establishes diplomatic relations with China and West Germany.
- December 23 - Earthquake in Nicaragua kills 5000-10.000 in the capital Managua
- December 28 - The bones of Martin Bormann identified in Berlin.
- December 29 - An Eastern Air Lines Lockheed L-1011 crashes into the Everglades in Florida, killing 99 of 163 onboard.

Unknown dates

- Prime minister of Sweden, Olof Palme compares the American bombings of North Vietnam to Nazi massacres. The US breaks diplomatic contact with Sweden.
- The last major epidemic of smallpox in Europe breaks out in Yugoslavia.
- The United Kingdom begin to train Special Air Service for anti-terrorist duties.
- Steve Jobs graduates from Homestead High School and enrolls in Reed College in Portland, Oregon but drops out after one semester.
- Kim Sung-il becomes president of North Korea.
- The Japanese government begins building a railway tunnel between Honshu and Hokkaido.
- Stephen Hawking is confined to a wheelchair due to motor neuron disease.
- The Bureau of Alcohol, Tobacco and Firearms becomes independent from IRS.
- The "tea house" Mellow Yellow opens on the Amstel River in Amsterdam, pioneering the legal sale of marijuana in the Netherlands.
- The Aboriginal Tent Embassy founded on the lawn of Parliament House in Canberra.
- First women admitted to Dartmouth College.
- Colombian looters find Ciudad Perdida but keep it a secret until government reveals it 1975.
- Frank Serpico exposes corruption in New York City police.
- Vietnam War veteran Richard McCoy hijacks a United Airlines jet and extorts $500,000 – he is later captured.
- The Yellow River dries up for the first time in known history.
- Somalian language gets a written form.
- Assassination of Zanzibar's leader Sheik Abeid Karume.
- Tamil United Front, pro-Tamil organization, founded.
- Worship of Norse gods officially approved in Iceland.
- Women are allowed to compete in the Boston Marathon for the first time.
- The Second Cod War between UK and Iceland.
- First use of the term Hadean.
- Robert Wood Johnson Foundation established.
- The first Ruby Tuesday(resturant) founded.

Births

January-March

- January 2 - Taye Diggs, American actor
- January 12 - Espen Knutsen, Norwegian hockey player
- January 17 - Ken Hirai, Japanese singer and songwriter
- January 18 - Mike Lieberthal, baseball player
- January 23 - Marcel Wouda, Dutch swimmer
- February 1 - Yoshi DeHerrera, American television personality
- February 2 - Klára Dobrev, wife of Hungarian Prime Minister Ferenc Gyurcsány
- February 4 - Giovanni Silva De Oliveira, Brazilian footballer
- February 14 - Drew Bledsoe, American football player
- February 15 - Jaromir Jagr, Czech hockey player
- February 16 - Jerome Bettis, American football player
- February 17 - Billie Joe Armstrong, American musician (Green Day)
- February 17 - Philippe Candeloro, French figure skater
- February 21 - Seo Taiji, Korean musician
- February 24 - Richard Chelimo, Kenyan athlete (d. 2001)
- February 29 - Antonio Sabato Jr., Italian actor
- March 6 - Shaquille O'Neal, American basketball player
- March 10 - Takashi Fujii (Matthew Minami), Japanese television performer
- March 10 - Matt Kenseth, American race car driver
- March 10 - Eugene Roshal, Russian-born computer programmer
- March 15 - Mark Hoppus, American musician (Blink 182)
- March 17 - Mia Hamm, American soccer player
- March 20 - Alexander Kapranos, English singer and guitarist (Franz Ferdinand (band))
- March 22 - Shawn Bradley, American basketball player
- March 22 - Elvis Stojko, Canadian figure skater
- March 23 - Judith Godrèche, French actress
- March 27 - Jimmy Floyd Hasselbaink, Dutch footballer

April-June

- April 3 - Jennie Garth, American actress
- April 4 - Adam Clayton Powell Jr., American politician
- April 11 - Jason Varitek, baseball player
- April 13 - Fiona McSwein, Founder of Juice Associates
- April 17 - Tony Boselli, American football player
- April 17 - Jennifer Garner, American actress
- April 17 - Muttiah Muralitharan, Sri Lankan cricketer
- April 19 - Rivaldo, Brazilian footballer
- April 24 - Chipper Jones, baseball player
- May 2 - The Rock, American professional wrestler and actor
- May 4 - Mike Dirnt, American musician (Green Day)
- May 10 - Radosław Majdan, Polish goalkeeper
- May 20 - Busta Rhymes, American musician and actor
- May 21 - The Notorious B.I.G., American musician (d. 1997)
- May 28 - Michael Boogerd, Dutch cyclist
- May 30 - Manny Ramirez, baseball player
- June 4 - Derian Hatcher, American hockey player
- June 5 - Justin Smith, American drummer, The Seeds
- June 7 - Karl Urban, New Zealand actor
- June 15 - Andy Pettitte, baseball player
- June 19 - Brian McBride, American soccer player
- June 21 - Irene van Dyk, South African-born netball player
- June 23 - Zinédine Zidane, French footballer
- June 25 - Carlos Delgado, baseball player
- June 29 - Samantha Smith, American activist (d. 1985)

July-September

- July 3 - Asha Gill, English-born television host
- July 8 - Saurav Ganguly, Indian cricketer
- July 2 - Wayne Brady, American actor and comedian
- July 7 - Lisa Leslie, American Basketball player
- July 27 - Jill Arrington, American football reporter
- July 28 - Elizabeth Berkley, American actress
- August 6 - Geri Halliwell, English musician (Spice Girls)
- August 11 - Jonathon Prandi, American model and actor
- August 14 - Ed O'Bannon, American basketball player
- August 15 - Ben Affleck, American actor
- August 23 - Dave Chappelle, American actor and comedian
- August 25 - Marvin Harrison, American football player
- August 30 - Cameron Diaz, American actress
- August 30 - Pavel Nedved, Czech footballer
- September 2 - Sergei Zholtok, Russian hockey player (d. 2004)
- September 8 - Lisa Kennedy, American disc jockey and political satirist
- September 10 - Ghada Shouaa, Syrian athlete
- September 12 - Jason Statham, English actor
- September 17 - Bobby Lee, American comedian
- September 21 - Liam Gallagher, British singer (

Neo-classical economics

Neoclassical economics refers to a general approach (a "metatheory") to economics based on supply and demand which depends on individuals (or any economic agent) operating rationally, each seeking to maximize their individual utility or profit by making choices based on available information. Mainstream economics is largely neoclassical in its assumptions. There have been many critiques of neoclassical economics, both from within orthodox economics, and from outside of it, and often these critiques have been incorporated into new versions of neoclassical theory.

Overview

Neoclassical economics is the grouping of a number of schools of thought in economics. There is not complete agreement on what is meant by neoclassical economics, and the result is a wide range of neoclassical approaches to various problem areas and domains -- ranging from neoclassical theories of labor to neoclassical theories of demographic changes. As expressed by E. Roy Weintraub, neoclassical economics rests on three assumptions, although certain branches of neoclassical theory may have different approaches: #People have rational preferences among outcomes that can be identified and associated with a value. #Individuals maximize utility and firms maximize profits. #People act independently on the basis of full and relevant information. From these three assumptions, neoclassical economists have built a structure to understand the allocation of scarce resources among alternative ends -- in fact understanding such allocation is often considered the definition of economics to neoclassical theorists. Here's how William Stanley Jevons presented the basic problem of economics: :Given, a certain population, with certain needs and powers of production, in possession of certain lands and other sources of material: required, the mode of employing their labour which will maximize the utility of their produce. From the basic assumptions of neoclassical economics comes a wide range of theories about various areas of economic activity. For example, profit maximization lies behind the neoclassical theory of the firm, while the derivation of demand curves leads to an understanding of consumer goods, and the supply curve allows an analysis of the factors of production. Utility maximization is the source for the neoclassical theory of consumption, the derivation of demand curves for consumer goods, and the derivation of factor supply curves and reservation demand. Neoclassical economics emphasizes equilibria, where equilibria are the solutions of individual maximization problems. Regularities in economies are explained by methodological individualism, the doctrine that all economic phenomena can be ultimately explained by aggregating over the behavior of individuals. The emphasis is on microeconomics. Institutions, which might be considered as prior to and conditioning individual behavior, are de-emphasized. Economic subjectivism accompanies these emphases. See also general equilibrium.

Origins of neoclassical economics

Classical economics, developed in the 18th and 19th centuries, focused on value theory and distribution theory. The value of a product was thought to depend on the costs involved in producing that product. Goods were distributed in an economy, it was assumed, in the same way that costs were distributed -- thus, a landlord would receive more goods than a tenant farmer because the landlord bore most of the cost. This classic approach included the work of Adam Smith, David Ricardo, and Karl Marx. The problem with this approach was that prices for a product did not always reflect the expected value as indicated by the costs of a product. Clearly, something was wrong with the perspective that the cost of a product was expressed in its price, this can be explained with differences in "utility." Economists began to explore the way that elements such as supply and demand effected price, and neo-classical economics gradually came into being. Neoclassical economics is conventionally dated from William Stanley Jevons' Theory of Political Economy (1871), Carl Menger's Principles of Economics (1871), and Leon Walras's Elements of Pure Economics (1874 – 1877). These three economists have been said to have promulgated the marginal utility revolution, or Neoclassical Revolution. Historians of economics and economists have debated
- Whether utility or marginalism was more essential to this revolution (whether the noun or the adjective in the phrase "marginal utility" is more important)
- Whether there was a revolutionary change of thought or merely a gradual development and change of emphasis from their predecessors
- Whether grouping these economists together disguises differences more important than their similarities. In particular, Walras was more interested in the interaction of markets than in explaining the individual psyche through a hedonistic psychology. Jevons saw his economics as an application and development of Jeremy Bentham's utilitarianism and never had a fully developed general equilibrium theory. Menger emphasized disequilibrium and the discrete. Menger had a philosophical objection to the use of mathematics in economics, while the other two modeled their theories after 19th century mechanics. Alfred Marshall's textbook, Principles of Economics (1890), was the dominant textbook in England a generation later. Marshall's influence extended elsewhere; Italians would compliment Maffeo Pantaleoni by calling him the "Marshall of Italy". Marshall thought classical economics attempted to explain prices by the cost of production. He asserted that the neoclassicals went too far in correcting this imbalance by overemphasizing utility and demand. Marshall thought the question of whether supply or demand was more important was analogous to the pointless question of which blade of a scissors did the cutting. Marshall explained prices by the intersection of supply and demand curves. The introduction of different market "periods" was an important innovation of Marshall's:
- Market period. The goods produced for sale on the market are taken as given data, e.g. in a fish market. Prices quickly adjust to clear markets.
- Short period. Industrial capacity is taken as given. The level of output, the level of employment, the inputs of raw materials, and prices fluctuate to equate marginal cost and marginal revenue, where profits are maximized. Economic rents exist in short period equilibr