page_title: History of economic thought
section_title: The Stockholm school of economics
hierarchical_section_title: History of economic thought / World wars, revolution and great depression (early to mid 20th century) / The Stockholm school of economics
caption_attribution_description: English: Swedish economist Eli F. Heckscher.
context_page_description: The history of economic thought deals with different thinkers and theories in the subject that became political economy and economics, from the ancient world to the present day in the 21st Century. This field encompasses many disparate schools of economic thought. Ancient Greek writers such as the philosopher Aristotle examined ideas about the art of wealth acquisition, and questioned whether property is best left in private or public hands. In the Middle Ages, scholasticists such as Thomas Aquinas argued that it was a moral obligation of businesses to sell goods at a just price.
  In the Western world, economics was not a separate discipline, but part of philosophy until the 18th–19th century Industrial Revolution and the 19th century Great Divergence, which accelerated economic growth.
context_section_description: In the 1930s the Stockholm School of Economics was founded by Eli Heckscher (1879–1952), Bertil Ohlin (1899–1977), Gunnar Myrdal (1898–1987) et al. based on the works of John Maynard Keynes and Knut Wicksell (1851–1926), advising the founders of the Swedish Socialist welfare state.
  In 1933 Ohlin and Heckscher proposed the Heckscher-Ohlin Model of International Trade, which claims that countries will export products that use their abundant and cheap factors of production and import products that use their scarce factors of production. In 1977 Ohlin was awarded a share of the Nobel Economics Prize.
  In 1957 Myrdal published his theory of Circular Cumulative Causation, in which a change in one institution ripples through others.  In 1974 he received a share of the Nobel Economics Prize.
caption: Eli Heckscher (1879–1952)
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