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Sir John Richard Nicholas Stone (30 August 1913 – 6 December 1991) was an eminent British economist, educated at Westminster School, Cambridge University
Cambridge University
(Caius and King's), who in 1984 received the Nobel Memorial Prize in Economic Sciences
Nobel Memorial Prize in Economic Sciences
for developing an accounting model that could be used to track economic activities on a national and, later, an international scale.


1 Early life 2 Career 3 Achievements 4 Personal life 5 Death 6 Selected publications 7 References 8 External links

Early life[edit] Richard Stone
Richard Stone
was born in London, UK on 30 August 1913. He received an English upper middle class education when he was a child as he attended Cliveden Place and Westminster School.[1] However, he had not been taught mathematics and science until secondary school. When he was 17 years old, he followed his father to India as his father was appointed as a judge in Madras. From India, he visited many Asian countries: Malaya, Singapore, and Indonesia. After travelling for one year, he went back to London and studied at Gonville and Caius College, Cambridge in 1931, where he studied law for two years. The young Stone then changed to reading economics. He was interested in economics as he taught that "if there were more economists, the world would be a better place". During the Great Slump of the 1930s, the level of unemployment was very high and it motivated him to know what caused it and how to overcome it. He faced a challenge from his parents as they were disappointed to his choice. However, Stone was very enthusiastic to be an economist and then enjoyed his time studying economics. At his new major, he got supervision from Richard Kahn and Gerald Shove. However, Stone's quantitative mind had been greatly influenced by Colin Clark, Stone's teacher in statistics at Cambridge. Colin then introduced Stone to his project in measuring the national income. This project then brought the greatest name for Stone as he received Nobel Prize
Nobel Prize
because of this topic. After their meeting at Cambridge, Stone and Clark then became best friends. Career[edit] After graduating from Cambridge in 1936 and until World War II
World War II
he worked at Lloyd's of London.[2] During the war, Stone worked with James Meade
James Meade
as a statistician and economist for the British Government. At the government's request they analyzed the UK's economy related to the current total resources of the nation for the war time. It was at this time that they developed the early versions of the system of national accounts. Their work resulted in the U.K.'s first national accounts in 1941. The collaboration between Stone and Meade was over after 1941 as their office was split into two different ones. They then worked separately, Meade being responsible for the Economic Section and Stone, for the national income. In his new office, the Central Statistical Office, Stone became John Maynard Keynes' assistant. Stone left working for the government when the war ended in 1945. After the war, Stone took up an academic career when he worked at Cambridge as the director of the new Department of Applied Economics (1945–1955). As the director, Stone made the Department focus on research programmes about economic theory and statistical methodology. This strategy attracted many top economists in that era to join the Department. Some remarkable works at the Department were, for example, Durbin and Watson on testing serial correlation in econometrics, and Alan Prest and Derek Rowe on demand analysis. This condition made DAE become one of the leading quantitative economic research centres in the world in his era.[3] Stone himself had many projects in DAE: national accounting where he had employed Agatha Chapman as a research associate,[4] the analysis of consumer demand, and the system of socio-demographic account. In 1955, Stone gave up his Directorship at the department as he was appointed as the P.D. Leake Chair of Finance and Accounting at Cambridge (emeritus from 1980). Together with Alan Brown he began the Cambridge Growth Project, which developed the Cambridge Multisectoral Dynamic Model of the British economy (MDM) . In building the Cambridge Growth Project, they used Social Accounting Matrices (SAM), which also formed computable equilibrium model which then developed at the World Bank. He was succeeded as leader of the Cambridge Growth Project by Terry Barker. In 1970, Stone was appointed as the Chairman of the Faculty Board of Economics
and Politics for the next two years. A company founded by members of the Department and limited by guarantee, Cambridge Econometrics, was founded in 1978 with Stone as its first honorary president. The company continues to develop MDM and to use the model to make economic forecasts. Before retiring from Cambridge in 1980, Stone served as the President of the Royal Economic Society for 1978–1980. Achievements[edit] Stone in 1984 received the Nobel Memorial Prize in Economic Sciences for developing an accounting model that could be used to track economic activities on a national and, later, an international scale. While he was not the first economist to work in this field, he was the first to do so with double entry accounting. Double entry accounting basically states that every income item on one side of the balance sheet must be met by an expenditure item on the opposite side of the accounting sheet therefore creating a system of balance. This double entry system is the basis of nearly all modern accounting today. This allowed for a reliable way of tracking trade and wealth transfer on a global scale. He is sometimes known as the 'father of national income accounting', and is the author of studies of consumer demand statistics and demand modeling, economic growth, and input-output.[5] During his acceptance speech Stone mentioned François Quesnay
François Quesnay
as well as the Tableau économique. Stone stated that it was one of the very first works in economics to examine various sectors on such a global level and how they are all interconnected. Personal life[edit] Stone married three times. In 1936, he married Winifred Mary Jenkins who was also from Cambridge. Both of them had a passion for Economics and started a monthly paper called Trends, which was a supplement to the periodical, Industry Illustrated. It contained articles about the British economic conditions. Soon after, in 1939, he was asked to join the Ministry of Economic Warfare. The couple's marriage dissolved in 1940. Soon after, In 1941 Stone married his second wife Feodora Leontinoff. Feodora died in 1956. In 1960, he married Giovanna Saffi, great-grandchild of Italian patriot Aurelio Saffi, who became his partner in many of his works.[6] They collaborated for some projects in economics, for example in rewriting his book "National Income and Expenditure" in 1961. Death[edit] Stone died on 6 December 1991 in Cambridge, aged 78. He was survived by his third wife Giovanna, and his daughter Caroline. Selected publications[edit]

Richard Stone
Richard Stone
and Giovanna Saffi Stone, Social Accounting and Economic Models (1959) Richard Stone
Richard Stone
and Giovanna Saffi Stone, National Income and Expenditure (1961).


^ Pesaran, M. H. (2000). "Life and Work of John Richard Nicholas Stone 1913-1991". The Economic Journal. 110: 146–165. doi:10.1111/1468-0297.00511.  ^ "Janus: The Papers of John Richard Nicholas Stone". janus.lib.cam.ac.uk. Retrieved 27 January 2018.  ^ "Deaton: "Stone, John Richard Nicholas"" (PDF). Retrieved 27 January 2018.  ^ "The trial and tribulations of Miss Agatha Chapman: statistics in a Cold War climate". The Free Library. Retrieved 28 February 2014.  ^ "Counter-intuitively, the most cited of Richard Stone's works were his publications on consumer demand statistics and modeling. See Eugene Garfield: The 1984 Nobel Prizes in Economics
and Literature are Awarded to Sir Richard Stone
Richard Stone
for Pioneering Systems of National Accounting and to Jaroslav Seifert, the National Poet of Czechoslovakia" (PDF). Retrieved 27 January 2018.  ^ "A summary biographical sketch of Sir Richard Stone
Richard Stone
(1913–1991)" (PDF). Retrieved 27 January 2018. 

External links[edit]

Wikiquote has quotations related to: Richard Stone

Richard Stone
Richard Stone
at the Mathematics Genealogy Project Nobel prize page

John Richard Nicholas Stone (1913–1991). The Concise Encyclopedia of Economics. Library of Economics
and Liberty (2nd ed.). Liberty Fund. 2008. 

v t e

Laureates of the Nobel Memorial Prize in Economic Sciences


1969 Ragnar Frisch
Ragnar Frisch
/ Jan Tinbergen 1970 Paul Samuelson 1971 Simon Kuznets 1972 John Hicks / Kenneth Arrow 1973 Wassily Leontief 1974 Gunnar Myrdal
Gunnar Myrdal
/ Friedrich Hayek 1975 Leonid Kantorovich
Leonid Kantorovich
/ Tjalling Koopmans


1976 Milton Friedman 1977 Bertil Ohlin
Bertil Ohlin
/ James Meade 1978 Herbert A. Simon 1979 Theodore Schultz
Theodore Schultz
/ Arthur Lewis 1980 Lawrence Klein 1981 James Tobin 1982 George Stigler 1983 Gérard Debreu 1984 Richard Stone 1985 Franco Modigliani 1986 James M. Buchanan 1987 Robert Solow 1988 Maurice Allais 1989 Trygve Haavelmo 1990 Harry Markowitz
Harry Markowitz
/ Merton Miller
Merton Miller
/ William F. Sharpe 1991 Ronald Coase 1992 Gary Becker 1993 Robert Fogel
Robert Fogel
/ Douglass North 1994 John Harsanyi / John Forbes Nash Jr.
John Forbes Nash Jr.
/ Reinhard Selten 1995 Robert Lucas Jr. 1996 James Mirrlees / William Vickrey 1997 Robert C. Merton
Robert C. Merton
/ Myron Scholes 1998 Amartya Sen 1999 Robert Mundell 2000 James Heckman
James Heckman
/ Daniel McFadden


2001 George Akerlof
George Akerlof
/ Michael Spence
Michael Spence
/ Joseph E. Stiglitz 2002 Daniel Kahneman / Vernon L. Smith 2003 Robert F. Engle
Robert F. Engle
/ Clive Granger 2004 Finn E. Kydland
Finn E. Kydland
/ Edward C. Prescott 2005 Robert Aumann
Robert Aumann
/ Thomas Schelling 2006 Edmund Phelps 2007 Leonid Hurwicz
Leonid Hurwicz
/ Eric Maskin
Eric Maskin
/ Roger Myerson 2008 Paul Krugman 2009 Elinor Ostrom
Elinor Ostrom
/ Oliver E. Williamson 2010 Peter A. Diamond / Dale T. Mortensen
Dale T. Mortensen
/ Christopher A. Pissarides 2011 Thomas J. Sargent
Thomas J. Sargent
/ Christopher A. Sims 2012 Alvin E. Roth
Alvin E. Roth
/ Lloyd S. Shapley 2013 Eugene Fama
Eugene Fama
/ Lars Peter Hansen
Lars Peter Hansen
/ Robert J. Shiller 2014 Jean Tirole 2015 Angus Deaton 2016 Oliver Hart / Bengt Holmström 2017 Richard Thaler

v t e

Presidents of the Econometric Society


Irving Fisher
Irving Fisher
(1931–1934) François Divisia (1935) Harold Hotelling
Harold Hotelling
(1936–1937) Arthur Bowley (1938–1939) Joseph Schumpeter
Joseph Schumpeter
(1940–1941) Wesley Mitchell (1942–1943) John Maynard Keynes
John Maynard Keynes
(1944–1945) Jacob Marschak (1946) Jan Tinbergen
Jan Tinbergen
(1947) Charles Roos (1948) Ragnar Frisch
Ragnar Frisch
(1949) Tjalling Koopmans
Tjalling Koopmans


R. G. D. Allen
R. G. D. Allen
(1951) Paul Samuelson
Paul Samuelson
(1952) René Roy (1953) Wassily Leontief
Wassily Leontief
(1954) Richard Stone
Richard Stone
(1955) Kenneth Arrow (1956) Trygve Haavelmo
Trygve Haavelmo
(1957) James Tobin
James Tobin
(1958) Marcel Boiteux (fr) (1959) Lawrence Klein
Lawrence Klein
(1960) Henri Theil (1961) Franco Modigliani
Franco Modigliani
(1962) Edmond Malinvaud
Edmond Malinvaud
(1963) Robert Solow
Robert Solow
(1964) Michio Morishima
Michio Morishima
(1965) Herman Wold (1966) Hendrik Houthakker (1967) Frank Hahn
Frank Hahn
(1968) Leonid Hurwicz
Leonid Hurwicz
(1969) Jacques Drèze (1970) Gérard Debreu
Gérard Debreu
(1971) W. M. Gorman (1972) Roy Radner (1973) Don Patinkin (1974) Zvi Griliches (1975)


Hirofumi Uzawa (1976) Lionel McKenzie (1977) János Kornai (1978) Franklin M. Fisher (1979) J. Denis Sargan (1980) Marc Nerlove (1981) James A. Mirrlees (1982) Herbert Scarf
Herbert Scarf
(1983) Amartya K. Sen (1984) Daniel McFadden (1985) Michael Bruno
Michael Bruno
(1986) Dale Jorgenson (1987) Anthony B. Atkinson (1988) Hugo Sonnenschein (1989) Jean-Michel Grandmont (de) (1990) Peter Diamond
Peter Diamond
(1991) Jean-Jacques Laffont (1992) Andreu Mas-Colell
Andreu Mas-Colell
(1993) Takashi Negishi (1994) Christopher Sims (1995) Roger Guesnerie (1996) Robert E. Lucas, Jr. (1997) Jean Tirole
Jean Tirole
(1998) Robert B. Wilson (1999) Elhanan Helpman
Elhanan Helpman


Avinash Dixit
Avinash Dixit
(2001) Guy Laroque (fr) (2002) Eric Maskin
Eric Maskin
(2003) Ariel Rubinstein (2004) Thomas J. Sargent
Thomas J. Sargent
(2005) Richard Blundell
Richard Blundell
(2006) Lars Peter Hansen
Lars Peter Hansen
(2007) Torsten Persson (2008) Roger B. Myerson (2009) John H. Moore (2010) Bengt Holmström
Bengt Holmström
(2011) Jean-Charles Rochet (2012) James J. Heckman (2013) Manuel Arellano (2014) Robert Porter (2015) Eddie Dekel (2016) Drew Fudenberg (2017) Tim Besley
Tim Besley

Authority control

WorldCat Identities VIAF: 27130268 LCCN: n2005016262 ISNI: 0000 0001 0881 8219 GND: 132345927 SELIBR: 307022 SUDOC: 031766617 BNF: cb12292086p (data) BIBSYS: 4013344 MGP: 130702 NDL: 00526