Frank Ramsey (mathematician)
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Frank Plumpton Ramsey (; 22 February 1903 – 19 January 1930) was a British philosopher,
mathematician A mathematician is someone who uses an extensive knowledge of mathematics in their work, typically to solve mathematical problems. Mathematicians are concerned with numbers, data, quantity, mathematical structure, structure, space, Mathematica ...
, and
economist An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...
who made major contributions to all three fields before his death at the age of 26. He was a close friend of
Ludwig Wittgenstein Ludwig Josef Johann Wittgenstein ( ; ; 26 April 1889 – 29 April 1951) was an Austrian- British philosopher who worked primarily in logic, the philosophy of mathematics, the philosophy of mind, and the philosophy of language. He is cons ...
and, as an undergraduate, translated Wittgenstein's ''
Tractatus Logico-Philosophicus The ''Tractatus Logico-Philosophicus'' (widely abbreviated and cited as TLP) is a book-length philosophical work by the Austrian philosopher Ludwig Wittgenstein which deals with the relationship between language and reality and aims to define t ...
'' into English. He was also influential in persuading Wittgenstein to return to philosophy and Cambridge. Like Wittgenstein, he was a member of the
Cambridge Apostles The Cambridge Apostles (also known as '' Conversazione Society'') is an intellectual society at the University of Cambridge founded in 1820 by George Tomlinson, a Cambridge student who became the first Bishop of Gibraltar.W. C. Lubenow, ''The ...
, the secret intellectual society, from 1921.


Life

Ramsey was born on 22 February 1903 in
Cambridge Cambridge ( ) is a university city and the county town in Cambridgeshire, England. It is located on the River Cam approximately north of London. As of the 2021 United Kingdom census, the population of Cambridge was 145,700. Cambridge beca ...
where his father Arthur Stanley Ramsey (1867–1954), also a mathematician, was President of Magdalene College. His mother was Mary Agnes Stanley (1875–1927). He was the eldest of two brothers and two sisters, and his brother
Michael Ramsey Arthur Michael Ramsey, Baron Ramsey of Canterbury, (14 November 1904 – 23 April 1988) was an English Anglican bishop and life peer. He served as the 100th Archbishop of Canterbury. He was appointed on 31 May 1961 and held the office until ...
, the only one of the four siblings who was to remain Christian, later became Archbishop of Canterbury. He entered
Winchester College Winchester College is a public school (fee-charging independent day and boarding school) in Winchester, Hampshire, England. It was founded by William of Wykeham in 1382 and has existed in its present location ever since. It is the oldest of ...
in 1915 and later returned to Cambridge to study mathematics at Trinity College. There he became a student of
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
, and an active member in the Apostles. In 1923, he received his bachelor's degree in mathematics, passing his examinations with the result of first class with distinction, and was named
Senior Wrangler The Senior Frog Wrangler is the top mathematics undergraduate at the University of Cambridge in England, a position which has been described as "the greatest intellectual achievement attainable in Britain." Specifically, it is the person who ...
(top of his class). Easy-going, simple and modest, Ramsey had many interests besides his mathematical and scientific studies. Even as a teenager Ramsey exhibited both a profound ability and, as attested by his brother, an extremely diverse range of interests: In 1923, Ramsey was befriended by Geoffrey and
Margaret Pyke Margaret Amy Pyke (née Chubb; 1893–1966) was a British family planning activist and pioneer. A founding member of the British National Birth Control Committee (NBCC), later known as the Family Planning Association (FPA), she succeeded Lady ...
, then on the point of founding the
Malting House School The Malting House School (also known as the Malting House Garden School) was an experimental educational institution that operated from 1924 to 1929. It was set up by the eccentric and, at the time, wealthy Geoffrey Pyke in his family home in Ca ...
in Cambridge; the Pykes took Ramsey into their family, taking him on holiday and asking him to be the godfather of their young son. Margaret found herself to be the object of his affection, Ramsey recording in his diary:
One afternoon I went out alone with her on
Lake Orta Lake Orta (Italian: ''Lago d’Orta'') is a lake in northern Italy, west of Lake Maggiore. It has been so named since the 16th century, but was previously called Lago di San Giulio, after Saint Julius (4th century), the patron saint of the regi ...
and became filled with desire and we came back and lay on two beds side by side she reading, I pretending to, but with an awful conflict in my mind. After about an hour I said (she was wearing her horn spectacles and looking superlatively beautiful in the Burne Jones style) ‘Margaret will you fuck with me?’
Margaret wanted time to consider his proposition and thus began an uncomfortable dance between them, which contributed to Ramsey's depressive moods in early 1924; as a result, he travelled to Vienna for
psychoanalysis PsychoanalysisFrom Greek: + . is a set of theories and therapeutic techniques"What is psychoanalysis? Of course, one is supposed to answer that it is many things — a theory, a research method, a therapy, a body of knowledge. In what might b ...
. Like many of his contemporaries, including his Viennese flatmate and fellow Apostle
Lionel Penrose Lionel Sharples Penrose, FRS (11 June 1898 – 12 May 1972) was an English psychiatrist, medical geneticist, paediatrician, mathematician and chess theorist, who carried out pioneering work on the genetics of intellectual disability. Penrose w ...
(also in analysis with Siegfried Bernfeld), Ramsey was intellectually interested in psychoanalysis. Ramsey's analyst was Theodor Reik, a disciple of
Freud Sigmund Freud ( , ; born Sigismund Schlomo Freud; 6 May 1856 – 23 September 1939) was an Austrian neurologist and the founder of psychoanalysis, a clinical method for evaluating and treating pathologies explained as originating in conflicts ...
. As one of the justifications for undertaking the therapy, he asserted in a letter to his mother that unconscious impulses might affect even a mathematician's work. While in Vienna, he made a trip to Puchberg in order to visit Wittgenstein, was befriended by the Wittgenstein family and visited A.S. Neill's experimental school four hours from Vienna at Sonntagsberg. In the summer of 1924, he continued his analysis by joining Reik at Dobbiaco (in
South Tyrol it, Provincia Autonoma di Bolzano – Alto Adige lld, Provinzia Autonoma de Balsan/Bulsan – Südtirol , settlement_type = Autonomous province , image_skyline = , image_alt ...
), where a fellow analysand was
Lewis Namier Sir Lewis Bernstein Namier (; 27 June 1888 – 19 August 1960) was a British historian of Polish-Jewish background. His best-known works were ''The Structure of Politics at the Accession of George III'' (1929), ''England in the Age of the Amer ...
. Ramsey returned to England in October 1924; with
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
's support he became a fellow of
King's College, Cambridge King's College is a constituent college of the University of Cambridge. Formally The King's College of Our Lady and Saint Nicholas in Cambridge, the college lies beside the River Cam and faces out onto King's Parade in the centre of the cit ...
. He joined a Psychoanalysis Group in Cambridge with fellow members
Arthur Tansley Sir Arthur George Tansley FLS, FRS (15 August 1871 – 25 November 1955) was an English botanist and a pioneer in the science of ecology. Educated at Highgate School, University College London and Trinity College, Cambridge, Tansley taught ...
,
Lionel Penrose Lionel Sharples Penrose, FRS (11 June 1898 – 12 May 1972) was an English psychiatrist, medical geneticist, paediatrician, mathematician and chess theorist, who carried out pioneering work on the genetics of intellectual disability. Penrose w ...
,
Harold Jeffreys Sir Harold Jeffreys, FRS (22 April 1891 – 18 March 1989) was a British mathematician, statistician, geophysicist, and astronomer. His book, ''Theory of Probability'', which was first published in 1939, played an important role in the reviva ...
, John Rickman and James Strachey, the qualification for membership of which was a completed psychoanalysis. Ramsey married Lettice Baker in September 1925, the wedding taking place in a Register Office since Ramsey was, as his wife described him, a 'militant
atheist Atheism, in the broadest sense, is an absence of belief in the existence of deities. Less broadly, atheism is a rejection of the belief that any deities exist. In an even narrower sense, atheism is specifically the position that there no ...
'. The marriage produced two daughters. After Ramsey's death, Lettice Ramsey opened a photography studio in Cambridge with photographer Helen Muspratt. Despite his
atheism Atheism, in the broadest sense, is an absence of belief in the existence of deities. Less broadly, atheism is a rejection of the belief that any deities exist. In an even narrower sense, atheism is specifically the position that there no ...
, Ramsey was "quite tolerant" towards his brother when the latter decided to become a priest in the
Church of England The Church of England (C of E) is the established Christian church in England and the mother church of the international Anglican Communion. It traces its history to the Christian church recorded as existing in the Roman province of Britai ...
. In 1926 he became a university lecturer in mathematics and later a Director of Studies in Mathematics at King's College. The Vienna Circle manifesto (1929) lists three of his publications in a bibliography of closely related authors.


Ramsey and Wittgenstein

When
I. A. Richards Ivor Armstrong Richards CH (26 February 1893 – 7 September 1979), known as I. A. Richards, was an English educator, literary critic, poet, and rhetorician. His work contributed to the foundations of the New Criticism, a formalist movement ...
and C. K. Ogden, both Fellows of Magdalene, first met Ramsey, he expressed his interest in learning German. According to Richards, he mastered the language "in almost hardly over a week", although other sources show he had taken one year of German in school. Ramsey was then able, at the age of 19, to make the first draft of the translation of the German text of
Ludwig Wittgenstein Ludwig Josef Johann Wittgenstein ( ; ; 26 April 1889 – 29 April 1951) was an Austrian- British philosopher who worked primarily in logic, the philosophy of mathematics, the philosophy of mind, and the philosophy of language. He is cons ...
's ''
Tractatus Logico-Philosophicus The ''Tractatus Logico-Philosophicus'' (widely abbreviated and cited as TLP) is a book-length philosophical work by the Austrian philosopher Ludwig Wittgenstein which deals with the relationship between language and reality and aims to define t ...
''. Ramsey was impressed by Wittgenstein's work and after graduating as
Senior Wrangler The Senior Frog Wrangler is the top mathematics undergraduate at the University of Cambridge in England, a position which has been described as "the greatest intellectual achievement attainable in Britain." Specifically, it is the person who ...
in the Mathematical
Tripos At the University of Cambridge, a Tripos (, plural 'Triposes') is any of the examinations that qualify an undergraduate for a bachelor's degree or the courses taken by a student to prepare for these. For example, an undergraduate studying mathe ...
of 1923 he made a journey to
Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
to visit Wittgenstein, at that time teaching in a primary school in the small community of Puchberg am Schneeberg. For two weeks Ramsey discussed the difficulties he was facing in understanding the ''Tractatus''. Wittgenstein made some corrections to the English translation in Ramsey's copy and some annotations and changes to the German text that subsequently appeared in the second edition in 1933. Ramsey and
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
cooperated to try to bring Wittgenstein back to Cambridge (he had been a student there before World War I). Once Wittgenstein had returned to Cambridge, Ramsey became his nominal supervisor. Wittgenstein submitted the ''Tractatus Logico-Philosophicus'' as his doctoral thesis. G.E. Moore and
Bertrand Russell Bertrand Arthur William Russell, 3rd Earl Russell, (18 May 1872 – 2 February 1970) was a British mathematician, philosopher, logician, and public intellectual. He had a considerable influence on mathematics, logic, set theory, linguistics, ar ...
acted as examiners. Later, the three of them arranged financial aid for Wittgenstein to help him continue his research work. In 1929 Ramsey and Wittgenstein regularly discussed issues in mathematics and philosophy with
Piero Sraffa Piero Sraffa (5 August 1898 – 3 September 1983) was an influential Italian economist who served as lecturer of economics at the University of Cambridge. His book ''Production of Commodities by Means of Commodities'' is taken as founding the neo ...
, an Italian economist who had been brought to Cambridge by Keynes after Sraffa had aroused
Benito Mussolini Benito Amilcare Andrea Mussolini (; 29 July 188328 April 1945) was an Italian politician and journalist who founded and led the National Fascist Party. He was Prime Minister of Italy from the March on Rome in 1922 until his deposition in ...
's ire by publishing an article critical of the Fascist regime in the ''
Manchester Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and '' The Guardian Weekly'', ''The Guardian'' is part of the G ...
''. The contributions of Ramsey to these conversations were acknowledged by both Sraffa and Wittgenstein in their later work, the latter mentioning him in the introduction to his ''
Philosophical Investigations ''Philosophical Investigations'' (german: Philosophische Untersuchungen) is a work by the philosopher Ludwig Wittgenstein, published posthumously in 1953. ''Philosophical Investigations'' is divided into two parts, consisting of what Wittgens ...
'' as an influence.


Early death

Suffering chronic
liver The liver is a major organ only found in vertebrates which performs many essential biological functions such as detoxification of the organism, and the synthesis of proteins and biochemicals necessary for digestion and growth. In humans, it ...
problems, Ramsey developed
jaundice Jaundice, also known as icterus, is a yellowish or greenish pigmentation of the skin and sclera due to high bilirubin levels. Jaundice in adults is typically a sign indicating the presence of underlying diseases involving abnormal heme met ...
after an abdominal operation and died on 19 January 1930 at
Guy's Hospital Guy's Hospital is an NHS hospital in the borough of Southwark in central London. It is part of Guy's and St Thomas' NHS Foundation Trust and one of the institutions that comprise the King's Health Partners, an academic health science cent ...
in London at the age of 26. There is a suspicion that the cause of his death might be an undiagnosed
leptospirosis Leptospirosis is a blood infection caused by the bacteria '' Leptospira''. Signs and symptoms can range from none to mild (headaches, muscle pains, and fevers) to severe ( bleeding in the lungs or meningitis). Weil's disease, the acute, seve ...
with which Ramsey, an avid swimmer, could have become infected while swimming in the Cam. He is buried in the Parish of the Ascension Burial Ground in Cambridge; his parents are buried in the same plot. Ramsey's notes and manuscripts were acquired by
Nicholas Rescher Nicholas Rescher (; ; born 15 July 1928) is a German-American philosopher, polymath, and author, who has been a professor of philosophy at the University of Pittsburgh since 1961. He is chairman of the Center for Philosophy of Science and was f ...
for the Archives of Scientific Philosophy at the
University of Pittsburgh The University of Pittsburgh (Pitt) is a public state-related research university in Pittsburgh, Pennsylvania. The university is composed of 17 undergraduate and graduate schools and colleges at its urban Pittsburgh campus, home to the univers ...
. This collection contains only a few letters but a great many drafts of papers and book chapters, some still unpublished. Other papers, including his diary and letters and memoirs by his widow Lettice Ramsey and his father, are held in the Modern Archives, King's College, Cambridge.


Work


Mathematical logic

One of the
theorem In mathematics, a theorem is a statement that has been proved, or can be proved. The ''proof'' of a theorem is a logical argument that uses the inference rules of a deductive system to establish that the theorem is a logical consequence of ...
s proved by Ramsey in his 1928 paper ''On a Problem of Formal Logic'' now bears his name (
Ramsey's theorem In combinatorics, Ramsey's theorem, in one of its graph-theoretic forms, states that one will find monochromatic cliques in any edge labelling (with colours) of a sufficiently large complete graph. To demonstrate the theorem for two colours (s ...
). While this theorem is the work Ramsey is probably best remembered for, he proved it only in passing, as a minor
lemma Lemma may refer to: Language and linguistics * Lemma (morphology), the canonical, dictionary or citation form of a word * Lemma (psycholinguistics), a mental abstraction of a word about to be uttered Science and mathematics * Lemma (botany), a ...
along the way to his true goal in the paper, solving a special case of the decision problem for first-order logic, namely the decidability of what is now called the Bernays–Schönfinkel–Ramsey class of
first-order logic First-order logic—also known as predicate logic, quantificational logic, and first-order predicate calculus—is a collection of formal systems used in mathematics, philosophy, linguistics, and computer science. First-order logic uses quanti ...
, as well as a characterisation of the spectrum of sentences in this fragment of logic.
Alonzo Church Alonzo Church (June 14, 1903 – August 11, 1995) was an American mathematician, computer scientist, logician, philosopher, professor and editor who made major contributions to mathematical logic and the foundations of theoretical computer scie ...
would go on to show that the general case of the decision problem for first-order logic is unsolvable and that first-order logic is undecidable (see Church's theorem). A great amount of later work in mathematics was fruitfully developed out of the ostensibly minor lemma used by Ramsey in his decidability proof: this lemma turned out to be an important early result in
combinatorics Combinatorics is an area of mathematics primarily concerned with counting, both as a means and an end in obtaining results, and certain properties of finite structures. It is closely related to many other areas of mathematics and has many a ...
, supporting the idea that within some sufficiently large systems, however disordered, there must be some order. So fruitful, in fact, was Ramsey's theorem that today there is an entire branch of mathematics, known as
Ramsey theory Ramsey theory, named after the British mathematician and philosopher Frank P. Ramsey, is a branch of mathematics that focuses on the appearance of order in a substructure given a structure of a known size. Problems in Ramsey theory typically ask ...
, which is dedicated to studying similar results. In 1926, Ramsey proposed a simplification of the Theory of Types developed by
Bertrand Russell Bertrand Arthur William Russell, 3rd Earl Russell, (18 May 1872 – 2 February 1970) was a British mathematician, philosopher, logician, and public intellectual. He had a considerable influence on mathematics, logic, set theory, linguistics, ar ...
and
Alfred North Whitehead Alfred North Whitehead (15 February 1861 – 30 December 1947) was an English mathematician and philosopher. He is best known as the defining figure of the philosophical school known as process philosophy, which today has found applic ...
in their ''
Principia Mathematica The ''Principia Mathematica'' (often abbreviated ''PM'') is a three-volume work on the foundations of mathematics written by mathematician–philosophers Alfred North Whitehead and Bertrand Russell and published in 1910, 1912, and 1913. ...
''. The resulting theory is known today as Theory of Simple Type (TST) or Simple Type Theory. Ramsey observed that a hierarchy of types was sufficient to deal with mathematical
paradox A paradox is a logically self-contradictory statement or a statement that runs contrary to one's expectation. It is a statement that, despite apparently valid reasoning from true premises, leads to a seemingly self-contradictory or a logically u ...
es, so removed Russell's and Whitehead's ramified hierarchy, which was meant to elude semantic paradoxes. Ramsey's version of the theory is the one considered by
Kurt Gödel Kurt Friedrich Gödel ( , ; April 28, 1906 – January 14, 1978) was a logician, mathematician, and philosopher. Considered along with Aristotle and Gottlob Frege to be one of the most significant logicians in history, Gödel had an imm ...
in the original proof of his First incompleteness theorem. Ramsey's Theory of Simple Types was further simplified by
Willard van Orman Quine Willard Van Orman Quine (; known to his friends as "Van"; June 25, 1908 – December 25, 2000) was an American philosopher and logician in the analytic tradition, recognized as "one of the most influential philosophers of the twentieth century ...
in his
New Foundations In mathematical logic, New Foundations (NF) is an axiomatic set theory, conceived by Willard Van Orman Quine as a simplification of the theory of types of '' Principia Mathematica''. Quine first proposed NF in a 1937 article titled "New Foundation ...
set theory Set theory is the branch of mathematical logic that studies sets, which can be informally described as collections of objects. Although objects of any kind can be collected into a set, set theory, as a branch of mathematics, is mostly concer ...
, in which any explicit reference to types is eliminated from the language of the theory.


Philosophy

His main philosophical works included ''Universals'' (1925), ''Facts and propositions'' (1927) (which proposed a redundancy theory of truth), ''Universals of law and of fact'' (1928), ''Knowledge'' (1929), ''Theories'' (1929), ''On Truth'' (1929), ''Causal Qualities'' (1929), and ''General propositions and causality'' (1929). Ramsey was perhaps the first to propose a reliablist theory of knowledge. He also produced what philosopher Alan Hájek has described as an "enormously influential version of the subjective interpretation of probability." His thought in this area was outlined in the paper '' Truth and Probability'' (discussed below) which was written in 1926 but first published posthumously in 1931.


Economics

Keynes and Pigou encouraged Ramsey to work on economics as "From a very early age, about sixteen I think, his precocious mind was intensely interested in economic problems" (Keynes, 1933). Ramsey responded to Keynes's urging by writing three papers in economic theory all of which were of fundamental importance, though it was many years before they received their proper recognition by the community of economists. Ramsey's three papers, described below in detail, were on
subjective probability Bayesian probability is an interpretation of the concept of probability, in which, instead of frequency or propensity of some phenomenon, probability is interpreted as reasonable expectation representing a state of knowledge or as quantification o ...
and
utility As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosoph ...
(1926), optimal taxation (1927) and optimal growth with one-sector economic growth (1928). The economist
Paul Samuelson Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...
described them in 1970 as "three great legacies – legacies that were for the most part mere by-products of his major interest in the foundations of mathematics and knowledge."


''A Mathematical Theory of Saving''

Described by
Partha Dasgupta Sir Partha Sarathi Dasgupta (born on 17 November 1942), is an Indian-British economist who is the Frank Ramsey Professor Emeritus of Economics at the University of Cambridge, United Kingdom and Fellow of St John's College, Cambridge. Persona ...
, in a ''
Stanford Encyclopedia of Philosophy The ''Stanford Encyclopedia of Philosophy'' (''SEP'') combines an online encyclopedia of philosophy with peer-reviewed publication of original papers in philosophy, freely accessible to Internet users. It is maintained by Stanford University. E ...
'' entry devoted to it, as "one of the dozen or so most influential papers of the 20th century" in the field of academic economics, "A Mathematical Theory of Saving" was originally published in ''
The Economic Journal ''The Economic Journal'' is a peer-reviewed academic journal of economics published on behalf of the Royal Economic Society by Oxford University Press. The journal was established in 1891 and publishes papers from all areas of economics.The edit ...
'' in 1928. It employed, as
Paul Samuelson Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...
described it, "a strategically beautiful application of the
calculus of variations The calculus of variations (or Variational Calculus) is a field of mathematical analysis that uses variations, which are small changes in functions and functionals, to find maxima and minima of functionals: mappings from a set of functions t ...
" to determine the optimal amount an economy should invest rather than consume so as to maximise future
utility As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosoph ...
, or as Ramsey put it, "how much of its income should a nation save?" Keynes described the article as "one of the most remarkable contributions to
mathematical economics Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. Often, these applied methods are beyond simple geometry, and may include differential and integral calculus, difference a ...
ever made, both in respect of the intrinsic importance and difficulty of its subject, the power and elegance of the technical methods employed, and the clear purity of illumination with which the writer's mind is felt by the reader to play about its subject. The article is terribly difficult reading for an economist, but it is not difficult to appreciate how scientific and aesthetic qualities are combined in it together." The Ramsey model is today acknowledged as the starting point for optimal accumulation theory although its importance was not recognised until many years after its first publication. The main contributions of the model were firstly the initial question Ramsey posed on how much savings should be and secondly the method of analysis, the intertemporal maximisation (optimisation) of collective or individual utility by applying techniques of dynamic optimisation.
Tjalling C. Koopmans Tjalling Charles Koopmans (August 28, 1910 – February 26, 1985) was a Dutch-American mathematician and economist. He was the joint winner with Leonid Kantorovich of the 1975 Nobel Memorial Prize in Economic Sciences for his work on the theory o ...
and David Cass modified the Ramsey model incorporating the dynamic features of
population growth Population growth is the increase in the number of people in a population or dispersed group. Actual global human population growth amounts to around 83 million annually, or 1.1% per year. The global population has grown from 1 billion in 1800 to ...
at a steady rate and of Harrod-neutral technical progress again at a steady rate, giving birth to a model named the Ramsey–Cass–Koopmans model where the objective now is to maximise household's
utility function As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosoph ...
.


''A Contribution to the Theory of Taxation''

This paper, first published in 1927 has been described by Joseph E. Stiglitz as "a landmark in the economics of public finance" In the same, Ramsey contributed to
economic theory Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyze ...
the elegant concept of
Ramsey pricing The Ramsey problem, or Ramsey pricing, or Ramsey–Boiteux pricing, is a second-best policy problem concerning what prices a public monopoly should charge for the various products it sells in order to maximize social welfare (the sum of producer an ...
. This is applicable in situations where a (regulated) monopolist wants to maximise
consumer surplus In mainstream economics, economic surplus, also known as total welfare or total social welfare or Marshallian surplus (after Alfred Marshall), is either of two related quantities: * Consumer surplus, or consumers' surplus, is the monetary gain ...
whilst at the same time ensuring that its costs are adequately covered. This is achieved by setting the price such that the markup over
marginal cost In economics, the marginal cost is the change in the total cost that arises when the quantity produced is incremented, the cost of producing additional quantity. In some contexts, it refers to an increment of one unit of output, and in others it r ...
is inversely proportional to the price elasticity of demand for that good. Ramsey poses the question that is to be solved at the beginning of the article: "a given revenue is to be raised by proportionate taxes on some or all uses of income, the taxes on different uses being possibly at different rates; how much should these rates be adjusted in order that the decrement of utility may be a minimum?" The problem was suggested to him by the economist Arthur Pigou and the paper was Ramsey's answer to the problem.


''Truth and Probability''

In '' A Treatise on Probability'' (1921), Keynes had argued against the subjective approach in
epistemic Epistemology (; ), or the theory of knowledge, is the Outline of philosophy, branch of philosophy concerned with knowledge. Epistemology is considered a major subfield of philosophy, along with other major subfields such as ethics, logic, an ...
probabilities. For Keynes, subjectivity of probabilities does not matter as much, as for him there is an objective relationship between knowledge and probabilities, as knowledge is disembodied and not personal. Ramsey disagreed with this approach. In his article "Truth and Probability" (1926), he argued that there is a difference between the notions of
probability Probability is the branch of mathematics concerning numerical descriptions of how likely an Event (probability theory), event is to occur, or how likely it is that a proposition is true. The probability of an event is a number between 0 and ...
in
physics Physics is the natural science that studies matter, its fundamental constituents, its motion and behavior through space and time, and the related entities of energy and force. "Physical science is that department of knowledge which rel ...
and in
logic Logic is the study of correct reasoning. It includes both formal and informal logic. Formal logic is the science of deductively valid inferences or of logical truths. It is a formal science investigating how conclusions follow from premis ...
.F.P. Ramsey (1926) "Truth and Probability", in Ramsey, 1931, '' The Foundations of Mathematics and other Logical Essays'', Ch. VII, p.156-198, edited by R.B. Braithwaite, London: Kegan, Paul, Trench, Trubner & Co., New York: Harcourt, Brace and Company '
1999 electronic edition
''
For Ramsey, probability is not related to a disembodied body of knowledge but is related to the knowledge that each individual possesses alone. Thus personal beliefs that are formulated by this individual knowledge govern probabilities, leading to the notions of
subjective probability Bayesian probability is an interpretation of the concept of probability, in which, instead of frequency or propensity of some phenomenon, probability is interpreted as reasonable expectation representing a state of knowledge or as quantification o ...
and
Bayesian probability Bayesian probability is an interpretation of the concept of probability, in which, instead of frequency or propensity of some phenomenon, probability is interpreted as reasonable expectation representing a state of knowledge or as quantification o ...
. Consequently, subjective probabilities can be inferred by observing actions that reflect individuals' personal beliefs. Ramsey argued that the degree of probability that an individual attaches to a particular outcome can be measured by finding what
odds Odds provide a measure of the likelihood of a particular outcome. They are calculated as the ratio of the number of events that produce that outcome to the number that do not. Odds are commonly used in gambling and statistics. Odds also have ...
the individual would accept when
betting Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three ele ...
on that outcome. After Ramsey's death, an approach to probability similar to his was developed independently by the Italian
mathematician A mathematician is someone who uses an extensive knowledge of mathematics in their work, typically to solve mathematical problems. Mathematicians are concerned with numbers, data, quantity, mathematical structure, structure, space, Mathematica ...
Bruno de Finetti Bruno de Finetti (13 June 1906 – 20 July 1985) was an Italian probabilist statistician and actuary, noted for the "operational subjective" conception of probability. The classic exposition of his distinctive theory is the 1937 "La prévision: ...
. Ramsey suggested a way of deriving a consistent theory of choice under uncertainty that could isolate beliefs from preferences while still maintaining subjective probabilities. Despite the fact that Ramsey's work on probabilities was of great importance, no one paid any attention to it until the publication of ''
Theory of Games and Economic Behavior ''Theory of Games and Economic Behavior'', published in 1944 by Princeton University Press, is a book by mathematician John von Neumann and economist Oskar Morgenstern which is considered the groundbreaking text that created the interdisciplinar ...
'' of
John von Neumann John von Neumann (; hu, Neumann János Lajos, ; December 28, 1903 – February 8, 1957) was a Hungarian-American mathematician, physicist, computer scientist, engineer and polymath. He was regarded as having perhaps the widest cove ...
and
Oskar Morgenstern Oskar Morgenstern (January 24, 1902 – July 26, 1977) was an Austrian-American economist. In collaboration with mathematician John von Neumann, he founded the mathematical field of game theory as applied to the social sciences and strategic decis ...
in 1944 (1947 2nd ed.).


Legacy


Frank P. Ramsey Medal

The Decision Analysis Society annually awards the Frank P. Ramsey Medal to recognise substantial contributions to
decision theory Decision theory (or the theory of choice; not to be confused with choice theory) is a branch of applied probability theory concerned with the theory of making decisions based on assigning probabilities to various factors and assigning numerical ...
and its application to important classes of real decision problems.


Frank Ramsey Professorships

Howard Raiffa was made the first Frank P. Ramsey Professor (of Managerial Economics) at Harvard University. Richard Zeckhauser was made the Frank P. Ramsey Professor of Political Economy at
Harvard University Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of high ...
in 1971. Raiffa's chair was joint between the
Harvard Business Harvard Business School (HBS) is the graduate business school of Harvard University, a private research university in Boston, Massachusetts. It is consistently ranked among the top business schools in the world and offers a large full-time MBA ...
and Kennedy Schools. Zeckhauser's chair is in the Kennedy School.
Partha Dasgupta Sir Partha Sarathi Dasgupta (born on 17 November 1942), is an Indian-British economist who is the Frank Ramsey Professor Emeritus of Economics at the University of Cambridge, United Kingdom and Fellow of St John's College, Cambridge. Persona ...
was made the Frank Ramsey Professor of Economics in 1994 and Frank Ramsey Professor Emeritus of Economics in 2010 at the
University of Cambridge , mottoeng = Literal: From here, light and sacred draughts. Non literal: From this place, we gain enlightenment and precious knowledge. , established = , other_name = The Chancellor, Masters and Schola ...
.


Ramsey Effect

In 1999, the philosopher Donald Davidson gave the name "the Ramsey Effect" to anyone's realisation that their splendid new philosophical discovery already existed within Frank Ramsey's body of work.


See also

* Clique game *
Expected utility hypothesis The expected utility hypothesis is a popular concept in economics that serves as a reference guide for decisions when the payoff is uncertain. The theory recommends which option rational individuals should choose in a complex situation, based on the ...
* Money pump *
Ramsey cardinal In mathematics, a Ramsey cardinal is a certain kind of large cardinal number introduced by and named after Frank P. Ramsey, whose theorem establishes that ω enjoys a certain property that Ramsey cardinals generalize to the uncountable case. ...
* Structural Ramsey theory *
Quantum Bayesianism In physics and the philosophy of physics, quantum Bayesianism is a collection of related approaches to the interpretation of quantum mechanics, of which the most prominent is QBism (pronounced "cubism"). QBism is an interpretation that takes an ...
* Theorem on friends and strangers *
Type theory In mathematics, logic, and computer science, a type theory is the formal system, formal presentation of a specific type system, and in general type theory is the academic study of type systems. Some type theories serve as alternatives to set theor ...
*
History of type theory The type theory was initially created to avoid paradoxes in a variety of formal logics and rewrite systems. Later, type theory referred to a class of formal systems, some of which can serve as alternatives to naive set theory Naive set theor ...
*
Frederick Rowbottom Frederick Rowbottom (16 January 1938 – 12 October 2009) was a British logician and mathematician. The large cardinal notion of Rowbottom cardinals is named after him. Biography After graduating from Cambridge University, Rowbottom studied unde ...
*
Bayesian epistemology Bayesian epistemology is a formal approach to various topics in epistemology that has its roots in Thomas Bayes' work in the field of probability theory. One advantage of its formal method in contrast to traditional epistemology is that its concep ...


Notes


References

* * * * * *Galavotti, M. C. (Ed.) (2006), '' Cambridge and Vienna: Frank P. Ramsey and the Vienna Circle'', Dordrecht, The Netherlands: Springer. * Grattan-Guinness, Ivor (2000), ''The Search for Mathematical Roots 1870–1940'', Princeton University Press, Princeton, NJ. * Keynes, John Maynard (1933),
F. P. Ramsey
, in ''Essays in Biography'', New York, NY. * * * * * * * *Ramsey, F.P. (1931), ''The Foundations of Mathematics, and other Essays'', (ed.) R. B. Braithwaite **Ramsey, F.P. (1978) ''Foundations – Essays in Philosophy, Logic, Mathematics and Economics'', (ed.)
D.H. Mellor David Hugh Mellor (; 10 July 1938 – 21 June 2020) was a British philosopher. He was a Professor of Philosophy and Pro-Vice-Chancellor, later Professor Emeritus, of Cambridge University. Biography Mellor was born in London on 10 July 1938, a ...
, Humanities Press, *Rescher, Nicholas and Ulrich Majer (eds.) (1991). ''F. P. Ramsey: On Truth '', Dordrecht, Kluwer *Sahlin, N.-E. (1990), ''The Philosophy of F. P. Ramsey'', Cambridge University Press, Cambridge *Sahlin, N.-E. (1996), “He is no good for my work”: On the philosophical relations between Ramsey and Wittgenstein, in ''Knowledge and Inquiry: Essays on Jaakko Hintikkas Epistemology and Philosophy of Science'', ed by M. Sintonen, Poznan Studies in the Philosophy of Sciences and the Humanities, Amsterdam, 61–84 *Sahlin, N.-E. (2005),
Ramsey’s Ontology
', a special issue of ''Metaphysica'', No. 3 *


Further reading

* *
Review
by
Simon Blackburn Simon Blackburn (born 12 July 1944) is an English academic philosopher known for his work in metaethics, where he defends quasi-realism, and in the philosophy of language; more recently, he has gained a large general audience from his effort ...
uthor-shared Eprint">Eprint.html" ;"title="uthor-shared Eprint">uthor-shared Eprint * (Reviews
1:
by Ray Monk
2:
by David Papineau [ Archived]) *


External links


Frank Ramsey
''
Stanford Encyclopedia of Philosophy The ''Stanford Encyclopedia of Philosophy'' (''SEP'') combines an online encyclopedia of philosophy with peer-reviewed publication of original papers in philosophy, freely accessible to Internet users. It is maintained by Stanford University. E ...
''.
Frank Plumpton Ramsey PapersBetter than the Stars/Frank Ramsey: a biography
a 1978 BBC radio portrait of Ramsey and a 1995 article derived from it, both by David Hugh Mellor.
Maths and philosophy puzzles
BBC Radio 3 programme discussing the legacy of Ramsey.
A photo of Ramsey's grave
at Findagrave {{DEFAULTSORT:Ramsey, Frank P. 1903 births 1930 deaths 20th-century atheists 20th-century British economists 20th-century English mathematicians 20th-century English philosophers 20th-century essayists Alumni of Trinity College, Cambridge Analysands of Theodor Reik Analytic philosophers Atheist philosophers Cambridge University Moral Sciences Club Combinatorialists English atheists English logicians English male non-fiction writers Epistemologists Fellows of King's College, Cambridge Ludwig Wittgenstein Metaphysicians Metaphysics writers Ontologists People educated at Winchester College Cambridge mathematicians Philosophers of economics Philosophers of logic Philosophers of mathematics Philosophers of science Philosophy academics Philosophy writers Probability theorists Senior Wranglers Vienna Circle Wittgensteinian philosophers Ramsey theory