Britannica Money

Leonid Vitalyevich Kantorovich

Russian mathematician and economist
Written and fact-checked by
The Editors of Encyclopaedia Britannica
Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.
born:
January 19 [January 6, Old Style], 1912, St. Petersburg, Russia
died:
April 7, 1986, U.S.S.R. (aged 74)
Awards And Honors:
Nobel Prize (1975)
Subjects Of Study:
linear programming
scarcity

Leonid Vitalyevich Kantorovich (born January 19 [January 6, Old Style], 1912, St. Petersburg, Russia—died April 7, 1986, U.S.S.R.) was a Soviet mathematician and economist who shared the 1975 Nobel Prize for Economics with Tjalling Koopmans for their work on the optimal allocation of scarce resources.

Kantorovich was educated at Leningrad State University and received his doctorate in mathematics (1930) at the age of 18. He became a professor at Leningrad in 1934, a position he held until 1960. He headed the department of mathematics and economics in the Siberian branch of the U.S.S.R. Academy of Sciences from 1961 to 1971 and then served as head of the research laboratory at Moscow’s Institute of National Economic Planning (1971–76). Kantorovich was elected to the prestigious Academy of Sciences of the Soviet Union (1964) and was awarded the Lenin Prize in 1965.

His first major contribution to economics came in 1938 as a consultant to the Soviet government’s Laboratory of the Plywood Trust. Kantorovich realized that the problem of maximizing the distribution of raw materials could be solved in mathematical terms. The linear technique he developed is now called “linear programming.”

green and blue stock market ticker stock ticker. Hompepage blog 2009, history and society, financial crisis wall street markets finance stock exchange

Kantorovich was a notable “reform” economist whose nondogmatic critical analyses of Soviet economic policy clashed with the views of his orthodox Marxist colleagues. In a 1939 book, The Mathematical Method of Production Planning and Organization, he showed that all problems of economic allocation can be reduced to maximizing a function subject to constraints. At the same time, economists John Hicks (in the United Kingdom) and Paul Samuelson (in the United States) were reaching the same conclusion. In his best-known book, The Best Use of Economic Resources (1959), Kantorovich demonstrated that even socialist economies must use prices, based on resource scarcity, to allocate resources efficiently.

This article was most recently revised and updated by Encyclopaedia Britannica.