The model was developed by John Hicks in 1937 and was later extended by Alvin Hansen as a mathematical representation of Keynesian macroeconomic theory. Between the 1940s and mid-1970s, it was the leading framework of macroeconomic analysis. Today, it is generally accepted as being imperfect and is largely absent from teaching at advanced economic levels and from macroeconomic research, but it is still an important pedagogical introductory tool in most undergraduate macroeconomics textbooks.
The model was developed by John Hicks in 1937 and was later extended by Alvin Hansen as a mathematical representation of Keynesian macroeconomic theory Between the 1940s and mid-1970s it was the leading framework of macroeconomic analysis Today it is generally accepted as being imperfect and is largely absent from teaching at advanced economic levels and from macroeconomic research but it is still an important pedagogical introductory tool in most undergraduate macroeconomics textbooks