Month: September 2020

Berkeley. Economics Ph.D. Alumna, Marjorie Ruth Clark, 1929.

Post author By Irwin Collier
Post date 2020-09-14

Today’s post is another in the series “Meet an Economics Ph.D. alumna”. Marjorie Ruth Clark’s professional career took her from Berkeley (undergraduate and graduate education) to Nebraska (Home Economics) to Washington, D.C. (Departments of Agriculture and Labor) with about a fifteen year marriage/family “break” in between.

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Dates

Born 18 December, 1899 in Eureka, Walla Walla, Washington.

Returned from France in June 1927.

University of California (Berkeley) Ph.D. 1929: Thesis “French syndicalism (1910-1927).

Source: University of California Graduate Division. Record of Theses Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy at the University of California, 1926 -1931. Supplement to Record for 1885-1926 (University of California, 1932),p. 23.

1936: Assistant director of the Labor Relations Division of the Resettlement Administration, Washington, D.C. “She has been associate research professor of economics at the University of Nebraska, and a member of the Research Staff of the American Federation of Labor.”

Married Max Allen Egloff 12 March 1941 in Washington, D.C.

1959: Bureau of Labor Statistics, Office of Assistant Commissioner, Publications and Program Planning. Office of Publications, Chief of the Special Publications Branch. Salary $9,890.

Source: United States Civil Service Commission. Official Register of the United States, 1959.

Died 16 March 1988 in Baltimore, Md. (Burial in Arlington National Cemetery)

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From newspaper reports in Nebraska

“Saturday, Dec. 22 saw the marriage of Miss Marjorie Ruth Clark to William John Hiller.” [Note: I have not found any other reference to this, perhaps annulled?]

Source: Nebraska State Journal (Lincoln Nebraska) 27 Jan 1929, p. 21.

Dr. Marjorie Ruth Clark of the agricultural college. Report of her survey of 180 households raising chickens. 197 women started, less than a score have dropped out. “Dr. Clark pays each of the recorders $1 a month”.

Source: The Lincoln Star (Lincoln, Nebraska) 7 November 1929, p. 22.

Miss Marjorie Ruth Clark associate professor in home economics research at Nebraska university, spent August 1930 studying organized labor and observing labor conditions in Mexico. Most work done in Mexico City in the government libraries.

Source: The Lincoln Star (Lincoln, Nebraska) 28 Sep 1930, p. 4.

Marjorie Ruth Clark Ph.D., associate professor of economics at the University of Nebraska, was awarded one of the research fellowships for 1931 by the Social Science Research Council.

Source: The Lincoln Star (Lincoln, Nebraska) 8 March 1931, p. 5.

Marjorie Ruth Clark, assistant [sic] professor of home economics at the university of Nebraska. Received on of thirty research fellowships by the Social Science Research council. Her fellowship extended for four months. “received her degree as doctor of philosophy in California and came to the University of Nebraska in 1928. Her home is at 1144 So. 11^th.”

Source: The Nebraska State Journal (Lincoln, Nebraska) 10 Apr. 1932, p. 12.

Granted four months leave of absence by the University of Nebraska (home economics department). Left Sunday for Washington “where she will work with the labor advisory board for the NRA and with the A.F. of L. in assisting in the representation of labor interests at code hearings and the preparation of labor briefs in connection with the various codes.”

Source: The Lincoln Star (Lincoln, Nebraska).. 4 October 1933, p. 7.

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Washington Post Obituary

MARJORIE RUTH CLARK EGLOFF
Labor Economist

Marjorie Ruth Clark Egloff, 88, a labor economist who had worked for the Department of Labor and the Department of Agriculture in Washington, died of congestive heart failure March 16 at St. Joseph Hospital in Baltimore.

Dr. Egloff was born in Walla Walla, Wash. She graduated from the University of California at Berkeley. She studied at the Sorbonne in Paris, then returned to Berkeley where she received a doctorate in labor economics.

She was on the faculty at the University of Nebraska before moving to Washington in the 1930s and joining the Department of Agriculture as a specialist on French and Mexican labor movements.

In 1940 [sic] she married Max Allen Egloff. They lived in the Caribbean during the 1940s and early 1950s, then returned to the Washington area. After the death of her husband in 1956 Dr. Egloff went to work for the Labor Department. She retired in 1965.

She wrote several books on labor movements in Mexico, France and elsewhere, and in retirement she edited yearly presidential manpower reports.

Dr. Egloff was a member of the National Press Club, the Woman’s National Democratic Club and the Westmoreland Congregational Church.

She lived in Washington before moving to Towson, Md., in 1985.

Survivors include two children, Dr. Allen C. Egloff of Arnold, Md., and Susan Egloff Efnor of Redlands, Calif., and two grandchildren.

Source: The Washington Post, March 19, 1988.

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Publications

Clark, Marjorie Ruth. The British Labour Government in Contemporary Opinion. University of California, Berkeley. M.A. thesis, 1925.

______________. Syndicalism in France, 1910-1927. University of California Publications in Economics (Vol. 8, no. 1), Berkeley, 1928. Ph.D. thesis, 484 pages.

______________ and Greta Gray. Water Carried for Household Purposes on Nebraska Farms. Bulletin, University of Nebraska, Agricultural Experiment Station, 234. Lincoln: University of Nebraska College of Agriculture, 1929.

______________. A History of the French Labor Movement (1910-1928). University of California Press, 1930.

______________. French Syndicalism of the Present. Journal of Political Economy, Vol. 38 (June 1930), pp. 317-27.

Grace Margaret Morton and Marjorie Ruth Clark, “Income and Expenditures of Women Faculty Members in the University of Nebraska,” Journal of Home Economics, 1930.

______________ and Greta Gray. The Routine and Seasonal Work of Nebraska Farm Women. Bulletin, University of Nebraska, Agricultural Experiment Station, 238. Lincoln: University of Nebraska College of Agriculture, 1930.

______________. The Contribution of Nebraska Farm Women to Farm Income through Poultry and Dairy Products. Bulletin, University of Nebraska, Agricultural Experiment Station, 258. Lincoln: University of Nebraska College of Agriculture, 1931.

______________. Organized Labor and the Family-Allowance System in France, Journal of Political Economy, Vol. 39 (August 1931), pp. 526-37.

______________. History of the French Labor Movement (1910-1928). Diritto del labor, Vol. 5 No. 1, pp. 577ff.

______________. Organized Labor in Mexico. Chapel Hill: University of North Carolina Press, 1934.

______________. Recent History of Labor Organization. American Academy of Political and Social Science, Annals, Vol. 184 (March 1936), pp. 161ff.

______________. Recent History of Labor Organization. The Annals of the American Academy of Political and Social Science 184 (1936): 161-68.

______________, and S. Fanny Simon. The Labor Movement in America New York: W.W. Norton & Co., 1938.

______________. A Look at American Labor in 1959. Monthly Labor Review, Vol. 83, No. 1 (January 1960), pp. 10-17.

______________, ed. From the Best of the Monthly Labor Review. Monthly Labor Review, Vol. 88, No. 7, pp. 787-802.

Image Source: Marjorie Clark, junior year picture. University of California yearbook, The 1918 Blue and Gold, p. 358. (Record of 1916-17 published by the Junior Class in 1917)

Exam Questions Harvard Suggested Reading Syllabus

Harvard. Undergraduate Public Finance, reading list and semester exams. Burbank and Musgrave, 1938-1939

Post author By Irwin Collier
Post date 2020-09-07

Richard Abel-Musgrave received his Ph.D. in economics from Harvard in 1937. The following year he co-taught the undergraduate public finance course with Harold Burbank. The course reading list for the first term was incomplete in the Harvard University archives, but since the material corresponded very closely to that found in the 1937-38 folder, I have inserted the material as noted below.

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Course Enrollment

[Economics] 51. Professor Burbank and Dr. Abel-Musgrave.—Public Finance.

Total 58: 36 Seniors, 16 Juniors, 4 Sophomores, 2 Others.

Source: Harvard University. Report of the President of Harvard College 1938-39, p. 98.

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Assignments for Economics 51
First Half-Year 38/39

Attention is directed particularly to the following books:

*Lutz, H.L.	Public Finance (3d ed.)
Bastable, C.F.	Public Finance (3d ed.)
Bullock, C.J.	Selected Readings in Public Finance (3d. ed.)
Dalton, H.	Principles of Public Finance (9^th ed.)
Dewey, D.R.	Financial History of the United States (11^th ed.)
Fagan [E.D.] and Macy [C.W.]	Public Finance
Hibbard, B.H.	A History of the Public Land Policies
Lutz, H.L.	The State Tax Commission
Mills [M.C.] and Star [G.W.]	Readings in Public Finance and Taxation
Seligman, E.R.A.	Essays in Taxation (10^th ed.)
Seligman, E.R.A.	The Income Tax
Seligman, E.R.A.	Studies in Public Finance
Stamp, Sir Josiah	Fundamental Principles of Taxation (2^nd ed.)

Great Britain	Report of the Committee on National Debt and Taxation (The Colwyn Report, 1927)
Great Britain	Report of the Committee on National Expenditure (The May Report, 1931)
National Tax Association	Proceedings
National Tax Association	Bulletin
Annual Report of the Secretary of the Treasury

Sept. 28 – Oct. 7; Pre-depression expenditures.

REQUIRED:
Introduction	Lutz, Ch. 1,2,3.
The increase of expenditure	Lutz, Ch. 4,5.
War Finance	Mills & Starr, Ch. 22, Sels. 52, 53.
War Finance	Lutz, pp. 764-774

SUGGESTED:

Bastable, Public Finance, Bk. I, ch. 1-8.

Bullock, Readings, Ch. 2, 3.

Fagan & Macy, Public Finance, Ch. 1-4.

Haig, Public Finances of Post War France, Ch. 20.

Mallet, British Budgets, 1887-1913, 1913-1921, 1921-1933.

National Industrial Conference Board, Federal Finances, 1923-32.

National Industrial Conference Board, Cost of Government in the United States, 1925-26, 1926-27, 1929-30.

Report on Recent Social Trends, Vol. II, Ch. 25-26.

Smith, Deficits and Depressions, Ch. III.

Willoughby, W.F., Financial Condition and Operations of the National Government, 1921-30.

October 10 – 28; Depression expenditures and Finance.

REQUIRED:
Public Works	Clark, The Economics of Public Works, Ch. 4-8, 11, 16. Fagan & Macy, Ch. 3, Section 2.
The Debt	Lutz, Chs. 29,31,33. Bullock, Ch. 22,23.
Social Security Finance	Anonymous (Wilcox), The Old Age Reserve Account, Q.J.E., May 37. 1937 Proceedings, National Tax Association, pp. 57-81.
Social Security Finance

SUGGESTED:

Current Economic Policies, Slichter on Public Works.

Dalton, Unbalanced Budgets: A study of the financial crisis in fifteen countries.

Gayer, Public Works in Prosperity and Depression.

Great Britain, Report of the Committee on National Expenditures, 31.

Hansen, A., Full Recovery or Stagnation, Part IV.

Hubbard, J., The Banks, the Budget, and Business.

Mallet, British Budgets, 21-33.

National Resources Committee, Public Works Planning.

Smith, Deficits and Depressions, Ch. 4-7.

Bastable, Public Finance, Bk. V.

Burgess, W.R., Reserve Banks and the Money Market, Ch. 6.

Fagan & Macy, Public Finance, Ch. 22-27.

Beckhart, B., New York Money Market, Vol. IV, Part II.

Hargreaves, The National Debt.

Hendricks, The Federal Debt, 1919-30.

Love, R.A., Federal Financing, esp. Ch. 8-14.

Pigou, Public Finance, Part III.

Matsushita, Economic Effects of Public Debts.

Seligman, Essays in Taxation, Ch. 23-24.

Studensky, P., Public Borrowing.

Burns, E.M., Social Security.

Douglas, Social Security in the United States.

Pribram, Reserves in Old Age Benefit Plans, Q.J.E., August 38.

Social Security Board, Social Security in America.

October 31 – Nov. 4; Proper limits to public spending.

REQUIRED:
Classical views	Bullock, ch. 2.
Effects of Public Spending	Dalton, ch. 2,3,18-20. Lutz, ch. 8.

SUGGESTED:

De Marco, First Principles of Public Finance, ch.1.

Pigou, Public Finance, Part I.

Pigou, Economics of Welfare, Part IV, ch. 7-12.

Sidgwick, H., The Principles of Political Economy, 301, col., Book III.

[Pages missing, following three topics taken from the 1937-38 syllabus]

The Possibilities of Expenditure Control.

Required:	Lutz, Ch. 6 Mills & Starr, Ch. 4, Section 8 Hillhouse & Welsh, Tax Limits Appraised. Lutz, Ch. 35, 36. Reorganization of the Executive Departments.
Suggested:	Buck, A.E., The Budget in Governments of Today. Buck, A.E., Public Budgeting. Mallet, British Budgets, 1887-1913. Mallet & George, British Budgets, 1913-1921, 1921-1932.

Revenues other than Taxes

Required:

Lutz, Ch. 9, 19
Lutz, Ch. 11,12,13.
Mills & Starr, Ch. 7.
Mason, Power Aspects of the T.V.A., Q.J.E., Vol. 50, pp. 377-414.
Railroads and Government Annals, pp. 106-125, 133-141, 146-150.

Suggested:

Bastable, Public Finance, Bk. II, Ch. 1-5.
Fagan & Macy, Public Finance, Ch. 5-7.
Knoop, D., Principles and Methods of Public Trading.
Public Administration Service, A Housing Program for the United States.
Current Developments in Housing, Annals, March 1937, pp. 83-95, 151-161.
Report of the United States Post Office.
Robson, W.A., Public Enterprise.
Seligman, Essays in Taxation, Ch. 14-15.
Splawn, Government Ownership and Operation of Railroads.
Tennessee Valley Authority, 1933-1937.

The Public Domain and Public Borrowing.

Required:

Lutz, Ch. 10
Lutz, Part 4.
Bullock, Ch. 22, 23.

Suggested:

Hibbard, Public Land Policies of the United States.
National Resources Board, Report of, Part II.
Nowell & Jessness, Land Use in Northern Minnesota.
Bastable, Public Finance, Bk. V.
Brown, H.G., Economics of Taxation, Ch. 1-2.
Burgess, W.R., Reserve Banks and the Money Market, Ch. 6.
Fagan & Macy, Public Finance, Ch. 22-27.
Hargreaves, The National Debt.
Hendricks, The Federal Debt, 1919-30.
Love, R.A., Federal Financing, esp. Ch. 8-14.
Pigou, Public Finance, Part III.
Seligman, Essays in Taxation, Ch. 23-24.
Studensky, P., Public Borrowing.
Beckhart, B., New York Money Market, Vol. IV, Part II.

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Economics 51
Assignments for the Second Half-Year
1938-39

(For general references see outline for first term.)

February 6 – 17. The Nature of Taxation and Criteria for a Sound Tax System.

Required:	Introduction	Lutz, Ch. 15, 16, 17.
	Justice in Taxation	Bullock, Ch. 8, 9. Carver, Essays in Social Justice, Ch. 17.
Suggested:	Bastable, Public Finance, Bk. III, Ch. 3,5. Dalton, Public Finance, Ch. 4-9 (9^th ed.) Seligman, Progressive Taxation in Theory and Practice. Stamp, Fundamental Principles of Taxation. (3d.ed).

February 20 – 27. Incidence and Effects of Taxation.

Required:	Shifting of taxes	Fagan and Macy, Ch. 9, sec. 2. Lutz, pp. 378-386.
	Shifting and effects	Colwyn Report (Majority), Part I, Sec. 4. Dalton, Public Finance, Ch. 10, 11, 12.
Suggested:	Brown, H.G. Economics of Taxation. Silverman, Taxation, Its Incidence and Effects. Taussig, Some Aspects of the Tariff Question, (3^rd ed.), Ch. 1. Buehler, “Public Expenditures and Taxes”, in American Economic Review, Dec. 1938.

March 1 – 6. Property Taxation and its Reform

Required:	Lutz, Ch. 22, 23 Fagan and Macy, Ch. 12, 14. Silverhertz, Assessment of Real Property in the U.S.
Suggested:	Blakey, Taxation in Minnesota, Ch. 5, 6. Bullock, Readings, Selections 45, 46. Fagan & Macy, Public Finance, Ch. 10, 11, 13. Henry George, Progress and Poverty. Fairchild, Forest Taxation in the U.S. Jensen, Property Taxation in the United States.

March 8 – 24. Income Taxation: Personal and Business

Required:	Federal Income Tax	Personal: Lutz, Ch. 20,21. Corporate: Lutz, pp. 602-615. Capital Gains: Fagan & Macy, Ch. 16, Pt. I.
	State and Local	Lutz, pp. 615-621. Model Plan of State and Local Taxation. Mills and Starr, Sel.42.
Suggested:	Blakey, The State Income Tax. Fagan & Macy, Ch. 15,16,17. National Industrial Conference Board, State Income Taxes. Seligman, The Income Tax.

March 27 – 31. Other Business Taxation

Required:	Capital Stock and Excess Profits-Tax	Lutz, pp. 587-602, 621-623.
	Undistributed Profits Tax	How Shall Business Be Taxed, Ch. 8,9,10.
	Taxation of Banks	Lutz, pp. 623-31.
	Taxation of Public Utilities	Mills & Starr, Sel. 43.
	Summary	How Shall Business Be Taxed, Ch. 4.
Suggested:	Buehler, Undistributed Profits Tax. Fagan & Macy, Public Finance, Ch. 19. Haig, The Taxation of Excess Profits in Great Britain. National Industrial Conference Board, State and Local Taxation of Business Corporations.

April 3 – 10. Vacation.

April 10 – 14. Death Duties

Required:	Lutz, Ch. 27 Fagan and Macy, Ch. 18. Rigano, Social Significance of the Inheritance Tax
Suggested:	Schultz, The Inheritance Tax.

April 17 – 19. Commodity Taxation.

Required:	Lutz, Ch. 24,26 Fagan and Macy, Ch. 20, Sect. 1,2.
Suggested:	Buehler, General Sales Taxation. Jacoby, N.H., Retail Sales Taxation. National Industrial Conference Board, General Sales or Turnover Taxation. Ibid., Sales Taxes, General, Selective, or Retail.

April 21 – May 6. Current Problems.

Required:	Coordination of Tax System	Lutz, Ch. 7. Haig, “Co-ordination of Federal and State Tax Systems”, Proceedings of National Tax Association, 1932. Bitterman, Grants In Aid, Ch. 20[?].
	Taxation and the Cycle	Hicks, Finance of British Government, Ch. 18.
	Budget, Debt and Tax Sources	President’s Budget Message, Jan. 5, 193[?].

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 2. Folders “Economics, 1938-39” and “Econommics, 1937-38”.

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1938-39
HARVARD UNIVERSITY
ECONOMICS 51
[Mid-Year Examination]

Choose ONE question for an hour essay, and FOUR questions for half-hour answers. Wherever (a) and (b) are indicated take ONE PART ONLY; both cannot be taken.

(a) What do you consider the most important factors underlying the post war expansion in Federal spending in the United States?
(b) “The increase in spending the world over shows that the rise in the spending of the United States government is not to be explained in terms of party politics or New Deal theories. The underlying causes are more basic and general.” Discuss.
(a) “Deficit spending in the depression is inevitable to finance necessary relief expenditures. But it is also desirable since it results in a rise in employment which in turn reduces the need for relief. There is no reason to expect a continuous deficit policy.” Discuss.
(b) “The fear of a growing public debt is an unfortunate superstition. A ‘bigger and better’ public debt is, in fact, the only salvation for capitalism.” Discuss.
Do you think that extravagance in public spending may be reduced by (1) centralization of fiscal control, and/or (2) governmental reorganization of existing spending units? Which measure do you favor?
(a) “A determination of the relative efficiency of public and private enterprise meets with insurmountable obstacles. The ‘yard-stick’ criterion is a dangerous illusion.” Discuss.
(b) “Government enterprises are perfect monopolies. The experience with private monopoly should make us realize what to expect from public ownership.” Discuss.
Would you amend the Old Age Annuity Provision of the Social Security Act of 1935? If so, why and how?
(a) Do you consider the German and English experience with the coordination of State and Local finances applicable to the United States? What lessons in particular may be learned?
(b) Do you consider the allocation of ‘Block Grants’ under the British Local Government Act of 1929 a satisfactory solution of the grant problem? Could it be applied to Federal grants in the United States? With what possible amendments?
“If it is realized that political democracy depends upon parliamentary control over public finances, it must similarly be realized that the Budget System is the key factor in the execution of such control. The United States Budget System is fully satisfactory from this point of view.” Do you agree?

Source: Harvard University Archives. Harvard University Mid-Year Examinations, 1852-1943. Box 13. Bound Volume: Mid-Year Examinations, 1939. Papers Printed for Mid-Year Examinations [in] History, History of Religions, …, Economics, …, Military Science, Naval Science. January-February, 1939.

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1938-39
HARVARD UNIVERSITY
ECONOMICS 51
[Year-end Examination]

I

Write an hour essay on one question, and half-hour answers on three questions. Indicate essay question.

“‘Justice in taxation’ is indeed a dangerous concept. It lacks precision, is readily abused and beclouds the real issue of the tax problem.” Discuss with detailed and accurate illustrations.
“From the interdependence of prices it follows that the burden of a tax, no matter where the point of impact may be, will spread throughout the economic system and finally will come to rest upon the consumers at large.” Discuss.
Take either (a) or (b). Both cannot be taken.
1. “The taxation of business has been the most criticized part of the federal tax system; and for this there is good reason.” Discuss.
2. To what extent would you attribute the failure or success of the New Deal to its tax policy? Present your point of view with reference to specific
“The rivalry between Federal State and Local governments for tax sources is unfortunate. To obtain a well balanced tax system, a sharp division of revenue sources between the different levels of government is necessary.” Discuss.
Give a critical account of the ‘Model Plan of State and Local Taxation.’

II

Write for one half-hour on one of the following:

“The experience of the world war has shown that tax-finance of wars is neither possible nor desirable.” Discuss.
Discuss the main factors to be considered in determining the ‘taxable capacity’ of a country. Illustrate with reference to the United States.
Discuss some of the major characteristics of post-war British tax policy. In what respects does it set an example for future American policy?

Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001. Box 4, Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Military Science, Naval Science. June, 1939.

Images Sources: Richard A. Musgrave (right). University of Michigan Faculty History Project.

Tags Burbank, Musgrave

Exam Questions Harvard

Harvard. Year-end exam on Henry George and H. C. Carey. Dunbar, 1884

Post author By Irwin Collier
Post date 2020-09-06

The 1883-84 academic year at Harvard marked a notable expansion in economics course offerings. From this point on I’ll almost only post materials for a single course at a time, though sometimes I’ll transcribe a few years’ worth of course materials. For the second course in political economy taught at Harvard in 1883-84 it appears that the first semester was devoted to the history of economic theory with the primary text being Cairnes’ Some Leading Principles of Political Economy Newly Expounded (1878). Unfortunately I haven’t yet found the mid-year final examination. However I have found a copy of the end-of-year final exam that covered Henry George’s Progress and Poverty (1881) and most likely the abridged version of H.C. Carey’s Principles of Social Science by Kate McKean (1865).

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Course Enrollment:

Political Economy 2. Prof. Dunbar. History of Economic Theory and an Examination of Recent Doctrines. — Cairnes’s Leading Principles. — George’s Progress and Poverty. — Carey’s Social Science. 3 hours per week in 1^st half-year, 2 in 2d

Total 23: 2 Graduates, 18 Seniors, 2 Juniors, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1883-1884, p. 71

POLITICAL ECONOMY 2.
[Year-end Examination. June 1884]

[Of 1, 2, and 3 one may be omitted.]

“But the fundamental truth, that in all economic reasoning must be firmly grasped and never let go, is that society in its most highly developed form is but an elaboration of society in its modest beginnings, and that principles obvious in the simpler relations of men are merely disguised and not abrogated or reversed by the more intricate relations that result from the division of labor and the use of complex tools and methods.” [Henry George, Progress and Poverty, 5^th edition, 1883, p. 23]
What limits, if any, should you set to the validity of arguments thus drawn from the case of primaeval society?
How far does the proposition that “the power of any population to produce the necessaries of life is not to be measured by the necessaries of life actually produced, but by the expenditure of power in all modes,” or that “the power of producing wealth in any form is the power of producing subsistence,” serve as an answer to the Malthusian theory? [Henry George, Progress and Poverty, 5^th edition, 1883, p. 127]
Compare (1) George’s views as to the increase of general productive power when population is advancing, with (2) Carey’s theory that in the progress of society it becomes possible to devote a larger proportion of a constantly increasing force to the development of natural resources, and with (3) the ordinary reasoning as to increasing difficulty of subsistence.
“If it be true that wages depend upon the ratio between the amount of labor seeking employment and capital devoted to its employment, then high wages must be accompanied by low interest, and reversely. This is not the fact, but the contrary” [as g. in new countries]. [Henry George, Progress and Poverty, 5^th edition, 1883, p. 17]
“Both Smith and Ricardo use the term ‘natural wages’ to express the minimum upon which laborers can live; whereas, unless injustice is natural, all that the laborer produces should rather be held as his natural wages.” [Henry George, Progress and Poverty, 5^th edition, 1883, p. 146]
Point out the ambiguity.
“Without any increase in population, the progress of invention constantly tends to give a larger and larger proportion of the produce to the owners of land, and a smaller and smaller one to labor and capital. And, as we can assign no limits to the progress of invention, neither can we assign any limit to the increase of rent, short of the whole produce.” [Henry George, Progress and Poverty, 5^th edition, 1883, p. 227]
Consider the reasoning by which these propositions are sustained.
What answer is there to Mr. George’s theory that rent, resting upon a monopoly, is able to, and does, intercept any gains which might otherwise accrue to labor?
Suppose all rents to be confiscated by means of taxation, what would be the effect upon the condition of the laboring class?
Carey says:—
“It may be asked, why should a very rare copy of an ancient work sell for many times its original price? Value is limited to the cost of reproduction; and when an object cannot be reproduced, its value has no limit but the fancy of those who desire to possess it.” [Kate McKean’s Manual of Social Science, being a Condensation of Principles of Social Science by H.C. Carey (1879), p. 88]
Can the class of cases, thus admitted to exist, of objects which “cannot be reproduced,” be made to include land?
Increasing ease of reproduction of money and of improved land is given as the reason for a decline of both interest and rent as society advances. Why then should not land fall in value as well as money?
Upon Mr. Carey’s reasoning, excluding the law of diminishing returns, how is the rise in value of agricultural produce as society advances to be reconciled with the cheapening effects of agricultural improvement?
What logical necessity has compelled Mr. Carey to assume the existence of a law of diminishing fecundity in the human race? [Kate McKean’s Manual of Social Science, being a Condensation of Principles of Social Science by H.C. Carey (1879), p. 436] Compare this with the reasoning which leads to the Malthusian conclusion as to the ultimate necessity for checks upon increase, either positive or preventive.

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 2, Bound volume, Examination Papers 1883-86: Papers set for Final Examinations in Rhetoric, Philosophy, Political Economy,… in Harvard College (June, 1884), pp. 8-9.

Tags Dunbar

Johns Hopkins Suggested Reading Syllabus

Johns Hopkins. International Economics Reading List. Balassa, 1968

Post author By Irwin Collier
Post date 2020-09-05

The content of the course titled “International Economics” taught by Bela Balassa at Johns Hopkins University in 1968 was actually limited to pure trade theory, commercial policy and economic integration. The reading list for Balassa’s other course at Johns Hopkins University, “Trade and Economic Development“, was posted earlier.

___________________

Department of Economics
International Economics 641
Fall, 1968
Dr. Balassa

Bibliography and Reading List

Abbreviations of Books

Books are referred to by authors unless otherwise noted.

RIT, Readings in International Economics

RTIT, Readings in the Theory of International Trade

Balassa, B., The Theory of Economic Integration

Baldwin et al, Trade, Growth and the Balance of Payments

Caves, R., Trade and Economic Structure

Haberler, G., The Theory of International Trade

Johnson, H.G., International Trade and Economic Growth

Linder, S.B., An Essay on Trade and Transformation

Marshall, Money, Credit, and Commerce

Meade, J. E., Trade and Commerce

_________, A Geometry of International Trade

Mill, J. S., Principles of Political Economy

Ohlin, B., Interregional and International Trade

Ricardo, D., The Principles of Political Economy

Scitovsky, T., Economic Theory and Western European Integration

Travis, W.P., The Theory of Trade and Protections

Vanke, J., International Trade: Theory and Economic Policy

Viner, J., I, Studies in the Theory of International Trade

_________ II, The Customs Union Issue

Abbreviations of Periodicals

AER, American Economic Review

BOUIS, Bulletin of Oxford University Institute of Statistics

Econ., Economica

EI, Economia Internazionale

EJ, Economic Journal

ER, Economic Record

IEP, International. Economic Papers

JPE, Journal of Political Economy

Ky, Kyklos

OEP, Oxford Economic Papers

QJE, Quarterly Journal of Economics

RES, Review of Economics and Statistics

RESt, Review of Economic Studies

WA, Weltwirtschaftliches Archiv

NOTE: The non-starred items are assigned, the starred ones recommended .

General Surveys

Haberler, G., A Survey of International Trade Theory, Special Papers in International Economics, No. 1, Princeton University, Princeton, New Jersey

Corden, W.M., Recent Developments in the Theory of International Trade, ibid., No. 7

Bhagwati, J., “The Pure Theory of International Trade,” Economic Journal, March, 1964

Chipman, J.S., “A Survey of the Theory of International Trade,” Econometrica, July, October,1965, January, 1966

Caves, R.E., Trade and Economic Structure

Kemp, M.C., The Pure Theory of International Trade

I. The Classical Theory of International Trade

Ricardo, ch. 7

Mill, Book III, ch. 17, 18, 25

Marshall, Appendix J.

Haberler, ch. IX-XII

Viner, I, ch. VIII

*Mynt, H., “The Classical Theory of International Trade and the Underdeveloped Countries,” EJ, June, 1958.

*Vanek, J., “An Afterthought on the ‘Real Cost-Opportunity Cost’ Dispute and some Aspects of General Equilibrium Under Conditions of Variable Factor Supplies,” RESt, June, 1959.

*Walsh, V.C., “Leisure and International Trade,” Econ., August, 1959

II. Criticisms and Extensions of the Classical Theory

Williams, J.H., “The Theory of International Trade Reconsidered,” RTIT, ch. 12

Graham, F.D., “The Theory of International Values Re-Examined,” RTIT, ch. 14

Whitin, T.M., “Classical Theory, Graham’s Theory, and Linear Programming in International Trade,” QJE, November, 1953.

Ohlin, ch. I-VI, Appendix III.

Robinson, R., “Factor Proportions and Comparative Advantage,” RIT, ch. 1

Kenen, P.B., “Nature, Capital, and Trade,” JPE, October, 1965

*Metzler, L., “Professor Graham’s Theory of International Values,” AER, June, 1950

*Posner, M.V., “International Trade and Technical Change,” OEP, October, 1961

*Becker, G.S., “A Note on Multi-Country Trade,” AER, September, 1952.

*Kravis, I.B., “Availability and Other Influences on the Commodity Composition of Trade,” JPE, April, 1956

*Michaely, M., “Factor Proportions in International Trade: Current State of the Theory, ” Ky, 1964 (4)

III. Comparative Costs and International Trade: Further Developments

Leontief, W., “The Use of Indifference Curves in the Analysis of Foreign Trade,” RTIT, ch. 10

Samuelson, P., “Social Indifference Curves,” QJE, February, 1956

Haberler, G., “Some Problems in the Pure Theory of International Trade,” RIT, ch.13

Isard, W., and M.J. Peck, “Location Theory and International and Interregional Trade,” QJE, February, 1954

Linder, ch. 3

Balassa, B., “Tariff Reductions and Trade in Manufactures Among Industrial Countries,” AER, June, 1966

*Lösch, A., “A New Theory of International Trade,” IEP, Vol. 6

*Posner, M.V., “International Trade and Technical Change,” OEP, October, 1961

*Grubel, H.G., “Intra-Industry Specialization and the Pattern of Trade,” CJEPS, August, 1967

*Matthews, R.C.O., “Reciprocal Demand and Increasing Returns,” RESt (1949- 50)

*Vanek, ch. XII-XIV

*Ohlin, ch. X-XII

*Meade, II, ch. I-III

IV. Comparative Cost Theory: Empirical Verification

Leontief, W., “Domestic Production and Foreign Trade,” RIT, ch. 30 and RES, November, 1956

Vanek, J., “The Natural Resource Content of Foreign Trade, 1870-1955, and the Relative Abundance of Natural Resources in the United States,” RES, May, 1959

Keesing, D.B., “Labor Skills and International Trade,” RES, August, 1965

Gruber, W., Mehta, D., and Vernon, R., “The R & D Factor in International Trade and International Investment of United States Industries,” JPE, February, 1967

MacDougall, G., “British and American Exports: A Study Suggested by the Theory of Comparative Costs,” EJ, December, 1951

Balassa, B., “An Empirical Demonstration of Comparative Cost Theory,” RES, August, 1963

*Comments on the Leontief-Paradox:

Ellsworth, RES, August, 1954
Swerling, RES, August, 1954
Valavanis-Vail, JPE, December, 1954
Buchanan, EI, November, 1955
Valavanis, Robinson, Elliott, Vaccale, Leontief, RES, February, 1958
Kreinin, AER, March, 1965

*Minhas, B.S., An International Comparison of Factor Costs and Factor Use.

*Moroney, J.R., and Walker, J.M., “A Regional Test of the Heckscher-Ohlin Hypothesis,” JPE, December, 1966

V. Factor-Price Equalization and Income Distribution

Heckscher, E., “The Effect of Foreign Trade on the Distribution of Income,” RTIT, ch. 13

Samuelson, P., “International Factor Price Equalization Once Again,” RIT, ch. 3

Johnson, H.G., “Factor Endowments, International Trade and Factor Prices,” in Johnson, ch. 1 and RIT, ch. 5

Balassa, B., “The Factor-Price Equalization Controversy,” WA, Vol. 87, No. 1 (1961)

Rybczynski, T.M., “Factor Endowments and Relative Commodity Prices,” RIT, ch. 4

Stolper, W., and Samuelson, P., “Protection and Real Wages” RTIT, ch. 15

*Lancaster, K., “Protection and Real Wages: A Restatement,” EJ, June, 1967

*Bhagwati, J., “Protection, Real Wages and Real Income,” EJ, December, 1959

*Pierce, I., McKenzie, L.W., and Samuelson, P., “More About Factor Price Equalization,” IER, October, 1967

*Samuelson. P., “Equalization by Trade of the Interest Rate Along With the Real Wage,” in Baldwin, pp. 35-52

*Jones, R.W., “The Structure of Simple General Equilibrium Models,” JPE, December, 1965

*Minabe, N., “The Stolper-Samuelson Theorem, the Rybczynski Effect, and the Heckscher-Ohlin Theory of Trade Pattern and Factor Price Equalization,” CJEPS, August, 1967

Travis, ch. II, III

VI. Gains from Trade

Viner, J, ch. IX (up to p. 565)

Samuelson, P., “The Gains from International Trade,” RTIT, ch. 2

Samuelson, P., “The Gains from International Trade Once Again,” EJ, December, 1962

Meade, I , ch. IX

Baldwin, R.E., “The New Welfare Economics and Gains in International Trade,” RIT, ch. 12

*Giersch, H., “The Trade Optimum,” IEP, Vol. 7

*Kenen, D.B., “On the Geometry of Welfare Economics,” QJE, August, 1957

*Kemp, M.C., “The Gains from International Trade,” December, 1962

*Vanek, ch. XV

VII. The Theory of Tariffs

Scitovsky, T., “A Reconsideration of the Theory of Tariffs,” RTIT, ch. 16

Metzler, L.A., “Tariffs, International Demand, and Domestic Prices” RIT, ch. 2

Johnson, “Optimum Tariffs and Retaliation,” in Johnson, ch. II

_________, “The Cost of Protection and the Scientific Tariff,” JPE, August, 1960

Balassa, B., “Tariff Protection in Industrial Countries : An Evaluation,” RIT, ch. 3

Corden, W.M., “The Structure of the Tariff System and the Effective Protective Rate,” JPE, June, 1966

*Meade II, ch. VI

*Vanek, ch. XVI

*Lerner, A.P., “The Symmetry Between Import and Export Taxes,” RIT, ch. 11

*Fleming, J.M., “The Optimal Tariff from an International Point of View,” RES, February, 1956

*Baldwin, R.E., “The Effect of Tariffs on International and Domestic Prices,” QJE, February, 1960

*Johnson, H.G., “A Model of Protection and the Exchange Rate,” RESt, Vol XXXIII No. 2

*Bhagwati, J., “On the Equivalence of Tariffs and Quotas,” in Baldwin, pp. 53-67

VIII. Trade and Factor Movements

Mundell, R.A., “International Trade and Factor Mobility,” RIT, ch. 7

McDougall, G.D.A., “The Benefits· and Costs of Private Investment from Abroad: A Theoretical Approach,” RIT, ch. 10

Corden, W.M., “Protection and Foreign Investment,” ER, May, 1967

Vernon, R., “International Investment and International Trade in the Product Cycle,” QJE, May 1966

Johnson, H.G., Comparative Cost and Commercial Policy Theory in a Developing World Economy (Stockholm, Alqvist and Wiksell, 1968)

Jones, R. W., “International Capital Movement and the Theory of Tariffs and Trade,” QJE, February, 1967

*Olivera, J.H.G., “Is Free Trade a Perfect Substitute for Factor Mobility?”, EJ, March, 1967

*Corden, W.M., “The Economic Limits of Population Increase,” ER, November, 1955

*Jasay, A.E., “The Social Choice between Home and Overseas Investment,” EJ, March, 1960

*Frankel, M., “Home vs. Foreign Investment,” BOUIS, August, 1960.

*Penrose, E., “Foreign Investment and the Growth of the Firm,” EJ, June, 1956

*Kemp, M.C., “Foreign Investment and National Advantage,” ER, March, 1962

IX. Economic Integration

Viner, II, ch. I-IV, VII

Balassa, B., ch. 1-12

Scitovsky, ch. I, III

Lipsey, R.G., “The Theory of Customs Unions: A General Survey,” EJ, September·, 1960

Spraos, “The Conditions for a Trade Creating Customs Union,” EJ, March, 1964;

Mishan, “Comment,” March, 1965; Spraos, “Rejoinder,” September, 1965

Johnson, H.G., “An Economic Theory of Protectionism, Tariff Bargaining, and the Formation of Customs Unions,” JPE, June, 1965

Balassa, B., “Trade Creation and Trade Diversion in the European Common Market,” EJ, March, 1967

*Lipsey, R.G. and Lancaster, K., “The General Theory of the Second Best,” RESt, 1956-57 (1)

*Dosser, D., “Welfare Effects of Tax Unions,” RESt, June, 1964

*Meade, J.E., The Theory of Customs Unions

*Cooper, C.A., and Massell, B.V., “A New Look at Customs Union Theory,” December, 1965

*Michaely, M., “On Customs Unions and the Gains from Trade,” EJ, September, 1965

*Flanders, June, “Measuring Protectionism and Predicting Trade Diversion,” JPE, April, 1965

*Krause, L.B., The Meaning of European Economic Integration for the United States, Ch. 2-3

Source: Johns Hopkins University. Eisenhower Library, Ferdinand Hamburger, Jr. Archives, Department of Political Economy. Series 5/6. Box 6/1, Folder “Course Outlines and Reading Lists c. 1900, c. 1950, 1963-68”.

Image Source: Portrait of Bela Balassa in the Johns Hopkins University Yearbook, Hullabaloo 1976. Note that the image posted on the Béla Belassa page at the website Alchetron mistakenly uses a photo of Balassa Sándor Erkel Ferenc.

Tags Balassa

Chicago Economists Exam Questions

Chicago. Economic Price Theory Prelim Exam taken by Zvi Griliches. Winter quarter 1955.

Post author By Irwin Collier
Post date 2020-09-04

With this post Economics in the Rear-view Mirror adds two more preliminary exams from the University of Chicago (here, from the Winter Quarter of 1955) to its growing collection of artifacts that provide us a digital record of economics education through the years. The original document was found in Milton Friedman’s files which provide us the additional information of the names of the examination committee as well as names, together with Friedman’s own test scores and his answers to the True-False questions. Of interest to note: Zvi Griliches not only attained the greatest number of points awarded by Friedman (120 points of 185 possible points), but he finished far ahead of the rest of the pack–the second highest exam only received 86 points which incidentally was more than enough to clear this PhD requirement. The Committee failed two students and four students passed the exam for the M.A. degree. Milton Friedman appears to have been the toughest grader of the three members of the Committee.

_____________________________________

Economic Theory Examination Committee:
M. Friedman, chairman; F. H. Knight; D. G. Johnson.

There were 13 examinees for Economic Theory I. These included Zvi Griliches (who incidentally blew the top off the curve according to Friedman’s grades) and Walter Oi.

Griliches Interview with Alan Krueger and Timothy Taylor from June 21, 1999.
Memorial blogpost for Walter Oi by Steve Landsburg on December 26, 2013

There were 2 examinees for Economic Theory II.

_____________________________________

Previously transcribed and posted Preliminary and Field Exams
from the graduate program of the University of Chicago

Economic Theory I and II. Summer 1949
Economic Theory I and II. Summer 1951
Economic Theory I and II. Summer 1952
Economic Theory I. Summer 1955
Economic Theory I and II. Winter 1955
Money and Banking. Summer 1956
Economic Theory. Winter 1957
Money and Banking. Summer 1959
Economic Theory (Old Rules). Summer 1960
Price Theory. Winter 1964
Income, Employment and Price Level. Summer 1967
Money and Banking. Summer 1967
Price Theory. Winter 1969
Income, Employment, Price Level. Winter 1969
Money and Banking. Winter 1969
International Trade. Winter 1970
History of Economic Thought. Summer 1974
Price Theory. Summer 1975
Industrial Organization. Spring 1977
History of Economic Thought. Summer 1989

_____________________________________

Economic Theory I
Preliminary Examination
Winter, 1955
[Milton Friedman’s answers in square brackets]

Time: 4 hours.

Write your number and not your name on your examination paper. Please be brief in your replies.

(30 points) Indicate whether each of the following statements is True, False, or Uncertain and justify your answer briefly.
1. [False] Production of a commodity occurs under conditions of fixed proportions. The supply curve for A shifts to the right. It is to the advantage of the owners of A that expenditure on A shall have represented a small part of total costs.
2. [False] A firm will not carry on production at a given level of output, if one factor exhibits increasing average returns at that output level.
3. [appears to be False with True crossed out] When a firm is in equilibrium, the ratio of the price of a factor to the marginal physical product of the factor determines the marginal cost of production.
4. [True or Uncertain] If the demand for output is perfectly elastic, a decline in the price of factor A will always increase the demand for factor B unless A and B are perfect substitutes (only two factors employed).
5. [True] If the demand for output is less than perfectly elastic, a decline in the price of A may either increase or decrease the demand for factor B.
6. [False] If a monopsonist is not a monopolist, it is possible to construct the monopsonist’s demand curve for a factor.
7. [False] If all the factors used by a firm are paid the value of their marginal products, the sum of the payments will equal the total receipts of the firm.
8. [False] If all factors are paid the value of their marginal products, it would not be possible to increase total real output of the economy by any change in the allocation of factors.
(15 points) In an article on the British tobacco industry, the Economist remarked:
“Since 1938 the industry has had to contend with a sixfold rise in the standard rate of tobacco duty, and a three- to fourfold increase in the average cost of its principal raw material—this includes the higher cost of dollar leaf bought since sterling devaluation. All eight duty increases have been automatically passed on to the smoker, but if duty is left out of account the increase in cigarette prices since 1938 has been no more than about 85 per cent.”
What do you take “passed on” to mean in this sentence? What is its relation to the economic concept of “incidence”? What inference, if any, would you draw about the latter?
(20 points) Assuming that a monopolist always fixes price so as to maximize profits, can the price of a commodity ever be lower when it is monopolized than when it is competitively produced?
(30 points) Trace the development of the theory of consumer choice. Include in your answer an explanation of (a) the meaning attached by Smith to “effectual demand”, (b) the role assigned by Ricardo to demand in determining prices; (c) Jevons “the final degree of utility determines price”; (d) the contribution of Edgeworth, Fisher, and Pareto.
(20 points) It is widely asserted that workers have less “bargaining power” than employers because there are more workers than employers. Discuss.
(25 points) Discuss the following concepts (a) the “postponement” of consumption said to be involved in saving and investment, (b) “abstinence”, (c) “time preference”, (d) the “marginal efficiency of investment”, (e) the “marginal efficiency of capital”.
(45 points) For each of the following methods of financing radio and television programs, indicate how the resulting structure of programs differs from the optimum: and under what conditions, if any, it would be an optimum. In interpreting “optimum”, assume that the only consideration is direct private benefit from the programs; neglect distributional effects, i.e., treat it as a purely allocative problem; and assume that there are no such public issues involved as “education” or “indoctrination”. On the technical side, assume throughout that there are a narrowly limited total number of frequencies or channels available in any one area. Make your answer as definite as possible in terms of the kind of people whose tastes are or are not catered to appropriately, the kinds of programs that are too numerous or too sparse, etc. In answering the question, assume throughout that it is possible without cost to know exactly the number and kind of people who listen to each program.
1. The existing U.S. method of selling time to advertisers.
2. Imposition of an annual license tax or fee on each set; auctioning off of time to private program producers; compensation of these producers by giving to each a share of the total tax collection equal to the fraction of total listener time devoted to his programs. Assume that advertising is forbidden.
3. Some mechanical method whereby a subscriber can receive a particular program only if he pays through a coin-box arrangement for that particular program. The programs are to be provided by private producers who receive the payments, who buy time on the stations, as in the preceding case, and who can determine the amount charged for the programs they produce. Once again, assume that advertising is forbidden.

ECONOMIC THEORY II
Preliminary Examination
WINTER 1955

Time: 2½ hours.

Note: Write only your number, not your name, on your examination paper.

Answer question 1, and two others.

Using the Table below, explain the variations in the real income, the price level, the velocity of circulation, the government and private investment, the rate of unemployment, the ratio of savings to income, and whatever else you consider significant.

TABLE

The following figures are based on the Economic Report to the President, 1955.
Note: (a) All figures except those for item A are expressed as percentages of the corresponding 1937 figure; (b) item F is defined to be equal to “gross private domestic investment” plus “government purchase of goods and services” plus“net foreign investment”, all in 1947 prices.

	1929	1933	1937	1941	1945	1949	1953
A. Unemployment as percentage of civilian labor force	3.2	24.9	14.3	9.9	1.9	5.0	2.5
B. Civilian employment	103	84	100	109	114	127	134
C. Demand deposits and currency (non-deflated)	89	67	100	164	346	376	441
D. National income (non-deflated)	119	55	100	142	246	294	414
E. Consumer price index	119	90	100	102	125	166	186
F. Gross national product less consumption (in 1947 prices)	100	41	100	160	281	165	262
G. D/C	134	82	100	87	71	78	94
H. D/E	100	61	100	139	197	178	222
I. H/B	97	72	100	128	172	140	166
J. F/H	100	67	100	115	146	93	118

It is often said that the U.S. economy is less likely to suffer a severe depression today than it was twenty or thirty years ago. List and discuss major changes which have taken place which bear on this statement.
Suppose the tax on capital income (dividends, interest) is increased. What will be the effect on the demand for cash if the tax proceeds are spent on: (a) aid to foreign countries; (b) federal contribution to medical aid in the United States.
In the Confederate States, the ratio of bank reserves to deposits grew rapidly during 1862-64. This ratio also grew in the period 1933-37 in the Unites States. Explain these phenomena. Evaluate the action taken by the Governors of the Federal Reserve Board in 1936 and 1937, when they raised the required minimum reserve ratio.
The stock of money (currency and demand deposits) per capita was about 800 dollars in June 1953 as against about 100 dollars in June 1910. Explain the increase.

Source: Hoover Institution Archives. Milton Friedman Papers. Box 76. Folder 2 “University of Chicago, Economic Theory”.

Image Source: Zvi Griliches. University of Chicago Photographic Archive, apf1-06565, Special Collections Research Center, University of Chicago Library.

Tags Friedman, Griliches, JohnsonDG, Knight, Oi

Exam Questions Gender Harvard

Harvard. Political Economy Examination for Women, 1878

Post author By Irwin Collier
Post date 2020-09-03

The motivation behind the examinations offered by Harvard University to women (beginning in 1874) was “to afford persons desirous of becoming teachers in schools such a diploma of competency for their task as would be received on all hands with respect, and, further, to promote a higher standard of attainments in the private schools attended by the wealthier classes, by thus securing them thoroughly qualified teachers.” However, it was understood that “the preparation for these examinations [was not] equivalent to a course in Harvard, or other first-class colleges, and that they did not place the same value on a Harvard diploma and a Harvard certificate.”

The Harvard 1874 Advanced Examination in Political Economy for Women was previously posted.

The examination was based on Henry Fawcett’s “Manual of Political Economy” [1874] and Jérôme-Adolphe Blanqui’s “Histoire de l’Économie Politique en Europe.” [4e èd. Rev. et annot. (1860). Tome Premier; Tome Second]

________________________

POLITICAL ECONOMY.
FAWCETT.

Distinguish productive labor and productive consumption from unproductive. Are “useful” and “productive” convertible terms in political economy?
What is capital? How does the popular use of the term differ from its scientific use? When Macleod contends that “credit is capital,” what is the real point of difference between him and other writers
What causes determine the prices of manufactured commodities, temporarily and in the long run? How do the causes which determine the prices of agricultural commodities differ from the above?
¹What determines the value of money? ²How far does it receive value from being coined and made a legal tender? ³What determines the value of inconvertible paper? ⁴Does it receive value from being made a legal tender? ⁵When a legal tender, is its value affected by the greater or less chance of its being paid off?
Explain carefully Ricardo’s theory of rent, showing under what conditions rent can be an element of price, and explaining the application of the theory to a country like the United States, where the cultivators, as a rule, own the land.
What causes the observed tendency of profits to fall as a country advances in age, wealth, and population?
State the general principles which determine the exchange of commodities between two countries. How and why does this international trade differ from domestic trade?
Why do the exports of India regularly exceed her imports, and the exports of the British Islands fall short of their imports? How are these facts to be reconciled with the general principle that the exports of a country must balance its imports?
The United States being a gold-producing country, would exchange on Europe, when commerce is in its normal condition, be “in our favor,” against us, or at par? Why? Would this state of things be for our disadvantage or not?
When a building, e. g., a store, is built on valuable ground and a tax is laid as usual on the total value, what will be the incidence of the tax? Will it have this incidence at once, or in the long run? Suppose the premises are held under a lease for a term of years?
If a tax were laid at a uniform rate on all property of every description, would it meet the requirements of Adam Smith’s first rule?
If a government has a large expenditure to make (1) in some productive enterprise, or (2) for some unproductive purpose, is it better that the amount should be raised at once by taxation, or by loan?

BLANQUI.

Contrast the system on which the Bank of Amsterdam and the Bank of England were respectively established.
What was the English act of navigation? When and why was it passed? What position do Adam Smith and J. S. Mill take as to its expediency?
When did the “French Economists” flourish, and what were the distinctive characteristics of that school?
Give what account you can of Turgot and his reforms.
What was “the continental blockade,” and what were its economic effects, both before and after the declaration of peace?
Under what circumstances was Malthus led to write his Essay on Population?
What contribution did J. B. Say make, or what service did he render, to economic science?
Give what account you can of the socialist system of St. Simon.
What share had Ricardo, Mill, and Cairnes, respectively, in the development of the system of political economy, and in what relations do they stand to each other as writers developing the same subject?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915 (HUC 7000.25), Box 2. Bound volume: Examination Papers 1878-79. Harvard University Examinations. Papers Used at the Examinations for Women held at Cambridge, New York, Philadelphia, and Cincinnati, May 29 to June 6, 1878. Cambridge, Mass., 1878, pp. 42-44.

Image Sources:

Henry Fawcett (left) The University of Glasgow Story website; Jérôme-Adolphe Blanqui (right): Austrian National Library. Website Bildarchiv Austria.

Tags Blanqui, FawcettH

M.I.T. Suggested Reading Syllabus

M.I.T. Reading list for graduate Monetary Economics I. Modigliani and Poole, 1977

Post author By Irwin Collier
Post date 2020-09-02

In the previous post we find the reading list for the nominally second course for the money field at M.I.T. However typically the courses were taken in the reverse order (Monetary Economics II (14.463) in the Fall followed by Monetary Economics I (14.462) in the Spring.

I will go out on a limb here and assert that Ben Bernanke’s graduate training in monetary economics was, if not exactly these two courses, then observationally equivalent content-wise to this and the previous course.

_____________________

Earlier versions

Albert Ando and Franco Modigliani’s reading list for monetary economics at M.I.T. in 1960/61.

William Poole’s 1964 reading list at Johns Hopkins University for Monetary Theory.

_____________________

14.462—Monetary Economics
Franco Modigliani and William Poole
Spring 1977

Asterisks indicate required reading

Abbreviations

AER: American Economic Review
BPEA: Brookings Papers on Economic Activity
EI: Economic Inquiry
IER: International Economic Review
JEL: Journal of Economic Literature
JF: Journal of Finance
JMCB: Journal of Money, Credit, and Banking
JME: Journal of Monetary Economics
JPE: Journal of Political Economy
NBER: National Bureau of Economic Research
NEER: New England Economic Review
OQM: Milton Friedman, The Optimum Quantity of Money and Other Essays
QJE: Quarterly Journal of Economics

General References

Shapiro, Solomon and White. Money and Banking. Fifth edition. Hot, Rinehart and Winston, 1968.

Jacobs, Farwell and Heave. Financial Institutions. Fifth edition. Irwin, 1972.

I. Introduction—The Nature of Money and Other Claims

Einzig, Paul, Primitive Money, Pergamon Press. 1966.

*Federal Reserve System, Flow of Funds Accounts, 1967-1975. Washington, D.C.

*Friedman, Milton and Anna J. Schwartz, Monetary Statistics of the United States, pp. 86-198.

*Patinkin, Donald, “Money and Wealth: A Review Article,” JEL 7 (Dec. 1969), 1140-60.

Robertson, Dennis Money. Cambridge University Press. Chapters 1-3.

*Tobin, James, Manuscript. Chapters 1 and 2.

II. The Supply of Money and the Balance Sheets of Commercial Banks

Brunner, Karl and Allan Meltzer, “Some Further Investigations of Supply and Demand Functions for Money,” JF, May 1964.

Burger, Albert, The Money Supply Process. Wadsworth, 1971.

Cagan, Phillip, Determinants and Effects of Changes in the Stock of Money, 1876-1960. NBER, 1965. Chapters 2 and 3.

Federal Reserve Bank of Boston, Controlling Monetary Aggregates, I and II. Conference Series Number 1 and 9.

Fouzek, P.G., Foreign Central Banking, Federal Reserve Bank of New York.

Frost, Peter, and Thomas Sargent, “Money Market Rates, the Discount Rate and Borrowing from the Federal Reserve,” JMCB, February 1970.

Goldfeld, Stephan and Edward Kane, “The Determinants of Member Bank Borrowing,” JF, September 1966.

Hester, Donald and James Pierce, Bank Management and Portfolio Behavior, Cowles Foundation, 1975.

*Meade, James, “The Amount of Money and the Banking System,” reprinted in Readings in Monetary Theory, American Economic Association Series.

*Meek, Paul, Open Market Operations, Federal Reserve Bank of New York, 1973.

*Modigliani, Franco, Robert Rasche and J. Phillip Cooper, “Central Bank Policy, the Money Supply and Short Term Interest Rates,” JMCB, May 1970.

*Poole, William, “Commercial Bank Reserve Management in a Stochastic Model: Implications for Monetary Policy,” JF 23 (Dec. 1968), pp. 769-91.

Poole, William and Charles Lieberman, “Improving Monetary Control,” BPEA, 1972:2.

*Thomson, Thomas, James Pierce and Robert Parry, “A Monthly Money Market Model,” JMCB, November 1975.

Tobin, James, Manuscript, Chapter 8.

___________, “Commercial Banks as Creators of Money,” Chapter 16 of his book, Macroeconomics.

Willis, Parker, Federal Funds Market, Federal Reserve Bank of Boston, 1970.

III. Other Financial Intermediaries and their Balance Sheets

Committee on Banking, Currency and Housing, House of Representatives, “Financial Institutions and the Nation’s Economy,” November 1975.

Dougal, Herbert E., Capital Markets and Institutions, Prentice Hall, Third edition, 1975.

Federal Reserve Bank of Boston, Policies for a More Competitive Financial System, Conference Series #8.

Federal Reserve Staff Study: Ways to Moderate Fluctuations in Housing Construction (Board of Governors of the Federal Reserve System, 1972); see especially papers by Gramley, Fisher and Seigman, and Poole.

Goldsmith, Raymond, Financial Instiutions, Random House, 1968.

Gurley, John and Edward Shaw, Money in a Theory of Finance, Brookings, 1960.

Guttentag, Jack and Robert Lindsay, “The Uniqueness of Commercial Banks,” JPE, September/October 1968.

New Mortgage Designs for Stable Housing in an Inflationary Environment (Federal Reserve Bank of Boston Conference Series, No. 14); see especially papers by Lessard and Modigliani, and those reviewing foreign experience.)

*Patinkin, Donald, “Financial Intermediaries and the Logical Structure of Monetary Theory,” AER, March 1961.

*Treasury, “Recommendations for Change in the U.S. Financial System,” Washington, D.C., August 1973.

IV. The Demand for Money

Note: Familiarity with the material on the demand for money covered in 14.451 and 14.463 will be assumed.

Brunner, Karl and Allan Meltzer, op. cit.

Chow, Gregory, “On the Long-Run and Short-Run Demand for Money,” JPE, April 1966.

Fisher, Irving, The Purchasing Power of Money, Macmillan, 1931. Chapters 1-4 and 8.

Friedman, Milton, “The Quantity Theory of Money, A Restatement,” OQM, Aldine, 1969.

*___________, “The Demand for Money: Some Theoretical and Empirical Results,” OQM.

___________, “Interest Rates and the Demand for Money,” OQM.

*Goldfeld, Stephen, “The Demand for Money Revisited,” BPEA, 1973:3.

*___________, “The Case of the Missing Money,” BPEA, 1976:3.

Gould, John P. and Charles R. Nelson, “The Stochastic Structure of the Velocity of Money,” AER, 64 (June 1974), pp. 405-18.

Hicks, John, “A Suggestion for Simplifying the Theory of Money,” Readings in Monetary Theory, op. cit.

Keynes, J.M., “A Treatise on Money,” The Collected Writings, St. Martin’s Press, 1971.

___________, The General Theory, Chapters 13, 15, 17.

Laidler, D.E.W., The Demand for Money: Theories and Evidence, International Textbook Company, 1969.

Miller, Merton and Daniel Orr, “A Model of the Demand for Money by Firms,” QJE, August 1966.

Modigliani, Franco, “Liquidity Preference,” International Encyclopedia of the Social Sciences, Vol. 9, MacMillan Company & Free Press, 1968, pp. 394-409.

___________, Rasche and Cooper, op. cit.

Tobin, James, “The Interest Elasticity of [the] Transactions Demand for Cash,” Chapter 14 of Macroeconomics.

V. Interest Rate Determination and Term Structure

*Fama, Eugene, Short-Term Interest Rates as Predictors of inflation,” AER, June 1975.

Fisher, Irving, The Theory of Interest, Macmillan, 1930.

Fisher, Lawrence, “Determinants of the Risk Premium on Corporate Bonds,” JPE, June 1959.

*Friedman, Benjamin, “Financial Flow Variables and the Short-Run Determination of Long-Term Interest Rates,” unpublished.

*___________, “Substitution and Expectation Effects on Bond Supply and the Long-Term Interest Rate,” unpublished.

Kane, Edward and Burton Malkiel, “Expectations and Interest Rates: A Cross-Sectional Test,” JPE, August 1969.

*Lutz, Friedrich, “The Structure of Interest Rates,” in AEA Readings in the Theory of Income Distribution.

Malkiel, Burton, The Term Structure of Interest Rates, Princeton University Press, 1966.

Modigliani, Rasche and Cooper, op. cit.

*Modigliani, Franco and Robert Shiller, “Inflation, Rational Expectations and the Term Structure of Interest Rates,” Economica, February 1973, pp. 12-43.

___________, and Richard Sutch, “Debt Management and the Term Structure of Interest Rates,” JPE, August 1967, Supplement No. 4, pp. 569-589.

Nelson, Charles, The Term Structure of Interest Rates, Basic Books, 1972.

___________, and William Schwert, “On Testing the Hypothesis that the Real Rate of Interest is Constant,” AER, 1977 (forthcoming).

Rutledge, John, A Monetarist Model of Inflationary Expectations, Lexington Books, 1974.

Roll, Richard W., The Behavior of Interest Rates.

Tobin, James, “An Essay on the Principles of Debt Management,” Chapter 21 in Macroeconomics.

VI. The Transmission Mechanism, etc.

Note: Familiarity with the standard IS-LM and related models, as covered in 14.451, will be assumed.

Andersen, Leonall and Keith Carlson, “A Monetarist-Model for Economic Stabilization,” Federal Reserve Bank of St. Louis Review, April 1970.

Ando, Albert and Franco Modigliani, “Econometric Analysis of Stabilization Policies,” AER, May 1969.

___________, and ___________, Robert Rasche and Stephen Turnovsky, “On the Role of Expectations of Price and Technological Change in an Investment Function,” IER, June 1974.

Baily, Martin Neil, “Contract Theory and the Moderation of Inflationary Expectations by Recession and by Controls,” BPEA, 1976:3.

Bischoff, Charles, “Business Investment in the 1970’s: A Comparison of Models,” BPEA, 1971:1.

Blinder, Alan and Robert Solow, “Analytic Foundations of Fiscal Policy,” in Economics of Public Finance, Brookings Institution, 1974.

*De Menil, George and Jared Enzler, “Prices and Wages in the FMP Econometric Model,” in The Econometrics of Price Determination, Otto Eckstein, ed., 1970.

*Friedman, Milton, “The Role of Monetary Policy,” in OQM.

___________, and Anna Schwartz, The Great Contraction, Princeton, 1965.

*Gordon, Robert J., “Recent Developments in the Theory of Inflation and Unemployment,” JME, 2, (April 1976), pp. 185-219.

Gramlich, Edward, “The Usefulness of Monetary and Fiscal Policy as Discretionary Stabilization Tools,” JMCB, May 1971.

Jaffee, Dwight and Franco Modigliani, “A Theory and Test of Credit Rationing,” AER, December 1969.

*Holt, Charles, “Job Search, Phillips’ Wage Relation, and Union Influence: Theory and Evidence,” in E.S. Phelps, ed., Microeconomic Foundations of Employment and Inflation Theory, Norton, 1970.

Keeton, William, “An Analysis of Interest Rate Ceilings,” unpublished.

*Lucas, Robert, “Some International Evidence on Output-Inflation Tradeoffs,” AER, June 1972.

___________, “An Equilibrium Model of the Business Cycle,” JPE, 83 (Dec. 1975), pp. 113-44.

Modigliani, Franco, “Monetary Policy and Consumption: …,” in Consumer Spending and Monetary Policy, The Linkages, Federal Reserve Bank of Boston, Conference Series #5, June 1971.

___________, “The Channels of Monetary Policy in the FMP Econometric Model of the U.S.,” in Modelling the Economy, G.A. Renton, ed., Heinemann Educational Books, 1975.

___________, and Lucas Papademos, “Monetary Policy for the Coming Quarters: The Conflicting Views,” NEER, March/April 1976.

*___________, “Models of the Economy and Optimal Stabilization Policies,” June 1976, unpublished.

Mortenson, Dale, “A Theory of Wage and Employment Dynamics,” in Phelps, op. cit.

Sargent, Thomas, “Rational Expectations, the Real Rate of Interest, and the Natural Rate of Unemployment,”BPEA, 1973:2.

VII. Monetary Policy: Optimal Control and Related Issues

Athans, Michael, “The Discrete Time Linear-Quadratic-Gaussian Stochastic Control Problem,” Annals of Economics and Social Measurement, October 1973, pp. 449-493.

*Brainard, William, “Uncertainty and the Effectiveness of Policy,” AER, May 1967.

Fischer, Stanley and J. Phillip Cooper, “Stabilization Policy and Lags,” JPE, July/August 1973.

*Friedman, Benjamin, “Targets, Instruments, and Indicators of Monetary Policy,” JME, October 1975.

Holbrook, Robert S., “Optimal Economic Policy and the Problem of Instrument Instability,” AER, March 1972.

Pierce, James L., “Quantitative Analysis for Decisions at the Federal Reserve,” Annals of Economic and Social Measurement, January 1974.

*Poole, William, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model,” QJE, May 1970.

___________, “The Making of Monetary Policy: Description and Analysis,” EI, 13 (June 1975), pp. 253-65.

___________, “Benefits and Costs of Stable Monetary Growth,” in Karl Brunner and Allan H. Meltzer, eds., Institutional Arrangements and the Inflation Problems (Carnegie-Rochester Conference Series on Public Policy, Vol. 3, 1976).

VIII. Monetary Policy: Rational Expectations and Related issues

Barro, Robert J., “Rational Expectations and the Role of Monetary Policy,” JME, 2 (January 1976), pp. 1-32.

___________, and Stanley Fischer “Recent Developments in Monetary Theory,” JME, 2 (April 1976), pp. 133-67.

Fischer, Stanley, “Recent Developments in Monetary Theory,” AER, 65 (May 1975), pp. 157-66.

*Lucas, Robert E., “Econometric Policy Evaluation: A Critique,” in Karl Brunner and Allan H. Meltzer, eds., The Phillips Curve and Labor Markets (Carnegie-Rochester Conference Series on Public Policy, Vol. 1; Supp. To JME).

*Modigliani, Franco, “The Monetarist Controversy Or, Should We Foresake Stabilization Policies?” (AEA Presidential Address).

*Muth, John F., “Rational Expectations and the Theory of Price Movements,” Econometrica, 29 (July 1961), pp. 315-35.

*Poole, William, “Rational Expectations in the Macro Model,” BPEA, 2, 1976, pp. 463-514.

*Sargent, Thomas J. and Neil Wallace, “’Rational’ Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule,” JPE, 83 (April 1975), pp. 241-54.

___________ and ___________, “Rational Expectations and the Theory of Economic Policy,” JME, 2 (April 1976), pp. 169-83.

Source: Copy of mimeographed course reading list from the files of Irwin L. Collier. Provided by Robert Dohner (our friendship goes back to our internships at the Nixon Council of Economic Advisers in the year of Watergate).

Image Sources: Nobel Prize Web Page for Franco Modigliani; William Poole at the Federal Reserve Centennial, 2014.

Tags Bernanke, Modigliani, Poole

M.I.T. Suggested Reading Syllabus

M.I.T. Reading List for Monetary Economics II. Dornbusch, 1976

Post author By Irwin Collier
Post date 2020-09-01
1 Comment on M.I.T. Reading List for Monetary Economics II. Dornbusch, 1976

Associate Professor Rudiger Dornbusch covered the second course in the graduate money field during the Fall term 1976 at M.I.T. This was a course taught by his colleague Stanley Fischer (I took that course in 1975). The syllabus was more-or-less unchanged from the one used when Fischer taught the monetary theory course. According to the department staffing report for the term, 22 students were registered for credit and 2 students audited the course.

___________________________

MONETARY ECONOMICS II
14.463
Professor R. Dornbusch
Fall 1976

*denotes required reading

There is no textbook for this course. The following books and surveys should be useful.

Robert Barro and Herschel Grossman, Money, Employment and Inflation, Macmillan, 1976.

Robert W. Clower (ed.), Monetary Theory, Penguin Books, 1969.

Milton Friedman, The Optimum Quantity of Money and Other Essays, Aldine, 1969.

Robert Mundell, Monetary Theory, Goodyear, 1971.

Robert J. Barro and Stanley Fischer, “Recent Developments in Monetary Theory,” Journal of Monetary Economics, April 1976.

I. BACKGROUND

*Friedman, Milton, “The Quantity Theory of Money—A Restatement” in Studies in the Quantity Theory of Money, Friedman, ed., University of Chicago Press, 1956, 3-24.

___________, “A Theoretical Framework for Monetary Analysis,” JPE, March/April 1970, 193-238. (See also Symposium on this article in Sept./Oct. 1972 JPE.)

*Johnson, Harry G., “The Keynesian Revolution and the Monetarist Counter-Revolution,” AER, May 1971, 1-14.

Keynes, J.M., General Theory of Employment, Interest and Money, Harcourt Brace, 1964.

*Leijonhuvud, Axel, “Keynes and the Classics: Two Lectures on Keynes’ Contribution to Economic Theory,” London, Institute of Economic Affairs, 1969. Occasional Paper 30. (This is a reasonably coherent account of his book.)

*Patinkin, Don, Money, Interest and Prices, Harper and Row, 1965, Part II.

Tobin, James, “Money, Capital and Other Stores of Value,” AER Papers and Proceedings, May 1961, 16-37.

*___________, “A General Equilibrium Approach to Monetary Theory,” JMCB, Feb. 1969, 15-29.

___________, Chapter I of Manuscript, on reserve.

___________, “Money and Income: Post Hoc, Ergo Propter Hoc?” QJE, May 1970, (and discussion with Friedman, same, 318-329).

___________, The New Economics One Decade Older, Princeton University Press, 1974.

II. DISEQUILIBRIUM ANALYSIS

*Barro, Robert J. and Herschel Grossman, “A General Equilibrium Model of Income and Employment,” AER, March 1971, 82-93.

___________, Money, Employment and Inflation, MacMillan, 1976.

Benassy, J.P., “Neo-Keynesian Disequilibrium Theory in a Monetary Economy, Unpublished, 1974.

*Clower, Robert, “The Keynesian Counterrevolution: A Theoretical Appraisal,” in The Theory of Interest Rates, F.H. Hahn and F.P.R. Brechling (ed.), MacMillan, 1965.

Iwai, K., “On Disequilibrium Economic Dynamics,” Parts I & II. Cowles Discussion Papers #385 and #386, 1974, 1975.

Patinkin, Don, Money, Interest and Prices, Chapter 13.

III. DEMAND FOR MONEY

Barro, Robert J., “Inflation, the Payments Period, and the Demand for Money,” JPE, Nov./Dec. 1970, 1228-1263.

___________, “Integral Constraints and Aggregation in an Inventory Model of Money Demand,” Journal of Finance(forthcoming).

*Baumol, W.J., “The Transactions Demand for Cash: An Inventory Theoretic Approach,” QJE 66 (Nov. 1952), 545-556. (Reprinted in Thorn, R.S., ed. Monetary Theory and Policy, Ch. 6.)

*Cagan, P., “The Monetary Dynamics of Hyperinflation,” in Friedman, M., ed., Studies in the Quantity Theory of Money.

Goldfeld, S.M., “The Demand for Money Revisited,” in Okun, A.M. and Perry, G.L., Brookings Papers on Economic Activity, 1973:3.

*Hicks, J.R., “A Suggestion for Simplifying the Theory of Money,” in AEA Readings in Monetary Theory, pp. 13-32.

*Miller, M.H. and Orr, D., “A Model of the Demand for Money by Firms,” QJE 80 (August 1966), 413-435.

*Modigliani, F., R. Rasche, and J.P. Cooper, “Central Bank Policy, The Money Supply and the Short-Term Rate of Interest,” JMCB, 2 (May 1970), 166-217.

*Tobin, J., “The Interest-Elasticity of Transactions Demand for Cash,” REStat. 38 (August 1956), 241-247.

___________, “Liquidity Preference as Behavior Toward Risk,” REStud 25 (Feb. 1958), 65-86. (Reprinted in Thorn, Ch. 7)

Whalen, E.L., “A Rationalization for the Precautionary Demand for Cash,” QJE (May 1966), 314-324.

IV. MONEY, INFLATION DYNAMICS AND GROWTH

*Brock, William A., “A Simple [Perfect Foresight] Model of Money and Growth,” on reserve.

*Cagan, Phillip, op. cit.

Fischer, Stanley, “Keynes-Wicksell and Neoclassical Models of Money and Growth,“ AER, Dec. 1972.

Friedman, Milton, “The optimum Quantity of Money,” in The Optimum Quantity of Money and Other Essays, Aldine, 1969, 1-50.

*Foley, Duncan K. and Miguel Sidrauski, “Portfolio Choice, Investment and Growth,” AER, March 1970, 44-63.

Levhari, David and Don Patinkin, “The Role of Money in a Simple Growth Model,” AER, Sept. 1968, 713-753.

Mundell, Robert A., “Growth, Stability and Inflationary Finance,” JPE, 1965, 97-109.

*___________, Monetary Theory, Goodyear, 1971.

*Sidrauski, Miguel, “Inflation and Economic Growth,” JPE, Dec. 1967, 796-810.

*___________, “Rational Choice and Patterns of Growth in a Monetary Economy,” AER, Papers and Proceedings, May 1967, 534-544.

Dornbusch, Rudiger and Frenkel, Jacob, “Inflation and Growth Alternative Approaches,” Journal of Money, Credit and Banking, Feb. 1973, 141-156.

V. RATIONAL EXPECTATIONS

Barro, Robert J., “Rational Expectations and the Role of Monetary Policy,” Unpublished, 1975.

Black, Fischer, “Uniqueness of the Price Level in Monetary Growth Models With Rational Expectations,” JET, Jan. 1974, 53-65.

*Fama, E.F., “Efficient Capital Markets: A Review of Theory and Empirical Work,” JF, 25 (May 1970), 383-417.

*Fischer, S., “Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule,” Unpublished, 1975.

*Lucas, Robert E., “Expectations and the Neutrality of Money,” JET, April 1972, 103-124.

__________, “Some International Evidence on Output-Inflation Tradeoffs,” AER June 1973, 326-334.

__________, “Econometric Policy Evaluation: A Critique,” Mimeo, on Reserve.

Muth, J.F., “Rational Expectations and the Theory of Price Movements,” Econometrica 29 (July 1961), 315-335.

Phelps, E.S. and J.B. Taylor, “Stabilizing Properties of Monetary Policy Under Rational Price Expectations,” Unpublished, 1975.

*Sargent, T.J. and N. Wallace, “’Rational’ Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule,” JPE (April 1975), 241-254.

__________, “Rational Expectations and the Theory of Economic Policy,” Federal Reserve Bank of Minneapolis, Part I and II.

VI. TEMPORARY EQUILIBRIUM, THE CONSUMPTION LOANS MODEL, AND THE BURDEN OF THE DEBT

*Barro, R.J., “Are Government Bonds Net Wealth?” JPE, Nov./Dec. 1974, 1095-1117.

Cass, D. and M. Yaari, “Individual Saving, Aggregate Capital Accumulation and Efficient Growth,” in K. Shell (ed.), Essays in the Theory of Optimal Growth, M.I.T. Press, 1967.

*Diamond, P.A., “National Debt in a neoclassical Growth Model,” AER, Dec. 1965, 1126-1135.

Feldstein, M., “Perceived Wealth in Bonds and Social Security: A Comment,” Unpublished, 1975.

Foley, D.K. and M. Sidrauski, “Monetary and Fiscal Policy in a Growing Economy, MacMillan, 1971, Ch. 11.

Grandmont, J. and G. Laroque, “Money in the Pure Consumption Loans Model,” JET, August 1973, 382-395.

__________, and Y. Younes, “On the Efficiency of a Monetary Equilibrium,” REStud., April 1973, 149-166.

Modigliani, F., “Long-Run Implications of Alternative Fiscal Policies and the Burden of the National Debt,” Economic Journal, Dec. 1961, 730-755.

Samuelson, P.A., “An Exact Consumption-Loan Model of Interest With or Without the Social Contrivance of Money,” JPE, 1958 (reprinted in Collected Scientific Papers, 219-234.)

VII. INDEXATION AND THE LABOR CONTRACT

*Azariadis, C., “Implicit Contracts and Underemployment Equilibria,” JPE, August 1975.

__________, “Asymmetric Wage Behavior,” Unpublished, 1975.

*Baily, M.N., “Wages and Employment Under Uncertain Demand,” REStud., Jan. 1974, 37-50.

Fischer, S., “The Demand for Index Bonds,” JPE, June 1975.

__________, “Wage-Indexation and Macro-Economic Stability,” Unpublished, 1975.

__________, “Non-Indexation in the Capital Markets,” Unpublished, 1975.

Gray, J.A., “Economic Aspects of Indexing and Contract Length,” Unpublished, 1975.

Grossman, H., “The Nature of Optimal Labor Contracts,” Unpublished, 1975.

Shavell, S., “Sharing Risks of Deferred Payment,” Unpublished, 1975.

Tobin, J., “An Essay on the Principles of Debt Management,” in Tobin’s Essays in Economics.

VIII. MICRO FOUNDATIONS OF MONEY

(This material will not be discussed in class; it is on the reading list for those who are interested)

*means most worthwhile

Brunner, Karl, and Allan Meltzer, “The Uses of Money: Money in the Theory of Exchange,” AER, Dec. 1971, 784-805.

*Clower, Robert W., Monetary Theory, Clower (ed.), Penguin, 1970, pp. 7-16.

Fischer, S., “Money and the Production Function,” on reserve.

Hahn, Frank, “On Transaction Costs, Inessential Sequence Economics and Money,” REStud., Oct. 1973, 449-462.

*__________, “On the Foundations of Monetary Theory,” in Parkin and Mobay (eds.), Essays in Modern Economics, Langman, 1973.

Heller, Walter P., “The Holding of Money Balances in General Equilibrium,” JET, Jan. 1974, 93-108.

*Johnson, Harry G., “Is There an Optimal Money Supply?” in Frontiers of Quantitative Economics, M.O. Intriligator, ed., North-Holland, 1971.

Niehans, Jurg, “Money in a Static Theory of Optimal Payment Arrangements,” JMCB, Nov. 1969, 706-726.

Ostroy, Joesph, “The Informational Efficiency of Monetary Exchange,” AER, Sept. 1973, 597-610.

Patinkin, Don, Money, Interest and Prices, Harper and Row, 1965, Part I.

*Samuelson, Paul A., “What Classical and Neo-Classical Monetary Theory Really Was,” Canadian Journal of Economics, Feb. 1968, 1-15; also in Clower, Readings, 170-190.

*__________, Foundations of Economic Analysis, Harvard University Press, 1947, 117-122.

Starr, Ross, M., “The Structure of Exchange in Barter and Monetary Economics,” QJE, May 1972, 290-302.

Starrett, David, “Inefficiency and the Demand for ‘Money’ in a Sequence Economy,” REStud., Oct. 1973, 437-448.

Image Source: Rudiger Dornbusch from FAZ, April 12, 2014

Tags Dornbusch, Fischer

Dates

From newspaper reports in Nebraska

Washington Post Obituary

Publications

Course Enrollment

Assignments for Economics 51 First Half-Year 38/39

Attention is directed particularly to the following books:

Sept. 28 – Oct. 7; Pre-depression expenditures.

October 10 – 28; Depression expenditures and Finance.

October 31 – Nov. 4; Proper limits to public spending.

[Pages missing, following three topics taken from the 1937-38 syllabus]

The Possibilities of Expenditure Control.

Revenues other than Taxes

The Public Domain and Public Borrowing.

Economics 51 Assignments for the Second Half-Year 1938-39

(For general references see outline for first term.)

February 6 – 17. The Nature of Taxation and Criteria for a Sound Tax System.

February 20 – 27. Incidence and Effects of Taxation.

March 1 – 6. Property Taxation and its Reform

March 8 – 24. Income Taxation: Personal and Business

March 27 – 31. Other Business Taxation

April 3 – 10. Vacation.

April 10 – 14. Death Duties

April 17 – 19. Commodity Taxation.

April 21 – May 6. Current Problems.

1938-39 HARVARD UNIVERSITY ECONOMICS 51 [Mid-Year Examination]

1938-39 HARVARD UNIVERSITY ECONOMICS 51 [Year-end Examination]

I

II

Course Enrollment:

POLITICAL ECONOMY 2. [Year-end Examination. June 1884]

Department of Economics International Economics 641 Fall, 1968 Dr. Balassa

Bibliography and Reading List

Abbreviations of Books

Abbreviations of Periodicals

General Surveys

I. The Classical Theory of International Trade

II. Criticisms and Extensions of the Classical Theory

III. Comparative Costs and International Trade: Further Developments

IV. Comparative Cost Theory: Empirical Verification

V. Factor-Price Equalization and Income Distribution

VI. Gains from Trade

VII. The Theory of Tariffs

VIII. Trade and Factor Movements

IX. Economic Integration

Economic Theory Examination Committee: M. Friedman, chairman; F. H. Knight; D. G. Johnson.

Previously transcribed and posted Preliminary and Field Exams from the graduate program of the University of Chicago

Economic Theory I Preliminary Examination Winter, 1955 [Milton Friedman’s answers in square brackets]

ECONOMIC THEORY II Preliminary Examination WINTER 1955

TABLE

POLITICAL ECONOMY. FAWCETT.

BLANQUI.

Earlier versions

14.462—Monetary Economics Franco Modigliani and William Poole Spring 1977

General References

I. Introduction—The Nature of Money and Other Claims

II. The Supply of Money and the Balance Sheets of Commercial Banks

III. Other Financial Intermediaries and their Balance Sheets

IV. The Demand for Money

V. Interest Rate Determination and Term Structure

VI. The Transmission Mechanism, etc.

VII. Monetary Policy: Optimal Control and Related Issues

VIII. Monetary Policy: Rational Expectations and Related issues

MONETARY ECONOMICS II 14.463 Professor R. Dornbusch Fall 1976

I. BACKGROUND

II. DISEQUILIBRIUM ANALYSIS

III. DEMAND FOR MONEY

IV. MONEY, INFLATION DYNAMICS AND GROWTH

V. RATIONAL EXPECTATIONS

VI. TEMPORARY EQUILIBRIUM, THE CONSUMPTION LOANS MODEL, AND THE BURDEN OF THE DEBT

VII. INDEXATION AND THE LABOR CONTRACT

VIII. MICRO FOUNDATIONS OF MONEY

Assignments for Economics 51
First Half-Year 38/39

Economics 51
Assignments for the Second Half-Year
1938-39

1938-39
HARVARD UNIVERSITY
ECONOMICS 51
[Mid-Year Examination]

1938-39
HARVARD UNIVERSITY
ECONOMICS 51
[Year-end Examination]

POLITICAL ECONOMY 2.
[Year-end Examination. June 1884]

Department of Economics
International Economics 641
Fall, 1968
Dr. Balassa

Economic Theory Examination Committee:
M. Friedman, chairman; F. H. Knight; D. G. Johnson.

Previously transcribed and posted Preliminary and Field Exams
from the graduate program of the University of Chicago

Economic Theory I
Preliminary Examination
Winter, 1955
[Milton Friedman’s answers in square brackets]

ECONOMIC THEORY II
Preliminary Examination
WINTER 1955

POLITICAL ECONOMY.
FAWCETT.

14.462—Monetary Economics
Franco Modigliani and William Poole
Spring 1977

MONETARY ECONOMICS II
14.463
Professor R. Dornbusch
Fall 1976