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Economics Programs Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Exams for Undergraduate Political Economy Courses, 1923-1924

 

Several undergraduate course exams for the 1922-23 academic year at Johns Hopkins University in Political Economy have been posted earlier. The exams for 1919-20 have also been transcribed. A more complete (though still incomplete) sample is available the the university archives for the following year and which have been transcribed for this post.

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Johns Hopkins Faculty
for the Undergraduate Courses in Political Economy
1923-1924

Barnett, George Ernest, Ph.D., Professor of Statistics.

A.B., Randolph-Macon College, 1891; Fellow, John Hopkins University, 1899-1900, and Ph.D., 1901.

Weyforth, William Oswald, Ph.D., Associate Professor of Political Economy.

A.B., Johns Hopkins University, 1912, and Ph.D., 1915; Instructor, Western Reserve University, 1915-17.

Mitchell, Broadus, Ph.D., Associate in Political Economy.

A.B., University of South Carolina, 1913; Fellow, Johns Hopkins University, 1916-17, and Ph.D., 1918.

Jacobs, Theo, A.B., Associate in Social Economics.

A.B., Goucher College, 1901; Federated Charities of Baltimore (District Assistant, 1905-07, District Secretary, 1907-10, Assistant General Secretary, 1910-17, Acting General Secretary, 1917-19).

Newlove, George Hills, Ph.D., Associate in Accounting, School of Business Economics.

Ph.B., Hamline University, 1914; A.M., University of Minnesota, 1915; Ph.D., University of Illinois, 1918; C.P.A. (Ill.), 1918; C.P.A. (S.C.), 1919.

Gillies, Robert Carlyle, A.B., Instructor in Political Economy.

A.B., Princeton University, 1920.

Source: The Johns Hopkins University Circular, University Register 1922-1923, No. 342, January 1923. Announcements for 1923-1924.

Biographical information for George Hills Newlove found in John J. Kahle American Accountants and their Contributions to Accounting Thought, 1900-1930. Routledge Library Editions: Accounting, 2014.

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UNDERGRADUATE COURSES
1923-24

  1. Elements of Economics.
    Particular attention is given to the theory of distribution and its application to leading economic problems

Three hours weekly through the year. Associate Professor WEYFORTH, Dr. MITCHELL and Mr. GILLIES.

  1. Statistical Methods.

After a preliminary study of the value and place of statistics as an instrument of investigation, attention is directed to the chief methods used in statistical inquiry.

Three hours weekly, first half-year. Mr. GILLIES.

  1. Money and Banking.

The principles of monetary science are taught with reference to practical conditions in modern systems of currency, banking, and credit.

Three hours weekly, second half-year. Associate Professor WEYFORTH.

  1. American Trade Unionism.

The history, structure and functions of American trade unionism are studied.

Three hours weekly, first half-year. Professor BARNETT.

  1. Labor Problems.

The problems growing out of modern industrial employment will be studied.

Three hours weekly, first half-year. Professor BARNETT.

(Course 5 will not be given in 1923-24.)

  1. Corporation Finance.

The theory and practice of corporation finance are considered , with particular reference to the problems presented in the United States.

Three hours weekly, second half-year. Professor BARNETT.

  1. Investments.

Includes historical and analytical description of the more important forms of investments and theories of valuation and amortization.

Three hours weekly, second half-year. Professor BARNETT.

(Course 7 will not be given in 1923-24.)

  1. Applied Statistics.

The applications of statistics to business and economic problems, such as price levels, cost of living, wage adjustments, business cycles, and business forecasting, are considered.

Three hours weekly, first half-year. Associate Professor WEYFORTH.

  1. Foreign Trade and Exchange.

The economic principles of international commerce, the methods of conducting foreign trade, and the theory and practice of foreign exchange will be studied.

Three hours weekly, first half-year. Associate Professor WEYFORTH.

(Course 9 will not be given in 1923-24.)

  1. Business Organization.

This course is designed not only to show the structure of typical business entities, but their methods of formation and expansion. The common forms of securities are examined. Operation and administration of business units and the processes of marketing are studied in detail.

Three hours weekly, second half-year. Mr. GILLIES.

  1. Accounting.

This course deals with the fundamental principles underlying the recording of business transactions in the accounting books and records, and the preparation of balance sheets and statement of profit and loss for single entrepreneurs, partnerships, and corporations.

Four hours weekly, through the year. Dr. NEWLOVE.

  1. Economic History.

This course is designed to furnish a background for the study of economic principles and special phases of economic activity. It is a particular purpose of the course to show the relationship between economic fact and economic and political theory and practice.

Three hours weekly, through the year. Dr. MITCHELL.

  1. Social Economics.

The history and development of charitable and social agencies are traced. Causes and treatment of cases of dependency and delinquency are discussed.

Two hours weekly, through the year. Miss JACOBS.

Source: The Johns Hopkins University Circular, University Register 1922-1923, No. 342, January 1923. Announcements for 1923-1924, pp. 255-256.

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Examinations for
Undergraduate Political Economy Courses
Johns Hopkins University
1923-1924

POLITICAL ECONOMY I “A”

February 5th, 1924—9-12 A.M.

  1. Compare the manorial system with farming at the present time. Compare the system of industry in towns during the middle ages with the modern industrial system.
  2. What is meant by the “industrial revolution”? What theories in regard to the proper relationship of the state to industry, developed at this time? Explain. Compare these new ideas with the theory and practice preceding. What is the tendency of present theory and practice as regards state interference with industry?
  3. (a) “Labor alone is the producer of wealth; take away labor and not all the capital in the world could produce anything.” Allowing the second clause to be true as a statement of fact, does it prove the proposition contained in the first? Explain.
    (b) “Discovery and invention have doubtless played a very large part in securing our present high industrial efficiency. But they are not the whole thing. The increase of capital has been equally necessary; for, without capital, invention could have accomplished little or nothing.” Defend and illustrate the last sentence.
  4. Explain how market price is the result of the forces of supply and demand. Illustrate by tables and diagrams showing supply and demand. At what point does price tend to be fixed? Why?
  5. Define the following: (a) utility; (b) diminishing utility, (c) marginal utility. Why can we say that the market price of a good corresponds to the marginal utility of that good to the marginal consumer?
  6. In general, what is the relationship between cost of production and market price? What is the relationship between the cost of production of two goods produced under conditions of joint cost and the selling prices of those goods? If the price of cotton seed oil should rise, what would tend to be the effect upon the price of cotton fibre? Why?
  7. What are the functions of money? What is meant when it is said that we have a “gold standard” in the United States? What are the actual kinds of money in use in the United States?
  8. What is credit? What service does it perform in the modern economic system? What is the difference between a promissory note and a bill of exchange? What use does the business man make of a commercial bank?

 

POLITICAL ECONOMY I “A”
[Dr. Weyforth]

Thursday; May 29, 1924—9 a.m.

  1. Explain the economic factors that must be taken into consideration in determining Germany’s capacity to pay reparations. How will Germany obtain funds abroad with which to make such payments?
  2. What policy should be pursued by the business man during a period of cumulating prosperity? What would be the policy of banks during such a period?
  3. Explain the principles determining the rent of land. If the price of wheat is $1.50 per bushel, what rent could be paid for the use of an acre of land that yielded 30 bushels at an average cost in labor and capital of $1.25 per bushel? Would the tendency be for any of these bushels to cost the producer $1.50? Explain.
  4. How do you account for the great differences in the wages of railroad presidents and of unskilled laborers? Suggest a general program for our society that would tend to bring about a much greater degree of equality in the returns for labor service than now prevails.
  5. Explain why interest can be paid and why it must be paid. What is the effect upon the rate of interest of (a) increased saving, (b) inventions making possible the use of more elaborate machinery, (c) war? Explain.
  6. What is the nature of the railroad problem in the United States? Describe briefly the history of our governmental policy toward railroads. What possible methods of handling the problem are open to us at the present time?
  7. Distinguish socialism from anarchism and syndicalism. What would you say is the fundamental idea in socialism? What criticisms do the socialists make of our present economic system? Give a critical estimate of socialism.
  8. What would you expect to be the relation between the goods exports and the goods imports of a country during the following periods:
    1. When it is first open to settlement or to industrial enterprise;
    2. When it has become quite well supplied with imported capital goods;
    3. When its citizens begin to make investments in other countries;
    4. When a relatively large amount of such foreign investments have been made.

Explain the reasons for your answer. In which of the above stages is the United States? England? Mexico?

POLITICAL ECONOMY I “B” [Mitchell.]

Tuesday, February 5th, 1924—9-12 A.M.

  1. What are the distinctions between the physical sciences and the social sciences?
  2. Why is our interest turning at this time to production?
  3. Define briefly: consumer’s surplus, capital, wealth, “unearned increment”, diminishing returns.
  4. What is the chief criticism to be made of cost theories of value?
  5. (a) Why is it sometimes to the advantage of an individual landowner to withhold his land from use?
    (b) How does the withholding of land from use affect the incomes of landlords as a class?
    (c) Can a tax on land be shifted from owner to occupier?
  6. What do you understand by Ricardo’s “iron law of wages”?
  7. (a) Why is interest paid? (b) Why did the schoolmen of the Middle Ages object to interest?
  8. What is the justification of a progressive income tax?
  9. State all you know about the personnel of the new labor government in Great Britain.

 

POLITICAL ECONOMY I “B”
Elements of Economics

Thursday, May 29, 1924

  1. Discuss the several sorts of monopoly.
  2. What are the advantages of the corporate form of business enterprise?
  3. (a) What is the justification for a progressive income tax?
    (b) Compare the advantages of financing a war by taxation and by borrowing.
  4. Describe briefly the Federal Reserve System.
  5. What are the economic and social effects of inflation?
  6. Discuss the main doctrines of Karl Marx.
  7. What are the chief benefits and drawbacks of a cooperative system as opposed to a competitive system?
  8. (a) Discuss the origin of trade unionism.
    (b) Distinguish between the purposes and methods of the I.W.W. and the unions affiliated with the A.F. of L.

 

POLITICAL ECONOMY I “C”

February 5th, 1924—9-12 A.M.

  1. What are the strengths and weaknesses of the present economic system? What are its present tendencies? Under what conditions should the state interfere in our economic processes, and how?
  2. Summarize the case for competition as opposed to (a) private monopoly; (b) state ownership. In what type of cases would private monopoly under state regulation offer the best solution?
  3. How is the price of labor affected by changes in the volume of immigration? By shifting of the negro population? What classes of labor would be affected? Relate your answer to the fact that wages rose constantly in the United States from 1897-1921.
  4. (a) Given the following data:
Price (Dollars)
3.00 4.00 5.00
Demand (units) 52 46 30
Supply (units) 24 35 56

Calculate the elasticity of demand at $4.00.
(b) What are the conditions that make for a slow rate of diminishing utility?

  1. Is there any necessary connection between monopoly and “big business”? What is the difference between a partnership and a corporation in (a) legal requirements and liability, (b) structural organization, (c) comparative advantages?
  2. Define non-cumulative-participating-preferred stock; holding company; general-mortgage bond. Give the principal features of the Sherman Act. Name some methods of unfair competition.
  3. Would wheat be a satisfactory money commodity? Would diamonds? Give reasons for your answers. What is meant by the “gold standard”? What has been our experience with bimetallism? Can it work?
  4. What is meant by “fiat” money? Were the greenbacks fiat money? Were the Federal Reserve notes issued during the World War fiat money? Why did prices go up during both wars? Is this necessary? Why?
  5. Describe the Federal Reserve System, its chief functions, changes it produced in our money and banking system, etc. How are checks cleared under the system?
  6. What is the quantity theory of money? What would be the effect upon prices of (a) adopting bimetallism, (b) increased bank reserve requirements, (c) a national fad for gold ornaments, (d) a higher rediscount rate, (e) enforcing seigniorage?
    If the quantity of metallic money has not changed, nor the level of prices, how do you reconcile this fact with a change in the volume of business over the same period?

 

POLITICAL ECONOMY I “C”
[Mr. Gillies]

May 29, 1924—9  A.M.

  1. Whom do you consider the most important factor in modern business, the landlord, the laborer, the capitalist, or the entrepreneur? Give reasons for answer.
    What other elements must be separated from price movements before the business cycle can be recorded? How can you tell when business is near a crisis?
  2. What is the purpose of the finance bill, and how does it operate? Discuss the merits and limitations of the doctrine of purchasing power parity, and tell what effect the maintenance of a high tariff by the United States against England has in the working of the doctrine as between these two countries.
  3. Validate the statement that the only way Germany can pay her indemnity is by an excess of exports over imports.
    Show how the mechanism of foreign exchange and international trade tends to produce like price movements all over the world.
  4. Outline the argument for the utility theory of value as opposed to the cost of production theory of value and show the application of these arguments to the determination of the share of industrial earnings going per unit to land and to capital.
  5. How is rent determined when the same land may be used for a number of different purposes? What has the varying intensivity [sic] of cultivation to do with rent?
    What is the economic justification of labor unions?
  6. Distinguish the attitude of British law and the Clayton Act in regard to labor disputes. What place does the concept of conspiracy play in the treatment by the courts of labor troubles in this country? Do you consider it just for the employer to bear the whole cost of industrial accidents? Is this the effect of our compensation laws?
  7. How large a return must be imputed to capital goods in order that they may truly pay for themselves? Does the fact that the price of consumption goods, when traced back, ultimately resolves into rent, wages and interest mean that there is no such thing in the long run as profits? (Reasons)
    Show roughly how income is distributed among our population. What can be done to improve this distribution.
  8. Is an increasing percentage of the national income spent for governmental activity a sign of increasing extravagance? (Reasons) To what extent should a government borrow and to what extent should it support itself by taxation? What constitutes justice in taxation?
  9. Distinguish direct and indirect taxes. Name some taxes of each kind. What taxes can be shifted? What determines the amount of shifting? What are the objections to a general property tax?

 

Examination in Statistics
(Pol. Econ. II)

January 31, 1924

  1. What are some of the common sources of secondary data? Given the relative advantages and disadvantages of collecting data by (a) personal investigation, (b) questionnaires, (c) enumerators. Give examples where possible in all cases.
    20 minutes.
  2. Give the number and total capacity of box cars, coal cars, and other cars in the Eastern, Southern, and Western Districts of the United States, tabulate so as to show average capacity of these three types and of all cars in each district and in all districts; use letters with subscripts to represent data, e.g. capacity coal cars in the Southern District = Ccs.
    30 minutes.
  3. Sow the various ways in which the above data could be presented diagrammatically, pictorially, or graphically.
    20 minutes.
  4. Given the following data:
Article of Food Consumption, 1901, per family Average Retail Price per Unit
1913 1917 1920
Sirloin steak 70 lbs. $0.25 $0.32 $0.35
Eggs 80 doz. 0.35 0.48 0.70
Milk 350 qts. 0.09 0.11 0.17
Potatoes 15 bu. 1.00 2.60 3.80

Show (do not compute) how an index number for these four commodities would be made up on

      1. Bradstreet’s method,
      2. Dun’s method.
      3. Compute the index number for 1917 and 1920 according to the method of the Bureau of Labor Statistics (base = 1913).
      4. What is the chief objection to an “average of relatives” index number?
        25 minutes.

5.  (A or B).

    1. How is an ogive constructed? Illustrate by sketch and show how the mode and the eighth decile may be determined from it. How is a percentage histogram constructed? What is its purpose?
    2. Prove the general validity of the short-cut method of computing the standard deviation.
      15 minutes.

 

  1. Given the following data:
Operating Revenues of Class I Carries
Eastern District—1920
In Millions of Dollars
1 2 3 4 7 15 24 74 492
1 2 3 4 8 15 26 75 —
1 2 3 5 10 15 30 76 —
1 2 3 5 10 16 35 81 —
1 2 4 5 11 17 39 94 —
1 2 4 5 11 19 45 94 —
2 2 4 6 12 19 51 107 —
2 2 4 6 12 22 65 [?] 200 —
2 3 4 7 14 23 70 314 —
Arithmetic Average $32,268.

Calculate, showing operations, the quartile coefficient of dispersion and skewness (series is theoretically continuous).
Compute, in tabular form, the coefficient of dispersion based on the median (to nearest whole number of millions).
How many places are justified in the above arithmetic average, on basis of data shown? Calculate the coefficient of skewness based on the mode.
30 minutes.

  1. Inflation of money is accompanied, or followed, by higher prices. Price fluctuations are measured roughly by index numbers. To the extent that inflation in one country exceeds that in another, its exchange in terms of the currency of the other country will depreciate. The following exercise is designed to test the tenth [sic, “truth”] of this doctrine.
    Given the following data:
1920 Index Numbers Sterling Cables
New York
Value £ in Dollars
B.L.S.*
(United States)		 Statist+
(England)
January 248 288 $3.68
February 249 306 3.39
March 253 307 3.72
April 265 313 3.93
May 272 305 3.85
June 269 300 3.95
July 262 299 3.86
August 250 298 3.63
September 242 292 3.52
October 225 282 3.47
November 207 263 3.43
December 189 243 3.63
* Bureau of Labor Statistics, Wholesale Prices.
+ The Statist, English journal of finance, Wholesale Prices.

Reduce the B.L.S. indices to relatives of the corresponding statist indices, and correlate these relatives with the price of sterling by Pearson’s method. Does result confirm the above theory? How would you modify the method to correlate the short time changes in the two variables? Compute the standard deviation for one variable in your table.
Explain log. How would you plot a logarithmic historigram of the B.L.S. index numbers?
40 minutes.

 

POLITICAL ECONOMY III

Monday, May 26, 1924—9 a.m.

  1. What is standard money? State the requisites of (a) a gold standard; (b) a bimetallic standard; (c) a paper standard. State the advantages and disadvantages of each.
  2. Explain the functions of a commercial bank, showing what economic services it performs. Distinguish the functions of a commercial bank from those of (a) a savings bank; (b) an investment banker.
  3. Define, illustrate and explain the use of the following types of credit instruments: (a) promissory note; (b) bill of exchange; (c) trade acceptance; (d) bank acceptance.
  4. Explain the connection between the loans and deposits of commercial banks. To what extent ordinarily can an individual bank increase its loans as the result of a cash deposit of $100,000? To what extent can the loans of the banking system as a whole be increased as the result of such an addition to the cash deposits of the system? Explain.
  5. How does the Federal Reserve System provide for elasticity in currency and in credit? What is the need for such elasticity?
  6. What is the need for the control of bank credit? How may this control be effected under the Federal Reserve System?
  7. The Federal Reserve Bank of New York receives $8,000,000 of gold deposits.
    1. If member banks take all their rediscounts in federal reserve notes, how much additional paper can the reserve bank rediscount for its members, assuming that it does not borrow at other reserve banks? Make no allowance for discount charges.
    2. Answer the same question, assuming that member banks leave all their rediscounts on deposit.
    3. Answer the same question, assuming that member banks take 1/5 of their rediscounts in federal reserve notes and leave the remainder on deposit.
    4. Explain the quantity theory of money, showing the effect upon prices, of changes in the quantity of money, and of bank credit.

 

POLITICAL ECONOMY IV

January 31, 1924—9-12 A.M.

  1. Define a trade union and indicate the distinctions between trade unions and other analogous associations such as cooperative societies, societies of physicians, etc.
  2. Classify trade unions according to the character of the employer.
  3. Sketch the historical development, by periods, of American trade unionism.
  4. Describe the present structure of American trade unionism, indicating the relation of the national union to the other forms of organization.
  5. Classify American national trade unions from the point of view of function.
  6. Classify and discuss the methods of enforcement used by trade unions.
  7. What is meant by collective bargaining? What is the economic justification for collective individual bargaining?
  8. Describe the system known as scientific management and indicate why it has been opposed by trade unions.

 

POLITICAL ECONOMY VI
Corporation Finance

Monday, May 26, 1924

  1. Define a “bond”. Describe the following classes of bonds: divisional bonds, guaranteed bonds, income bonds, convertible bonds.
  2. Distinguish the capitalization, the capital, and the capital stock of a corporation.
  3. Distinguish equipment bonds and equipment trust certificates.
  4. Distinguish repairs, depreciation, and obsolescence.
  5. Discuss the relative advantages of serial bonds and sinking fund bonds.
  6. State and illustrate the law of balanced returns.
  7. Describe the various financial devices which have been used in the expansion of American railways.
  8. What is usually the nature of the agreement among the members under which an underwriting syndicate is formed?
  9. A corporation with common stock of $1,000,000 wishes to secure additional capital. The stock has a par value of $100 and is selling at $150. The corporation offers additional stock at par to the amount of $200,000, or one share of the new for each five shares held. What will be the value of the rights? What will be the value of the stock after the issue is consummated? Explain your answer.
  10. Define a “reorganization”, a “receivership”.

 

POLITICAL ECONOMY X
Business Organization

Monday, May 26, 1924—9 A.M.

Lectures

  1. Discuss the relation between the problem of distribution and the density of population, proportion of inhabitants living in cities, etc. What part does credit play in this problem? Is it a cause or an effect?
  2. What gains could be made in efficiency of our distribution system by the general state ownership and control of industry? Do you consider these possible gains sufficient grounds for the adoption of such a plan? (Reasons)
  3. What is meant by scientific management? Why is the present a logical time for its introduction into business? What is the purpose of motion study, and what does it consist of?
  4. Discuss the elements to be considered in locating an establishment. What is the proper balance between fixed and circulating capital (including investment in labor)? Why is (or is not) the cost-plus method of letting building contracts to be preferred to the lump sum method?
  5. Discuss the advantages and disadvantages of profit-sharing as a method of stimulating employee efficiency.

Text: Stockder

  1. What are securities? When is an industry said to be in the securities-capital stage? What are factors’ agreements? Why is it proper for railways to issue long term mortgage bonds, without sinking fund or serial retirement provisions, even to an amount exceeding the par value of stocks, and not for an ordinary industry to do so?
  2. Describe the joint-stock company operating structure. Why is the business trust said to be superior to all other forms of business organizations? Are these two forms of organization common law or statute law?
  3. Tell what you would do to organize a holding company which also to operate as an industrial company; including principal terms of agreements, regulations, etc.
  4. Describe the formation of the Standard Oil trust of 1882, using sketch. Is Federal Incorporation an effective or desirable remedy for commercial abuses? (Reasons)
  5. Have you completed the auxiliary reading, including supplementary forms in Stockder and pamphlets from U.S. Chamber of Commerce? If not, to what extent have you completed this reading?

 

POLITICAL ECONOMY XI
Accounting 1

January 30, 1924—9-12 A.M.

  1. [Given the following items:]
Cash $2,320
Inventory $12,000
Accounts Receivable $21,000
Reserve for Bad Debts $1,500
Store $20,000
Reserve for Depreciation $7,000
Accounts Payable $2,500
Capital Stock $20,000
Surplus $23,940
Insurance $120
Wages $500
$55,440 $55,400

Purchased on credit $20,000; paid creditors $21,500. Credit sales were $30,000; collected from customers $45,000. Estimated amount of uncollectable accounts receivable on books $1,750. Depreciation for period was $2,000. Other cash disbursements: Wates $6,000, Dividends $10,000. At the end of the year the unexpired insurance was $60, inventory $11,000, accrued wages $400.
From the above starting point—closing trial balance and the interim adjustments given, prepare a closed ledger, a final balance sheet, and a profit and loss statement.

  1. Describe two different ways of recording cash discounts on sales in the cash books. Do not mention any accounting books except the cash books.
  2. Define the different kinds of indorsements used with negotiable instruments.
  3. A note for $1,000, dated June 10, for 4 months, with interest at 7 per cent, was discounted July 30, at 8 per cent. Find the net proceeds under the rules of bank discount.

 

 

POLITICAL ECONOMY XI
Accounting 1
[Dr. Newlove]

May 28, 1924—9-12 a.m.

  1. A and B start in partnership investing $10,000 and $8,000, respectively, on January 1. A withdrew $2,000 on May 1 and invested $2,000 on November 1. B invested $3,000 on March 1 and withdrew $3,000 on July 1. Give the entries for the above transactions together with the allocation of a net profit of $5,000 on the average investment basis.
  2. X and Y, partners, sell their business to a new corporation, whose authorized stock of $50,000 is all paid to the partners. The balance sheet of X and Y is:
Cash $5,000 Accounts Payable $15,000
Merchandise 30,000 X, Capital 15,000
Accounts Receivable 25,000 Y, Capital 30,000
$60,000 $60,000

Give the detailed closing entries of the partnership.

  1. Give the detailed opening entries for the corporation in Problem 2.
  2. (a)
Accounts Receivable Reserve for Bad Debts
$75,000 $5,000

Make entry for a customer owing $500 who becomes bankrupt and pays 10 cents on the dollar.
(b)

Machinery Reserve for Depreciation
$50,000 $4,000

A machine, which cost $1,000 five years ago, is sold for $400. The recorded depreciation on the machine is $500. Give the entry for sale.

  1. C and D entered on January 1 a joint venture each contributing merchandise costing $5,000. C paid expenses of $1,000 on the same date. On July 1 C received a draft from the consignee for $15,000. Interest was allowed at the rate of 6 per cent per annum. Show the accounts on C’s books affected by the venture, if C settled with D on July 1.

 

POLITICAL ECONOMY XII
ECONOMIC HISTORY

January 29, 1924—9-12 A.M.

  1. How does economic history differ from political history?
  2. What did the Romans accomplish economically for Britain?
  3. (a) What were the rights and obligations of the various classes under the manorial system
    (b) Did William the Norman change the manorial plan fundamentally?
  4. How were goods exchanged in England of the Middle Ages?
  5. What were the facts which rendered the guilds suitable to the economic needs of the country at the time they flourished?
  6. (a) What were the consequences of the “Black Death”?
    (b) Of the “Peasants’ Revolt”?
  7. What were the main facts of the Industrial Revolution, and what was the economic theory upon which it rested?
  8. Tell something of (a) chartism; (b) the Factory Acts; (c) the rise of trade unions.
  9. What is the present status of child labor legislation in the United States?
  10. What have been the forces that have brought the Labor Party into power in England?

 

POLITICAL ECONOMY XII
ECONOMIC HISTORY

Saturday, May 24, 1924

  1. What were the colonial policies of Great Britain?
  2. (a) Give the chief economic doctrines of Alexander Hamilton.
    (b) What was the connection between economic interests and the formation of the Constitution?
  3. What were the chief economic causes and effects of the Civil War?
  4. Discuss the economic and political consequences of the opening of the West.
  5. What were the main routes covered by canals and railroads, and why were these selected?
  6. Discuss the growth of trusts.
  7. Why is the Federal Government gaining in power while the individual State Governments are losing power?
  8. A factory needing 500 operatives is located in a farming community. What will be the likely economic results?
  9. Discuss the tariff vs. free trade.

 

POLITICAL ECONOMY XIII
SOCIAL ECONOMICS

February 4th, 1924—9-12 A.M.

  1. Why are delinquency and dependency community problems?
  2. Give the laws regulating school attendance in Maryland. Are they adequate?
  3. Give the Child Labor Laws of Maryland.
  4. Give the significance of the White House Conference of 1909. State the recommendations made. Give what you think the most important outcome of this conference.
  5. Give the names of the social agencies in the Alliance of Charitable and Social Agencies. Describe the work of the Family Welfare Association and one other social organization in the federation.

 

POLITICAL ECONOMY XIII
SOCIAL ECONOMICS

Friday, May 30, 1924—9 a.m.

  1. What are the functions of a Charities Endorsement Committee?

  2. On what principles is social case work based? What is the difference in the meaning of social case work and social work?
  3. Of what value is knowledge of social economics to the professional and business man?
  4. Give the social functions of recreation.

 

Source:  Johns Hopkins University. Milton S. Eisenhower Library, Ferdinand Hamburger, Jr. Archives. Department of Political Economy, Series 5/6, Box 6/1, Folder “Exams, 1907-1924”.

Image Source: Gilman Hall, Johns Hopkins University. Hullabaloo 1924.

Categories
George Mason Methodology Suggested Reading Syllabus

George Mason. Course readings for Economic Philosophy. Buchanan and Vanberg, 1990

 

This post is an experiment in transcription. The HOPE Center at Duke University has started recently to provide pdf scans of syllabi from Ed Tower’s Eno River Press collection and I wondered how easy it would be to use the text-recognition software in Adobe Acrobat Pro to extract digital versions of the syllabi. It turns out that at least for this initial attempt, tweaking and correction of the OCR text required considerably less blood, sweat and tears than a standard typed transcription would have. 

Like other members of the greater community of historians of economics, I eagerly await further scans from the Tower volumes by the HOPE Center. From time to time, I’ll convert a scanned syllabus to add to the collection of digital material posted at Economics in the Rear-view Mirror. Links to the original scans will be provided whenever available. 

_________________________

George Mason University
SPRING 1990

Economics 827: ECONOMIC PHILOSOPHY
James M. Buchanan, Viktor J. Vanberg

Purpose and theme:

The purpose of this course is to discuss some of the issues at the foundations of economics as a social science. It will cover topics like the following (the numbers behind the titles refer to the reading list):

— Economics as moral philosophy (1, 13, 15, 20).

— Welfare economics and political economy (2, 3, 4).

— Methodological and normative individualism (14, 22).

— Subjectivism and opportunity costs (9, 12, 30).

— Utilitarianism and contractarianism (5, 16, 18, 19, 24).

— Agreement in exchange, in politics and in science (10, 29).

— Liberty, voluntariness and efficiency (7, 26).

— Justice as fairness and distributive justice (6, 11, 21, 23, 24).

— Homo economicus, rational choice and rule-following (8, 25, 27).

— Economics and morality (17, 19, 28).

Organization:

The constituting meeting for this course will be held on January 23, 7:20 p.m., in room R 2600. The core part of this course will be taught during the two-weeks period February 19 through March 2 in the library of the center for Study of Public Choice, George’s Hall, from 8:30 a.m. to 11:00 a.m. (daily Mon. through Fri.).

Grading:

Grades will be determined on daily (one page) protocols during the ‘core-period’ and a longer (15-20 pages) paper on a subject to be chosen between student and instructor.

Reading List:

(A set of xerox-copies of the following titles will be available from Kinko’s Copies, University Mall).

  1. Albert, Hans “Knowledge and Decision” chpt. 3 in H. Albert Treatise in Critical Reason Princeton University Press 1985, 71-101.
  2. Buchanan, James M. “Social Choice, Democracy, and Free Markets” in Fiscal Theory and Political Economy Chapel Hill 1960, 75-89.
  3. — , — “Positive Economics, Welfare Economics, and Political Economy” in Fiscal Theory and Political Economy Chapel Hill 1960, 105-124.
  4. — , — “The Relevance of Pareto Optimality” in The Journal of Conflict Resolution 6, 1962, 341-354.
  5. — , — “Marginal Notes on Reading Political Philosophy” in J. M. Buchanan and G. Tullock The Calculus of Consent Ann Arbor 1965, 307-322.
  6. — , -— “Notes on Justice in Contract” in Freedom in Constitutional Contract Texas A&M University Press 1977, 123-134.
  7. — , — “Criteria for a Free Society: Definition, Diagnosis, and Prescription” in Freedom in Constitutional Contract Texas A&M University Press 1977, 287-299.
  8. — , — “ls Economics the Science of Choice?” in What Should Economists Do? Liberty Press 1979, 39-63.
  9. — , — “General Implications of Subjectivism in Economics” in What Should Economists Do?” Liberty Press 1979, 81-91.
  10. — , — “The Potential for Tyranny in Politics as Science” in Liberty, Market and State New York University Press 1985, 40-54.
  11. — , — “Rules for a Fair Game: Contractarian Notes on Distributive Justice” in Liberty, Market and State New York University Press 1985, 123-139.
  12. — , — “L.S.E. Cost Theory in Retrospect” in Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987, 141-151.
  13. — , — “Political Economy and Social Philosophy” in P. Koslowski, ed., Economics and Philosophy, Tuebingen 1985.
  14. — , — “The Foundations for Normative Individualism” mimeographed, Center for Study of Public Choice.
  15. Buchanan, James and Gordon Tullock “The Politics of the Good Society,” Chpt. 20 in The Calculus of Consent Ann Arbor 1965, 297-306.
  16. Gauthier, David “On the Refutation of Utilitarianism” in H B. Miller and W. H. Williams (eds.) The Limits of Utilitarianism University of Minnesota Press 1982, 144-163.
  17. — , — “Maximization Constrained: The Rationality of Cooperation” in R. Campbell and L. Sowden (eds.) Paradoxes of Rationality and Cooperation Vancouver 1985, 75-93.
  18. Hahn, Frank “On Some Difficulties of the Utilitarian Economist” in A. Sen and B. Williams (eds.) Utilitarianism and Beyond Cambridge University Press 1982, 187-198.
  19. Harsanyi John C. ”Morality and Social Welfare” chpt. 4 in J. C. Harsanyi Rational Behavior and Bargaining Equilibrium in Games and Social Situations Cambridge University Press 1977, 48-64.
  20. Hayek, Friedrich A. “Kinds of Rationalism” in F. A. Hayek Studies in Philosophy, Politics and Economics The University of Chicago Press 1967, 82-95.
  21. — , — “The Atavism of Social Justice” in F. A. Hayek New Studies in Philosophy, Politics, Economics and the History of Ideas The University of Chicago Press 1978, 57-68.
  22. Lachmann, Ludwig M. “Methodological Individualism and the Market Economy” in L. M. Lachmann Capital, Expectations, and the Market Process Kansas City 1977, 149-165.
  23. Nozick, Robert “Distributive Justice” chpt. 7 in R. Nozick Anarchy, State, and Utopia New York 1974, 149-164 + 183-189.
  24. Rawls, John “Justice as Fairness” chpt. 1 in J. Rawls A Theory of Justice Harvard University Press 1971, 3-27.
  25. Sen, Amartya “Behaviour and the Concept of Preference” in J. Elster (ed.) Rational Choice Basil Blackwell 1986, 60-81.
  26. Vanberg, Viktor “Individual Choice and Institutional Constraints – TheNormative Element in Classical and Contractarian Liberalism” in Analyse & Kritik Vol. 8, 1986, 113-149.
  27. — , — “Rational Choice, Rule-Following and Institutions” mimeographed, Center for Study of Public Choice, 1989, 49pp.
  28. Vanberg, Viktor and James M. Buchanan “Rational Choice and Moral Order” in Analyse & Kritik 10, 1988, 138-160.
  29. Vanberg, Viktor and James M. Buchanan “Interests and Theories in Constitutional Choice” in Journal of Theoretical Politics 1, 1989, 49-62.
  30. Wiseman, Jack “General Equilibrium or Market Process: An Evaluation” in J. Wiseman Cost, Choice and Political Economy Edward Elgar 1989, 213-233.

Readings suggested for further study:

Buchanan, James M. Cost and Choice — An Inquiry in Economic Theory Chicago 1969.

— , — Freedom in Constitutional Contract Texas A&M University Press 1977.

— , — Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987.

Gauthier, David Morals By Agreement Oxford: Clarendon Press 1986.

Gray, John Liberalism Open University Press 1986.

Hayek, Friedrich A. Law, Legislation and Liberty University of Chicago Press 1974, 1976, 1979 (three volumes).

— , — The Fatal Conceit — The Errors of Socialism London: Routledge 1988 (Vol. 1 of The Collected Works of Friedrich August Hayek).

Nozick, Robert Anarchy, State, and Utopia New York: Basic Books 1974.

Rawls, John A Theory of Justice Harvard University Press 1971.

Vanberg, Viktor Morality and Economics — De Moribus Est Disputandum, New Brunswick: Transaction Books 1988 (Social Philosophy and Policy Center, Original Papers No. 7).

Source: Transcribed from the images scanned from the Eno River Press volumes of syllabuses of economics coursescompiled and published by Ed Tower that he donated to the History of Political Economy (HOPE) Center at Duke University.

Image Sources: Buchanan portrait from the Nobel prize website. Vanberg portrait from the Walter Eucken Institut website.

Categories
M.I.T. Syllabus Undergraduate

M.I.T. Course outline and readings for undergraduate applied microeconomics. McFadden, 1978

I don’t remember how this particular course outline came into my possession during my graduate student days. I presume my sticky fingers together with an early manifestation of a propensity to hoard papers resulted in these four-pages finding their way into my files of teaching material. Now decades later, this applied microeconomics outline from Daniel McFadden’s first semester on the M.I.T. faculty is digitised. Only wish I had the eight problem sets too…

_________________________

14.03
APPLIED MICROECONOMICS

Daniel McFadden
Fall 1978

MWF 11-12
16-134

General Information:

14.03 is organized around a set of applied microeconomic problems. It is not a course in economic theory, but theoretical topics will be treated as they arise in the applications. Students are expected to know basic microeconomics as taught in 14.01 or another course at the level of R. Leftwich’s The Price System and Resource Allocation. Students are also expected to be able to use calculus with ease. The textbook for 14.03 is Microeconomic Theory: Basic Principles and Extensions, 2nd ed., by Walter Nicholson (Dryden Press, 1978). Various other readings will be assigned.

Problem sets will be handed out on Wednesday and will be due the following Wednesday in class. They will be graded and returned on Friday. Generally, Monday and Wednesday will be devoted to lectures, and Friday to discussion and review, including discussion of the answers to the problems. Every student is expected to complete every problem set within the allocated time. There will be three quizzes in class. Problem sets will account for 40% of the course grade, the quizzes for 30%, and the final for 30%.

I will be available in E52-274B on Wednesday afternoons, and by appointment at other times; my phone is 253-3378. Generally, you should take questions about problem sets and grading to the teaching assistant (his name will be announced later) and questions about the lectures to me.

The problems to be covered are:

    1. the demand for energy,
    2. the demand for air conditioners,
    3. the supply of electricity,
    4. the market for natural gas,
    5. the market for automobiles,
    6. pricing of tugboat services and the anti-trust law,
    7. costs and risks of nuclear and non-nuclear energy development,
    8. public investment in transportation.

The schedule of quizzes is:

Quiz 1—October 11, covering problems 1 & 2.

Quiz 2—November 1, covering problems 3 & 4 plus preceding material.

Quiz 3—November 29, covering problems 5, 6, 7 plus preceding material.

 

READINGS AND SCHEDULE

  1. The demand for energy.

Lectures: Sept. 13, 15, 18, 20.

Discussion: Sept. 22, 29.

Problem Set 1: out Sept. 20; due Sept. 27.

Read: Nicholson 3, 4, 5 (skim 6).

L. Taylor, “The demand for electricity: A survey,” BELL JOURNAL OF ECONOMICS 6 (Spring 1975), 74-110.

D. McFadden et al., “Determinants of the long-run demand for electricity,” PROCEEDINGS OF THE AMERICAN STATISTICAL ASSOCIATION,

A TIME TO CHOOSE, Energy Policy Project of the Ford Foundation (Ballinger, 1974), Chap. 5 and Appendices A, B.

  1. The demand for air conditioners.

Lectures: Sept. 25, 27.

Discussion: Oct. 6.

Problem Set 2: out Sept. 27; due Oct. 4

Read:

J. Hausman, “Consumer choice of durables and energy demand,” MIT, mimeo., 1978.

A. Goett, “Appliance fuel choice: An application of discrete multivariate analysis,” manuscript, 1978.

  1. The supply of electricity.

Lectures: Oct. 2, 4, 13, 16.

Discussion: Oct. 20.

Problem Set 3: out Oct. 11; due Oct. 18.

Read: Nicholson 7, 8, 9.

D. Pearl and J. Enos, “Engineering production functions and technological progress,” JOURNAL OF INDUSTRIAL ECONOICS 24 (1), (Sept. 1975), 55-72.

L. Wipf and D. Bowden, “Reliability of supply equations derived from production functions,” AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS 51 (February 1969), 170-78.

M. Nerlove, “Returns to scale in electricity supply,” in MEASUREMENT IN ECONOMICS, C. Christ (ed.), (Stanford Univ. Press, 1963), pp. 167-98.

T. Cowling, “Technical change and scale economies in an engineering production function: The case of steam electric power,” JOURNAL OF INDUSTRIAL ECONOMICS 23 (1974-75), 135-52.

  1. The market for natural gas.

Lectures: Oct. 18, 23, 25.

Discussion: Oct. 27.

Problem Set 4: out Oct. 18; due Oct. 25.

Read: Nicholson, Part IV, Chap. 10, 11, 12, 13 (skim 14, 15, 16).

P. MacAvoy and R. Pindyck, “Alternative regulatory policies for dealing with the natural gas shortage,” BELL JOURNAL OF ECONOMICS 4 (Autumn 1973), 454-98.

R. Hall and R. Pindyck, “The conflicting goals of national energy policy,” PUBLIC INTEREST 47 (Spring 1977), 3-15.

  1. The market for automobiles.

Lectures: Oct. 30, Nov. 3.

Discussion: Nov. 10.

Problem Set 5: out Nov. 1; due Nov. 8.

Read: Nicholson 17.

G. Akerlof, “The market for ‘lemons’: Qualitative uncertainty and the market mechanism,” QUARTERLY JOURNAL OF ECONOMICS 84 (1970), 488-500.

Z. Griliches, PRICE INDICES AND QUALITY CHANGE (Harvard, 1971), Introduction and Chap. 3.

R. P. Smith, CONSUMER DEMAND FOR CARS IN THE USA (Cambridge, 1975), pp. 1-88.

  1. Pricing of tugboat services and the anti-trust law.

Lectures: Nov. 6, 8.

Discussion: Nov. 17.

Problem Set 6: out Nov. 8; due Nov. 15.

Read: Nicholson 18, 19, 20.

P. Areeda and D. Turner, “Predatory pricing and related practices…,” HARVARD LAW REVIEW 88 (1975), 697-733.

F. Scherer et al., “Predatory pricing and the Sherman Act, “ HARVARD LAW REVIEW 89 (1976), 868-902.

D. McFadden and R. Palmer, “The economic foundation for liability and damages from predatory pricing,” manuscript, 1978.

S. Goldman, “Industrial concentration and economic welfare: Some theoretical observations,” Working Paper IP-251 in Economic Theory and Econometrics, Berkeley, October 1977.

  1. Benefits and risks of nuclear and non-nuclear energy development.

Lectures: Nov. 15, 20, 22.

Discussion: Nov. 27.

Problem Set 7: out Nov. 15; due Nov. 22.

Read: Nicholson 6, 18, 19, 20.

S. Rosen and Thaylor, reference to be supplied.

A. Tversky, SCIENCE 185 (Sept. 27, 1974), 1124-31.

Joel Yellen, “The nuclear regulatory commission’s reactor safety study,” BELL JOURNAL OF ECONOMICS 7 (1) (Spring 1976), 317-39.

  1. Public investment in transportation.

Lectures: Dec. 1, 4, 6, 11.

Discussion: Dec. 8.

Problem Set 8: out Nov. 29; due Dec. 6.

Read: Nicholson 21, 22, 23.

D. McFadden, “Revealed preferences of a government bureaucracy: Theory,” BELL JOURNAL OF ECONOMICS 6 (Autumn 1975), 401-16.

D. McFadden, “Criteria for public investment,” JOURNAL OF POLITICAL ECONOMY 80 (1972), 1295-1305.

T. Keeler et al., THE FULL COSTS OF URBAN TRANSPORT,

M. Webber, “The BART experience—What have we learned,” PUBLIC INTEREST 45 (Fall 1976), 79-108.

Final review: December 13.

Source: Personal copy of Irwin Collier.

Image Source: Gonçalo L. Fonseca’s  “Daniel McFadden profile page” at The History of Economic Thought Website.

 

 

 

Categories
Exam Questions Harvard History of Economics

Harvard. Exam for undergraduate history of economic thought. Fellner, 1950-1951.

 

 

The transcribed exam below is the third in a series of posts for mid-twentieth century Harvard courses for which outlines and reading lists have been previously transcribed at Economics in the Rear-view Mirror. 

Required readings for William Fellner’s history of economic thought course were taken from:

Gide, Charles and Rist, Charles, History of Economic Doctrines
Gray, Alexander, The Development of Economic Doctrine

The course outline together with the required chapter readings along with a list of over a hundred titles (most of which have been linked to digital copies) can be found at the link:

https://www.irwincollier.com/harvard-history-of-economic-thought-fellner-1950/

_______________________

Economics 100.
History of Economic Thought

Half-course (fall term). Tu., Th., and (at the pleasure of the instructor) Sat., at 9. Professor Fellner (University of California).

Source: Official Register of Harvard University. Vol. XLVII, No. 23 (September 1950): Final Announcement of the Courses of Instruction Offered by the Faculty of the Arts and Sciences During 1950-51, p. 79.

_______________________

Mid-year final examination, January 1951

1950-51
HARVARD UNIVERSITY
ECONOMICS 100

Part I

Discuss the following question:

“Historical change in economic doctrine reflects changes in the orientation and the objectives of writers. However, it also reflects improvement in methods of approach.” Do you agree with this statement? Explain your position and illustrate it.

 

Part II

Discuss two questions and comment briefly on a third.

  1. Draw a contrast between mercantilistic and physiocratic thought and discuss the reaction of Adam Smith to both.
  2. In what respects was Malthus a “classical” economist and in what respects was he not?
  3. Discuss Ricardo’s views on comparative costs and appraise the bearing of this theory on the free trade doctrine.
  4. Is the Marxian value theory rooted in classical doctrine? What are the main differences? What is the significance of the Marxian value theory for the Marxian system as a whole?
  5. Trace the main stages in the development of the theory of rent from Adam Smith to about the end of the nineteenth century.

Source: Harvard University Archives. Harvard University, Final Examinations, 1853-2001. Box 17, Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics, …, Military Science, Naval Science, January 1951 (in bound volume Final Exams—Social Sciences, Jan. 1951).

Image Source: Photo of William Fellner from Hoover Institution Archives, Gottfried Haberler Papers, Box 43, Blue Folder without label.

 

Categories
Exam Questions Harvard

Harvard. Semester exams for advanced economic theory. Fellner, 1950-1951

 

William Fellner from the University of California was called in to fill for Wassily Leontief’s graduate course in Advanced Economic Theory during the academic year 1950-51 at Harvard. Leontief had been awarded a John Simon Guggenheim Memorial Foundation Fellowship.  Fellner also taught a  history of economics for undergraduates during his year at Harvard.

The outline and reading list for Fellner’s advanced economic theory course have been previously posted.

________________________

Course Announcement

Economics 202 (formerly Economics 102a and 102b). Advanced Economic Theory

Full course. Tu., Th., and (at the pleasure of the instructor) Sat., at 11. Professor Fellner (University of California).

Economics 201 or an equivalent training is a prerequisite for this course. Other properly qualified students must obtain permission to register from the instructor.

Source: Harvard University Archives. Courses of Instruction, Box 6, Final Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1950-51, p. 83.

________________________

Mid-year Examination, June 1951

1950-51
HARVARD UNIVERSITY
ECONOMICS 202

Answer THREE of the following four questions:

  1. On usual definitions of rationality, the following is true of some types of market: Price and output can be derived from technological functions and utility functions or indifference maps (for a given distribution of income), without allowance for additional determinants such as “bargaining power” or “relative strength.” However, there exist important market structures of which this is not true. Do you agree with these propositions? Discuss them, appraising also the significance of the rationality assumptions for the proportion contained in the first sentence.
  2. According to equilibrium analysis for specific industries, monopoly output is (almost always smaller than competitive output. Discuss some of the difficulties standing in the way of applying this proposition directly to the socially significant questions of the “restrictive effects” of deviations from pure competition in the real world.
  3. Theories of market structures are concerned with groups of firms that may perhaps be loosely called industries. However, these do not coincide with industries in the conventional sense. Discuss.
  4. By what purpose are economists led in their attempt to “go behind” the demand curves of individuals and to derive these from underlying concepts (e.g. indifference maps)? How satisfactory are the results? Illustrate your views with reference to some specific aspect of the theory in question. Do you feel that economics would be poorer, in essential respects, if it regarded the demand functions of individuals as ultimate (“given”) data?

Source: Harvard University Archives. Harvard University, Final Examinations, 1853-2001. Box 17, Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics, …, Military Science, Naval Science, January 1951 (in bound volume Final Exams—Social Sciences, Jan. 1951).

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Final Examination, June 1951

1950-51
HARVARD UNIVERSITY
ECONOMICS 202

Discuss questions 1; 2 or 3; and 4.

  1. [Three parts]
    1. Describe how income and employment are determined in the Keynesian system.
    2. Discuss the effect of changes in the wage unit on the equilibrium level of income, introducing alternative assumptions concerning the elasticity of the liquidity preference function and that of the marginal efficiency function.
    3. How would the Keynesian analysis be affected by the assumption that consumption is a function of the supply of money as well as of the rate of income?
  2. Do you consider Irving Fisher’s income concept superior in some respects to those usually employed? If so, in what respects? How do you explain the fact that it is not used more frequently?
  3. If, along given production functions, the supply of one factor is increased in relation to the other, would you expect the relative share of the increasing factor to fall? Do you believe that in such circumstances innovations in general, and induced innovations in particular, are likely to influence the result?
  4. [Four parts]
    1. Explain the significance of time-preference and of the productivity of capital for the determination of “the” interest-rate.
    2. What is implied in the “classical” assumption that monetary factors do not influence the rate of interest in the long run?
    3. How can the monetary factors be worked into the theory if the assumption described in the preceding paragraph is not made (or if the analysis is concerned with the short run)?
    4. Do you suggest drawing a distinction between the “risk premia” included in interest-rates (other than the pure or net rate) on the one hand, and profit on the other? Along what lines could this distinction be drawn?

Source: Harvard University Archives. Harvard University, Final Examinations, 1853-2001. Box 27, Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics, …, Air Sciences, Naval Science, June 1951 (in bound volume Final Exams—Social Sciences, Jan. 1951).

Image Source: AEA portrait of William Fellner, Number 71 of a series of photographs of past presidents of the Association, in American Economic Review, Vol. 60, No. 1 (1970).

 

 

Categories
Exam Questions Harvard

Harvard. Exams for first-year graduate economic theory. Haberler.

 

The first year graduate theory course at Harvard was jealously taught by Edward Chamberlin during the mid-20th-century. In 1950-51 Chamberlin sailed off to France as a Fulbright Exchange Scholar, leaving “his” course to be taught by the other alpha-theorist in the department, Gottfried Haberler. The outline and reading list for the two semester graduate introductory economic theory sequence (Economics 201) were transcribed and posted earlier. Today I just noticed that I hadn’t yet transcribed the exams for Ec 201 in 1950-51 that were copied during a later archival visit. So without further ado, I gladly (and proudly) add these exams to the Economics in the Rear-view Mirror collection.

_________________________

Course Announcement

Economics 201 (formerly Economics 101a and 101b). Economic Theory

Full course. Tu., Th., and (and the pleasure of the instructor) Sat at 10. Professor Haberler.

This course is normally taken by graduate students in their first year of residence. 

Source: Harvard University Archives. Courses of Instruction, Box 6, Final Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1950-51,  p. 83.

_________________________

First Semester Final Exam, January 1951

1950-51
HARVARD UNIVERSITY
ECONOMICS 201a

Answer Five questions (Write legibly!)

  1. “Utility theory of the cardinal as well as of the ordinal type is a superstructure of questionable utility. It is much more sensible to start economic analysis with demand and supply curves and to forget about utility altogether.” (Cassel). Comment.
  2. In a price-quantity diagram we are given a demand curve for commodity A in terms of commodity B. Suppose we now look at this relationship as a supply of B in exchange for A. Show graphically what the supply curve of B will look like under the following assumptions:
    1. The demand curve for A is a sloping straight line.
    2. The demand curve for A has a constant elasticity of unity.
    3. The demand curve for A is infinitely elastic.
    4. The demand curve for A has an elasticity of less than one.
      Draw each supply curve alongside of the corresponding demand curve.
  3. It has been often argued, especially by Walras, that under free competition exchange produces an “optimum” situation. But it has also been stated that a discriminating monopolist can reach an “optimum” position as compared with a simple monopolist. Discuss the meaning and limitations of these statements with the aid of two superimposed indifference maps.
  4. Draw the short run and long run cost curves of an individual firm including marginal cost, average total cost and average variable cost curves.
    Indicate and discuss how the short run and long run supply curve of the firm is derived from or related to the cost curves.
  5. How do you derive an industry supply curve from the supply curves of the individual firms? Under what assumptions can that be done by simply adding horizontally the individual supply curves?
  6. Discuss the factors which may limit the size of a firm and the degree of vertical integration.
  7. Explain the meaning and the use of the production function. How would you derive a cost curve from the production function of a single product and two factors?

Source: Harvard University Archives. Harvard University, Final Examinations, 1853-2001. Box 17, Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics, …, Military Science, Naval Science, January 1951 (in bound volume Final Exams—Social Sciences, Jan. 1951).

_________________________

Second Semester Final Exam, May 1951

1950-51
HARVARD UNIVERSITY
ECONOMICS 201

Write legibly

Part I (One Hour)

  1. Compare the interest theories of Schumpeter, Fisher, Knight, and Böhm-Bawerk.

 

Part II Choose four out of five (One Half Hour Each):

  1. Compare the theory of marginal productivity with Marshall’s theory of “joint demand.”
  2. Discuss some alternative explanations of profits. To what extent can the marginal productivity principle be used for the determination of profits?
  3. Discuss the principal contributions to price theory of the Oxford Study in Business Behaviour by R. L. Hall and C. J. Hitch.
  4. State and appraise critically the basic postulates of the so-called modern welfare economics, as compared with the “old” version.
  5. In what sense can it be said that (a) a monopolist in a product market and (b) a monopsonist in the labor market “exploit” their employees? Analyse the problem graphically.

Source: Harvard University Archives. Harvard University, Final Examinations, 1853-2001. Box 27, Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics, …, Air Sciences, Naval Science, June 1951 (in bound volume Final Exams—Social Sciences, Jan. 1951).

Image Source: Harvard Class Album 1950.

Categories
Economists Harvard

Harvard. Schumpeter opines on Germany’s future under Hitler, 1933

 

If memory serves me correctly, Larry Summers once commented on a paper by Bob Hall to the effect that the biggest home-run hitters also strike out the most (or did Hall say that about Summers? … whatever). In any event Joseph Schumpeter certainly went down swinging as a political pundit before setting sail to Europe in 1933 with Frank Taussig and his daughter.

 

__________________________

SAYS NAZI GERMANY TO “SETTLE DOWN”
Prof Schumpeter, Harvard, Sails With Prof Taussig

Germany, under Hitler, “looks much worse than she actually is; in a few months the Nazi Government will settle down to a more rational, conservative routine—and then Germany will become a power not only to respect but also, possibly, to fear,” asserted Prof Joseph A. Schumpeter, economics professor at Harvard and Minister of Finance in Austria in 1919, last night before he sailed for two months in Europe.
Boarding the Cunarder Scythia, in company with his superior in the Harvard economics department, Prof Frank W. Taussig, Dr Schumpeter declared that Hitler can conduct the Government on a sounder financial basis than would be possible under a parliamentary setup.
The two professors will spend the Summer visiting scholars and universities on the Continent. Prof Taussig is accompanied by his daughter, Dr Helen B. Taussig.

Source: The Boston Globe, May 27, 1933, p. 13.

Image Source: Harvard University Archives, from Schumpeter’s 1932 German passport.

Categories
Economists Gender Harvard

Radcliffe. Economics Ph.D. alumna, Elizabeth Boody, 1934

 

Joseph Schumpeter’s third wife, Romaine Elizabeth Firuski née Boody (1898-1953), was the first Radcliffe woman to be awarded the distinction of receiving a summa cum laude A.B. in economics. This post provides a few items from her undergraduate years as well as a brief biography that the Find-A-Grave website clearly copied from somewhere else, but which for our purpose here is still a useful summary. The wedding announcement “Mrs. E.B. Firuski Wed to Educator” from the New York Times (August 17, 1937) provides a wonderful detail regarding the location of the wedding luncheon–the Viennese Roof Garden of the St. Regis in Manhattan.

For much more detail about Elizabeth Boody Schumpeter’s life, career, and her personal and professional partnership with Joseph Schumpeter, see:

Robert Loring Allen, Opening Doors: The Life and Work of Joseph Schumpeter. Volume 2: America. London and New York: Routledge, 1991.

Richard A. Lobdell, “Elizabeth Boody Schumpeter (1898-1953)” in A Biographical Dictionary of Women Economists, Edited by Robert W. Dimand, Mary Ann Dimand, and Evelyn L. Forget. London: Edward Elgar Publishing, 2000, pp. 382-385.

Richard Swedberg, Joseph A. Schumpeter: His Life and Work. Polity Press, 1991.

Elizabeth Boody received her Ph.D. in economics from Radcliffe in 1934. Her doctoral dissertation had the title “Trade Statistics and Cycles in England, 1697-1825”.

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Radcliffe College Yearbook, 1920

Source: Elizabeth Boody’s senior picture from the Radcliffe Yearbook 1920, p. 36

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Brief biography from the Find-a-Grave Website

Elizabeth Boody Schumpeter was an economist and expert on East Asia.

Born Romaine Elizabeth Boody on 16 August 1898 in Lawrence, Massachusetts, she was the daughter of Maurice and Hulda (Hokansen) Boody. She lived there with her family until she enrolled at Radcliffe College in the Fall of 1916.

At Radcliffe, Boody majored in economics, pursuing a special interest in labour problems. In the spring of 1920, she was awarded the college’s first summa cum laude AB degree in economics. After graduation, Boody worked as an assistant labour manager for a clothing firm in Rochester, New York. She returned to Radcliffe for graduate studies in economics, including coursework in statistics as well as economics, reflecting the field’s increasing interest in quantitative data and statistical techniques. Boody published her first scholarly article in 1924 in the Review of Economic Statistics, eventually becoming the first woman to serve as a contributing editor of that journal. She earned an M.A. in 1925 and joined the Harvard University Committee on Economic Research, where she was particularly interested in the statistical analysis of time series data and their use in forecasting business cycles. Resuming doctoral studies at Radcliffe, Boody spent 1926 and 1927 collecting English trade statistics for her thesis in London, where she was strongly influenced by Harold Laski and others at the London School of Economics.

Boody was appointed an Assistant Professor of Economics at Radcliffe. She also taught at Vassar (1927-1928) and at Wheaton College (1938-1939, 1948-1949). As a lecturer and author of articles on East Asian economics and politics, she advocated a “moderate isolationist” policy in the Pacific during the years preceding World War II. She was an assistant editor of the Quarterly Journal of Economics.

Boody completed her Ph.D. in 1934. From 1935 to 1940 she worked for the Bureau of International Research at Harvard University. There she directed two studies: one of English trade during the 18th century, and one on the industrialization of Japan and Manchukuo. These resulted in the publication of two books, one of them posthumous: The Industrialization of Japan and Manchukuo (1940) and English Overseas Trade Statistics, 1697-1808 (1960).

In 1937 she married fellow Harvard economist Joseph Alois Schumpeter. He died 08 January 1950 at their residence in the hamlet of Taconic, Town of Salisbury, Litchfield County, CT, where she ran a small nursery. She edited their posthumously published magnum opus, History of Economic Analysis (1954), based on his research.

Elizabeth Boody Schumpeter died of cancer 17 July 1953.

Her personal and professional papers, dating from 1938-1953, are archived at the Arthur and Elizabeth Schlesinger Library on the History of Women in America, Radcliffe Institute, Harvard University, Cambridge, Massachusetts.

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THE THIRD DIVISION

Sarah Wambaugh, A.B. 1902, A.M. 1917
Romaine Elizabeth Boody, A.B. 1920

Sarah Wambaugh, author of “A Monograph on Plebiscites” and temporary member of the Administration Commission and Minority Section of the Secretariat of the League of Nations, is now an instructor in Political Science at Wellesley College. Romaine Elizabeth Boody graduated summa cum laude in Economics, and became Assistant Employment Manager for the Hickey-Freeman Company of Rochester, New York.

[High likely that Elizabeth Boody is one of the Radcliffe women in the picture below.]

A VISITOR in Cambridge having supper at the Cock Horse, once the home of Longfellow’s “Village Blacksmith,” may occasionally encounter a group of girls in deep discussion. They may be eagerly arguing some point with a man, whom one instantly labels a Harvard professor. The visitor is probably privileged to gaze upon an evening meeting of the Third Division Club of Radcliffe College. The issue may be the League of Nations, the tariff, a decision of the disarmament conference, or any other topic of the day.

The Third Division from which the Club takes its name includes the Departments of History, Government, and Economics. Students concentrating in these departments formed the club some three years ago with a double purpose — to increase the pleasant social intercourse of students and professors interested in the division and to prepare members to pass their final General Examination. When this examination was uppermost in mind, the Club was often unofficially known as the “Third Degree Club.”

Both to Harvard and to Radcliffe large numbers of students have always been drawn from far and wide by the authority and record for public service of the men who give instruction in these departments. But at Radcliffe, interest in these courses has increased greatly during the last few years, until in 1920 approximately one fourth of the Senior class chose this field of concentration. This impetus is traceable in part to the war and to the larger place women are occupying in industrial and social life, but especially to the stimulus of the chance to work under the guidance of men whose names are always in the public print, whose opinions have been anxiously sought at every juncture of the Great War and of the readjustment period.

Regardless of the actual quality of the instruction, is it not human nature to listen the more eagerly to the well-known expert who may come to class occasionally directly from the train from Washington where he has been acting as adviser to a congressional committee? The privilege of hearing and questioning a Thomas Nixon Carver robs the name “sociology” of any impractical flavor it may have had in pre-college days. The labor situation seems to require immediate attention when a Ripley stands ready to interpret it. The newspaper-reading undergraduate who finds Radcliffe her natural habitat is pulled with equal urgency to International Law with George Grafton Wilson, and Municipal Government with William Bennett Munro.

When making up the courses of study for the year it is evident that the fare provided by the Third Division is tantalizing to say the least. How hard it is to choose. How can failure to study under Albert Bushnell Hart, Professor Holcombe, or Professor Day be explained to parents, old teachers, or the neighbors at home? Will one regret the rest of one’s days the omission of Professor Taussig’s course? Most likely. Certain alluring pages in the catalogue must be hurried over. The world seems nothing but one renunciation after another.

In addition to Harvard instruction, Radcliffe students of History, Government, and Economics have the use of the great Harvard Library. They have access to the Boston Public Library and its splendid Americana, to the Boston Athenaeum, famous for its Washingtonia, the Massachusetts State Library, strong on foreign law, and the Library of the Massachusetts Historical Society, rich in local history and manuscript material.

These departments were the first to adopt the tutorial system and the general final examination. Useful as the new plan has proved in other departments, it is especially suited to the study of these subjects. In a literal sense these are living subjects, changing their aspect with each day’s news — news which cannot be correctly interpreted by isolated study but only by discussion. The wide reading necessary must be judiciously assimilated in order to develop the student’s appreciation and critical faculties. This can be done only with the help of some one who had already mastered the subject.

Under the new plan tutors guide and assist the students in preparing for the final examination, meeting those in their charge individually every week. The tutor is in no sense a coach, rather a friendly counselor whose aid is an enormous encouragement to the student in learning how to learn.

It would be interesting to know what these women concentrating in Division Three do after leaving college. After discussing the problems of our present political and industrial structure in the Liberal Club, the Debating Club, and the Third Division Club, do they ever apply their conclusions in practical work? After studying under men of ripe scholarship and wisdom, are they better qualified to take upon themselves the duties of citizenship? These questions are best answered by telling of the work of a few Radcliffe women.

The courses in International Law at Radcliffe have attracted a considerable number of those holding fellowships in the subject from the Carnegie Endowment for International Peace. Two of these graduate students, Bernice V. Brown and Eleanor W. Allen, have subsequently held the Commission for Relief in Belgium Fellowship which means a year’s study in Brussels. A third, Alice Holden, is this year a member of the Department of Government at Smith College, and is giving the course in International Law at that institution.

Many students of economics are engaged in various forms of educational and service work in factories and other industrial establishments, and in administering philanthropies. Elizabeth Brandeis, 1918, is secretary of the Minimum Wage Board of the District of Columbia. Nathalie Matthews, 1907, is the Director of the Industrial Division of the Children’s Bureau at Washington.

The strength of the Third Division lies not alone in the unrivaled quality of the instruction and the stimulus of being in touch with the tide of current history, but also in the type of student it brings to Radcliffe.

Source:  What We Found at Radcliffe. Boston, McGrath-Sherrill Press, ca. 1921, pp. 7-10.

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Wedding Announcement

Mrs. E.B. Firuski Wed to Educator

Radcliffe College Research Fellow Married here to Joseph A. Schumpeter

Mrs. Elizabeth Boody Firuski of Windy Hill, Taconic, Conn., was married yesterday at noon to Dr. Joseph A. Schumpeter of Cambridge, Mass., Professor of Economics at Harvard University, in the Community Church of New York by the associate minister, the Rev. Leon Rosser Land.

The ceremony was followed by a luncheon in the Viennese Roof Garden of the St. Regis.

The bride, formerly Assistant Professor of Economics at Vassar College is a research fellow at Radcliffe College, working under the auspices of the Bureau of international Research of Harvard University. Her marriage [1929] to Maurice Firuski was terminated by divorce in Reno in 1933.

Dr. Schumpeter, a widower, was born in Austria, where he was Finance Minister in 1919. He formerly was a professor at the University of Bonn.

Dr. and Mrs. Schumpeter will make their home at Windy Hill until the reopening of the Fall session at Harvard.

Source: The New York Times, August 17, 1937, p. 22.

 

Image Sources: Elizabeth Boody’s senior picture from the Radcliffe Yearbook 1920, p. 36; Portrait of Elizabeth Boody Schumpeter, November 18, 1941. Harvard University Archives.

 

 

Categories
Columbia Suggested Reading Syllabus

Columbia. Reading list for Economic Analysis (less advanced level). Hart and Wonnacott, 1959

 

Judging by the following syllabus, the entry level graduate course for economic theory at Columbia sixty years ago seems to have been pitched no higher than the level of an undergraduate intermediate economic theory of today.

The syllabus transcribed for this post comes from William Vickrey’s papers in the Columbia University Archives. We can see there was a deviation from the originally announced announcement with the addition of Paul Wonnacott (a recent Princeton PhD) to co-teach with the department chairman Albert G. Hart. It is not clear what is meant below that Vickrey teaches “a reverse section” to start in January 1960, though I suspect it meant that the sequence could either be taken with Hart [first semester (101) then second semester (102)] or the sequence could be taked lagged one semester with Vickrey [second semester (101) then first semester of the following year (102)].

I will be going back into my files to see if I can find Hart’s 102 syllabus for 1960.

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From Course Announcements 1959-60

Economics 101-102. Economic Analysis

Sec 1: Professor [Albert G.] Hart. (3) ThTh 11.
Sec 2: Professor [William] Vickrey. (3) TuTh 4:10.

May be taken only for E credit [“examination credit” where course requirements include a final examination or paper with a recorded letter grade (A,B,C,D or Pass).]. Students who have not completed Economics 101 are admitted to 102 only with the instructor’s permission.

Detailed analysis of the reactions of producing units (firms) and consuming units (households); determination through the market of resource allocation, outputs, prices, and incomes; capital and interest; theories of general equilibrium (Walrasian and Kenesian); introduction to “dynamics.”

Economics 105-106. Economic Analysis

Professor [Gary] Becker. (3) Tu Thu 11.

Prerequisite: the instructor’s permission. The course may be taken only for E credit.

Topics noted under Economics 101-102, treated at a more advanced level.

Source: The Graduate Faculties 1959-1960 in the Columbia University Bulletin, Series 59, Number 19 (May 9, 1959), p. 40.

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Reading list for Hart and Wonnacott

ECONOMICS 101
AUTUMN 1959

Meetings:

Regular: M.W., 11 AM: 710 Business
Third hour (Rooms to be arranged):

(1) Th. 10 AM
(2) Th. 1 PM

Instructors:

A.G. Hart, 503 Fayerweather
P. [Paul] Wonnacott, 513 Fayerweather

For “reverse section” starting January 1960: W. Vickrey

Textbooks:

  1. Each member of the course should own one of the following texts, and arrange loans back and forth with other students:

A. W. Stonier & D.C. Hague, Textbook of Economic Theory (2d ed., London, Longmans Green, 1957)
Chapters 1-8 are first-semester material.

G.J. Stigler, Theory of Price (Revised ed., New York, Macmillan, 1952)
Chapters 1-10 and 12 are first-semester material.

K.E. Boulding, Economic Analysis (3rd ed., New York, Harper, 1955)
Chapters 26-29 and 36 are first-semester material.

  1. An optional item is the mimeographed BASIC MATHEMATICS OF ECONOMIC QUANTITIES (Economics Department office, $1.00).
  2. In addition, each student’s working library should come to include some of the following:

J.M. Henderson and R.E. Quandt, Microeconomic Theory (New York: McGraw-Hill, 1958): mathematical.

J.R. Hicks, Value and Capital (Oxford: Clarendon Press; 2nd ed. 1946)

A. Marshall, Principles of Economics (8th ed., London: Macmillan, 1920)

G.J. Stigler & K.E. Boulding, Readings in Price Theory (Chicago: Irwin, 1952)

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *

AGH/PW/8/27/59
[Economics] 101
Autumn 1959

INTRODUCTION

Sept. 28, 30. LOGIC OF SUPPLY-AND-DEMAND MODELS

Stonier & Hague, ch. 1-2 (pp. 9-33).

Stigler, ch. 1-2 (pp. 1-19).

E.J. Working, “What Do Statistical ‘Demand Curves’ Show?” in Readings in Price Theory, pp. 97-115.

ad lib. Henderson & Quandt, ch. 1 (pp. 1-5).

Oct. 2. Math short course: Quantitative concepts and their dimensions.

THE FIRM AND THE MARSHALLIAN INDUSTRY

Oct. 5, 7. SHORT-RUN AND LONG-RUN COST CURVES AND THE FIRM’S SUPPLY SCHEDULE

l           Stonier & Hague, ch. 5 (pp. 87-122).

Stigler, ch. 7-8 (pp. 111-146); note that discussion is intermingled with that of the next topic.

Boulding, ch. 27 (note references to preceding chapters which have not been discussed in this course).

*  *  *  *  *  *  *  *  *  *

J. Viner, “Cost Curves and Supply Curves” in Readings in Price Theory, pp. 198-232.

H. Staehle, “Measurement of Statistical Cost Functions” in Readings in Price Theory, pp. 264-79.

Oct. 9. Math short course: Charts, tables and functions.

Oct. 12, 14. THEORY OF PRODUCTION.

l           Stonier & Hague, ch. 10 (pp. 210-31).

Stigler, ch. 6 (pp. 96-110: completes production-cost-and-supply discussion).

Boulding, ch. 28 (pp. 585-604).

*  *  *  *  *  *  *  *  *  *

Marshall, Book IV, ch. 13 (pp. 314-22).

H.S. Ellis & W. Fellner, “External Economies and Diseconomies” in Readings in Price Theory, pp. 242-63.

ad lib. Henderson & Quandt, ch. 3 (pp. 42-84).

Oct. 16. Math short course: Simple analytical networks.

Oct. 19, 21. COMPETITIVE EQUILIBRIUM.

l           Stonier & Hague, ch. 6-7 (pp. 123-61).

Stigler, ch. 9-10 (pp. 148-86).

Oct. 23. Math short course: Maxima and derivatives.

Oct. 26, 28. COMPETITIVE EQUILIBRIUM, continued.

Marshall, Book V, ch. 1-5 (pp. 323-80).

ad lib. Henderson & Quandt, ch. 4 (pp. 85-125).

Oct. 30. Math short course: Maxima and derivatives, continued.

Nov. 2,4. MONOPOLY.

l           Stonier & Hague, ch. 8 (pp. 162-81).

Stigler, ch. 12 (pp. 204-21).

Boulding, ch. 29 (pp. 605-27).

*  *  *  *  *  *  *  *  *  *

Marshall, bk. V, ch. 14 (pp. 477-95).

Chamberlin, ch. 1-2 (pp. 3-29).

Robinson, ch. 3 (pp. 47-59: note references to preceding chapter on “the geometry”).

Robinson, ch. 15-16 (pp. 179-208).

ad lib. J.R. Hicks, “Theory of Monopoly” in Readings in Price Theory, pp. 361-83.

Nov. 6. Math short course: compound analytical networks.

Nov. 9, 11. HORIZONTAL AND VERTICAL LINKAGES OF MARKETS.

Marshall, Book V, ch. 6 (pp. 381-93).

Nov. 16. “MARGINALISM” AND THE FIRM.

R.L. Halland & C.J. Hitch, “Price Theory & Business Behavior” in T. Wilson (ed.) Oxford Studies in the Price Mechanism, pp. 107-38.

F. Machlup, “Marginal Analysis and Empirical Research”, American Economic Review, Sept. 1946 (pp. 521-54).

Nov. 18. Midterm hour exam.

THE HOUSEHOLD, AND MARKETS INVOLVING CONSUMERS.

Nov. 23, 25, 30. PREFERENCE AND UTILITY.

Stonier & Hague, ch. 2-4 (pp. 34-86).

Stigler, ch. 5 (pp. 68-93).

Boulding, ch. 32 (pp. 680-701), 36 (pp. 787-809).

Hicks, Value & Capital, ch. 1-2 (pp. 11-37).

Marshall, Book 3, ch. 1-5 (pp. 83-123).

ad lib. Henderson & Quandt, ch. 2 (pp. 6-41).

ad lib. S.W. Rousseas and A.G. Hart, “Experimental Verification of a Composite Indifference Map”, Journal of Political Economy, Aug. 1951 (pp. 288-318).

Dec. 2, 7, 9. INDIVIDUAL AND MARKET DEMAND FUNCTIONS.

Stigler, ch. 4 (pp. 42-66).

Hicks, Value & Capital, ch. 3 (pp. 42-52).

J.S. Duesenberry, Income, Saving and the Theory of Consumer Behavior, ch. 5 (pp. 69-92); ad lib. ch. 2 (pp. 6-16), 6 (pp. 93-110).

Dec. 16, 18. CONSUMER SURPLUS & INDEX NUMBERS.

Marshall, Book III, ch. 6 (pp. 124-37).

Hicks, Value & Capital, pp. 38-41.

Hicks, Revision of Demand Theory, pp. 95-106.

A.P. Lerner, “Note on the Theory of Price Index Numbers” in Essays in Economic Analysis (pp. 152-63).

Source: Columbia University Rare Book & Manuscript Library. William Vickrey Papers, Box 35. Folder 630, “Columbia/Economics 101 Course 1954-1959, n.d.”

Image Source: Alma Mater, Columbia University. Columbia College Today, Winter 2017-18.

 

Categories
Economist Market Economists Harvard

Harvard. Responses of Wassily Leontief to Questionnaire from Committee to Investigate Walsh-Sweezy Case, 1937

 

For background on the 1937 case involving the Harvard economics instructors Alan R. Sweezy (brother of Paul Sweezy) and John Raymond Walsh, whose appointments were not renewed in spite of positive recommendations from the department of economics, see

Lovejoy, Arthur O. “Harvard University and Drs. Walsh and Sweezy: A Review of the Faculty Committee’s Report.” Bulletin of the American Association of University Professors (1915-1955), vol. 24, no. 7, 1938, pp. 598–608. JSTOR, www.jstor.org/stable/40219387. 

The artifact of value that concludes this post is a draft of Wassily Leontief’s responses to fifteen questions sent out to junior instructional officers at Harvard by the Faculty Committee tasked to review the case and which ultimately released two reports:

Report on the terminating appointments of Dr. J.R. Walsh and Dr. A.R. Sweezy, by the special committee appointed by the President of Harvard University. Cambridge: Harvard University Press, 1938.

Report on some problems of personnel in the Faculty of arts and sciences by a special committee appointed by the president of Harvard university. Cambridge: Harvard University Press, 1939.

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Conant Appoints Committee to Investigate Walsh-Sweezy Case
Dodd, Morison, Morgan, Perry, Murdock, Schlesinger, Shapley, Frankfurter, Kohler Named

The Harvard Crimson, May 28, 1937

The complete text of President Conant’s report to the Overseers may be found in column four. [next item below]

Admitting “the existence of substantial doubt within the University as to the justice or wisdom of the University’s action” in regard to the Walsh-Sweezy case, President Conant wrote a letter to the Overseers dated May 26th in which he announced he had appointed a committee to investigate the affair.

The committee will be made up of the nine professor who received a memorandum from 131 junior teachers requesting a report on the issues involved.

At the same time President Conant wrote both Walsh and Sweezy announcing that he very much regretted the misconstruction of the University’s April 6th statement “as a reflection on your teaching capacity and scholarly ability.” In the last paragraph of the letter the President pointed out that the committee will investigate not only the case of the two men but also “the larger questions involved in the promotion of younger men.

The text of the President’s letters to Walsh and Sweezy follow:

Text of Letter

“I understand that the University’s statement issued on April 6 has been misconstrued in some quarters as a reflection on your teaching capacity and scholarly ability. I very much regret this. No such reflection was intended; the statement in my opinion cannot justly be taken as implying that you are not an able teacher or scholar. All that was meant or implied was that your political views and activities outside the University had nothing to do with the decision and that the choice among several candidates was made according to academic criteria.

“I am writing you this letter, after appointing a committee to investigate your case and some of the larger questions involved in the promotion of younger men, in order that you may not be under any misapprehension as to my personal feelings toward you. “Very sincerely yours,   James B. Conant.”

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TEXT OF REPORT

The Harvard Crimson, May 28, 1937

“To the Board of Overseers:

“In view of the fact that there is not another stated meeting of the Board until Commencement Day, I am reporting to you in writing concerning the case of the two instructors in Economics which I discussed with the Board at the meeting on April 12.

“On May 18, I was informed by a group of senior professors that they had received a memorandum from 131 junior teaching officers of the University requesting them to report upon the issues raised by the University’s action in respect to Messrs. J. R. Walsh and A. R. Sweezy, instructors in Economics. The memorandum was addressed to the following nine professors: E. Merrick Dodd, Jr., Felix Frankfurter, Elmer P. Kohler, Edmund M. Morgan, Samuel E. Morison, Kenneth B. Murdock, Ralph B. Perry, Arthur M. Schlesinger, and Harlow Shapley.

“This group informed me that they would prefer to have this inquiry conducted by a committee appointed by the President. I have replied that it is clear that the nine men to whom the memorandum was addressed have the confidence of the petitioners. For that reason I have requested them to make the investigation which the petitioners desire and have appointed them a committee for that purpose. I assured them that the University would make available any information they may desire, and I might add that the Chairman of the Department of Economics has informed me that he welcomes the inquiry.

“I expressed the hope that the report of the committee would he available by the middle of the coming academic year. Since the appointments of Dr. Walsh and Dr. Sweezy run for two years, there is ample time for me to reopen their cases if the committee’s report warrants it.

“Inasmuch as there has been some misunderstanding about a public statement issued on April 6, I have written letters to Dr. Walsh and Dr. Sweezy of which copies are appended.

“No further action or comment on my part would seem to be required until the committee have made their report. I should, however, like to say that the existence of substantial doubt within the University as to the justice or wisdom of the University’s action is sufficient ground for welcoming an inquiry.”

__________________________

 

Questionnaire of the Committee on the appointment and promotion of junior teaching officers at Harvard.

Interleaved with a draft copy of Wassily Leontief’s responses.

CONFIDENTIAL

September 20, 1937

Dear Sir:

The undersigned Committee has been appointed by the President to consider certain questions relating to the method of appointment and promotion of junior teaching officers in Harvard College. It will be of great assistance to the Committee if you will write frank answers to the questions below, together with any general comments you care to make on the broad problems involved, and send them before October 9, 1937, to the Secretary of the Committee, Kenneth B. Murdock, Master’s Lodgings, Leverett House, Cambridge. Your answers and comments will be regarded as strictly confidential and shown to no one except members of the Committee. If it seems desirable to quote from or refer to them in the Committee’s final report, this will be done anonymously.

  1. In your opinion, is the treatment of junior teaching officers at Harvard and the administrative policy and procedure in respect to their appointment and promotion satisfactory; or have you suggestions as to how it might be improved so as to create a better opportunity for intellectual development and professional advancement?

Leontief: For the lower ranks of the teaching staff the problem of creating a “better opportunity for intellectual development” is fundamentally a question of firing and not of hiring and promoting.
As long as the position of instructorship is considered to be a temporary one and while only a small proportion of the junior staff can be absorbed by promotion into the higher ranks, the position of the average junior officer will necessarily be precarious. No administrative devices can obviate the necessity of discharging annually a large number of tutors and instructors. At best it might be possible to secure new jobs for some of these the university could help the parting[?] men in their search[?] for new positions, In any case it is well to avoid in parting any at worst [it] should be possible to avoid unnecessary affront to their personal sensibilities. ([The] case Sweezy, Walsh is a good example of how it should not be done).

  1. Has any pressure been exerted upon you to publish, as a condition of your appointment or promotion at Harvard? If so, do you consider this pressure advantageous or harmful to your intellectual development? From whom has the pressure come?

Leontief: The pressure to publish comes from the fact that no man can be promoted without having shown some printed results of his scientific work. It is not personal pressure but pressure of “circumstances”. I find that this pressure is harmful only insofar as it is associated with the presumption that articles are not “real” publications and thus puts a premium on wordiness.

  1. Has your research and publication grown continuously out of your doctor’s thesis and graduate studies; or has there been a conflict or change of interest? If the latter, specify the causes and nature of the conflict or change.

Leontief: My research and publications developed rather continuously, without serious conflicts.

  1. Have you been given a clear definition of what you should do, in scholarly work and teaching, in order to merit appointment or promotion? By whom? Has such advice been helpful or misleading? In answering this question specify your relations to senior members of your Department, the Dean of the Faculty, senior colleagues or personal friends in other Departments.

Leontief: I never asked anybody for a clear definition of what to do to merit promotion. I was told, however, by the head of the department that since I am working in a rather new field it will be necessary to wait and see what the ultimate results will be before deciding whether or not I am to be kept on. I spoke with the Dean of the faculty once; I discuss my current academic problems with the head of the department two or three times a year; among my close friends I have senior as well as junior members of the department. My relations to all others are quite cordial.

  1. Have you felt any conflict between research and teaching, either in respect to the amount of time given to each, or the type of ability and interest required for each? Have you ever been advised to neglect one in favor of the other? If so, by whom? Can you give an approximate statement of the proportion of your time given to teaching, and the proportion to research?

Leontief: Considering the issue of teaching vs. research from a somewhat more general standpoint than that of your question I wish to call your attention to the fact that in the field of economics it acquires a quite peculiar aspect.
The problems, methods and the general body of knowledge change so frequently that one not actively engaged in the process of scientific work would most likely be ignorant of the most significant present day developments.
While a “good teacher” in physics or history can naturally be expected to command a solid, up to date knowledge of his subject, the “good teacher” in economics—if not engaged in active research—lacks with a very few exceptions this elementary prerequisite of pedagogical activity. This applies not only to graduate instruction but also to the higher type undergraduate courses. I personally have never experienced any conflict between my research and teaching activities for the simple reason that both coincided in their subject matter. Approximately one third of my time is devoted to actual teaching.

  1. To what extent have you received help and encouragement from your senior colleagues, in your teaching, and in your research?

Leontief: With some of my colleagues I maintain a very close contact in research as well as collaboration in teaching. In one instance, for example, we visit each other’s lectures (advanced courses) with a view to closer coordination of subject matter and methods.

  1. At what point in his career does it seem to you that a teacher at Harvard should have definite assurance of permanent tenure?

Leontief: [Blank]

  1. By what standards, and by whom, do you feel that your qualifications for permanent appointment are likely to be appraised? Do you feel confident that the appraisal will be just? If not, what method can you suggest for securing a just appraisal?

Leontief: So far as I know, in the department of Economics appointment to associate professorship is discussed and decided by a “committee of full professors” or the “executive committee” which comprises also associate professors. I have no reason to believe that an “appraisal” by such a committee would not be just.
I think that my standing as a scientist and teacher will determine the opinion of the senior members of the department in the first instance. Secondary considerations of “strategic” character however are also likely to influence in greater or smaller degree their attitude.
In order to achieve a greater uniformity of standards and reduce the influence of various subjective motivations to a minimum it would be advisable in my opinion to
a) define more rigidly the membership of the appointing committee.
b) to require each member of the committee to submit a written, motivating opinion (however short) which would be forwarded to the president of the university together with the final vote of the committee.

  1. Do you believe that serving at Harvard prior to any decision as to your permanent appointment has been beneficial to you as regards your teaching, your scholarship, and your professional career?

Leontief: Yes.

  1. Have you refused offers from other institutions since you have been at Harvard? What reasons led you to refuse them?

Leontief: No.

  1. Do you believe that your personal opinions, in relation to your own field or to other subjects, have in any way influenced your treatment at Harvard? If so, what evidence have you to support this belief? Has a regard for your position or advancement at Harvard limited your freedom of opinion either within or outside of your own field?

Leontief: I do not think that my personal opinion (as distinct from my “personality” in general) has influenced my position in Harvard, nor did a regard for my position or advancement influence or limit the freedom of my opinion.

  1. Have you engaged in any “outside activities”? If so, what proportion of your time have they occupied? How have they been related to your scholarly activities? Do you believe that such outside activities have in any way influenced or jeopardized your appointment or promotion at Harvard? If so, what evidence can you offer in support of this belief?

Leontief: I have hardly ever been engaged in any “outside” activity.

  1. Has your salary been sufficient to meet your living expenses? Has it seemed to you appropriate and just? In answering this and the following question, state whether you are married or unmarried; and, if married, give the size of your family.

Leontief: I am married and have one child. Since the time of my marriage five years ago I have been able to put aside $600. My wife’s medical expenses connected with an automobile accident absorbed all these savings. This financial situation is not typical because unlike most of my colleagues I do not receive any supplementary income from instruction in Radcliffe College or in the Harvard Summer School.

  1. Have you found living conditions, housing, schooling, etc. satisfactory in Cambridge?

Leontief: I find the cost of living comparatively high, the public schools inadequate and private schools beyond the reach of my budget.

  1. Have you been delayed in completing your research by inability to finance publication or by the cost of securing requisite materials not available in Cambridge? What remedy do you suggest?

Leontief: My research work is supported by the Harvard Committee for Research in Social Sciences which has nearly without exception granted all my requests for financial assistance.

In answering the above questions, the Committee hopes that you will support and illustrate your comments by specific citations from your own experience, or that of others.

Very truly yours,

Ralph Barton Perry, Chairman
Professor of Philosophy

Elmer Peter Kohler
Professor of Chemistry

William Scott Feguson
Professor of History

Felix Frankfurter
Professor of Law

Edmund Morris Morgan
Professor of Law

Edwin Merrick Dodd, Jr.
Professor of Law

Arthur Meier Schlesinger
Professor of History

Harlow Shapley
Professor of Astronomy

Kenneth B. Murdock, Secretary
Professor of English

Source: Harvard University Archives. Papers of Wassily Leontief (HUG 4517.7). Box: Personal correspondence etc. Dates mainly from 1920’s and 1930’s. Folder: [W.L.-Personal]

Image Source: Wassily Leontief in Harvard Class Album 1934.