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Harvard. Economic Theory I. Chamberlin, 1947-48

The 1947 requirements for Ph.D. students are vague with respect to the precise courses that would adequately prepare candidates for their core theory examinations. At that time Economic Theory I (course number changed from 101 to 201 in 1948) was taught by Edward Chamberlin and Economic Theory II (course number changed from 102 to 202 in 1948) by Wassily Leontief. While I suppose there would have been graduate students with sufficient preparation who could have taken both the MW(F) course by Chamberlin and the TTh(S) course offered by Leontief (both at noon) simultaneously, I could easily imagine these courses would have been taken in sequence over two years by typical students. Thus this posting gives the reading list for Economics 101 with Chamberlin for 1947-48 and the next posting will be for Economics 202 with Leontief for 1948-49.

A comparison with Chamberlin’s reading list from a decade earlier reveals a modest streamlining of his course with the only major change being the addition of Welfare Economics to the end of the second semester.

From the Harvard archives’ collection of final examination papers, I was able to transcribe the questions from the final examinations in both Economics 101a and 101b for the 1947-48 academic year.

Bibliographic note: I have added the explicit titles of readings only identified by number in Chamberlin’s reading list from a published collection of reprinted essays and papers edited by Frank E. Norton. The title Explorations in economics refers to Explorations in economics: Notes and essays contributed in honor of F. W. Taussig published by McGraw-Hill in 1936.

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Economics 101a
Fall, 1947

 

I.  Brief Survey of Markets; Demand and Supply

Boulding, Economic Analysis, Chapters 1-5; pp. 177-9.

Marshall, Principles, Book V, chapters 1, 2.

Chamberlin, Monopolistic Competition, Chapter 2.

Mill, Principles, Book III, Chapter 2.

 

II. Cost vs. Utility, and the Marshallian Synthesis

Mill, Principles, Book III, Chapters 3, 5.

Boehm-Bawerk, Positive Theory of Capital, Books III, IV.

Marshall, Principles, Appendix I; Book V, chapters 3-5; Book IV, Chapter 13; Book V, Chapters 8, 9, Appendix H.

Boulding, Economic Analysis, Chapter 7.

Suggested:

Ricardo, Political Economy, Chapter 1.

Mill, Book III, Chapters 1, 4, 6.

Jevons, Theory of Political Economy, Chapters 3, 4.

Marshall, Book III and remainder of Book V

Keynes – “Alfred Marshall,” Economic Journal, September 1924. (Also in Keynes, Essays in Biography.)

 

III.  Further Analysis of the Production and Consumption Functions; Indifference Curves

Boulding, Chapters 22, 23, 29, 30 (omit pp. 669-676).

Monopolistic Competition, Appendix B.

Suggested:

Hicks, Value and Capital, Chapters 1-3.

 

IV.  Monopoly and Monopolistic Competition

Robinson, Economics of Imperfect Competition, Chapter 2.

Chamberlin, Monopolistic Competition, Chapters 1-7 (to page 149); Appendix C.

Alsberg, C. L., “Economic Aspects of Adulteration and Imitation,” Quarterly Journal of Economics, 1931.

Robinson, Imperfect Competition, Chapter 15, Sections 1-4.

Suggested:

Monopolistic Competition, Chapter 9.

Burns, A.R., The Decline of Competition, Chapter 8, “Non-Price Competition”.

Robinson, Imperfect Competition, balance of chapters 15, 16.

Pigou, Economics of Welfare, Chapters on “Price Discrimination” and “The Special Problem of Railway Rates.”

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Economics 101b
Spring Term, 1947-48
Economic Theory — Professor Chamberlin

I.   Selling Costs; Discrimination:

Monopolistic Competition, Chs. 6, 7 (to page 149)

Robinson, Economics of Imperfect Competition, Chapters 15, Sections 1-4.

Suggested:

1.  Monopolistic Competition, balance of Ch. 7.

2.  Robinson, Imperfect Competition, balance of 15, 16.

3.  Pigou, Economics of Welfare, Chs. on “Discriminating Monopoly,” and “The Special Problem of Railway Rates.”

 

II.  Distribution — General; Wages

Boulding, Economic Analysis, Ch. 11; Review 22, 23.

Marshall, Principles, Book VI, Chapters 1-2.

Hicks, Theory of Wages, Chs. 1-4.

Readings in the Theory of Income Distribution, 8, 12.

[Norton, Frank E. (ed.). Readings in the Theory of Income Distribution. Philadelphia and Toronto: Blakiston Company, 1946.   8. Machlup, Fritz (1936). “On the meaning of the marginal product” in Explorations in Economics. 9. Robertson, Dennis H. (1931). “Wage-grumbles” in Economic Fragments.]

Monopolistic Competition, Ch. 8; pp. 215-18 (5th ed.).

Hicks, Chs. 6, 5.

Marshall, Book VI, Chs. 3-5.

Taussig, Principles, 4th ed., Ch. 52 (or 3rd revised ed., Ch. 47).

Mill, Principles, Book V, Ch. 10, Section 5.

Taussig, 4th ed., Vol. II, Ch. 59, Sections 1, 2, 7.

Hicks, Ch. 7, pp. 179-185.

Readings, 19

[19. Dunlop, John T. (1942). “Wage policies of trade unions,” American Economic Review.

Suggested:

1. Readings, 1-5.

[1. Kuznets, Simon S. (1933), “National income,” in Encyclopaedia of the Social Sciences.
2. Gilbert, Milton and Jaszi, George (1944). “National product and income statistics as an aid in economic problems,” Dun’s Review.
3. Clark, John Maurice (1931). “Distribution” in Encyclopaedia of the Social Sciences.
4. Bowman, Mary Jean (1945). “A graphical analysis of personal income distribution in the United States,” American Economic Review.
5. Cassels, John M. (1936). “On the law of variable proportions” in Explorations in Economics.]

2. Douglas, Theory of Wages, Chs. 1-3.

3. J. B. Clark, Distribution of Wealth, Chs. 7, 8.

4. Simonds, “Some Reflections on Syndicalism,” J.P.E., 1944.]

 

III. Interest:

Böhm–Bawerk, Positive Theory, Book I, Ch. 2; Book II, Book V.

Marshall, Principles, Book IV, Ch. 7; Book VI, Ch. 6.

Wicksell, Lectures, Vol. I, pp. 144-171,185-195, 207-218.

Clark, J. B., Distribution of Wealth, Chs. 9, 20.

Recommended: Fisher, I., Theory of Interest, Chs. 5, 6.
Readings, 20, 21

[20. Hayek, Friedrich A. von (1935-36). “The mythology of capital,” Quarterly Journal of Economics.
21. Knight, Frank H. (1946). “Capital and interest” in Encyclopaedia Brittanica.]

 

IV. Rent:

Ricardo, Ch. 2.

Marshall, Book V, Chs. 8-11.

Robinson, J., Economics of Imperfect Competition, Ch. 8.

 

V. Profits:

Marshall, Book VI, Ch. 5, Section 7; Chs. 7, 8.

Taussig, Principles, (4th ed.), Vol. II, chapter 49, section 1 (3rd revised ed., Ch. 50, Section 1)

Henderson, Supply & Demand, Ch. 7.

Readings, 29.

[29. Gordon, Robert A. (1936). “Enterprise, profits and the modern corporation” in Explorations in Economics.]

Monopolistic Competition, Ch. 5, Sec. 6; Ch. 7, Sec. 6; Appendices D, E.

Schumpeter, Theory of Economic Development, Chs. 1-4.

Suggested:

Readings, 27.

[27. Knight, Frank H. (1934). “Profit” in Encyclopaedia of the Social Sciences.]

 

VI. Welfare Economics:

Pigou, Economics of Welfare, Part I, Ch. 1.

Lerner, Economics of Control, Chs. 1-7, 9.

Meade and Hitch (or Meade), Economic Analysis and Policy, Part II, Ch. 6.

Robbins, L., “Interpersonal Comparisons of Utility: A Comment,” Economic Journal, December, 1938.

Hicks, “The Foundations of Welfare Economics,” Economic Journal, December, 1939.

Schumpeter, Capitalism, Socialism and Democracy, Chs. 16, 17.

Suggested:

1. Lerner, Economics of Control, further chapters.

2. Pigou, Economics of Welfare, Part I; Part II, Chs. 1-11.

3. Lange, O., “The Scope and Method of Economics,” Review of Economic Studies, Vol. XIII (1).

4. de Scitovsky, T. “A Note on Welfare Propositions in Economics,” Review of Economic Studies, Vol. IX (1).

 5. Baumol, W. J., “Community Indifference,” Review of Economic Studies, Vol. XIV (1).

6. Schelling, T. C., “On the Formulation of Welfare Propositions,” (Manuscript at desk in Littauer Library).

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Source: Harvard University Archives, Syllabi, course outlines and Reading lists in Economics, 1895-2003 (HUC 8522.2.1). Box 2, Folder: Syllabi, course outlines and reading lists in Economics, 1947-48.

Image Source: Harvard Album, 1946.

 

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Bibliography Courses Harvard

Harvard. Public Finance. Economics 5, Bullock. 1915

This list of suggested readings in Public Finance come from two of seven pages carbon copy, (stapled together, ordered by course number from Economics 1b through Economics 6. The pages are undated and no instructor is given. Nonetheless, based on the course catalogues and indications from several of the courses that the following annotated list was prepared for the use of the Tutors in Harvard College.

We can be reasonably certain of the date since the only year Dr. J. S. Davis taught an accounting course with the number 1b was 1915-16. Charles Jesse Bullock refers to his own book of readings in public finance so it is certain that he composed the list.

Later addition to Economics in the Rear-View Mirror include:  the final examination questions for Economics 5 (June 1916). 

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Books Used in Economics 5.
Selected Readings in Public Finance.

[Charles Jesse Bullock, 1915-1916]

Bastable, Public Finance. (In these books the assignments cover everything relating to revenue and expenditures. They also have included all that Bastable has to say on public debts and financial administration, but have usually in recent years not included the material in the Selected Readings upon those subjects)

Adams, Public Finance. (In this book they have usually read the chapters dealing with public expenditures and revenue from domain. They used to read what he says about the United States budget, but in recent years I have been going light upon this subject, leaving out not only what Adams says but also the passages in my Selected Readings.)

Seligman, Essays in Taxation. (They have always read the chapters on classification, special assessment, the general property tax, and on the single tax; some times also the first chapter on the historical development of taxation and the chapters on the taxation of corporations and double taxation. Occasionally they have read the chapter on the inheritance tax.)

Daniels, Public Finance. (I have sometimes assigned Daniels’s chapters on revenues from industries and his chapters on customs and excise taxes, but not often in recent years.) [here a Course Syllabus of Daniels]

 

Ely, Evolution of Industrial Society. (I usually assign the chapter on the evolution of public expenditures, frequently the chapter on municipal ownership, and occasionally the chapter on inheritances and bequests.)

Ely, Taxation in American States and Cities. (Sometimes I assign the chapters upon the political and industrial effects of taxation,–I don’t remember the exact title at the moment,–and the chapter upon license taxes, but in recent years I have seldom assigned anything but the latter chapter.)

Shearman, Natural Taxation. (I almost always assign Chapter 9 and another chapter, I think No. 13 or 14, in which Sherman considers objections to the single tax, and in particular replies to Seligman’s Essay.

Bullock, Pamphlets on the Property Tax. (I have had bound together a number of my pamphlets relating to state and local taxation and taxation in Switzerland, and keep duplicate copies in Harvard Hall. The men are expected to read all of these pamphlets.)

The reading in the course is not exactly the same from year to year, and I am thinking of dropping Bastable because the book is getting too old. It was never very satisfactory in its discussion of difficult questions of principle, and its account of European legislation, etc., is now considerably out of date. I believe that next year I shall provide duplicate copies in Harvard Hall and not require the men to buy it unless a new edition is to come out.

I have sometimes thought of using David McG. Means’s book entitled Methods of Taxation, and think that if the tutors want to get the men to do supplementary reading, this might be a good book for them to use, unless meanwhile I decide to use it in the class. If any men read German, it would be very well to refer them to Eheberg, or if they read French, to get them to read chapters in the first volume of Leroy-Beaulieu. [2nd vol of Leroy-Beaulieu]

 

Source. Harvard University Archives. Department of Economics, Correspondence & Papers, 1902-1950. UAV 349.10, Box 25, Folder “Suggested Readings.”

Image Source. Harvard Album 1915.

Categories
Bibliography Courses M.I.T.

MIT, Business Cycles Reading List. Samuelson, 1943

 

 

This reading list comes from Paul Samuelson’s second year at M.I.T. While not designated on the reading list itself, from its location in his papers (filed with other Business Cycle course materials) and according to the courses he taught that in the second term of 1943 (according to the MIT Course Catalogue), this is almost certainly for the course Ec26: Business Cycles.

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Course Description from 1942-43 Catalogue.

Ec26. Business Cycles (A). A statistical, historical, and theoretical examination of the determinants of income, production and employment. Modern methods are brought to bear on problems of analyses, forecasting, and control.

Prerequisite: Ec40 (Money & Banking). Primarily for graduate students, 2nd term

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February, 1943     READING LIST     P. A. Samuelson

Asterisks indicate required reading, other items suggested reading

 

I    NATIONAL INCOME, EMPLOYMENT & PRODUCTION

M. Gilbert, “War Expenditures & National Production,” Survey of Current Business, March, 1942.

S. S. Kuznets, National Income & Its Composition, 1919-1938, Vol. I.

W. L. Crum, J. F. Fennelly, L. J. Seltzer, Fiscal Planning for Total War.

S. Fabricant, Productivity of American Manufacturing Industries, [sic, probable or at least related publication: Solomon Fabricant, Employment in Manufacturing, 1899-1939: An Analysis of Its Relation to the Volume of Production, NBER, New York, 1942.]

Federal Reserve Board Bulletin, August & September, 1940.  [New index of industrial production]

R. A. Nixon & P. A. Samuelson, “Estimates of Unemployment in the U. S.,” Review of Economic Statistics, August, 1940.

 

II        NATURE OF BUSINESS CYCLE

*A. H. Hansen, Fiscal Policy & Business Cycle, Ch. 1-4

*Wesley C. Mitchell, Business Cycles, 1941 Reprint of 1913 edition, Ch. V, part I.

*J. P. Wernette, The Control of Business Cycles, pp. 3-23 and Conclusion.

*J. R. Meade & H. Hitch, Economic Analysis & Policy, Ch. I.

*G. Haberler, Prosperity & Depression, Ch. 9, 1 & 2.

*S. H. Slichter, Towards Stability, Ch. I.

A. H. Hansen, Business Cycle Theory, Chs. I, II, IV, & VI.

S. H. Slichter, Towards Stability, Chs. II & IV.

G. Haberler, Prosperity & Depression, any part.

 

III      SAVING AND INVESTMENT

*Joan Robinson, Introduction to the Theory of Employment.

*T.N.E.C. testimony of Hansen & Currie.
[Hearings Before the Temporary National Economic Committee, Seventy-Sixth Congress, First Session. Part 9. Savings and Investment. May 16, 17, 18, 22, 23, 24, 25, and 26, 1939]

*A. H. Hansen, Fiscal Policy, Chs. 11, 12, 15, & 24.

*L. V. Chandler, Introduction to Monetary Theory, Chs. VI & VIII.

O. Altman, T.N.E.C. monograph #37, Saving & Investment.

 

IV THE PROPENSITY TO IMPORT & THE FOREIGN TRADE MULTIPLIER

*R. F. Harrod, International Economics, (Rev.Ed.) 6, 7. (8 & 9, optional)

*W.A. Salant, “Foreign Trade Policy in the Business Cycle,” in Public Policy II (editor E. S. Mason)

*J. M. Keynes, General Theory, Preface, Chs. 23 & 24

I. DeVegh, Review of Economic Statistics, 1940 [De Vegh, Imre. “Imports and Income in the United States and Canada.” The Review of Economics and Statistics 23, no. 3 (1941): 130-46. ]

C. Clark & J. Crawford, National Income of Australia
[Colin Clark and John G. Crawford,National Income of Australia.Sydney and London: Angus & Robertson limited, 1938.]

L. Metzler, Journal of Political Economy, 1942
[Metzler, Lloyd A. “The Transfer Problem Reconsidered.” Journal of Political Economy 50, no. 3 (1942): 397-414.]

 

V        INTERNATIONAL PROPAGATION OF BUSINESS CYCLES

*G. Haberler, Prosperity & Depression, Ch. XII, pp. 455-473

*J. Viner, Studies, pp. 432-436
[Studies in the Theory of International Trade.]

*League of Nations, Annual Survey, 1939-40

*Sir A. Salter, Recovery, pp. 27-66, (101-195 optional)
[Recovery. The Second Effort. London: G. Bell and Sons, 1932]

R. Bennett, National Bureau, manuscript [Rollin F. Bennett, Columbia University: might be a paper presented at the 1940 or 1941 meeting of the NBER Conference of Income and Wealth which were not published (insufficient general interest to warrant publication) ]

P. Einzig, Bankers, Statesmen & Economists

League of Nations, B. Ohlin, Course & Phases of the World Economic Depression, especially pp. 116-215

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Source: Paul A. Samuelson Papers, Box 33, Folder “14.451 Business Cycles, 1943-1955”. David M. Rubenstein Rare Book & Manuscript Library, Duke University.

Categories
Chicago Courses Syllabus

Chicago. Economics From an Institutional Standpoint. Knight c.1934

Frank Knight’s teaching at Chicago covered four bases: core economic theory, the history of economics, social control of the economy and institutional economics. 

One truly can’t fault 1930’s Chicago economics for failing to be aware of the surrounding disciplines. On the other side of the political spectrum we witness the same breadth in Paul Douglas’ 1938 course, Types of Economic Organization.

The following course outline is out of place in the folder for Econ 304 in the Homer Jones Papers. Note that the “general alphabetical bibliography” mentioned in the outline was not in this folder.   The copy of the outline transcribed below apparently came from Homer Jones’ classmate, A.H. = “Alice Hanson”,  later his wife.

Milton Friedman’s 1976 remembrance of Homer Jones was reprinted in the St. Louis Fed’s Review November/December 2013, 95(6), pp. 451-54.

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 Course Description

305. Economics from an Institutional Standpoint.—The relations between the classical-mathematical and institutional-historical views of economic phenomena; institutional factors as the framework and much of the content of the price economy; late nineteen century economic society as a complex of structural forms. Prerequisite: Economics 301 and some European economic history. C. 10:00, Knight.

Source:   Course description from the University of Chicago’s Announcement of courses for Summer Quarter 1934

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[ penciled addition:] A. H. (n.d.)

Economics 305
Economics from Institutional Standpoint

Main Topics and Notes on Literature
(To be used with general, alphabetical bibliography)

I. American Institutional Economics

1. Veblen, Th. (Perhaps the one true example, except Handman, who has written little.)

a. The Place of Science in Civilization. (1919) Collected Essays. “Why is Economics not an Evolutionary Science,” 3rd paper, contains most of Veblen’s position. For his criticism of classical economics, especially “Professor Clark’s Economics” and “Limitations of Marginal Utility”; also three papers on “Presuppositions of Economic Science.” For V’s positive contribution, the title essay and second, on “Evolution of the Scientific Point of View” most important, to be followed with “Industrial and Pecuniary Employments,” “Gustav Schmoller’s Economics” and papers on Capital, Marx, and Socialism.

b. Economics in the Visible Future. A.E.R., 1925 (Cf. Discussion of J. M. Clark).

c. Other works: Instinct of Workmanship, Theory of the Leisure Class, and Imperial Germany and the Industrial Revolution most important. Theory of Business Enterprise social-critical, on line of Industrial and Pecuniary Employments. Later books (Nature of Peace, Higher Culture in America, Vested Interests, Engineers and Price System, Absentee Ownership, etc.) More satirical, and literary or controversial in appeal.

2. Handman, M. S.

3. Commons, J. R., Legal Economist. (Laws are not institutional in origin, but become institutions if long kept in force).

a. Legal Foundations of Capitalism. (Cf. Reviews, Mitchell, A.E.R., June, 1924 and Scharfman, Q.J.E., 1924-5.

b. “Institutional Economics,” A.E.R., Dec. 1931. (Corres. Regarding same, ibid., June, 1932.)

4. Mitchell, W. C. (Quantitative or statisticial economist, properly at opposite pole from institutionalism, but usually included in the movement. Has, like most economists, written some things of a really institutionalist character

a. “Quantitative Method in Economics” (Presidential Address) A.E.R., 1925. (His main position: not institutionalistic).

b. “Prospects of Economics.” (Leading Essay) in Tugwell, The Trend of Economics. (Institutional only in sense of being more or less critical of the older classical economists).

c. “The Role of Money in Economic Theory” (Institutional) A.E.R. 1916 Sup.; “The Backward Art of Spending Money.” A.E.R., 1912. “Human Behavior in Economics.”….Rev. of Sombart, Q.J.E. 1928-9; Bentham’s Felecific Calculus, P.S.Q., June, 1918.

d. On Mitchell’s main work on Business Cycles, see review by J. M. Clark, in Rice’s Case-Book, with Mitchell’s comment.

5. Copeland, Clark, Hale, Mills, Tugwell, Wolfe, etc., see Tugwell, (Editor) The Trend of Economics. Sometimes treated as an institutionalist manifesto, but with several “black sheep.” Cf. Review of the volume by A. A. Young, Q.J.E.

6. Other authors more or less sympathetic with the “movement,” see Boucke[sp?], Clark, Edie (uses the word for all recent economics he approves of) Hamilton.

 

II. Criticism of Institutional Economics.

1. Eva Flügge, in Jahrb. f. Nationalökon. u. Statistik, LXII, 1927. Important; on relations to German Historical School Position.

2. Homan, P. T. Essays on Veblen and Mitchell in Contemporary Economic Thought. Also Paper, A.E.R., Sup., Mar., 1932, and Discussion following, by various members. Cf. J.P.E., 1927 (Impasse, etc.) Q.J.E., 1928 (Issues, etc.)

3. Morgenstern, Schumpeter, Suranyi-Unger.

 

III. Earlier Historical Economics

1. Leslie, T.E.C. “The Philosophical Method in Political Economy” and “History of German Political Economy” in Essays in Moral and Political Philosophy.

2. Schmoller, The Mercantile System. (Example of an argument for the method. Cf. Veblen’s essay on Schmoller, under Veblen, above.

3. Ashley, W. J. Trans. of Roscher Program; also “The Study of Economic History” and “The Study of Economic History after Seven Years,” first two in Q.J.E., all in Surveys Historical and Economic.

4. Cohn, G., A.A.A., 1894 and Ec. Jour., 1905; Dunbar, Q.J.E. Vol. I (and in vol. Econ. Essays); Keynes, J.M., in Scope and Method of Pol. Econ.; Ingram, in History of Pol. Econ.; Nasse, Q.J.E., 1886; Rae, in Contemporary Socialism, pp. 193-221; Seager, J.P.E., 1892; Wagner, Q.J.E., 1886.

 

IV. The Neo-Historical School in Germany, and Related Work.

1. Parsons, T., Capitalism in Recent German Literature (Somart and M. Weber; best thing in English. For orientation see also Parsons, “Economics and Sociology” in Q.J.E., February, 1932).

2. Sombart, W., “Economic History and Economic Theory”, Ec. Hist. Rev.; Nationalökonomie u. Soziologie, Kieler Vorträge; also in G.D.S., Vol. III.

3. Diehl, Carl, Life and Work of Max Weber, Q.J.E. Vol.33.

4. Abel, Th., Chap. on Max Weber in vol., Systematic Sociology in German.

5. Weber, M., Protestant Ethic; and General Economic History.

6. Sombart, W., Die drei Nationalökonomien. Der modern Kapitalismus.

7. Weber, M., Essays in Ges. Aufsätze zur Wissenschaftslehre, esp. on Roscher und Knies, and Objektivität; finally, Wirtschaft und Gesellschaft (2 vols., in Grudriss d. Sozialökonomie).

8. Brinkmann, C., in Überbau etc., Schmollers Jahrb., 1930.; von Schelting, Zum Streit um die Wissenssoziologie, in Archiv. f. Sozialwiss. u. Sozialpol., v. 62, 1930. And references in both.

9. Related work in other countries. Tawney. Religion and the Rise of Capitalism, and other work; Simiand[sp?], La method positive dans l’économie politique (and French Neo-Positivism generally).

10. Another German movement closely related to neo-historism is the Universalistic economics of Spann. See in English his History of Economics. Also, C. Schmitt, Politische Romantik.

11. On the problem of Objectivity (Wertfreiheit) an essential issue throughout this movment, but especially under the influence of communism and fascism, see E. Spranger, Der Sinn d. Voraussetzungslosigkeit d. Wissenschaft (1930 and references.

 

V. ISSUES INVOLVED IN INSTITUTIONALISM

1. General Problems of Behavior (above bio-mechanics and chemistry and histology). Surveys, chiefly on level of physiology and animal behavior in Parmelee, Problem of Human Behavior; Allport, Social Psychology. Cf. Metchnikoff, Nature of Man; Wheeler, Ants; Emerson, Termites. Psychology Symposia, Clark University, Psychologies of 1925, also 1930; also, The Unconscious, sponsored Mrs. E. Dummer. Cf. Cooley, Dewey, Ellwood, McDougall, Sumner, Wallas. Survey of General Sociology, Park & Burgess, Introduction. Sociology from standpoint of society as a unit, Spann, Gesellschaftslehre; from that of personalities in relation, Hornell Hart.

2. History and Economic History. Müller-Lyer; Hobhouse, also Hobhouse, Wheeler & Ginsburg; Gras; E. Gross. On Economic Interpretation of History; Communist Manifesto: Engels; Labriola; See; Seligman. (Hanson; Knight; Matthews). History and Historical Method: Adams, G. B. [sp.?]; Adams, Brooks; Barth; Bernheim; Cheyney; Flint; Fueter; Teggart; Rickert; Windelband. (For Rickert-Windelband view of history, Chap. I of Park & Burgess Sociology with Bibliography. Cf. Small, Origins of Sociology.

3. Institutions. Besides Sociology, see Anthropology, works of (esp.) Lowie, Goldenweiser; also, Boas, Kroeber, Wallis, Wissler, etc.

4. Particular Institutions, (all more or less economic in basis and function). Language: Sapir; The Family; Westermarck, Calhoun; Law: Commons, Pound, Jenks, Holdsworth, Maine, Maitland, Vinogradoff. Religion: Barton, Carpenter, Carus, Cumont, Harnak, Simkhovitch, Sohm, Lagarde, Walker.

5. Economic Institutions, Specifically. Bibliographies in Sombart, Der modern Kapitalismus; use table of contents and index. Surveys of Economic History; Knight, Barnes & Fluegel, Economic History of Europe; H. See, Modern Capitalism (both with chapter bibliographies).

6. Methodology. See M. R. Cohen, “Social Science and Natural Science,” in Ogburn & Goldenweiser (Ed.) The Social Sciences in their Interrelations; also most of the 33 papers in the volume, all with bibliographies. Rice, S. A., (Ed.) Methods in Social Science, a Case-Book; 52 papers, mostly analyses of particular works or groups of works from methodological standpoint. Keynes, J. N., Scope and Method of Political Economy.

7. Idea of Style and Culture-Pattern. Compare Wöfflin, Kunstgeschichtliche Grundbegriffe; Sapir in Ogburn and Goldenweiser.

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Source: Homer Jones Papers, Duke University, Rubenstein Library. Box 2, Folder “Frank H. Knight, Economics 304, lecture, notes, 1933, Oct.-1934.”

Image Source: University of Chicago Photographic Archive, apf1-03516, Special Collections Research Center, University of Chicago Library.

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Other sources for this course:

  • F. T. Ostrander’s “Notes on Frank H. Knight’s Course, Economics from an Institutional Standpoint, Economics 305, University of Chicago, 1933-34,” Research in the History of Economic Thought and Methodology, 23(B), 2005.
  • Earl Hamilton’s  Economics 305 notes in Summer Quarter 1935, (Frank Knight Papers, Box 38, Folder 8) are cited among other places in Malcolm Rutherford’s “Chicago economics and institutionalism” in The Elgar Companion to the Chicago School of Economics (Ross B. Emmett, ed.).
  • In the Hyman Minsky Archive at Bard College are notes Minsky took in Economics 305 during the Spring Quarter 1942.
Categories
Chicago Courses Economists

Chicago. Undergraduate Macro. Stanley Fischer, 1973

While organizing my material from George Stigler’s papers, I ran across this reading list for an undergraduate macro course taught in 1973 at the University of Chicago by the then thirty year-old future professor of the so-called MIT gang that included Ben Bernanke, Mario Draghi, Olivier Blanchard, Maurice Obstfeld, and Paul Krugman (yes, there were others… worth another post). Learn this stuff (and I mean really learn this stuff) and you too might become chief economist of the World Bank, or first managing director of the IMF, or vice chairman of Citigroup, or governor of the Bank of Israel, or Vice Chairman of the Fed. Excuse me, I mean “and/or”.

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Winter 1973

Stanley Fischer

ECONOMICS 202
Reading List

Texts:

Branson: Macroeconomic Theory and Policy, Harper and Row, 1972.

Friedman: An Economist’s Protest, Thomas Horton, 1972.

 

I. Introductory

Friedman, M. “A Theoretical Framework for Monetary Analysis,” JPE, March/April, 1970, 193-238.

Johnson, H. G. “The Keynesian Revolution and the Monetarist Counter-Revolution,” AER Papers and Proceedings, May, 1971, 1-14.

Leijonhufvud, A. “Keynes and the Classics: Two Lectures on Keynes’ Contribution to Economic Theory,” London, Institute of Economic Affairs, 1969. Occasional Paper 30.

Tobin, J. Manuscript on Monetary Theory, Chapter 1. (This is on reserve in the library.)

 

II. Quantity Equation

Fisher, I. The Purchasing Power of Money, Macmillan, 1913, Chaps. 1, 2, 3, 4, 8.

Keynes, J. M., Tract on Monetary Reform, Macmillan, 1924, Chaps. 2, 3.

Patinkin, D. “The Chicago Tradition, the Quantity Theory, and Friedman,” JMCB, Feb., 1969, 46-70.

Pigou, A. C. “The Value of Money,” originally in Quarterly Journal of Economics, 1917, reprinted in Lutz and Mints.

 

III. The Demand for Money

Baumol, W. J. “The Transactions Demand for Cash: An Inventory Theoretic Approach,” QJE, Nov., 1952, reprinted in Thorn.

Cagan, P. “The Monetary Dynamics of Hyperinflation” in Studies in the Quantity Theory of Money, M. Friedman (ed.), University of Chicago Press, 1956.

Friedman, M. “The Quantity Theory of Money: A Restatement,” in OQM (also in Thorn and in Studies in the Quantity Theory of Money).

Keynes, J. M. The General Theory of Employment, Interest and Money, Macmillan, 1935, Chaps. 13, 15, 17.

Laidler, D. E. W. “Some Evidence on the Demand for Money,” JPE, Feb., 1966, 55-68.

Latané, H. A. “Cash Balances and the Interest Rate—A Pragmatic Approach,” RE and Sta., Nov., 1954, 456-60.

Tobin, J. “Liquidity Preference as Behavior Toward Risk,” RES, Feb., 1958, 65-86, reprinted in Thorn.

 

IV. The Supply of Money

Cagan, P. Determinants and Effects of Changes in the Money Stock, 1875-1960, Columbia University Press, 1965.

 

V. Inflation

Friedman, M. “The Role of Monetary Policy, “ AER, March 1968, 1-17, reprinted in OQM.

Phillips, A. W. “The Relation between Unemployment and the Rate of Change of Money Wages in the U.K., 1862-1957,” Economica, Nov., 1958, 283-99.

_____________________________

[References completed]

Lutz and Mints.   Lutz, Friedrich A. and Mints, Lloyd W. Readings in Monetary Economics.Volume 5 of The series of republished articles on economics. R.D. Irwin, 1951.

Thorn. [probably] Money and banking: theory, analysis, and policy; a textbook of readings. Edited with introd. by S. Mittra. [Consulting editor: Richard S. Thorn]. New York, Random House [1970]

OQM. Friedman, Milton. Optimum Quantity of Money and Other Essays. New Brunswick, NJ: Transaction Publishers, 1969.

_____________________________

Source: Source: Stigler, George. Papers, Box 3, Folder “U of C Other, Miscellaneous, Corresp. w. Pres., etc”, Special Collections Research Center, University of Chicago Library.

 

Image Source: MIT Museum.

 

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Chicago Courses

Chicago. Imperfect Competition (Econ 307) Reading List. Lange, 1941

Today’s posting  comes from Norman M. Kaplan’s student notes from his graduate studies: a carbon copy of the reading list for Oskar Lange’s course at the University of Chicago given in the Autumn Quarter of 1941.

The Course description from the 1941-42 course announcements:

307. Imperfect Competition.—A study of price formation and production under various transitional forms between perfect competition and pure monopoly, such as monopolistic and monopsonistic competition, noncompeting groups, oligopoly and bilateral monopoly. The problem of equilibrium under such forms. Noncompeting groups and social structure. Application of the theory to the study of distribution of incomes, collective bargaining, excess capacity, price rigidity, and business cycles. Imperfect competition and economic policy. Prerequisite: Economics 301 or equivalent. Summer, 9:00; Autumn, 1:30; Lange.

Source: University of Chicago. Announcements of the College and the Divisions for the Sessions of 1941. Vol. XLI, No. 10 (April 25, 1941), p. 307.

_______________________________________

ECONOMICS 307
Autumn, 1941

 

E. Chamberlin. The Theory of Monopolistic Competition

Joan Robinson. Economics of Imperfect Competition

Roy F. Harrod. “Doctrines of Imperfect Competition,” QJE (May 1934)

G. Stigler. “Notes on the Theory of Duopoly,” JPE (Sept. 1940)

A. C. Pigou. Economics of Stationary States. Chap. 14-19, 23, 40-44

R. Triffin. Monopolistic Competition and General Equilibrium Theory.

Testimony of Frank Fetter before TNEC. Hearings before TNEC, Part 5

N. Kalder. “The Equilibirum of the Firm” Econ. J. (1934)

__________. “Monopolistic Competition and Excess Capacity,” Economica (Feb 1935)

P. Sweezy. “Demand under Conditions of Oligopoly,” JPE (Aug 1939)

R. L. Hall and C. J. Hitch. Price Theory and Business Behavior. Oxford Economic Papers No. 2, May, 1939

M. W. Reder. “Inter-Temporal Relations of Demand and Supply within the Firm,” Canadian J. of Economics and Political Science (Feb 1941)

H. Smith. “Advertising Cost and Equilibrium,” RES (Oct 1934)

G. Tintner. “Note on the Problem of Bilateral Monopoly,” JPE (1939)

M. Bronfenbrenner. “The Economics of Collective Bargaining,” QJE (Aug. 1939

Turner. “Theory of Industrial Disputes,” RES (Feb 1934)

G. Tintner. “Note on the Problem of Bilateral Monopoly,” JPE (1939)

M. Bronfenbrenner. “The Economics of Collective Bargaining,” QJE (Aug. 1939)

Turner. “Theory of Industrial Disputes,” RES (Feb 1934)

A. P. Lerner. “The Concept of Monopoly and Measurement of Monopoly Power,” RES (Feb 1934)

____________. “From Vulgar Political Economy to Vulgar Marxism,” JPE (Aug 1939)

M. Kalecki. Studies in Theory of Economic Fluctuations. Chap. 1.

 

Optional

J. E. Meade. An Introduction to Economic Analysis and Policy, part II

E. A. G. Robinson. Structure of Competitive Industry.

F. Zeuthen. Problems of Monopoly and Economic Warfare, part 4.

F. Harrod. Price and Cost in Entrepreneur’s Policy. Oxford Economic Papers No. 2, May, 1939.

S. Nelson and W. G. Keim. Price Behavior and Business Policy. TNEC Mon. No. 1

Report of the Federal Trade Commission on Monopolistic Practices in Industry, Hearings before TNEC, part 5A

R. Triffin. “Monopoly in Particular and General Equilibrium Economics,” Econometrica (April 1941)

M. W. Reder. “Monopolistic Competition and the Stability Conditions,” RES (Feb 1941)

R. Shone. “Selling Costs,” RES (June 1935)

E. Hoover. “Spatial Price Discrimination,” RES (June 1937)

J. R. Hicks. “The Theory of Monopoly,” Econometrica, 1935

H. Hotelling. “Stability in Competition,” Econ. J., 1929

M. Bronfenbrenner. “Application of the Discontinuous Oligopoly Demand Curve,” JPE (June 1940)

R. H. Coase. “Some Notes on Monopoly Price,” RES (Oct. 1937)

Structure of the American Economy, chaps. 7, 8, 9

J. Robinson. “What is Perfect Competition?” QJE, 1934

E. Chamberlin. “Monopolistic or Imperfect Competition,” QJE, 1937

N. Kaldor. “Professor Chamberlin on Monopolistic and Imperfect Competition,” QJE, 1938

R. F. Kahn. “Some Notes on Ideal Output,” Econ. J, 1935

_______________________________________

Source: Kaplan, Norman Maurice. Papers, Box 2, Folder 7, Special Collections Research Center, University of Chicago Library

Image Source: Hoover Institution Archives. Papers of Yzgmunt Berling, Box 2. Lange is the civilian in the front left, soon to be General Yzgmunt Berling is the uniformed man on the right. The picture is from 1943.

 

 

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Chicago Courses

Chicago. Price Theory. Econ 300 A&B. Friedman Readings ca 1947

 

 

When compared to the list of Milton Friedman’s reading assignments for Economics 300 A&B for 1948, we note that the following handwritten list of readings taken from the student notes of Norman M. Kaplan who attended both 300A and 300B during the Winter Quarter 1947 do not include the 1947 items found in the 1948 list:

Pigou, A. C., “Economic Progress in a Stable Environment,” Economica, 1947, pp. 180-90.

*Dennison, S. R., “The Problem of Bigness,” Cambridge Journal, Nov. 1947.

This leads me to conclude that we indeed have the assigned Winter Quarter readings for Friedman’s second iteration of Economics 300A and his first iteration of Economics 300B. There is much more in Kaplan’s student notes, but this is enough for one posting.

______________________________

[undated, handwritten copy by Norman M. Kaplan]

Friedman’s readings 300 A&B

 

F. H. Knight, “Social Econ. Organization”; “The Price System & the Econ. Process” (in The Economic Organization, pp. 1-37)

 

Marshall

Bk III, ch. 2, 3, 4,5
Bk V, ch. 1,2,3,4,5,12, Appendix H
Bk IV, ch. 1, 2, 3
Bk V, ch 6
Bk VI, ch. 1-5           (ch. 1,2 done)

 

H. Schultz, Meaning of Statistical Demand Curves, pp. 1-10
E.J. Working, “What do Statistical ‘Demand Curves’ Show?”

 

Knight, Risk, Uncertainty, and Profit, ch 3
Hicks, J. R., Value and Capital, Part I (pp 11-37)
W. A. Wallis & M. Friedman, “Empirical Derivation of Indifference Functions” (in Lange, Studies in Math. Econ. & Econometrics, U of C Press)

 

A. L. Myers, Elements of Modern Economics, ch 5, 7, 8, 9
J. Robinson, Econ. of Imperfect Competition, ch 2 (in 209 notes)
J. M. Clark, Econ. of Overhead Costs, ch 9
J. Viner, “Cost Curves and Supply Curves”
E. Chamberlin, Theory of Monopolistic Competition, ch 3, secs. 1, 4, 5, 6; ch 5
R. F. Harrod, “Doctrines of Imperfect Competition”, QJE, May 1934, esp. sec. 1, pp. 442-61

 

J. B. Clark, Distr. of Wealth, Preface, ch 1, 7, 8, 11, 12 (in 209 notes), 13, 23

 

J. S. Mill, Prin of Pol Econ, Book II, ch 14
Hicks, Theory of Wages, ch 1-6 (in 209 notes)
Smith, Wealth of Nations, Bk I, ch 10

 

Friedman and Kuznets, Income from Independent Professional Practice,

Preface, pp. v to x,
ch 3, sec 3, pp. 81-95,
ch 4, sect 2, pp. 118-137,
app to ch. 4, sec 1 & 3, pp 142-151, 155-61

 

F.H. Knight, “Interest” in Ethics of Competition
Keynes, GT [General Theory], ch 11-14

 

Cassell, Fundamental Thoughts in Econ, ch. 1, 2,3
[____], The Theory of Social Economy, ch 4

 

Hicks, “Keynes & the Classics”, Econometrica, Apr 1937, pp. 147-159
Modigliani, “Liquidity Preference & the Theory of Interest & Money,” Econometrica, Jan 1944, esp. Part I, sec. 1 through 9, sec 11 through 17, part II, sec 21
Pigou, “Classical Stationary State,” Econ Journal, Dec 1943, pp. 343-51

 

Source: Kaplan, Norman Maurice. Papers, Box 1, Folder 8, Special Collections Research Center, University of Chicago Library

Image Source: The Mont Pelerin Society webpage “About MPS”.

 

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Chicago Courses Syllabus

Chicago. Price Theory. Economics 300 A&B. Metzler. 1948-49

Milton Friedman wasn’t the only person teaching graduate price theory at the University of Chicago in the postwar years. During the academic year 1948-49 both the Harvard-trained Lloyd A. Metzler and Milton Friedman offered parallel sessions of Economics 300 A&B during the same quarters. Both taught the course going into the early 1950s. While the overlap is significant to be sure, the differences of the two approaches, Chicago vs. Harvard, are fairly clear. 

One of the advantages of consulting multiple archives is that I was able to find this Autumn 1948 reading list for Economics 300A, not in Lloyd A. Metzler’s papers at Duke but in Milton Friedman’s papers at Hoover. This list of readings does not square with Friedman’s course organization but also has no name and the course catalogue for 1948-49 does not identify Metzler. Since it matches the later years’ reading lists found in the Metzler papers, we know the nameless Economics 300A for the Autumn Quarter at the University of Chicago was taught by Metzler too.

____________________________

Economics 300A
Autumn 1948

I. The Theory of Consumer’s Choice

A. Marshall, Principles of Economics, Book III.

J. R. Hicks, Value and Capital, Chapters I – V, and appendices to these chapters.

W. S. Jevons, Theory of Political Economy, Chapters I – IV.

P. A. Samuelson, Foundations of Economic Analysis, Chapters III, V, VII.

M. Friedman [& L. J. Savage], “The Utility Analysis of Choices Involving Risk,” Journal of Political Economy, LVI (August, 1948) 279-304.

I. Fisher, “Measuring Marginal Utility,” in Economic Essays in Honor of John B. Clark (1927).

II. Production Functions and Cost Schedules

J. M. Cassels, “On the Law of Variable Proportions,” in Explorations in Economics (1936).

J. R. Hicks, Value and Capital, Chapter VI, VII, VIII, and appendices to those chapters.

J. Robinson, The Economics of Imperfect Competition, Chapter II.

P. A. Samuelson, Foundations, Chapter IV.

G. J. Stigler, The Theory of Price, Chapters VII, VIII.

III. Market Price under Perfect Competition.

J. Robinson, Economics of Imperfect Competition, Book III.

A. Marshall, Principles, Book V.

G. J. Stigler, The Theory of Price, Chapters IX, X.

IV. Monopoly and Monopolistic Competition.

J. Robinson, Economics of Imperfect Competition, Books II, IV, V, and X.

E. Chamberlin, Theory of Monopolistic Competition, IV, V, VI, VII.

V. Duopoly, Oligopoly, Bilateral Monopoly.

J. Marschak, “Neumann’s and Morgenstern’s New Approach to Static Economics,” Journal of Political Economy, LIV, (April 1946).

E. Chamberlin, Theory of Monopolistic Competition, Chapter III.

H. G. Lewis, “Some Observations on Duopoly Theory.” American Economic Review, XXXVIII (May 1948, supplement) 1-9.

O. Morgenstern, “Oligopoly, Monopolistic Competition, and the Theory of Games,” American Economic Review, XXXVIII (May 1948, supplement) 10-18.

VI. Modern Price Theory and Welfare Economics.

A. Burk (Bergson), “A Reformulation of Certain Aspects of Welfare Economics,” Quarterly Journal of Economics (1937-38).

A. C. Pigou, The Economics of Welfare (4th Edition), Part II, Chapters I – XI.

A. P. Lerner, The Economics of Control, Chapters I – XIX.

P. A. Samuelson, Foundations, Chapter VIII.

J. R. Hicks, “The Foundations of Welfare Economics,” Economic Journal XLIX (1939).

G. J. Stigler, “The New Welfare Economics,” American Economic Review, XXXIII (1943), 355-359.

Source: Hoover Institution, Milton Friedman Papers. Box 76, Folder 9 “University of Chicago Econ. 300 A”.

____________________________

Economics 300B
Major Topics and Selected Readings
Winter, 1949
Lloyd A. Metzler

The principal books to be used are as follows:

A. Marshall, Principles of Economics, eighth edition, reprinted 1947.

J. R. Hicks, Value and Capital, second edition, 1946.

B. Haley and W. Fellner, editors, Readings in the Theory of Income Distribution, reprinted 1947.

G. J. Stigler, Production and Distribution Theories, 1941.

I. Production Functions and the Doctrine of Marginal Productivity

B. Haley and W. Fellner, Readings, Chapters 5, 6, 7, 11.

Stigler, Production and Distribution Theories.

P. H. Douglas, “Are There Laws of Production?”, American Economic Review, XXXVIII (1948) 1-41.

II. The Theory of Wages

B. Haley and W. Fellner, Readings, Chapters 13, 14, 16, 17, 19.

J. R. Hicks, The Theory of Wages, 1932.

R. A. Lester, “Shortcomings of Marginal Analysis for Wage-Employment Problems”, American Economic Review, 1946.

F. Machlup, “Marginal Analysis and Empirical Research”, American Economic Review, 1946.

G. J. Stigler, “The Economics of Minimum Wage Legislation,” American Economic Review, 1946.

III. Capital and Interest

E. Böhm-Bawerk, The Positive Theory of Capital, 1891.

I. Fisher, The Theory of Interest, 1930.

W. Fellner and B. Haley, Readings, Chapters 20, 21, 22, 23,24, 26.

J. M. Keynes, General Theory of Employment, Interest and Money, Book IV.

A. Marshall, Principles, the relevant chapters in Books IV and VI.

J. R. Hicks, Value and Capital, Parts III and IV.

IV. Inter-relations of Wages, Interest, and Profits.

F. H. Knight, Risk, Uncertainty and Profits.

J. A. Schumpeter, The Theory of Economic Development.

O. Lange, Price Flexibility and Employment.

K. Wicksell, Interest and Prices.

K. Wicksell, Lectures on Political Economy, Vol. I, Part 2.

Source: Duke University David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Reading Lists 300 A & B — 302”.

Source Image: “From family album, taken while Lloyd Metzler was a student at Harvard.”
“Lloyd A. Metzler” by Margiemetz – Own work. Licensed under CC BY-SA 3.0 via Commons.

Categories
Chicago Courses Syllabus

Chicago. Price Theory. Economics 300 A&B. Friedman. 1948

 

 

In the previous posting I provided transcriptions of Milton Friedman’s handwritten record of classes for the first time he offered the first quarter of a two-quarter sequence in price theory together with a handout and examination questions. Unfortunately I was unable to find a comparable record of classes for the second quarter of the sequence, Economics 300B for the Winter Quarter 1947. Below we have a draft of assigned and recommended readings for the following year. This can be compared to the readings for the price theory course Friedman taught at Columbia in 1939-40.

Interesting to note is the double appearance of Keynesian economics, something one might have not expected in a price theory course, once for the determination of interest rates (after dealing with the theory of wages) and later (apparently) to illustrate general equilibrium.

The October 1951 version of the Reading Assignments for Economics 300A and B is printed as an appendix to J. Daniel Hammond’s “The development of post-war Chicago price theory” in The Elgar Companion to Chicago School Economics, edited by Ross  B. Emmett, pp. 7-24. It is nearly identical to the handwritten draft of reading assignments I have transcribed here from 1948.  This Hammond article offers much context and is very much worth consulting.

______________________________

September, 1948

Economics 300 A&B
Reading Assignments by M. Friedman

(Notes:

  1. It is assumed students are familiar with material equivalent to that contained in George Stigler, Theory of Price, or Kenneth Boulding, Economic Analysis.
  2. Readings marked with asterisk (*) are recommended, not required.)

Knight, F. H., The Economic Organization, esp. pp. 1-37.
Keynes, J. N., The Scope and Method of Political Economy, ch. I and II, pp. 1-83.

 

Marshall, Alfred, Principles of Economics, Bk III, ch 2, 3, 4; Bk V, ch 1,2.
Schultz, Henry, The Meaning of Statistical Demand Curves, pp. 1-10.
Working, E. J. “What do Statistical ‘Demand Curves’ Show?”
Knight, F. H. Risk, Uncertainty, and Profit, ch 3.
*Lange, O., “On the Determinateness of the Utility Function”, Review of Economic Studies, Vol I (1933-34), pp. 218 ff.
*Allen, R.G.D., “The Nature of Indifference Curves,” Ibid, pp 110 ff.
Hicks, J. R., Value and Capital, Part I (pp 11-52).
*Wallis, W. A., and Friedman, Milton, “The Empirical Derivation of Indifference Functions”, in Lange et al, Studies in Mathematical Economics and Econometrics
*Friedman, Milton and Savage, L. J., “The Utility Analysis of Choices Involving Risk,” Journal of Political Economy LVI (August 1948) pp. 279-304.

 

Marshall, Book V, ch 3, 4, 5, 12, Appendix H.
Meyers, A. L. Elements of Modern Economics, ch 5, 7, 8, 9.
Robinson, Joan, Economics of Imperfect Competition, ch 2.
Clark, J. M., The Economics of Overhead Costs, ch 9
Viner, Jacob, “Cost Curves and Supply Curves”, Zeitschrift fuer Nationaloekonomie, Bd III (Sept, 1931), pp 23-46.
Chamberlin, Edward, The Theory of Monopolistic Competition, ch 3, sec. 1, 4, 5, 6; ch 5.
Harrod, R. F. “Doctrines of Imperfect Competition”, Quarterly Journal of Economics, May 1934, sec. 1, pp. 442-61.

 

*Triffin, Robert, Monopolistic Competition and General Equilibrium Theory, esp. Part II.
*Robinson, E. A. G., The Structure of Competitive Industry.
*___________________, Monopoly.
*Plant, Arnold, “The Economic Theory Concerning Patents for Inventions,” Economica, Feb, 1934.
*Dennison, S. R., “The Problem of Bigness,” Cambridge Journal, Nov. 1947.

 

Marshall, Book IV, ch 1, 2, 3; Bk V, ch 6.
Clark, J. B., The Distribution of Wealth, Preface, ch 1, 7, 8, 11, 12, 13, 23.
Mill, John Stuart, Principles of Political Economy, Book II, ch 14.
Hicks, J. R., The Theory of Wages, ch 1-6.
Smith, Adam, The Wealth of Nations, Bk I, ch 10.
Marshall, Bk VI, ch 1-5.
Friedman, Milton, and Kuznets, Simon, Income from Independent Professional Practice, Preface, pp. v to x; ch 3, Sec 3, pp. 81-95, ch 4, Sect 2, pp. 118-137, App, Sec 1 & 3, pp 142-151, 155-61.
Knight, F. H. “Interest” in Encyclopaedia of the Social Sciences, also in Ethics of Competition.
Keynes, J. M. The General Theory of Employment, Interest, and Money, ch 11-14.

 

Cassell, Gustav, Fundamental Thoughts in Economics, ch. 1, 2,3.
_________________, The Theory of Social Economy, ch 4.
J. R. Hicks, “Mr. Keynes and the ‘Classics’; A Suggested Interpretation”, Econometrica, vol 5, April 1937, pp. 147-159.
Franco Modigliani, “Liquidity Preference and the Theory of Interest and Money,” Econometrica, vol 12, No. 1 (Jan 1944) esp. Part I, sec. 1 through 9, sec 11 through 17, Part II, sec 21.
A. C. Pigou, “The Classical Stationary State,” Economic Journal, vol 53, December, 1943, pp. 343-51.
____________, “Economic Progress in a Stable Environment,” Economica, 1947, pp. 180-90.

 

Source: Hoover Institution Archive, Milton Friedman Papers, Box 77, Folder 1 “University of Chicago, Economics 300 A & B”.

 

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Chicago Courses Exam Questions Syllabus

Chicago. Price Theory. Econ 300A, Friedman. 1946.

The first cohort of students to receive their graduate price theory training from Milton Friedman during the autumn quarter of 1946 at the University of Chicago (Economics 300A ) included a future Nobel prize winner (James Buchanan), a future labor economist and Chicago/Princeton professor (Albert Rees), a future textbook author (Richard Leftwich, whose text incidentally was the text used in the early concentration freshman economics course I took at Yale in the Fall semester of 1969), and Army Air Corps Silver-Star recipient and the future head of C.I.A. Soviet economics research (Rush V. Greenslade).

Interestingly enough, Milton Friedman is listed as a member of the faculty in the Announcement for the Sessions of 1946-1947 but the courses 300A, B were not yet in included in the May 15, 1946 Announcements. The readings and basic structure of the course were slightly modified from the course he offered at Columbia in 1939-40.

_________________________________

[Course Description]

300A,B. Price Theory. A systematic study of the pricing of final products and factors of production under essentially stationary conditions. Covers both perfect competition and such imperfectly competitive conditions as monopolistic competition, oligopoly, and monopoly. 300A deals primarily with the pricing of final products; 300B, with the pricing of factors of production. Prereq: Econ 209 or equiv. and Econ 213 or equiv or consent of instructor.

300A. Aut: MWF 9:30; Win: MWF 10:30; Friedman.

300B. Win: MWF 9:30; Spr: MWF 9:30; Friedman.

 

Source:   University of Chicago, Announcements. Vol. XLVII, No. 4 (May 15, 1947), The College and the Divisions. Sessions of 1947-1948, p. 224.

_________________________________

Econ 300 A. Autumn Quarter [1946]
Record of Meetings

[Handwritten notes by Milton Friedman]

Wed Oct 2 Qualifying exam.
Fri Oct 4 a) Marshall a la Memorials, pp. 47, 86.
b) Defn of the economic problem[,] Economics
c) Distnctn betw. positive & normative
Mon Oct 7 Knight[‘]s fcns of econ organization
Wed Oct 9 [ditto] completed
Fri Oct 11 Reln betw wants & activities
Mon Oct 14 a) Initial discussion of d. c.
Wed Oct 16 [ditto] completed
b) [Initial discussn ] of s. c.
Fri Oct 18 No meeting (to be held later
Mon Oct 21 Equil of d & s.
Wed Oct 23 Elast. of Dem
Fri Oct 25 Elast completed & assumptns ind. demand
Mon Oct 28 Ass. and dem. c. completed; stat. d.c.
Wed Oct 30 Complete statistical demand curves
Fri Nov 1 Stochastic dem. curve. d.c. of ind cons. throu m. u.
Mon Nov 4 Eqn of ind cons; math & graph. demontratn
Wed Nov 6 Dervatn of d & eng curves
Fri Nov 8 Diff with utility theory
Mon Nov 11 Indiff curve theory
Wed Nov 13 [ditto]
Fri Nov 15 Examination
Mon Nov 18 Discussion of exam: Income vs. substitution effects
Wed Nov 20 Diff with indifference theory; dem curve for prod of an indiv prod.
Fri Nov 22 Dem curve for prod of ind prod; Econ of Ind firm
Mon Nov 25 Relat of cost curves of ind foirm to supply curve of industry
Wed Nov 27 (extra meeting to make up for Oct. 18)
Reading period
Mon Dec 9 Diff kinds of monopolistic conditions
Wed Dec 11
Fri Dec 13
Mon Dec 16
Wed Dec 18 examination
Fri Dec 20 examination

_________________________________

Qualifying Examination, Economics 300A
Autumn Quarter, 1946

1. Comment briefly on the following two sentences, taken from newspaper stories:

a. “Demand went up and therefore price went up.”

b. “Price went up and therefore demand declined.”

 

2. Indicate which of the following statements are true (T) and which false (F):

[T] If a one per cent increase in price will cause more than a one per cent reduction in amount demanded, the demand for the commodity is elastic.

[F] Cost of production affects price only through its effect on the rate of production.

[F] If production of a commodity is completely monopolized, and if the monopolist takes full advantage of his position, no changes in the cost of production will have any effect upon price.

[F] A fixed tax (say, a license tax of $10,000) would operate to increase the price at which a monopolist would make the largest net return (or largest net earnings).

[blank] An individual firm will undertake to equalize marginal revenue and marginal cost.

[F] An excise tax is likely to increase the price of a competitively produced commodity by the full amount of the tax.

[T] If price exceeds the competitive producer’s average expense it will therefore be advantageous for him to increase his rate of production.

[T] A monopoly will never operate at a price at which the demand of its product is inelastic.

 

_________________________________

[undated copy of a class handout, ca. 1946-47]

An arithmetical example of the effects of changes in tastes and the distribution of income on the distribution of commodities.

1. Descriptive data:

a. Population. There are three classes in the community—rich, middle-class, and poor. Their numbers are fixed throughout the example, but their incomes vary. The numbers and original family incomes are:

Rich: 1,000 families, $10,000 income

Middle-class: 10,000 families, $3,000 income

Poor: 1,000 families, $1,000 income

b. Commodities. There are two commodities: housing; and all other, which will be treated as a single commodity.

c. Tastes. In the original position the tastes of all income classes are identical. The tastes are described by the following schedules of marginal utilities, which, it will be noticed, follow the Bernoulli hypothesis. (It will be observed also that the analysis is independent of the measurability of utility. Marginal utilities are used only for simplicity of exposition. If the student will triple the marginal utilities for one income class and carry through the analysis, he will reach the same answers, assuming he does not make arithmetical mistakes.)

 

Housing

Other

Quantity

 Marginal Utility Quantity

Marginal Utility

1

 1.00 1

1.00

2

 0.50 2

0.50

3

 0.33 3

0.33

4

 0.25 4

0.25

5

 0.20 5

0.20

Additional values can be found for either schedule from the formula, marginal utility = 1/quantity.

 

2. The Original Distribution of Goods.

a. Each family will seek maximum utility, and this entails buying housing and other commodities in such quantities that

marginal utility of housing = marginal utility of other
  price of housing                                 price of other

In addition each family is faced by the budget limitation that the amount spent on housing plus the amount spent on other equal income.

b. We can construct a demand curve for (say) housing by (say) the poor, using arithmetical procedures.

i. First divide the marginal utilities of housing and other by their unit prices. Let these prices be $2 per unit and $1 per unit, respectively. We secure schedules:

Housing

Other

Quantity

 Marginal Utility
Per Dollar		 Quantity

Marginal Utility
Per Dollar

1

 0.500 1

1.00

2

 0.250 2

0.50

3

 0.167 3

0.33

4

 0.125 4

0.25

5

 0.100 5

0.20

 

ii. Then find the combinations such that the marginal utility per dollar is equal. For example, 1 housing unit and 2 other units; 2 housing units and 4 other units. Only one of these many combinations meets our budget limitation, that the poor family spend $1,000. Continuing the table or the logic, the family will buy 250 housing units if the prices are as given.

iii. Carry this procedure through for all possible prices of housing and other, for each income class.

iv. Add the demand schedules so secured, compare with the given supplies, read off prices, and then the quantities received by each type of family.

v. Since steps iii and iv will require several years, it is more economical to take a course in sub-freshman algebra and proceed as follows:

c. Our two conditions of proportionality of marginal utilities to prices and the budget limitation can be written as

1/(q1p1) = 1/(q2p2)

q1p1 + q2p2 = R,

where q1 is the quantity of housing, p1 its price, the corresponding symbols with subscript 2 refer to other, and R is income.

We then proceed deftly as follows:

i. The demand curve for housing by a family is the quantity that will be purchased at various prices, so we wish to find how q1 varies with p1. If we substitute the proportionality-of-marginal-utilities equation into the budget equation, we secure

q1p1 + q1p1 = R,

or q1=R/(2p1).

By symmetry the same demand curve holds for other, using subscript 2.

ii. We now add up the demand curves of all families. The aggregate demand of the 1,000 rich families is

1,000 x 10,000/(2p1) = 5,000,000/p1

that of the middle class,

10,000 x 3,000/(2p1) = 15,000,000/p1

and that of the poor, starving families is

1,000 x 1,000/(2p1) = 500,000/p1.

iii. The fixed supply of both housing other is 205,000 units. The price is set where quantity supplied equals quantity demanded, i.e.,

205,000 = 20,500,000/ p1

so the price of housing (and of other) will be $100.

iv. And now by going back to demand curves, in i above, we can find the quantity each family secures of each commodity.

d. The final answers are:

i. The rich family secures $10,000/(2x$100) = 50 units of housing and 50 units of other.

ii. The middle class family secures $3,000/(2x$100) = 15 units of housing and 15 units of other.

iii. The poor family secures $1,000/(2x$100) = 5 units of housing and 5 units of other.

3. After the War: Larger Money Incomes and a More Equal Distribution of these Incomes.

a. Let us assume that after a highly successful war, this community now has the following income structure:

Rich: 1,000 families, $18,000 income

Middle-class: 10,000 families, $6,000 income

Poor: 1,000 families, $4,000 income

Thus the aggregate money income of the community has doubled, but is now more equally distributed by any reasonable measure.

b. We proceed to the solution exactly as before. Indeed nothing has changed but the incomes of individual families so we may use the same demand equations.

c. The final answers are:

i. The rich family secures 45 units of housing and 15 units of other.

ii. The middle-class family secures 15 units of housing and 15 units of other.

iii. The poor family secures 10 units of housing and 10 units of other.

The price per unit of either commodity has risen to $200.

4. Still After the War: The Rich get House-Conscious

a. For various reasons best left unexplored, the rich acquire a greater desire for housing. In terms of our example, the marginal utility of any quantity of housing doubles for them (so marginal utility = 2/q). We proceed as usual.

b. The final results are:

The price of a unit of housing soars to $214.63; that of a unit of other commodities crashes to $185.37.

i. The rich family secures 55.91 units of housing and 32.37 units of other commodities.

ii. The middle-class family secures 13.98 units of housing and 16.18 units of other commodities.

iii. The poor family secures 9.32 units of housing and 10.79 units of other commodities.

5. The Final Comparison

Original
Position

Greater Equality

Same Tastes

Rich-roof-ravenous

Housing

Rich

 50,000 45,000

55,000

Middle-class

 150,000 150,000

139,800

Poor

 5,000 10,000

9,300

Other Commodities

Rich

 50,000 45,000

32,400

Middle-class

 150,000 150,000

161,800

Poor

 5,000 10,000

10,800

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MIDQUARTER EXAMINATION IN ECONOMICS 300A
Autumn, 1946

1. Descriptive data:

a. Population: a community consists of three classes—rich, middle-class, and poor. The numbers and family incomes are:

Rich: 1,000 families, $10,000 income per family.

Middle-class: 10,000 families, $3,000 income per family.

Poor: 1,000 families, $1,000 income per family.

b. Commodities: There are two commodities: housing and food, considered as single composite commodities.

c. Demand curves: All individuals in the community have the following demand curves:

h = I/(2 ph)

f = I/(2 pf)

where

h= number of housing units per time unit.

ph = price per housing unit.

f = number of food units per time unit.

pf = price per food unit.

I = income of the family per time unit.

d. Supplies available.

There are available 205,000 housing units, and 205,000 food units. These amounts are available regardless of price and cannot be increased in the period considered.

Questions:

Determine:

a. The aggregate demand curve for the entire community for (1) housing, (2) food.

b. The prices that will prevail, assuming a free market.

c. The quantity of food and housing consumed by a family of each class.

d. The elasticity of the market demand curve for each product at a quantity of 205,000 units.

 

2. Appraise the following quotation from A. C. Pigou: “Since elasticity measures variations in quantity (demanded or offered) divided by variations in a price, the elasticity of demand for anything will be seven times as large for seven similar demanders as it is for one.”

 

3. “As Sir R. Giffen has pointed out, rise in the price of bread makes so large a drain on the resources of the poorer laboring families and raises so much the marginal utility of money to them, that they are forced to curtail their consumption of meat and the more expensive farinaceous foods: and, bread being still the cheapest food which they can get and will take, they consume more, and not less of it.” Marshall, p. 132.

a. Give your own verbal explanation of how such a positively sloping demand schedule can arise.

b. Draw an indifference curve diagram that will display this phenomenon.

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Final Examination for Economics 300A
Autumn, 1946
Part I

1. Define briefly the following terms:

a. Income elasticity of demand

b. Demand curve for the product of an individual firm

c. Supply curve

d. Marginal revenue

e. Cross elasticity of demand

f. Oligopoly

 

2. Discuss critically the following quotation from Stigler:

“The principle of an increasing Syx [the marginal rate of substitution of y for x] corresponds to the older theory of diminishing marginal utility of a commodity as its quantity increases. More precisely: if Syx is increasing, then the marginal utilities of y and x must be decreasing; if the marginal utilities of y and x are decreasing, then Syx is probably, but not necessarily, increasing.”

3. Assume that the demand curve for complete flashlights of a standardized type is known; that the case and bulb are produced separately from the batteries; that the cost of putting the batteries in the case can be neglected; that the number and type of batteries put in each flashlight is fixed and unchangeable; that the supply curves of (1) case and bulb assembly and (2) batteries are known; and that the markets for complete flashlights, case and bulb assemblies, and batteries are reasonably competitive.

a. Indicate how to derive the demand curve for batteries alone. Under what assumptions is this demand curve valid; and for what kinds of problems is it relevant?

b. Suppose the supply curve of case and bulb assembly shifts to the right (i.e., supply increases). What effect will this have on the price of batteries?

c. Under what conditions would you expect the derived demand curve for batteries to be extremely inelastic?

_________________________________

Final Examination for Economics 300A
Autumn, 1946
Part II

4. Statistical demand curves for fluid milk are derived by two different procedures.

(1) Data for a particular year for the 48 states of the United States are used to obtain a correlation equation expressing (a) the price of fluid milk in a state as a function of (b) per capita consumption of fluid milk in that state and (c) per capita income in that state.

(2) Data for a period of years for the United States are used to obtain a correlation equation expressing (a) the price of milk in the United States as a function of (b) the per capita consumption of fluid milk in the United States and (c) the per capita income in the United States.

Under what conditions, if any, would you expect the results to be identical? If the results are not identical, discuss the relative advantages and disadvantages of each. Indicate the conditions under which you would expect (1) to give a better estimate of “the” demand curve for milk and, the conditions under which you would expect (2) to give a better estimate. How, if at all, could one determine which set of conditions prevails.

5. “In conversations with gold mining engineers a phrase glibly and frequently repeated is ‘sweetening the ore.’ By this phrase reference is made to the practice of diverting production in profitable periods to the poorer ores and perhaps restricting output in the richer fields. Under this practice the better ores are preserved for periods in which mining costs have risen so that over a long period of time output can be held more steady. Contributing also to a policy of sweetening the ores is the reluctance of producers to install capital equipment in a period in which the tendency is for mining expenses to increase with the general advance of wages and living costs. By the time the equipment is installed it might be expected that wages and price levels would be adjusted to the increased price of gold.”

Discuss the wisdom of the policy described in this quotation from the point of view of the individual producer. Assume that the individual producer seeks to maximize the present net capital value of his mining properties. Discuss separately (a) the alleged policy of “diverting production in profitable periods to the poorer ores and perhaps restricting output in the richer fields”; (b) the alleged policy of postponing the installation of capital equipment.

6. Assume a change in the laws so that less stringent conditions are imposed for bankruptcy and reorganization in a particular field (say the production of steel). As a consequence, a number of steel firms reorganize, wiping out a large part of their bonded debt. What would you expect to be the short- and long-run effects of these events on (a) the output and prices of the reorganized firms; (b) the amount of investment in the industry; (c) the rate of interest paid by the industry for new loans; (d) the output and prices of the industry? In each case, give the basis for your answer.

_________________________________

Source: Hoover Institution Archive. Milton Friedman Papers, Box 76, Folder 9 University of Chicago Econ. 300A.

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