Category: Harvard

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Faculty Regulations Harvard Teaching Undergraduate

Harvard. Observations on the organization of academic life at Harvard. Ashley, 1897

 

The economic historian William J. Ashley taught at Harvard from 1892 to 1901. His observations regarding the tension between professors and junior staff’s desire to work for the advancement of science and scholarship and the core educational mission of universities have not lost their relevance 125 years after he shared his Harvard experience.

But there are many wonderful obiter dicta you will want to savor. 

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C.V. from Harvard’s records

William James Ashley, B.A. Oxford 1881; M.A. Oxford 1885; M.Com. Birmingham (Eng.) 1902; Ph.D. Berlin 1910; Fellow Lincoln Coll. Oxford 1885; Prof. of Political Economy and Constitutional History, Toronto 1888-1892; Prof. of Economic History 1892-1901; Prof. of Commerce, Birmingham; Dean (Faculty of Commerce) Birmingham 1901-1902; Cor. Memb. Mass. Hist. Soc; Cor. Memb. Am. Acad.

Harvard University. Quinquennial catalogue of the officers and graduates 1636-1930, p. 42.
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Prof. William J. Ashley on academic administration and procedures at Harvard (1897)

[…] The peculiarity in the position of Harvard is that while the professorial ideal has definitely triumphed among the teaching body, the tutorial ideal is still cherished by the ‘constituency.’ Most of the professors care first of all for the advancement of science and scholarship; they prefer lectures to large audiences to the catechetical instruction of multiplied ‘sections,’ and they would leave students free to attend lectures or neglect them, at their own peril; they would pick out the abler men, and initiate them into the processes of investigation in small ‘research courses’ or ‘seminaries;’ and, to be perfectly frank, they are not greatly interested in the ordinary undergraduate. On the other hand the university constituency — represented, as I am told, by the Overseers — insists that the ordinary undergraduate shall be ‘looked after;’ that he shall not be allowed to ‘waste his time;’ that he shall be ‘pulled up’ by frequent examinations, and forced to do a certain minimum of work, whether he wants to or not. The result of this pressure has been the establishment of an elaborate machinery of periodical examination, the carrying on of a vaster bookkeeping for the registration of attendance and of grades than was ever before seen at any university, and the appointment of a legion of junior ‘instructors’ and assistants, to whom is assigned the drudgery of reading examination — books and conducting ‘conferences.’

So far as the professors are concerned, the arrangement is as favourable as can reasonably be expected. Of course they are all bound to lecture, and to lecture several times a week; they exercise a general supervision over the labours of their assistants; they guide the studies of advanced students; they conduct the examinations for honours and for higher degrees; they carry on a ceaseless correspondence; and each of them sits upon a couple of committees. But they are not absolutely compelled to undertake much drudging work in the way of instruction, and if they are careful of their time they can manage to find leisure for their own researches. As soon as a ‘course’ gets large, a benevolent Corporation will provide an assistant. The day is past when they were obliged, in the phrase of Lowell, ‘to double the parts of professor and tutor.’

But the soil of America is not as propitious as one could wish for the plant of academic leisure. It is a bustling atmosphere; and a professor needs some strength of mind to resist the temptation to be everlastingly doing something obvious. The sacred reserves of time and energy need to be jealously guarded, and there is more than one direction from which they are threatened. University administration occupies what would seem an unduly large number of men and an unduly large amount of time; it is worth while considering whether more executive authority should not be given to the deans. Then there is the never — ending stream of legislation, or rather of legislative discussion. I must confess that when I have listened, week after week, to Faculty debates, the phrase of Mark Pattison about Oxford has some times rung in my ears: ‘the tone as of a lively municipal borough.’ It would be unjust to apply it; for, after all, the measures under debate have been of far-reaching importance. Yet if any means could be devised to hasten the progress of business, it would be a welcome saving of time. Still another danger is the pecuniary temptation — hardly resistible by weak human nature — to repeat college lectures to the women students of Radcliffe. That some amount of repetition will do no harm to teachers of certain temperaments and in certain subjects may well be allowed, but that it is sometimes likely to exhaust the nervous energy which might better be devoted to other things can hardly be denied. The present Radcliffe system, to be sure, is but a makeshift, and an unsatisfactory one.

The ‘instructors’ and assistants, on their part, have little to grumble at, if they, in their turn, are wise in the use of their time. It is with them, usually, but a few years of drudgery, on the way to higher positions in Harvard or elsewhere; and it is well that a man should bear the yoke in his youth. Let him remember that his promotion will depend largely upon his showing the ability to do independent work; let him take care not to be so absorbed in the duties of his temporary position as to fail to produce some little bit of scholarly or scientific achievement for himself. I have occasionally thought that the university accepts the labours of men in the lower grades of the service with a rather step-motherly disregard for their futures.

Come now to the ‘students,’ or whose sake, certainly, Harvard College was founded, whatever may have been the case with English colleges, and whose presence casts upon those responsible for academic policy duties which they cannot escape, if they would. Grant that education and education as Jowett understood it, the training of character as well as mere instruction — is the main business of a university, what is to be said of the situation of affairs? That we do as much here for the average man as the Oxford tutorial system accomplishes, it would be idle to affirm. The introduction of the tutorial system, however, is out of the question: it needs the small college for its basis; it requires that the tutor should enjoy a prestige which we cannot give him; and it is still further shut out by ‘elective’ studies. Yet in its way the Harvard practice suffers from the same defects as the Oxford; it does too much for the men. Take the matter of examinations, for instance. Surely it would be better to relax the continuous pressure — which after all is not in any worthy sense effective — and to reinforce it instead at special points. It was the conviction, we are told, of Professor Freeman that ‘if examinations were necessary evils, they should be few, searching, and complete, not many and piecemeal.’ At present, there are so many ‘tests,’ of one sort or another, that no one examination sufficiently impresses the undergraduate mind. The kind of work done by a student who is so persistently held up by hour-examinations and conferences that he must be an abnormal fool to ‘fail’ at the end, cannot be regarded as really educational in any high sense of the word. By a great many men, the help showered upon them is regarded merely as the means of discovering just how little they can do, and still scrape through. To sweep away all examinations except the final annual one; to leave the student more to himself; to set a higher standard for passing, and ruthlessly reject those who do not reach it, would undoubtedly, in the long run, encourage a more manly spirit on the part of undergraduates, and a deeper respect for the university. This I say with the fuller confidence because, when I left Oxford, now (1900) some twelve years ago, I could see nothing but the evils of the examination system as it there affects students of promise. I am convinced that it would be possible and salutary in Harvard to add greatly to the awfulness of examination; and that much could be done in this direction without approaching within measurable distance of any results that need be feared.

From a natural distrust of examinations and a desire to encourage independent thought, it has of late become the practice to prescribe two or more theses during the progress of a ‘course.’ The result is that many a man has half a dozen or more theses to write during the year, for two or three different teachers. This undoubtedly ‘gets some work out of the men.’ But the too frequent consequence, with students who take their work seriously, especially with graduates, is that they have no time for anything but to get up their lectures and prepare their theses. Any parallel reading by the side of their lectures they find impracticable. But one of the best things a student can do is just to read intelligently. Certainly the graduate students, if not the undergraduates, would sometimes be the better for being left more to themselves.

These are, however, relatively minor matters. A good deal could be said about that cornerstone of Harvard academic policy, the ‘elective’ system. I must confess that I have hitherto failed to see the advantage of the completely elective plan (for any but exceptional students) over the plan of ‘groups,’ or ‘triposes,’ or ‘schools,’ with some degree of internal elasticity to suit particular tastes. That the elective system is an improvement on the old compulsory curriculum is likely enough; but I do not know that any great American university has ever yet fairly tried the group arrangement. Of all the educational agencies at Oxford, Oxford itself is the most potent.

That sweet city, with her dreaming spires;
She needs not June for beauty’s heightening.

Harvard, indeed, is truly ‘fair’ at Commencement, and in the evening lights the Yard has always a sober dignity. But Harvard in the daytime sadly needs May or October for beauty’s heightening. The disadvantages of youth and climate may not be altogether surmountable; yet Cambridge surroundings could doubtless be made more comely and restful with comparatively little trouble. There must be a certain atrophy of the æsthetic sense when luxuriously furnished dormitories have no difficulty in securing tenants though they face rubbish dumps, when rowing-men can practise with equanimity beneath a coal-dealer’s mammoth advertisement, and when the crash and jangle of street-cars are permitted to destroy what little remains of the quiet of the Yard. What is to be desired for every student — most of all for those from homes of little cultivation — is that he should live in the presence of grace and beauty and stateliness. The lesson of good taste cannot be learnt from lectures, and is imbibed unconsciously. Here we must turn to our masters, the Corporation, and to the worshipful benefactors to come. Is all the thought taken that might be taken, all the pressure used that might be exerted, to increase the amenity of the neighbourhood? And, further, is it utopian to imagine that some benefactor will yet arise who will enable Harvard to imitate the noble example of Yale, and erect dormitories that shall delight the eye? Is it too much to hope that the university may soon be enriched with at least one more building such as Memorial Hall? For many a Harvard student his daily meals in Memorial Hall, in that ample space, beneath the glowing colours of the windows and surrounded by the pictures of the Harvard worthies of the past, constitute the most educative part of his university career, though he may not know it. Only half the students can now be brought within this silent influence. A second dining-hall, of like dignity, is perhaps the most urgent educational need of Harvard, and the need most easily supplied.[*]

[*I leave this sentence, for obvious reasons, in spite of the recent erection of Randall Hall. The desirability of a large infusion of other than immediately utilitarian elements in the policy of the Corporation is emphasised, I think, by the increasingly evident tendency towards social segregation in the student body. The English reader who desires to know more of the atmosphere of the greater American universities may be referred to Mr. Bliss Perry’s article on ‘The Life of a College Professor’ in Scribner’s Magazine for October 1897; while the American reader who is interested in Oxford may with advantage consult Mr. F. C. S. Schiller on ‘Philosophy at Oxford’ in the Educational Review for October 1899. ]

Source:  W.  J. Ashley, “Jowett and the University Ideal” in Surveys, Historic and Economics 1900, pp. 445-463. Originally published in Atlantic Monthly, July 1897.

 

Categories
Economics Programs Faculty Regulations Harvard

Harvard. Economics degree requirements, A.B./A.M./Ph.D., 1921-1922

In addition to Harvard’s requirements for the A.M. and Ph.D. degrees in economics as of the academic year 1921-22, this post includes the A.B. degree requirements for concentrators in economics. Furthermore information regarding the overlap with a concentration in “social ethics” and the Ph.D. requirements for “business economics” has been included.

Degree Requirements for 1897-98.
Degree Requirements for 1911-12.
Degree Requirements for 1934-35.
Degree Requirements from 1947.
Degree Requirements from 1958.
Degree Regulations from 1968.

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Degree Requirements
in 1921-22

GENERAL INFORMATION

ORGANIZATION

The Division of History, Government, and Economics comprises three departments: History; Government; and Economics. The Division has charge of the administration of the degree of A.B. in History, in Government, and in Economics, and of the degree of Ph.D. in History, in Political Science, and in Economics. The recommendation of candidates for assistantships, fellowships, and scholarships is in the hands of the respective Departments; and each Department has charge of all matters relating specially to its own instruction.

DEGREES OF A.B. AND S.B.

The degrees of Bachelor of Arts and Bachelor of Science are conferred usually after four years of residence, although a student who enters college without serious deficiency may complete the requirements for the degree in three years or three years and a half. At least one year of residence is required. Students of other colleges are admitted to advanced standing in Harvard College, without examination, on presenting testimonials of scholarship and character, and satisfactory evidence of work well performed in the institutions previously attended.

CONCENTRATION IN HISTORY, GOVERNMENT, OR ECONOMICS

The requirement for concentration in a department or field of distinction demands in this Division four courses in one department, either History, Government, or Economics, and two additional courses selected from those offered by the Division. A student concentrating in Economics may select as the two additional courses related courses in Social Ethics. No one may count toward his six courses more than two of the introductory courses, History 1, Government 1, and Economics A. The election of these six courses should be made with a view to the requirements for the final examination described below, and the advice of the student’s Tutor should be sought in selecting these and any further courses in the Division

DIVISION EXAMINATION

Students concentrating in the Division of History, Government, and Economics will, at the close of their college course and as a prerequisite to the degree of A.B. or S.B., be required to pass an examination upon the field of their concentration. This examination will cover the general attainments of each candidate in the field covered by this Division and also his attainments in a specific field of study. Candidates for the Division Examination at mid years must signify their intention of taking it on or before December 15; candidates for the examination at Commencement, on or before April 1. The examination will consist of three parts:

(a) A general written examination, which will be given in two parts: one designed to ascertain the comprehensive attainment of the candidate in the subjects of this Division; the other covering the work of the Department in which the student is concentrating. There will be a large number of alternative questions to allow for differences in preparation.

(b) A special written examination, which will test the student’s grasp of his chosen specific field (see list of fields below). The candidate will be expected to show a thorough understanding of the subject of this field; knowledge of the content of courses only will not suffice. The examination will be upon a subject, not upon a group of courses.

(c) An oral examination, supplementary to either or both of the written examinations, but usually bearing primarily upon the candidate’s specific field.

The specific field should ordinarily be chosen from the following list, which indicates also the courses bearing most directly upon each field. In special cases other fields or combinations of fields may be accepted by the Division. This field should be selected by the end of the Sophomore year. [Course announcement 1921-22]

[…]

Specific field of concentration Courses ordinarily to be elected for concentration Alternative courses for candidates for the degree with distinction Suggested courses in other Departments to be elected for the purpose of concentration or to be taken as free electives
1. Economic Theory Economics A, 7a, 7b, 10, and the equivalent of 1½ full courses from the following: 1a, 1b, 3, 4a, 4b, 5, 9a, 9b Economics 11, 12, 14, 15 Philosophy 25a
2. Economic History Economics A, 1b, 2a, 2b, 10 and the equivalent of 1 full course from the following: 3, 4a, 4b, 6a, 9b Economics 23, 24, 33 History 17a, 17b, 32a, 32b, 57
3. Sociology Economics A, 1b, 6a, 7a, 7b, 8, 10 Social Ethics 4, Anthropology 1, 12, Philosophy 25a
Applied Economics
4. Money and Banking Economics A, 1a, 1b, 2b, 3, 10, and either 4a or 4b Economics 37, 38
5. Corporate Organization Economics A, 1a, 1b, 2b, 4a, 4b, 10, and either 2a or 6a Economics 36a, 36b
6. Transportation Economics A, 1a, 1b, 2b, 4a or 4b, 10, and either 2a or 6a Economics 36a, 36b
7. Public Finance Economics A, 1a, 1b, 2b, 5, 10, and either 2a or 9b Economics 31, 36a, 36b Government 9a, 9b, 17a, 17b
8. Labor Problems Economics A, 1b, 2a, 2b, 6a, 7b, 10, and either 7a or 9a Economics 34 Social Ethics 4,6
9. Economics of Agriculture Economics A, 1a, 1b, 2a, 2b, 9a, 10, and either 4a or 9b Economics 32
10. International Trade and Tariff Policy Economics A, 1a, 1b, 2a, 2b, 9a, 9b, 10 Economics 33, 39

[…]

TUTORIAL INSTRUCTION

The general final examination has been established, not in order to place an additional burden upon candidates for the A.B., but for the purpose of securing better correlation of the student’s work, encouraging better methods of study, and furnishing a more adequate test of real power and attainment. To this end students concentrating in the Division will from the beginning of their Sophomore year have the guidance and assistance of special Tutors. The work of these Tutors will be to guide students in their respective fields of study, to assist them in coördinating the knowledge derived from different courses, and to stimulate in them the reading habit. Students will meet the Tutors in small groups and for individual conferences at intervals depending upon the nature of the student’s work, the rate of his progress, and the number of courses which he may be taking in this Division in any particular year. The work of Tutors will be entirely independent of the conduct of courses, and the Tutors as such will have no control over the work or the grades of any student in any college course. Their guidance and assistance will naturally be of indirect benefit to the student in his work in individual courses, but their main function will be to help the student and guide him in the kind of reading and study which will be most useful toward his general progress in this Division. The attitude of the Tutor will be that of a friend rather than of a taskmaster, and students may consult him freely and informally concerning any phase of their work.

CONCENTRATION IN SOCIAL ETHICS

An undergraduate concentrating in Social Ethics must take four courses in the Department of Social Ethics and two either in the Department of Philosophy and Psychology or in the Department of Economics, the entire programme to be approved by a member of the Department of Social Ethics. A written examination covering the general field of concentration will be required at the end of the Senior year.

TUTORIAL INSTRUCTION IN SOCIAL ETHICS

Students concentrating in Social Ethics will, from the beginning of their Sophomore year, receive the guidance and supervision of a Tutor. The Tutors will aid the students in correlating the work of their courses, and will direct them in special reading bearing upon the work of the Department and upon the students’ special fields of interest. The Tutors will seek especially to aid students in developing habits of profitable reading, in independent thinking, in scholarly method, and in the coördination and application of their knowledge. Students will meet their Tutors individually and in small groups from time to time, the constitution of the group and the frequency of meetings depending upon the nature of the students’ work and their rate of progress. The tutorial instruction is considered a regular part of the work of any student concentrating in the Department, and is reported upon from time to time to the Chairman of the Department. Every effort is made to establish personal and friendly relations between Tutors and students, and to this end the Tutors will always be glad to be consulted informally upon any matter in which they may be of assistance to the students.

[…]

THE DEGREE OF A.B. WITH DISTINCTION IN HISTORY, IN GOVERNMENT, AND IN ECONOMICS

In the opinion of the Faculty every undergraduate of superior ability should look to a considerable amount of advanced work in some subject or related subjects as a natural part of his undergraduate career; but it is not to be imagined that the Faculty intends to call for anything like original research on the part of undergraduates, or for the passing of examinations similar to those required for the higher degrees. The Degree with Distinction, it is believed, is so planned as to be within the reach of every student of good ability.

General Regulations. — The candidate for the degree of A.B. with Distinction in History, Government, and Economics shall make application, not later than November 1 of the year in which he expects to receive the degree, to the Division of History, Government, and Economics; he shall, at the same time, record his name and purpose at the office of the Dean of Harvard College. Students intending to become candidates are urged to put themselves, as early as the beginning of their Sophomore year, under the guidance of the Division.

The requirements for the degree cum laude and magna cum laude are the same. The grade of distinction depends on the excellence of the student’s work, as determined by the Division. If his work be judged unworthy of distinction, but worthy of a degree, the Division may recommend him for a degree without distinction.

Special Regulations. — Not later than November 1 of his final year of preparation, the candidate must present, for approval by the Division, a plan of study, which shall comprise at least seven courses, selected from those offered by the Division, and not including more than two from the three introductory courses, History 1, Government 1, and Economics A. This plan of study may, however, with the approval of the Division, include related courses offered by other Departments of the University, and also, by special vote of the Division, suitable work done outside of regular courses.

If four or more of the seven courses are courses in History, the candidate, if successful, will be recommended for the Degree with Distinction in History; if four or more of them are courses in Economics, he will be recommended for the Degree with Distinction in Economics; if four or more of them are courses in Government, he will be recommended for the Degree with Distinction in Government.

Besides this minimum requirement, the candidate may indicate in his plan of study any additional work done in History, Government, Economics, or in related subjects. The character and range of this work will be taken into account in determining the recommendation for the Degree with Distinction. The winning of a University prize in any of the subjects represented in the Division, such as a Bowdoin, Toppan, or Sumner prize, may, at the Division’s discretion, be accepted as evidence towards establishing a candidate’s qualification for the Degree with Distinction.

Not later than May 1 of his Senior year, the candidate will present to the Chairman of the Division a thesis; and he will be required to pass an examination on his general field, or on such portion of the field as the Division may determine. Successful candidates at this examination will be excused from the final examinations in their Senior year in the courses offered for the Degree with Distinction; and unsuccessful candidates at the examination may be recommended by the Division for the ordinary degree without taking the final examinations in such courses.

In the award of the Dillaway Fellowship preference will be given to the most successful candidate for the Degree with Distinction in History; and the Philip Washburn Prize is offered for the best thesis, of sufficient merit, on an historical subject presented by a successful candidate for the Degree with Distinction in History.

IN SOCIAL ETHICS

Candidates for Distinction must elect eight courses in the Departments of Philosophy and Psychology, Social Ethics, and Economics, of which four must be in the Department of Social Ethics and two in each of the others, and must pass an oral examination in addition to the written.

[…]

IN COMBINATION WITH THE CLASSICS

The Faculty of Arts and Sciences has established a degree with distinction based upon programmes combining studies in the Classics with the studies of the Division of History, Government, and Economics. Three different programmes are offered with the following requirements in each: –

[Classics and History; Classics and Government; Classics and Economics]

[…]

Classics and Economics

  1. Eight courses five in the Department of the Classics (both Greek and Latin) and three in the Department of Economics.
  2. A thesis connecting Ancient and Modern Economic Theory or History.
  3. A general examination, either written or oral, on Greek and Roman Literature, History and Economics, and on the subject matter of certain works which will be determined by a joint committee of the Department of the Classics and the Department of Economics.

DEGREE OF A.M.

The ordinary requirement for the degree of Master of Arts for a graduate of an approved college consists of one year of residence and study devoted to advanced work approved by the Administrative Board of the Graduate School of Arts and Sciences as affording suitable preparation for the degree, and completed with distinction. Graduates of colleges whose requirements for admission and grad uation are considerably below those of Harvard College, or of colleges whose standing is not well known to the Administrative Board, and graduates of any college who have not sufficient prep aration for advanced work in their particular subject of study, are ordinarily required to devote at least two years to their study for this degree. In special cases this period may be shortened to one year or one year and a half for students whose work in the Graduate School of Arts and Sciences shows unusual excellence.

The programme of study for the degree of Master of Arts must form a consistent plan of work pursued with some definite aim, whether it lies wholly in a single department or field of study or in more than one; this work may be done either in, or in con nection with, the regular courses of instruction, or independently of them. Programmes should be submitted early in the academic year, and no programme will ordinarily be approved that is received after January 15 of the academic year in which the degree is to be taken. All applications should be addressed to the Secretary of the Graduate School of Arts and Sciences.

All candidates must possess an elementary knowledge of two modern foreign languages, ordinarily French and German.

DEGREE OF PH.D.

For the degree of Doctor of Philosophy not less than two years devoted to advanced studies, approved as affording suitable preparation for the degree, are required of graduates of colleges of good standing. This degree is not usually taken in less than three years after the attainment of the degree of Bachelor of Arts in Harvard College, or an equivalent. A graduate of another college may ascertain by writing to the Secretary of the Graduate School of Arts and Sciences whether any special conditions will be imposed upon him. In order to be admitted to the degree the candidate must show a general training in the whole field of study, firm grasp of his special subject within the field, and independent research in some portion of that subject. He must present a thesis, showing original treatment or investigation, and must pass such examination or examinations as may be required by the Division. The degree is given on the ground of thorough study and high attainments. Appropriate studies carried on in the graduate school of another university may be recognized as a part of the candidate’s preparation for the degree. The minimum period of residence at Harvard University is one year.

The University confers the degree of Doctor of Philosophy in History; in Political Science; in Economics; and in Business Economics. Candidates for the degree under any of these heads are subject to supervision and examination by the Division of History, Government, and Economics. In order to indicate the grounds on which it is prepared to recommend candidates for the degree, the Division has adopted the following statements and suggestions.

All communications relative to the doctorate should be sent to Professor Charles H. Haskins, Chairman of the Division Committee on Graduate Degrees, 23 University Hall, Cambridge.

GENERAL PREPARATION

Every candidate for the degree of Doctor of Philosophy is required, at an early stage in his preparation, to submit to the Division, through the Chairman of its Committee on Graduate Degrees, evidence of the extent and quality of his general studies. A command of good English, spoken and written, the ability to make free use of French and German books, and a fair acquaintance with general history are expected in all cases. On the evidence presented, the Division will decide, provisionally, as to the sufficiency of the candidate’s general training. No set examinations will be held at this stage, but before he is admitted to the general examination each candidate must present a certificate from a designated member of the Division stating that he is able to make free use of French and German books. Such a certificate may be given on the basis either of a special test or of the candidate’s use of these languages in connection with the regular courses of instruction. Candidates may be required to make up deficiencies by pursuing specified College courses, or in such other way as the Division may designate. The provisional acceptance of a candidate, as regards this portion of his preparation, does not preclude the Division from rejecting him later, if, in the examination on specific subjects, it shall appear that his general education is insufficient.

Candidates must pass two examinations: the first general, the second (after the acceptance of the thesis) on a special field, defined in each case by vote of the Division.

I. GENERAL EXAMINATION

The first examination will be held not later than the beginning of the last year of study for the degree, and candidates are recommended to present themselves for this examination in the course of the preceding academic year. The object of this test is to ascertain the applicant’s attainments within a considerable range of subjects in the field of History, Political Science, or Economics. He will ordinarily be examined in six subjects in all, chosen from the groups defined below under the respective departments of study, but the ground of his special field will not be covered in the general examination. Candidates are not required, however, to follow the details of these plans. They may present, for the consideration of the Division, reasonable substitutes for any of the topics named, and may offer appropriate combinations of parts of the separate subjects. They are advised, in all cases, to submit their plans of study for approval at an early date, as the Division reserves the right to disapprove any plan which seems to it unsatisfactory, even though the plan meet the formal requirements of distribution in the various groups. In judging of the candidate’s fitness for the degree, regard will be had to the general grasp and maturity shown, as well as to the range and accuracy of his attainments in the specific subjects of examination.

II. THESIS

The thesis must be in the hands of the Chairman of the Division Committee on Graduate Degrees on or before April 1 of the year in which the degree is sought. It must be accepted as satisfactory before the candidate can be admitted to the final examination. It must show an original treatment of the subject, or give evidence of independent research, and must also be in good literary form and suitable for publication.*

*A list of the theses which have been accepted for the Ph.D. in the Division of History, Government, and Economics will be found in the list of Doctors of Philosophy and Doctors of Science who have received their degree in course from Harvard University, 1873-1916, published by the University in 1916.

Every thesis must be accompanied by a brief summary, not exceeding 1200 words in length, which shall indicate as clearly as possible the methods, material, and results. Each summary must be approved by the Division Committee as adequate and as in suitable form for publication. These summaries will be printed by the University in an annual volume.

III. SPECIAL EXAMINATION

The second examination will be on a single limited subject agreed upon in advance. It is intended that each candidate should have, as far as possible, freedom of choice in selecting his subject, but it is expected that he will submit, for approval, an outline of work to be presented in satisfaction of this requirement. It is desirable that this outline should be submitted a year in advance of the examination. Ordinarily the ground covered by the special examination will not be greater in extent than one of the subjects offered by the candidate at his general examination, and may be identical with one of these subjects. Or the candidate may limit his more special preparation to an approved portion of this field, which will regularly include the period or topic within which the thesis lies. At the final examination, the candidate will be expected to show such a mastery of his special field, and such an acquaintance with the literature, general and special, bearing on it, as would qualify him to give instruction to mature students.

*  *  *  *  *  *  *  *  *

THE DEGREE OF Ph.D.
IN ECONOMICS

GENERAL PREPARATION

Candidates for the degree of Doctor of Philosophy in Economics must meet the general requirements stated [above]. They should also be well grounded in the main outlines of European and American history, and should have had a general view of the nature and growth of political institutions and constitutional law.

GENERAL EXAMINATION

This examination will include six subjects, chosen from the following list. Of the six subjects, Group A must be offered and one subject from Group C. The others will ordinarily be chosen from Group B. In all cases at least one of the subjects chosen must be historical in character, either economic history under Group B or one of the historical fields under Group C.

Group A

  1. Economic Theory and its History, with special reference to the Development of Economic Thought since 1776.

Group B

  1. Economic History before 1750.
  2. Economic History since 1750.
  3. Statistical Method and its Application.
  4. Money, Banking, and Crises.
  5. Transportation
  6. Economics of Corporations.
  7. Public Finance.
  8. International Trade and Tariff Policy.
  9. Economics of Agriculture.
  10. Labor Problems.
  11. Socialism and Social Reform.
  12. Sociology

Group C

  1. Any of the historical fields (Nos. 1 to 16) defined under the requirements for the Ph.D. in History.
  2. Comparative Modern Government.
  3. American Government and Constitutional Law.
  4. Municipal Government.
  5. Jurisprudence (selected topics).
  6. Philosophy (selected topics).
  7. Anthropology
  8. History of Political Theory.
  9. International Law.

In the case of a candidate whose special subject is in the Department of Social Ethics, the six subjects for examination will be chosen from the two following groups. The candidate will be examined in all four of the subjects in Group E, and is expected to be proficient in the history of one of them. He will select two subjects from Group F.

Group E

  1. Ethical Theory.
  2. Economic Theory.
  3. Poor Relief.
  4. Social Reforms.

Group F

  1. Sociology
  2. Statistics
  3. Economic History.
  4. The Labor Question.
  5. Criminology and Penology.
  6. Problems of Municipal Government.
  7. Anthropology

THE DEGREE OF Ph.D.
IN BUSINESS ECONOMICS

GENERAL PREPARATION

Candidates for the degree of Doctor of Philosophy in Business Economics must meet the general requirements stated [above, pp. 102-204]. They should also be well grounded in the outlines of European and American history. In the course of their preparation they should have had fundamental training in Accounting, Marketing (or Commercial Organization), and the Law of Contracts. Courses in these subjects required for the degree of Master in Business Administration should be taken ordinarily during the first year of graduate study.

GENERAL EXAMINATION

This examination will include six fields chosen from the following list. The subject of Economic Theory is required in all cases, but not more than two subjects may ordinarily be taken from Group A. Preparation for the subjects in Group B should aim, as far as practicable, to combine the more general training in Economics with the technical training in Business courses.

Combinations of examination subjects other than those here stated may be offered. In all cases the programme of study must be approved by the Division. Candidates are urged to seek early in their residence the advice of the Dean of the Graduate School of Business Administration and of the Chairman of the Department of Economics.

Group A

  1. Economic Theory.
  2. Economic History since 1750.
  3. Public Finance and Taxation.
  4. Economics of Agriculture.

Group B

  1. Accounting.
  2. Marketing.
  3. Foreign Trade.
  4. Industrial Management and Labor Problems.
  5. Money and Banking.
  6. Corporate Organization and Finance.
  7. Transportation.
  8. Insurance.
  9. Statistical Method and its Application.
SPECIAL EXAMINATION

The field for the special examination should be chosen in accordance with the requirements stated [above “III. Special Examination”], except that ordinarily the subject should be one of those in group B.

Source: Official Register of Harvard University, Vol. XVIII, No. 20 (April 21, 1921) Division of History, Government, and Economics, 1921-22.

Image Source:  Harvard Square 1915 from Brookline Public Library’s Photograph Collection at Digital Commonwealth (Non-Commercial, Creative Commons license).

Categories
Economics Programs Faculty Regulations Harvard

Harvard. Economics Graduate Degree Requirements, 1934-1935

 

 

Update: within a few minutes of posting the following, I discovered that I had already transcribed and posted the same material over seven years ago. Actually it was my third post. How did I miss it? My Catalogue of Artifacts page had a misprint, instead of the year 1934 the year 1924 was incorrectly entered. My standard procedure is to search through the catalogue for names and dates. But this item, being a departmental document only had a date. I am leaving this here, though it double-counts an artifact. I like the image and I have added the other comparable posts (so some light curation is going on here).

It has been a while since Economics in the Rear-view Mirror added to the collection of the rules and and regulations governing the award of graduate degrees in economics. To date for Harvard the collection now includes today’s post for 1934-35 and the following items:

Degree Requirements for 1897-98.

Degree Requirements for 1911-12.

Degree Requirements from 1947.

Degree Requirements from 1958.

Degree Regulations from 1968.

_________________________

1934-1935
HARVARD UNIVERSITY
Department of Economics

Requirements for Graduate Degrees:
The more important regulations regarding graduate degrees are stated below.
  1. General Information for Candidates for the A.M. and Ph.D. degrees
    1. Programs of study
      1. The program of study for the A.M. and Ph.D. degrees must form a consistent plan of work pursued with some definite aim. It should be submitted to Professor Burbank, Chairman of the Department of Economics, 41 Holyoke House, for approval early in the year.
      2. The fields of study are to be chosen from the following:

GROUP A.

        1. Economic Theory and its History, with special reference to the Development of Economic Thought since 1776.
        2. Economic History since 1750, or some other approved field in Economic History
        3. Statistical Method and its Application

GROUP B

        1. Money and Banking
        2. Economic Fluctuations and Forecasting
          e.2 Industrial Organization and Control
        3. Public Utilities (including Transportation)
        4. Economics of Corporations
        5. International Trade and Tariff Policies
        6. Economics of Agriculture
        7. Labor Problems
        8. Socialism and Social Reform
        9. Public Finance
        10. Economic History before 1750
        11. Commodity Distribution and Prices
        12. Economics of Public Utilities
        13. 2Mathematical Economics

GROUP C

        1. Any of the historical fields from Group A or B, defined under the requirements for the Ph.D. in History. [See Division Pamphlet.]
        2. Comparative Modern Government
        3. American Government and Constitutional Law
        4. Municipal Government
        5. Jurisprudence (Selected topics)
        6. Philosophy (Selected topics)
        7. Anthropology
        8. History of Political Theory
        9. International Law
        10. Sociology [Certain fields—see Sociology Pamphlet]
        11. Economics of Forestry
    1. Application for degrees

Candidates for degrees must apply to the Dean of the Graduate School of Arts and Sciences, 24 University Hall, by December 1, for the degree at Midyears; or by January 15, for the degree at Commencement.

  1. Special Requirements for the A.M. degree
    1. Residence

The candidate must take one full year of advance work at Harvard—four courses with a grade of B or higher in each. These courses may be taken in one year or over a period of years. (See new requirement on page 5.)

    1. Languages

An ELEMENTARY knowledge of French and German, and a READING knowledge of the other language is required. This requirement may be met as follows:

      1. For the READING knowledge, by a passing grade in the written examinations given by the Department early in November and March.
      2. For the ELEMENTARY knowledge, by one of the following methods:
        1. A passing grade in an elementary course at Harvard or some other institution
        2. A passing grade in an undergraduate examination at Harvard, which is given three times a year—

French: September 22; January 7; April 22
German: September 22; January 8; April 23

        1. A passing grade in the written examination given by the Department early in November and March.

This requirement may be met at any time prior to application for the Master’s degree.

    1. General Examination

The candidate must pass an oral examination on FOUR fields of study, to be selected from those listed above according to the following distribution:

      1. TWO from Group A, including Economic Theory
      2. TWO from Groups A, B, or C (not more than ONE to be selected from Group C.)

The fields are covered only in part by formal course instruction. Supplementary reading must be undertaken to meet the requirements.

Preparation for this examination normally requires TWO full years of study. A student is advised not to stand for examination until he feels thoroughly prepared.

With Professor Burbank’s consent, a student may offer THREE fields of Study for the Oral Examination, substituting a pro-seminar course for the fourth field.

When the General Examination is passed in the Spring, the candidate is excused with credit from the final course examination in courses relating to fields offered for the General Examination.

In judging the candidate’s fitness for the degree, regard will be had for the general grasp and maturity shown, as well as for the range and accuracy of his knowledge of the special subjects examined.

To secure a date for the General Examination, candidates must make arrangements with the secretary in the Division Office, 15 Little Hall before April 1.

  1. Special Requirements for the Ph.D. degree
    1. Residence

The candidate must take two years of advanced work—eight courses, with grades of B or higher in each (See new requirements on page 5.) One year, or four courses, must be taken at Harvard. Credit for work done at another institution may be substituted for the other year’s work, with Professor Burbank’s approval.

    1. Languages

The candidate must present a READING knowledge of both French and German. This requirement is satisfied ONLY by passing the Department written examination which is given early in November and March. It must be met SIX months before the Special Examination. Examinations in the two languages need not be taken at the same time.
At the time of the Special Examination, candidates must show an acquaintance with the literature in their special fields in two modern lan­guages other than English, ordinarily French and German.

    1. Fields of Study

The candidate must present SIX fields of study to be selected from the groups listed above according to the following distribution:

      1. The THREE fields in Group A are required unless a candidate can show that he has done sufficient advanced work in Economic History or in Statistics to warrant his substituting a field from Group B or Group C.
      2. The remaining THREE fields may be selected from Group B and Group C—though not more than ONE field may be taken from Group C.

Evidence of a knowledge of the SIX fields of study is shown as follows:

    1. General Examination

FOUR fields, including Economic Theory, are presented at an oral examination. [For details regarding this examination, refer to the notes under C. of the requirements for the A.M. degree.]

    1. “Fifth” field

The requirement regarding the “fifth” field may be met by presenting work of distinguished quality in an approved course at Harvard.

    1. Special field

The candidate meets the requirements of the sixth field by standing for oral examination and presenting a thesis which normally lies within the field examined. Ordinarily this field is chosen from Groups A or B. By special arrangements the same subject may be offered for the General and Special Examinations. However, this program is unusual, and arrangements must be made with the Chairman of the Department. In this case, the candidate must show evidence of a thorough knowledge of another field, which might have been-offered for examination.

      1. Candidates for the degree at Midyears should arrange for their Special Examination on or before December 1 in the Division Office, 15 Little Hall; for the degree at Commencement, on or before April 1.
      2. Two copies of the thesis must be in the hands of the Chairman of the Division, 15 Little Hall, by January 3 for the degree at Midyears, and by April 1for the degree at Commencement.

The thesis must be accepted before the candidate may be admitted for the Special Examination. It must show an original treatment of the subject and give evidence of independent research. It must be in good literary form, suitable for publication. Except by special permission from the Chairman of the Division, all theses must be in typewritten or printed form.

Every thesis must be accompanied by a summary not exceeding 1200 words in length, which shall indicate as clearly as possible the methods, material, and results of the investigation. Each summary must be approved by the Division Committee as adequate and in suitable form for publication. These summaries are printed by the University in an annual volume.

At least SIX months must elapse between the General and Special Examinations.

Candidates for the Ph.D. degree must plan on no less than THREE full years of advanced study, and it is only a student with superior training and no outside demands on his time who can attain his degree in that time.

IMPORTANT NOTE:  After September 1, 1934, candidates for the Ph.D. are required to show evidence, in some section of their graduate work, of high distinction — “A” — in formal course instruction, General or Special Examinations, or Dissertation.

Business Economics: For the degree in Business Economics, consult the Division pamphlet.

Miss Stone, in 41 Holyoke House, will be glad to answer any questions arising in connection with these regulations.

Source: Harvard University Archives. Department of Economics Records (UAV349.11) Box 13 Folder “Graduate Instruction Degree Requirements”.

Image: Harvard Class-Day Book 1934.

Categories
Harvard Socialism Suggested Reading Syllabus

Harvard. Reading list for Economics of Socialism. Bergson, 1977

The list of readings and final exam for Abram Bergson’s Harvard course “Normative Aspects of Economic Policy” (1960) were posted earlier. In this post Economics in the Rear-view Mirror provides the course outline and assigned readings for his “Economics of Socialism”. I encountered his 1961 book The Real National Income of Soviet Russia Since 1928 in four of my courses (taught by Raymond Powell and John Michael Montias at Yale; Evsey Domar at M.I.T.; and from Bergson himself at Harvard).

_____________________________

HARVARD UNIVERSITY
Department of Economics
Economics 1200:
Economics of Socialism
Spring Term, 1976-77
Professor Bergson

Note
The following will be the principal texts for the course:

Abram Bergson, The Economics of Soviet Planning, Yale, New Haven, Conn., 1964.

Nai-Ruenn Chen and Walter Galenson, The Chinese Economy Under Communism, Aldine, Chicago, 1969

Joel B. Dirlam and James L. Plummer, An Introduction to the Yugoslav Economy, Merrill, Columbus, Ohio, 1973.

Paul R. Gregory and Robert C. Stuart, Soviet Economic Structure and Performance, Harper and Row, New York, 1974.

Note that the Bergson, Gregory and Stuart, and Dirlam and Plummer books are available in paperback.

Items Marked with an asterisk are optional.

I. Introduction
  1. What is Socialism?

“Socialism” (by Daniel Bell), in International Encyclopedia of the Social Sciences, Vol. 14, 1968, pp. 506-516.

Karl Marx, Critique of the Gotha Programme, International Publishers, 1938, pp. 3-23.

V. I. Lenin, State and Revolution, Ch. 5, “The Economic Base of the Withering Away of the State.”

Paul M. Sweezy, “Alternative Conceptions of Socialist Development” (Processed).

Alec Nove, “Market Socialism and Its Critics,” Soviet Studies, July 1972.

II. Comparative Development Strategy
  1. The Soviet Model

Gregory and Stuart, Soviet Economic Structure and Performance, Chs. 1-3, 12 (pp. 417-428 only).

A. Nove, An Economic History of the USSR, London, 1969, Chs. 6-8.

A. Erlich, “Preobrazhenski and the Economics of Soviet Industrialization,” Quarterly Journal of Economics, February 1950.

I.V. Stalin, “On the Grain Front,” “Right Danger,” “Right Deviation,” in Selected Writings, New York, 1942.

  1. Variants

Oleg Hoeffding, “Soviet State Planning and Forced Industrialization as a Model for Asia,” Problems of Communism, Nov.-Dec., 1959; reprinted in F. Holzman, Readings on the Soviet Economy, Chicago, 1962.

Chen and Galenson, The Chinese Economy under Communism, Chs. 1, 2.

A. Eckstein, China’s Economic Development, Ann Arbor, Michigan, 1975, pp. 9-22, 47-51.

See Sweezy under Topic 1.

III. Economic Organization and Planning
  1. Socialist Planning: Contents and Issues

O. Lange “On the Economic Theory of Socialism” including Appendix, in B. Lippincott ed., On the Economic Theory of Socialism, Minneapolis, 1938; New York, 1964.

A. Bergson “Market Socialism Revisited,” Journal of Political Economy, October 1967 (Section on “Cooperative Variant” optional).

W. N. Loucks, Comparative Economic Systems, 7th ed., New York, 1965, pp. 108-120 (5th ed., pp. 98-110; 6th ed., pp. 93-105).

Joan Robinson, An Essay on Marxian Economics, 2nd ed., New York, 1966, pp. 10-28.

Note: As a preliminary to the foregoing readings, you may wish review relevant theoretic foundations in, say, Robert Dorfman, Prices and Markets, New Jersey, 1967, Chs. 7-8.

  1. Centralist Planning in the USSR: The Industrial Enterprise and Collective Farm

Bergson, The Economics of Soviet Planning, Ch. 5 and pp. 287-297; Chs 9 and 10.

J. Berliner The Innovation Decision in Soviet Industry, Cambridge, Mass., 1976, Chs. 14-16.

Gregory and Stuart, Soviet Economic Structure and Performance, Chs. 7 (pp. 232-253), 10.

D. Granick*, “Managerial Incentives in the USSR and in Western Firms,” Journal of Comparative Administration, August 1973.

Emily C. Brown, Soviet Trade Unions and Labor Relations, Cambridge, Mass., 1966, Chs. 7, 9.

E. G. Liberman*, Economic Methods and the Effectiveness of Production, New York, 1973, pp. 21-47.

  1. Centralist Planning in the USSR: Coordination

Bergson, Economics of Soviet Planning, Chs. 1, 3,4, 7, 8,(*) 11.

Liberman*, Economic Methods and the Effectiveness of Production, pp. 75-116.

H. S. Levine, “Pressure and Planning in the Soviet Economy,” in H. Rosovsky, ed., Industrialization in Two Systems, New York 1966; reprinted in M. Bornstein and D.R. Fusfeld, eds., The Soviet Economy, 3rd ed., Homewood, Ill., 1970.

G. Grossman*, “Scarce Capital and Soviet Doctrine,” Quarterly Journal of Economics, August 1953, reprinted in Holzman, Readings.

A. Nove, The Soviet Economy, New York, 1961, Rev. ed., Ch. 3, Ch. 7 (pp. 231-240).

R. W. Campbell, “Marx, Kantorovich, and Novozhilov,” in Slavic Review, October 1961; reprinted in H. Schaffer, The Soviet Economy, New York, 1963; and in George Feiwel, New Currents Soviet-Type Economies: A Reader, Scranton, PA, 1968.

G. Schroeder, “The 1966-67 Soviet Industrial Price Reform,” Soviet Studies, April 1969.

H. Kohler, Welfare and Planning, New York, 1966, pp. 82-95, 102-105.

M. Goldman, “Externalities and the Race for Economic Growth in the USSR: Will the Environment ever Win?” Journal of Political Economy, March/April 1972.

  1. Market Socialism in Hungary and Yugoslavia

Bela Balassa. “The Firm in the New Economic Mechanism in Hungary,” in M. Bornstein, ed. Plan and Market, New Haven, Conn., 1973.

D. Granick, “The Hungarian Economic Reform,” World Politics, April 1973, reprinted in M. Bornstein, ed., Comparative Economic Systems, 3rd ed., Homewood, Ill., 1974.

J. Vanek, The Participatory Economy, Ithaca, New York, 1971, Chs. 2-3.

Dirlam and Plummer, An Introduction to the Yugoslav Economy Chs. 2, 3, 4 (pp. 88-99), 5 (pp. 122-141), 7 (pp. 165-177).

D. D. Milenkovich, Plan and Market in Yugoslav Economic Thought,New Haven, Conn., 1971, pp. 187-211.

D. D. Milenkovich*, “Plan and Market: The Case of Yugoslavia” (Processed).

  1. Planning in China: How Different?

Chen and Galenson, The Chinese Economy Under Communism, Ch. 6

Barry Richman. “Capitalists and Managers in Communist China,” Harvard Business Review, January/February 1967.

D. Perkins, “Industrial Planning and Management,” in A. Eckstein, W. Galenson and T. C. Liu, eds., Economic Trends in Communist China, Chicago, 1968.

Eckstein, China’s Economic Development, Ch. 12.

IV Foreign Economic Relations
  1. Foreign Economic Relations

F. D. Holzman, Foreign Trade Under Central Planning, Cambridge, Mass., 1974, Chs. 2, 6 (analysis of Fig. 6.1, p. 146 and section on foreign trade discrimination, pp. 150-152 are optional).

F. L. Pryor, The Communist Foreign Trade System, Cambridge, Mass., 1963, Chs. 1, 5 (pp. 131-139).

E. A. Hewett, Foreign Trade Prices in the Council for Mutual Economic Assistance, Cambridge, Eng., 1974, Ch. 2.

R. F. Dernberger, “Prices, the Exchange Rate and Economic Efficiency in the Foreign Trade of Communist China,” A. A. Brown and E. Neuberger, eds., International Trade and Central Planning, Berkeley, California, 1968.

V. Performance
  1. Comparative Productivity and Growth

S. Cohn, Economic Development in the Soviet Union, Lexington, Mass., 1970, Chs. 4, 6.

A. Bergson, Planning and Productivity Under Soviet Socialism, New York, 1968 Chs. 1-3.

R. W. Campbell, Soviet Economic Power, 2nd ed. Boston, Mass., 1966, Ch. 6.

A. Bergson “Development Under Two Systems: Comparative Productivity Growth Since 1950,” World Politics, July, 1971; reprinted in Bornstein, Comparative Economic Systems, 3rd ed.

B. Ward, “Capitalism vs. Socialism: A Small Country Version,” in G. Grossman, ed., Essays in Socialism and Planning in Honor of Carl Landauer, Englewood Cliffs, New Jersey.

Chen and Galenson, The Chinese Economy Under Communism, Ch. 9.

Eckstein, China’s Economic Development, Ch. 1.

John G. Gurley, “Capitalist and Maoist Economic Development,” Bulletin of Concerned Asian Scholars, April-July 1970, pp. 42ff.

Reading Period:

Wage Determination and Inequality

Bergson, The Economics of Soviet Planning, Ch. 6.

Bergson, The Structure of Soviet Wages, Cambridge, Mass., 1944, Chs. 2, 13, 14.

M. Matthews*, “Top Incomes in the USSR: Towards a Definition of the Soviet Elite,” Survey, Summer, 1975.

Charles Hoffman, “Work Incentives in Chinese Industry and Agriculture,” in Joint Economic Committee, Congress of the United States, An Economic Profile of Mainland China, Vol. 2, Washington, D.C., February 1967.

Convergence?

J. K. Galbraith, The New Industrial State, Boston, 1967, Ch. XXXV.

Bertram Wolfe, “Russia and the USA: A Challenge to the Convergence Theory” and J.K. Galbraith, “Reply,” American Humanist, September/October 1968.

Peter Wiles, “Convergence: Possibility and Probability” in Balinky et al., Planning and the Market in the USSR, Rutgers, 1967.

Source: Personal copy of Irwin Collier.

Portrait of Abram Bergson. See Paul A. Samuelson, “Abram Bergson, 1914-2003: A Biographical Memoir”, in National Academy of Sciences, Biographical Memoirs, Volume 84 (Washington, D.C.: 2004).

Categories
Exam Questions Harvard

Harvard. Economics semester final examinations, 1900-01.

In the first full academic year of the twentieth century the Harvard economics department offered the following courses. The course links take you to the official course announcement, instructor names, enrollment figures, and the transcribed semester examinations.

Economics 1. Outlines of Economics
Economics 2. Economic Theory of the 19th Century
Economics 3. Principles of Sociology
Economics 5. Railways and Other Public Works
Economics 6. Economic History of the U.S.
Economics 8. Money
Economics 9. Labor Question in Europe and the U.S.
Economics 10. European Mediaeval Economic History
Economics 12. Banking and Leading Banking Systems
Economics 12a. International Payments and Gold/Silver Flows
Economics 13. Methods of Economic Investigation
Economics 17. Economic Organization and Resources in Europe
Economics 18. Principles of Accounting
Economics 19. General View of Insurance
Economics 20d. Adam Smith and Ricardo

__________________________________

Economics 1.
Outlines of Economics

Primarily for Undergraduates.

Course Announcement
  1. Outlines of Economics. , Wed., Fri., at 9. Professor Taussig, Dr. Sprague, Mr. Andrew, and Messrs. — and — .

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 41.

Course Enrollment
  1. Professor [Frank W.] Taussig, Drs. [Oliver Mitchell Wentworth] Sprague and [Abram Piatt] Andrew, and Messrs. [Charles] Beardsley and [James Horace] Patten. — Outlines of Economics.

Total 442: 23 Seniors, 70 Juniors, 257 Sophomores, 29 Freshmen, 63 Others.

Source: Harvard University. Report of the President of Harvard College 1900-1901, p. 64.

1900-01
ECONOMICS 1
[Mid-year Examination]

Arrange your answers strictly in the order of the questions.

  1. In what manner do you think that (a) the individual efficiency of laborers, (b) their collective efficiency, would be affected by the general adoption of profit sharing? of socialism?
  2. It has been said that the original formation of capital is due to abstinence or saving, but its permanent maintenance is not. What do you say to either statement?
  3. Wherein is Walker’s presentation of the forces that make the general rate of wages better than Mill’s, wherein not so good?
  4. “The extra gains which any producer or dealer obtains through superior talents for business, or superior business arrangements, are very much of a similar kind. …All advantages, in fact, which one competitor has over another, whether natural or acquired, whether personal or the result of social arrangements, bring the commodity, so far, into the Third Class, and assimilate the advantage to a receiver of rent.”
    Explain (a) what is this Third Class, and what is the law of value applicable to it; (b) what Mill would say as to the proposition here stated; (c) what Walker would say?
  5. What qualifications of the general principle of rent can you state, in its application to (a) premises used for building purposes, (b) dwelling-houses, (c) mines?
  6. If all men had the same start in life, would there be differences of wages? If so, of what sort? If not, why not?
  7. “Since cost of production here fails us, we must revert to a law of value anterior to cost of production and more fundamental…” In what cases does cost of production fail us? Will “cost of reproduction” cover such cases? Is there another law more fundamental?
  8. Under what circumstances. if ever, will a general rise in wages affect the relative values of commodities? Would your answer be the same as to a general rise in profits?
  9. In what manner do you believe business profits, interest, and wages would be affected by the general adoption of the various forms of consumers’ coöperation? of producers’ cooperation?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

1900-01
ECONOMICS 1
[Year-end Examination]

I.
Answer three.

  1. How will the value of land be affected by
    1. an increase in population,
    2. a reduction in the rate of interest,
    3. a protective tariff on agricultural produce.
  2. How will the price of grain be affected by
    1. a tax proportioned to the economic rent of the land,
    2. an equal tax upon all land.
  3. “Profits do not form a part of the price of the products of industry, and do not cause any diminution of the wages of labor.”
    Would Mill agree to this statement? Would you?
  4. Upon what does the general level of wages depend (a) according to Mill, (b) according to Walker? What would you expect these writers to say as to the effect of a protective tariff on the general level of wages?

II.
Answer two.

  1. If a country exports on a large scale a commodity not previously exported, will its other exports be affected? If so, how? If not, why not?
  2. Can a country have a permanently “unfavorable” balance of trade? If so, under what conditions? If not, why not?
    Can a country permanently export specie? If so, under what conditions? If not, why not?
    Can the rate of foreign exchange in a country be permanently at the specie-shipping point? If so, under what conditions? If not, why not?
  3. How would you expect the issue of a paper currency to effect foreign trade,—
    1. While the notes were still redeemable;
    2. After they had become irredeemable.

III.
Answer two.

  1. Define the following terms

Seignorage,
Clearing house loan certificates,
Silver Certificates,
United States notes,
Inconvertible paper.

  1. How would the adoption of bimetallism affect the stability of the value of money?
    1. according to Mill,
    2. according to Walker,
    3. in your own opinion.
  2. How is the value of money in a country likely to be affected by an increase in
    1. the quantity of commodities produced and sold,
    2. the quantity of bank notes,
    3. the volume of bank deposits.

Which of these changes would you expect to exercise most influence? Which least? Give your reasons.

IV.
Answer all.

  1. Compare and explain the operations of the Bank of England and those of the New York banks in a time of crisis,
  2. Arrange these items…

Government Securities 40.
Surplus 3.
Notes 38.
Specie 40.
Deposits 55.
Capital 14.
Loans 30.

    1. … in their proper order, as they would stand in an account of the Bank of France.
    2. … as they would stand in an account of a national bank of the United States; and state (1) whether this could be an account of a national bank, and (2) whether the proportions of the different items are such as you would be likely to find in an account of such a bank.
    3. … as they would stand in an account of the Bank of England, assuming the uncovered issue to be 17.

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 5, Bound volume: Examination Papers, 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 21-23.

 

__________________________________

Economics 2.
Economic Theory
in the 19th Century

For Undergraduates and Graduates.

Course outline and readings.

Course Announcement
  1. Economic Theory in the Nineteenth Century. , Wed., Fri., at 2.30 Professor Taussig. [note: Professor Carver taught the course]

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 41.

Enrollment
  1. Professor Carver. — Economic Theory in the Nineteenth Century.

Total 45: 6 Graduates, 15 Seniors, 16 Juniors, 5 Sophomores, 3 Other.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 2
[Mid-year examination]
  1. Define value and explain why one commodity possesses more value in proportion to its bulk than another.
  2. Explain the various uses of the term diminishing returns, and define it as you think it ought to be defined.
  3. In what sense does a law of diminishing returns apply to all the factors of production.
  4. State briefly Böhm-Bawerk’s explanation of the source of interest.
  5. What, if any, is the relation of abstinence to interest.
  6. Would you make any distinction between the source of wages and the factors which determine rates of wages? If so, what? If not, why not?
  7. Discuss the question: Is a demand for commodities a demand for labor?
  8. What is the relation of the standard of living to wages.
  9. Discuss briefly the following questions relating to speculators’ profits. (a) Do speculators as a classmake any profits? (b) Are speculators’ profits in any sense earned?
  10. In what sense, if any, does the value of money come under the law of marginal utility?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

1900-01
ECONOMICS 2
[Year-end Examination]

Discuss the following topics.

  1. The bearing of the marginal utility theory of value upon the questions of wages and interest.
  2. The definitions of capital as given by Taussig and Clark.
  3. Clark’s explanation of the place of distribution within the natural divisions of economics.
  4. Clark’s method of distinguishing between the product of labor and the product of capital.
  5. Clark’s distinction between rent and interest.
  6. Böhm-Bawerk’s theory of the nature of capital.
  7. The origin of capital, according to Böhm-Bawerk and Clark.
  8. The meaning of the word “productive” in the following proposition: “Protection is an attempt to attract labor and capital from the naturally more productive, to the naturally less productive industries.”
  9. The incidence of tariff duties.
  10. The theory of production and the theory of valuation as the two principal departments of economics.

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 5, Bound volume: Examination Papers, 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 23-24.

 

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Economics 3.
Principles of Sociology

For Undergraduates and Graduates.

Course Announcement
  1. The Principles of Sociology. — Development of the Modern State, and of its Social Functions. , Wed., and (at the pleasure of the instructor) Fri., at 1.30. Mr. —.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 41.

Enrollment
  1. Asst. Professor [Thomas Nixon] Carver. — The Principles of Sociology. Development of the Modern state, and of its Social Functions.

Total 57: 9 Graduates, 22 Seniors, 8 Juniors, 14 Sophomores, 4 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 3.
[Mid-year Examination]

Answer only ten questions.

  1. Upon what does Kidd base his argument that religion is necessary to keep men from taking such political action as would suspend economic competition, and what is the crucial point in his argument?
  2. In the light of Kidd’s theory of social evolution, discuss the question: Can there be a permanent civilization? Or, do the conditions which promote progress also ensure decay?
  3. Classify the sanctions for conduct which originate outside the individual and explain your classification.
  4. Explain and illustrate the meaning of the following: “Generalizing this struggle and extending it to every form existing in the social life — linguistic, religious, political, artistic, and moral, as well as industrial — we see that the really fundamental social opposition must be sought for in the bosom of the social individual himself.” (Tarde, Social Laws. Ch. II. p. 83.)
  5. What is meant by social stratification? How does it originate? What are some of its consequences?
  6. Compare Herbert Spencer’s theory of progress with Lester F. Ward’s, giving special attention to the argument which each offers in support of his theory.
  7. What, according to Patten, are the chief obstacles to a progressive evolution.
  8. Explain the following. “The difference between that society of conscious units which we call mind, and a society of human beings on our planet, is in the completeness of the mechanism.” (Patten, Theory of Social Forces. Ch. II. p. 21.)
  9. What, according to Patten, is the significance of the transition from a pain to a pleasure economy.
  10. How does Bagehot account for the origin of national traits?
  11. Discuss the question: Does charity retard the process of race improvement?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

1900-01
ECONOMICS 3.
[Year-end Examination]

Discuss the following topics

  1. The definition of progress.
  2. Charity as a factor in human selection.
  3. The way in which, according to Spencer, the different classes of institutions are related to one another.
  4. The sanctions for conduct.
  5. A moral ideal as a factor in human selection.
  6. The natural antagonism of human interests and the problem of evil.
  7. The storing of the surplus energy of society.
  8. The influence of property on the relations of the sexes.
  9. Labor and service as bases of distributive justice
  10. The influence of militarism upon race development, or deterioration.

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 5, Bound volume: Examination Papers, 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), p. 24.

 

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Economics 5.
Railways and Other Public Works

For Undergraduates and Graduates.

Course Announcements

51 hf. Railways and Other Public Works, under Public and Corporate Management. Half-course (first half-year). Tu., Th. and (at the pleasure of the instructor) Sat., at 1.30. Mr. Meyer.

52 hf. Railways and Other Public Works (advanced course). Half-course (second half-year). Tu., Th. and (at the pleasure of the instructor) Sat., at 1.30. Mr. Meyer.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 42.

Enrollments

[Economics] 51 hf. Mr. [Hugo Richard] Meyer.— Railways and other Public Works, under Public and Corporate Management.

Total 86: 4 Graduates, 52 Seniors, 17 Juniors, 4 Sophomores, 9 Others.

[Economics] 52 hf. Mr. Meyer.— Railways and other Public Works (advanced course).

Total 9: 3 Graduates, 4 Seniors, 1 Junior, 1 Sophomore.

Source: Harvard University. Annual Report of the President of Harvard College, 1900-1901, p.64.

1900-01
ECONOMICS 51
[Mid-year Examination]

Omit the last question if the paper seems too long

  1. The construction put upon the long and short haul clause: by the Interstate Commerce Commission; by the Supreme Court.
  2. The decisions of the Interstate Commerce Commission on group rates.
  3. The railway rate situation in Germany [Prussia]; does it throw any light on the railway problem in the United States?
  4. “If pooling produces any beneficial result, it necessarily does so at the expense of competition. It is only by destroying competition that the inducement to deviate from the published rate is wholly removed….By the legalizing of pooling the public loses the only protection which it now has against the unreasonable exactions of transportation agencies.”—Give your reasons for accepting or rejecting this statement.
    Alternative:—
    The reasons for the instability of pools in the United States.
  5. The Iowa Railroad Commission.
    Alternative:—
    To what extent was the long and short haul clause of the Interstate Commerce Act enforced; what was the effect of that enforcement: on railway revenues; on intermediate shipping or distributing points?
  6. The body of administrative law to be found in the decisions of the Massachusetts Gas and Electric Light Commission’s decisions upon petitions for reductions in the price of gas.
  7. (a) Is it to the public interest to insert in street railway charters provisions seeking to secure to the municipality or the state a share in any excess of profit over the normal rate?
    Alternative: (b) and (c).
    (b) The evidence as to the return on capital obtainable in street railway ventures.
    (c) What questions of public policy were raised in the case of the Milwaukee Street Railway and Electric Light Co. vs. The City of Milwaukee?
  8. What statistics were used in illustrating in a general way the statement that railway charges are based upon what the traffic will bear; in discussing the bearing of stock-watering upon railway rates; in discussing the return obtained by capital invested in railway enterprises in the United States?

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College. June, Pages 24-25.

1900-01
ECONOMICS 52
[Year-end Examination]
  1. The railways and the national finances in Prussia and Australia.
  2. Railway rates and the export trade of the United States since 1893, or, 1896.
  3. The economic situation in Australia since 1892, and the Australian railways.
  4. “A fatal objection to the income or preference bond is that it is an attempt to combine two contradictory commercial principles.”
    Discuss this statement fully. What does it mean? Is it true?
  5. If you had access to all the accounts of a railroad, how should you determine the value to it of one of its branch lines?
  6. To what accounts would you charge the following expenditures? (If you do not remember the exact Interstate Commerce Commission classification, use your best judgment.) State reasons in each case.
    Engineer’s wages on a special train conveying the general manager to an extensive flood covering the line.
    Fireman’s wages on an engine employed exclusively in switching to and from the repair shops.
    Conductor’s wages on a worktrain engaged in taking up rails on an abandoned branch.
    Brakeman’s wages on a train engaged solely in hauling company’s coal for company’s use.
    Cost of taking up comparatively new sound rails judged too light for heavy rolling stock.
    Cost at a competitive point of a new station to replace an old one which was large enough but old-fashioned.
  7. State the commonest problems facing a reorganization committee for an insolvent road, and then suggest and defend one course of procedure for each problem.
  8. Combine and arrange the following items so as to give the best information about the operation and condition of the road. (Do not rewrite the names but use the corresponding numbers where possible.)
1. Passenger train miles 2,000,000
2. Freight train miles 3,400,000
3. Passenger train earnings $2,400,000
4. Freight train earnings $5,500,000
5. Income from investments $100,000
6. Dividends $500,000
7. Operating expenses $4,700,000
8. Av. no. pass. cars per train 4
9. Av. no. passengers per car 11
10. Tons freight carried 2,800,000
11. Av. load per car (loaded and empty), tons 8.2
12. Av. no. loaded cars per train 12.3
13. Av. no. empty cars per train 6.7
14. Interest charge for year $2,200,000
15. Due other roads $100,000
16. Stocks and bonds owned $4,900,000
17. Supplies on hand $500,000
18. Taxes for the year $300,000
19. Accounts receivable $500,000
20. Cash $1,000,000
21. Surplus for the year $300,000
22. Profit and loss account $1,000,000
23. Taxes accrued but not due $100,000
24. Capital stock $50,000,000
25. Interest due $700,000
26. Funded debt $45,000,000
27. Due from other roads $100,000
28. Interest accrued not due $300,000
29. Franchises and property $90,400,000
30. Bonds of the company in its treasury $800,000
31. Accounts payable $1,000,000
32. No. of passengers carried 2,300,000

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College. June, 1901. Pages 25-27.

 

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Economics 6.
Economic History of the U.S.

For Undergraduates and Graduates.

Course Announcement
  1. The Economic History of the United States. Tu., Th., at 2.30, and a third hour at the pleasure of the instructor. Mr. —.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 42.

Enrollment
  1. Professor Taussig. — The Economic History of the United States.

Total 164: 9 Graduates, 63 Seniors, 68 Juniors, 13 Sophomores, 11 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 6
[Mid-year Examination]

Arrange your answers strictly in the order of the questions. Answer all the questions,

  1. The nature and object of the scales of depreciation established by Congress and by the States at the close of the war of the Revolution; and how far these objects were accomplished.
  2. “The year 1789 marks no such epoch in economies as it does in political history.” — Taussig. How far is this true as to (1) financial legislation; (2) tariff legislation; (3) the course of foreign trade; (4) the growth of manufactures?
  3. Explain how you would distinguish Treasury Notes designed to circulate as currency from those designed simply to meet financial needs; and state when and under what circumstances, between 1789 and 1860, the United States resorted to issues of the first kind.
  4. Suppose the charter of the first Bank of the United States had been renewed: would the effect have been favorable or unfavorable for the finances of the government, for the bank, for the community, in 1812-1815?
  5. Suppose the charter of the second Bank of the United States had been renewed: would the effect have been favorable or unfavorable for the finances of the government, for the bank, for the community, in 1835-40?
  6. Describe the Independent Treasury system, as first established and as finally settled (give dates). Do you believe it better than the alternative system proposed by its opponents? Why?
  7. The causes of the crises of 1837 and 1857: wherein similar, wherein different.
  8. State what were the duties on cotton goods in 1809, 1819, 1839, 1859; and give your opinion whether the duties at these several dates were designed to give protection, and whether protection was then expedient.
  9. Why the early railway enterprises of the States were undertaken as public enterprises; and how far their history may be fairly cited for or against the policy of public management.

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

1900-01
ECONOMICS 6
[Year-end Examination]

Arrange your answers strictly in the order of the questions

  1. Explain summarily at what dates and to what extent land-grants and bond-subsidies were extended to railways by the United States; and state whether you believe these measures brought advantage to the country.
  2. Was the management of the finances during the Civil War fraught with more or less evil consequences than that during the War of 1812, as regards (1) the currency, (2) the banks?
  3. State what main sources of revenue were expected to be used, what were used in fact, by the United States in each of the years 1862, 1863, 1864; and explain how the resort to the sources actually used came about.
  4. For the decade 1870-80, explain the connection between the course of prices, foreign trade, railway operations, and currency legislation.
  5. For the decade 1880-90, connect the history of the public debt, the national revenues, the banking system, the silver currency.
  6. Does the argument for protection to young industries find support in the history of (1) the cotton manufacture before 1830, (2) the silk manufacture since 1870, (3) the tin plate industry since 1890.
  7. Explain how the theory of comparative costs may be applicable to the present situation as regards carpet wool, beet sugar, glassware, woollen cloths (take three).
  8. What changes were made in the duties on raw and refined sugar in 1890, 1894, 1897? Which mode of treatment do you regard the most advisable, and why?
  9. State what causes you believe to have chiefly promoted the growth and maintenance of the sugar and oil combinations; and consider which of these two you regard as typical, and as instructive for forecasting the future of combinations.

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College. June, 1901. Pages 27-28.

 

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Economics 81
Money

For Undergraduates and Graduates.

Course Announcement

81 hf. Money. Half-course (first half-year). Tu., Th., Sat., at 11. Mr. Andrew.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 42.

Enrollment

81 hf. Dr. [Abram Piatt] Andrew. Money.

Total 122: 3 Graduates, 56 Seniors, 41 Juniors, 8 Sophomores, 1 Freshman, 13 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 8
[Mid-year Examination]

Answer only three questions from each group, but consider the questions strictly in the order of their arrangement 

I

  1. What is meant by

(1) a “double” standard;
(2) a “parallel” standard;
(3) a “limping” standard;
(4) a “single” standard;

Cite at least two historic examples of each, giving approximate dates.

  1. The following are estimates which have been made of the average production of silver, and its annual average export to the Orient in millions of ounces:

 Production Export to East
1851-55 28 mill.

20 mill.

1855-60

 29  ” 52  ”
1861-65 35  ”

53  ”

1865-70

 43  ”

25  ”

State the causes of the singular situation revealed in these figures, and explain its actual effect upon the relative values of gold and silver in Europe.

  1. Suppose that the British government in 1870 had used the right conferred by the act of 1816, and had proclaimed the free coinage of silver at the ratio then current. What differences do you think would have occurred in the subsequent currency history of the world?
  2. Describe the effect of the suspension of the coinage of silver upon the value of the currency in each of the following cases:—
    (1) in Holland; (2) in Austria; (3) in Russia; (4) in India.

II

  1. “Before 1873 we had coined in the United States only about eight million silver dollars ($8,031,238) while since the date fixed as the beginning of demonetization we have coined nearly five hundred millions ($485,427,703).”
    How do you explain (1) the small amount of dollars coined before 1873? (2) the large amount coined since then?
  2. What in your opinion was the real significance of (1) the act of 1803? (2) the act of 1873?
  3. “With the exception of the brief period of fifteen years (1544-60) the English coins have never been debased.”
    In what sense and to what extent is this statement correct?
  4. In writing of the currency history of England during the years, immediately succeeding the great recoinage (1696) Mr. Dana Horton says:—
    “And so the full weight standard coin of the Realm, to create a stock of which the State had spent a sum greater than its regular annual revenue, and equal to perhaps a fourth of the country’s total stock of cash, — was allowed to find its way back to the melting-pot in exchange for cheaper gold.”
    Explain the situation to which he refers, and the reasons for this disappearance of the “standard coin.”

III

  1. (a) What were the main arguments which Lord Liverpool advanced in favor of a single gold standard?
    (b) What were the legislative acts in which his influence is to be traced?
  2. (a) Do falling prices necessarily mean an increase in the burden of debts?
    (b) Do they in the long run inevitably diminish the productiveness of industry?
    (c) To what extent are they prejudicial to the interests of the working classes?
  3. “It is generally agreed that every fall in the value of silver acted at the time as a stimulus to Indian exports and as a check on imports into India.”
    (1) Explain this statement, (2) state how far it is confirmed by commercial statistics, and (3) show whether such a condition is ever likely to be of prolonged duration.
  4. It is alleged that the Russian government, by stimulating exports, and hindering imports, has endeavored to secure a favorable balance of trade, with the idea of increasing the quantity of gold in the country? What do you think would be the ultimate effect of such a policy if continuously pursued?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

Also: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 28-30.

 

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Economics 9.
The Labor Question in Europe and the U.S.

For Undergraduates and Graduates.

Taught by W. F. Willoughby (Edward Cummings’ successor).

Course Announcement
  1. The Labor Question in Europe and the United States. — The Social and Economic Condition of Workingmen. Tu., Th., Sat., at 10. Mr. —.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 42.

Enrollment

92 hf. Mr. W. F. Willoughby. — The Labor Question in Europe and the United States. The Social and Economic Condition of Workingmen.

Total 146: 3 Graduates, 53 Seniors, 40 Juniors, 35 Sophomores, 3 Freshmen, 12 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 9
[Year-end examination]
  1. Show how the change in the organization of industry from the handicraft system and production on a small scale to the factory system and production on a large scale has led to; (a) efforts to supplant the wages system by socialism[,] coöperation, etc., (b) the trade union movement, and (c) compulsory compensation acts.
  2. Give the arguments for and against profit-sharing as regards (a) it being a more just system of enumeration than the wages system, and (b) its practical advantages.
  3. What are the two systems of coöperative production now practice in Great Britain, and why are they meeting with more success than earlier efforts?
  4. Describe the trade agreement between the National Metal Trades Association and the International Association of Machinists in such a way as to show its essential character and significance, and particularly its relation to the trade union movement and the question of the prevention and adjustment of industrial disputes.
  5. What was the nature of the “new unionism” movement in Great Britain, and its success?
  6. What is the general character of the Massachusetts State Board of Conciliation and Arbitration; what its duties and its powers?
  7. Describe the essential features of the French Workmen’s Compensation Act.
  8. Give a brief sketch of the Social Democratic Party in Germany, with the names of its early leaders and important events in its history.
  9. In what ways can the municipality take action for the improvement of the housing condition of the poorer classes without itself building tenements? What are some of the objections to the municipalities themselves undertaking building operations?
  10. Show why employment bureaus can do but little for the solution of the general problem of the unemployed.

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 30-31.

Enrollment (Economics 9a)

9a2 hf. Mr. W. F. Willoughby. — Provident Institutions. Workingmen’s Insurance, Friendly Societies, Savings Banks.

Total 22: 1 Graduate, 13 Seniors, 5 Juniors, 2 Sophomores, 1 Other.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-1901
ECONOMICS 9a
[Year-end Examination]
  1. What is the general situation in France at the present time in respect to insurance against old age and invalidity? Describe briefly the organization and workings of important institutions, and show particularly how the government is attempting to further this kind of insurance.
  2. What has been the general policy of the British government in respect to the regulation of Friendly Societies? Give the main features of law now regulating them.
  3. Describe the Fraternal Beneficial Orders of the United States as regards (a) their general scheme of organization, and (b) system of insurance.
  4. Show wherein this insurance system is defective by contrasting it with that of ordinary life insurance companies: indicate reforms that are necessary and how they can best be brought about.
  5. Contrast the systems of savings banks in Great Britain and the United States.
  6. In what respects are coöperative banks of the Schulze-Delitzsch and Raiffeisen type more valuable social institutions than the ordinary savings banks?
  7. Describe the principles upon which all coöperative building and loan associations in this country are organized, and indicate ways in which they might profitably be subjected to more rigid state control.
  8. Why is it impracticable to insure against unemployment?
  9. Outline briefly the system of sick insurance in Germany.

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), p. 31.

 

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Economics 10.
Mediaeval Economic History of Europe.

For Undergraduates and Graduates.

Course Announcement

For Undergraduates and Graduates.

  1. The Mediaeval Economic History of Europe. Tu., Th., and (at the pleasure of the instructor) Sat., at 12. Professor Ashley.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 41.

Enrollment
  1. Professor Ashley. The Mediaeval Economic History of Europe.

Total 11: 6 Graduates, 4 Seniors, 1 Junior.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 10
[Mid-year Examination]

Not more than six questions should be attempted, of which the first should be one.

  1. Translate, and briefly comment upon
    1. Toto regis Willelmi primi tempore perseveravit haec institutio, usque tempora regis Henrici filii ejus; adeo ut viderim ego ipse quosdam qui victualia statutis temporibus de fundis regiis ad curiam deferri viderint.
    2. In Kateringes sunt X hidae ad geldum Regis. Et de istis X hidis tenent XL villani XL virgas terrae.
    3. Compotus Roberti Oldeman praepositi de Cuxham, ab in crastino Sancti Jacobi anno regni Regis Edwardi filii Regis Edwardi decimo usque ad in crastinum Sancti Jacobi proxime sequentis anno regni Regis Edwardi praedicti undecimo intrante.
    4. Rogamus . . . ademptum sit jus etiam procuratoribus nedum conductori adversus colons ampliandi partes agrarias aut operarum praebitionem jugorumve.
    5. Orgeterix ad judicium omnem suam familiam, ad hominum milia decem, undeque coëgit et omnes clientes obaeratoque suos quorum magnum numerum habebat eodem conduxit.
  2. What materials have we for forming a judgment as to the position of the rural population of England in the period from the eleventh to the fourteenth centuries? Classify them, and indicate the value of each class for the purposes of this enquiry.
  3. Wherein did the status of the coloni of the later Roman Empire resemble or differ from that of the medieval villein?
  4. Describe the constitution and working of manorial courts. What light does their history throw on the evolution of social classes?
  5. “Wie das Wort Dorf … dem Sinne nach einen Haufen bezeichnet, so ist auch haufenförmig oder Haufendorf der geeignetste Ausdruck für diese Art der Dorfenlage.” Explain and comment.
  6. “M. Fustel took for his point of departure the Provincial villa; Dr. Hildebrand takes the Kirghises of modern Asia.” Explain, and then show the peculiar dangers of each method.
  7. “We may safely follow Palgrave in taking the Anglo-Saxon townships as the integral molecules out of which the Anglo-Saxon State was formed.” Why? or why not?
  8. What was the gwely? What bearing has it on the general problem of “tribal” organization?
  9. What are the assumptions or postulates of modern Political Economy? To what extent were they true of the Middle Ages?
  10. Which book read in connection with this course has interested you most? Describe its method and estimate the value of its contribution to economic history.

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

1900-01
ECONOMICS 10
[Year-end Examination]

Not more than six questions should be attempted, of which the first should be one

  1. Briefly comment upon the following passages, and translate such of them as are not in English:—
    1. Colunt discreti ac diversi, ut fons, ut campus, ut nemus placuit. Vicos locant non in nostrum morem connexis et cohaerentibus aedificiis: suam quisque domum spatio circumdat.
    2. If a man agree for a yard of land or more, at a fixed rent, and plough it; if the lord desire to raise the land to him to service and to rent, he need not take it upon him, if the lord do not give him a dwelling.
    3. Ego S. … et ego P. … aliquantulam agri partem pro remedio animarum nostrorum W. episcopo in dominio donare decrevimus; id est xxx cassatorum in loco qui dicitur T.
    4. Si quis super alterum in villa migrare voluerit, et unus vel aliqui de ipsis qui in villa consistunt eum suscipere voluerit, si vel unus extiterit qui contradicat, migrandi ibidem licentiam non habebit.
    5. Qui habebant de tenentibus per diaetas totius anni, ut assolet de nativis, oportebat eos relaxare et remittere talia opera.
    6. If any one does an injury who is not of the gild and is of the franchise … he shall lose his franchise.
  2. Explain the position of Maitland’s Domesday Book and Beyond in the discussion concerning the origin of the manor.
  3. Distinguish between the several characteristics of mediaeval towns, and indicate the part played by each, in your opinion, in the formation of specifically urban conditions.
  4. Examine the relations between questions of personal status and questions of economic condition in relation to the ‘peasants’ of the Middle Ages.
  5. What is the nature of our evidence as to the Peasants’ Rising of 1381? Is there any reason for ascribing anything like an economic programme to the leaders of the movement?
  6. Indicate briefly (a), the several influences tending towards a corporate organization of industry in the later Middle Ages and (b) the advantages or disadvantages of such an organization.
  7. Distinguish between the several immigrations of foreign work people to England before the accession of James I, and explain the nature of their contributions to the development of English manufactures.
  8. The relation of John Major and Juan Vives to the development of the English ‘Poor Law.’
  9. What changes, if any, did the Reformation bring about in social life?

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 32-33.

 

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Economics 122.
Banking and the History of the Leading Banking Systems.

For Undergraduates and Graduates.

Course Announcement

122 hf. Banking and the history of the leading Banking Systems. Half-course (second half-year). Tu., Th., Sat., at 11. Dr. Sprague.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 43.

Enrollment

122 hf. Dr. [Oliver Mitchell Wentworth] Sprague. — Banking and the History of the Leading Banking Systems.

Total 128: 4 Graduates, 51 Seniors, 43 Juniors, 16 Sophomores, 14 Others.

Source: Harvard University. Report of the President of Harvard College, 1900-1901, p. 64.

1900-01
ECONOMICS 122
[Year-end Examination]

Arrange your answers strictly in the order of the questions. Answer all the questions under A and two of those under B

A

  1. Explain in detail and under different circumstances the effect of an advance of the rate of discount by the Bank of England upon the money market of London and upon the foreign exchanges.
  2. Taking the separate items of a bank account point out how those of the Bank of Amsterdam differed from those of a modern bank.
  3. Define and explain:—
    1. Bill broker.
    2. Banking Principle.
    3. The State Bank of Indiana.
    4. The banking law of Louisiana.
    5. Clearing House Certificates.
  4. The extent and banking consequences of government control of the Bank of France and the Reichsbank.
  5. How do government receipts and expenditures affect the money market (a) of London, (b) of New York?
  6. Explain with illustrations from the crises of 1857 and 1893 the nature of the demand for cash in time of crisis, and consider how far that demand may be met under a flexible system of note issue.

B

  1. (a) How far and with what qualifications may banking experience in the United States before 1860 be appealed to in the discussion of changes in our banking system? (b) How far, similarly, may Canadian experience be applied?
  2. “Why compel banks to send home for redemption a multitude of notes which can as well be used in payments and are sure to be reissued at once? Why impede the free use of its power of circulation by any enterprising bank by requiring the early redemption of notes which the holder does not in fact care or need to have redeemed?”
    Explain from past experience what regulations may be expected to bring about these results, and give the reasons for demanding them.
  3. Discuss the question of branch banking with reference to the United States, including in your discussion considerations of safety and economy. Would branch banking be more desirable than at present if notes were issued against general banking assets.

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 34-35.

 

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Economics 12a1.
International Payments and the Flow of Precious Metals.

For Undergraduates and Graduates.

Course Announcement

12a2 hf. International Payments and the Flow of the Precious Metals. Half-course (second half-year). Three times a week. Mr—.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 43.

Enrollment

[Economics] 12a1 . Mr. [Hugo Richard] Meyer.—International Payments and the Flow of the Precious Metals.

Total 16: 2 Graduates, 9 Seniors, 4 Juniors, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1900-1901, p. 64.

1900-01
ECONOMICS 12a1.
[Mid-Year Examination]

Observe strictly the order in which the questions are arranged.

  1. Sidgwick’s criticisms on Mill’s doctrine of international trade and their validity.
  2. What temporary changes in the general level of prices in this country should you expect to see, as the result of a large permanent withdrawal of foreign capital? What ultimate change of prices should you expect?
  3. Suppose the exportation of specie from the United States to be prohibited (or, as has sometimes been suggested, to be slightly hindered), what would be the effect on rates of exchange, and on prices of goods, either domestic or foreign? Would the country be a loser or not? [See Ricardo (McCulloch’s ed.), page 139.]
  4. The conditions which led to the flow of gold to the United States in the fiscal years 1880 and 1881?
  5. What economic conditions or events tended to make the year 1890 a turning point both in domestic and in international finance?

Alternative:

The reasons for the return flow from Europe of American securities in the years 1890-1900?

  1. What sort of wealth did France actually sacrifice in paying the indemnity? What was the process?
  2. Is Mr. Clare justified in making the general statement that “the gold-points mark the highest level to which an exchange may rise, and the lowest to which it may fall”?
  3. Why is it that certain trades bills are drawn chiefly, or even exclusively, in one direction, e.g. by New York on London and not vice versa; and how is this practice made to answer the purpose of settling payments which have to be made in one direction?

Alternative:

Why has England become the natural clearing-house for the world?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

Also: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 33-34.

 

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Economics 13.
Methods of Economic Investigation.

Primarily for Graduates.

Course Announcement
  1. Methods of Economic Investigation.—English Writers. German Writers. Tu., Th., at 1.30. Professor Taussig.
    Courses 15 and 13 are usually given in alternate years.

[15. The History and Literature of Economics to the close of the Eighteenth Century. Mon., Wed., and (at the pleasure of the instructor) Fri., at 12. Professor Ashley.
Omitted in 1900-01.]

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 43.

Enrollment
1900-01

Economics 132 hf. Asst. Professor Carver. — Methods of Economic Investigation.

Total 10: 4 Graduates, 6 Seniors.

Source: Harvard University. Report of the President of Harvard College, 1900-1901, p. 64.

1900-01
ECONOMICS 13
[Year-end Examination]

Discuss ten of the following topics.

  1. The subdivision of economics into departments.
  2. The fields for the observation of economic phenomena.
  3. The place of historical and statistical research in economic investigation.

4, 5, 6. The methods of investigating:

    1. The causes of poverty.
    2. The effect of immigration on the total population of the United States.
    3. The effect of protection on the production of flax fibre, on the iron industry, or on any other industry which you may select.
  1. The nature of an economic law.
  2. The relation of the theory of probabilities to economic reasoning.
  3. The use of hypotheses in economic reasoning.
  4. The use of the terms “static” and dynamic in economic discussion.
  5. The use of diagrams and mathematical formulae in economic discussion.

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), p. 35.

 

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Economics 17.
Economic Organization and Resources of European Countries.

For Undergraduates and Graduates.

Course Announcement
  1. The Economic Organization and Resources of European countries. Mon., Wed., and (at the pleasure of the instructor) Fri., at 12. Professor Ashley.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 42.

Enrollment
  1. Professor Ashley. The Economic Organization and Resources of European countries.

Total 34: 5 Graduates, 14 Seniors, 9 Juniors, 3 Sophomores, 3 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 17
[Mid-year Examination]

Not more than eight questions should be attempted

  1. “It is less important for a particular community than ever it was to be in possession of cheap food and raw materials produced within its own domain.” Discuss this proposition.
  2. Describe very briefly the main features of the physical geography of England (illustrating your answer, if possible, with a map) and indicate in general terms their economic consequences.
  3. Set forth some of the general considerations which should be taken into account in answering the question whether the industrial development of Ireland has been injuriously affected by English legislation.
  4. Compare the number and character of the several classes maintained by agriculture in England, with those of the agricultural classes in the U.S. and on the continent of Europe.
  5. Explain the powers of dealing with his estate enjoyed at present by an English tenant for life under a settlement.
  6. What districts of England are now suffering most severely from agricultural depression, and why?
  7. Can any lessons be drawn for the U.S. from the recent history of productive coöperation in England? Give your reasons.
  8. Give a rapid survey of the apparent coal resources of the world.
  9. What points of especial interest are there to the economist in the history, situation, character, etc. of the South Wales Coal Field?
  10. What is meant by Collective Bargaining? What are its prerequisites? What examples of it are you acquainted with in America?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

1900-01
ECONOMICS 17
[Year-end Examination]

Not more than eight questions should be attempted

  1. The British Chancellor of the Exchequer proposes to levy a duty of one shilling per ton upon the export of coal from the United Kingdom: He argues that the tax will not be borne by the producer, but mainly, if not wholly, by the foreign consumer. Consider (a) what are the conditions under which this is likely to be the case, (b) how far these conditions are at present realized in the case of England.
  2. Distinguish the successive stages in the technological history of iron and steel, and connect them with the industrial development of the several countries concerned.
  3. What were the questions at issue in England in the Engineering dispute of 1897? What, with your present knowledge, do you think ought to have been your attitude, had you then been (a) an English engineering employer, (b) a leading official of the employees’ union.
  4. Give a brief account of the organization of the English cotton manufacture (as distinguished from the securing either of the material or of a market for the product). Contrast it with American conditions; and consider how England and New England are likely to be affected by the growth of the manufacture in the Southern States.
  5. Distinguish between the several forms of capitalist combination at present to be observed in England. What general causes have led to the movement? What, if any, advantages does it promise, and what, if any, dangers does it threaten?
  6. Compare Bradford and Roubaix in any aspects which seem to you worthy of attention.
  7. “Lorsque il n’y a point d’hommes riches qui aient de gros capitaux à mettre dans les entreprises d’agriculture, lorsque les récoltes ne suffisent pas pour assurer aut entrepreneurs des profits égaux à ceux qu’ils tireraient de leur argent en l’employant de toute autre manière, on ne trouve point de fermiers qui veuilient louer les terres. Les propriétaires sont forcées de les faire cultiver par les métayers hors d’état de faire aucunes avances et de bien cultiver. Le propriétaire fait lui-même des avances médiocres qui lui produisent un très médiocre revenu.”
    Translate the passage from Turgot; and then consider how far his description applies to existing conditions in France and Italy.
  8. Show the relation of the great manufacturing industries of France to the distribution of coal in that country.
  9. Would the construction of the Rhine-Elbe canal be a benefit to Germany? Give your reasons.
  10. “Wir müssen uns Rechenschaft ablegen, ob ohne eine grössere Macht zur See, ohne eine solche die unsere Küsten vor Blockaden schützt, unseren Kolonialbesitz und unseren Welthandel absolut sicher stellt, unsere wirtschaftliche Zukunft gesichert sei.”
    Are there sufficient reasons in the contemporary situation of Germany for this anxiety on the part of Professor Schmoller?
  11. (a) Give a brief account of the contents, and then (b) compare the method and general attitude toward the subject, of von Schulze-Gaevernitz’s Social Peace and de Rousers’ Labour Question in Britain.
  12. What in the light of the experience in the English coal, iron, and cotton industries, would seem to you the most satisfactory form to be taken by joint wage agreements in the great industries of America?

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 36-37.

 

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Economics 18.
Principles of Accounting.

For Undergraduates and Graduates.

Course Announcement

181 hf. The Principles of Accounting. — Lectures, discussions, and reports. Half-course (first half-year). Mon., Wed., and (at the pleasure of the instructor) Fri., at 3.30. Mr. W. M. Cole.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 43.

Enrollment

181 hf. Mr. W. M. Cole. — The Principles of Accounting.

Total 56: 43 Seniors, 4 Juniors, 2 Sophomores, 7 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 18
[Mid-year Examination]

Problems 1 to 5 inclusive form a connected whole;
but 6 and 7 may be substituted for 4 and 5

I

  1. Construct a rough ledger (omitting rulings and index-memoranda) to correspond with the following trial-balance:
Real estate $150,000 Proprietor $244,275
Plant $60,000 Merchandise $401,000
Patents $40,000 Rent $6,000
Supplies $228,000 Bills payable $14,000
Wages $127,000 Accounts payable $43,000
Coal $9,000 Reserve fund $12,000
Insurance $4,500
Trade discounts $8,000
Interest $1,500
Bills receivable $10,000
Accounts receivable $68,000
Cash $14,275
$720,275 $720,275
  1. The above trial-balance is supposed to be taken from manufacturing books that are kept on the ordinary commercial plan, i.e., without distinctive accounts for stores, manufacturing, stock, or trading; and to construct such accounts now is supposed to be either impossible or undesirable.
    If you were required to determine profit and loss for the year which these figures cover, what questions about the business should you wish to ask before reaching your conclusions? [Give your answer in the form of questions consecutively numbered.]
  2. State what would be fairly reasonable answers to your own questions above numbering the answers to correspond with the questions; and then, assuming your answers to be the real answers show a complete statement of resources and liabilities and of profit and loss.
  3. Close for the year the ledger that you constructed indicating all balances that you have transferred to other accounts and all balances that you have carried down for the new year.
  4. From the ledger as it now stands draw off a balance sheet showing the condition of the business at the beginning of the new year, assuming that the loss or gain is carried directly to the proprietor’s account.
  5. Journalize the following:

A gives you his note for $100, bearing interest, dated a month ago.
You discount at a bank a note for $100 payable in a month
B gives you A’s note for $100 payable in one month, and buy goods for $100 on one month’s time.
Your book-keeper charged bills receivable and credited B when B paid his bill by your own note returned to you. A counter entry is to be made, so that the original wrong entry need not be erased

  1. What is the distinguishing feature of double entry? Are two postings made for every entry? If not, what devices are employed for reducing the number of postings?

II
Omit one

  1. The balance sheet of a corporation on January 1, 1899, stood as follows:
Real estate $50,000 Capital stock $200,000
Plant $95,000 Accounts payable $20,000
Horses, etc. $15,000 Bills payable $25,000
Patents $20,000 Profit and loss $15,000
Merchandise $30,000
Accounts receivable $30,000
Cash $20,000
$260,000 $260,000

On January 1, 1900, the books showed the following facts:

Real estate $55,000 Capital stock $200,000
Plant $88,000 Accounts payable $12,000
Horses, etc. $12,000 Bills payable $17,000
Patents $19,000 Profit and loss $33,000
Merchandise $42,000
Accounts receivable $28,000
Cash $18,000
$262,000 $262,000

What has become of the profits earned?

Should you recommend that a dividend be declared? State your reasons.

  1. How should you treat interest received on a bond bought above par?
  2. Describe the following, and state the distinguishing feature of each: a real account; a nominal account; a suspense account; reserve fund: a sinking fund
  3. If payments are received on account of goods in process of manufacture, should such payments appear on the balance sheet? If so, where?
  4. Describe three different methods of treating depreciation, and show how each would appear upon the books. To what circumstances on a railroad is each adapted?
  5. A corporation is formed to unite and continue the business of three concerns, A, B, and C, engaged in the same industry. The books of the concerns show the following:
A B C
Assets (valuation) $80,000 $160,000 $120,000
Liabilities (external) $20,000 $80,000 $90,000
Average profit, last three years 10% 14% 30%
Average profit, preceding three years 9 17 25
Average profit, prior three years 10 20 20

On what basis should you determine the total amount of capital stock to be issued by the new corporation, and on what basis should you apportion it to these three concerns?

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 4, Bound volume: Examination Papers, Mid-Years, 1900-01.

 

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Economics 19.
General View of Insurance.

Primarily for Graduates.

Course Announcement

192 hf. A General View of Insurance. — Lectures and reports. Half-course (second half-year). Mon., Wed., and (at the pleasure of the instructor) Fri., at 3.30. Professor Wambaugh.
Course 19 cannot be counted towards the degree of A.B.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 43.

Enrollment

192 hf. Professor Wambaugh. — A General View of Insurance.

Total 9: 6 Seniors, 3 Others.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 192
[Year-end Examination]

One of the paragraphs may be omitted.

  1. From the point of view of the person procuring the policy, what is the purpose of insurance?
  2. From the point of view of the community, what are the advantages and the disadvantages of insurance?
  3. Give some account of three insurance books, pamphlets, or periodicals.
  4. Tell what you know of the history of insurance.
  5. Give a classification of the provision of the New York standard form of fire insurance policy,
  6. If either party to the fire insurance contract wishes to terminate the insurance, what are his rights?
  7. What are the benefits and the dangers of fire insurance by government?
  8. Describe ordinary life policies, single payment life policies, twenty payment life policies, endowment policies, tontine policies, assessment insurance.
  9. If a person thirty years of age wishes to obtain a life insurance policy for a single premium, how is the premium calculated?
  10. What are the chief differences between fire insurance and marine insurance?
  11. Discuss any insurance topic of which you have made a special study. 

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), p. 40.

 

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Economics 20d.
Adam Smith and Ricardo.

Primarily for Graduates.

Course Announcement

20d. Adam Smith and Ricardo. Half-course. Professor Taussig.

Source: Harvard University. Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year 1900-1901, p. 43.

Enrollment

20d1 hf. Professor Taussig. — Adam Smith and Ricardo.

Total 12: 7 Graduates, 5 Seniors.

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1900-01, p. 64.

1900-01
ECONOMICS 20d
[Final examination]
  1. Compare Ricardo’s conclusions with Adam Smith’s on the course of wages, profits, and rent, as society advances: discussing not only the conclusions themselves, but the reasoning by which the two writers arrive at them.
  2. Under what circumstances are real wages high, according to Adam Smith? according to Ricardo?
  3. Adam Smith’s doctrine on labor as a measure of value; Ricardo’s strictures thereon; and Ricardo’s own doctrine.
  4. S. Mill in his Autobiography says that “it was one of my father’s main objects to make me apply to Smith’s more superficial view of political economy the superior lights of Ricardo, and to detect what was fallacious in Smith’s arguments or erroneous in his conclusions.” Set forth how you believe the two Mills (father and son) set about this task as to Adam Smith’s reasoning on the following topics:—
    1. the mode in which the payment of heavy foreign obligations is brought about by the exportation of goods, not by the outflow of specie;
    2. the distinction between that land which always affords rent, and that which sometimes does and sometimes does not;
    3. the effect of foreign trade in raising the general rate of profits in a country.
  5. “That able but wrong-headed man, David Ricardo; shunted the car of Economic science on to a wrong line, a line, however, on which it was further urged by his equally able and wrong-headed admirer, John Stuart Mill.” — W. S. Jevons.
    What grounds are there for assenting to this judgment? What grounds for dissenting from it?

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 5. Bound Volume: Examination Papers 1900-01. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Design, Music in Harvard College (June, 1901), pp. 40-41.

Image Source: Detail from cover of the Harvard Class Album 1946.

Categories
Harvard M.I.T. Math Pedagogy Princeton Teaching Wisconsin

Harvard. Draft memo on “Basic Mathematics for Economics”. Rothschild, ca. 1970

 

“These bewildering cook-books [Allen, Lancaster, Samuelson, Henderson & Quandt] are as helpful to those without mathematical training as Escoffier is to weekend barbecue chefs.”

The 1969 M.I.T. economics Ph.D. Michael Rothschild served briefly as assistant professor of economics at Harvard, a professional milestone that went somehow unmentioned in his official Princeton biography included below. He co-taught the core graduate microeconomic theory course with Zvi Griliches in the spring term of 1971 which is probably why a draft copy of his memo proposing  “a course which truly covers ‘Basic Mathematics for Economists'” is found in Griliches’ papers at the Harvard Archives.

Tip: Here is a link to an interview with Michael Rothschild posted in YouTube (Dec. 4, 2012). A wonderful conversation revealing his academic humility and wit as well as an above-average capacity for self-reflection.

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Courses Referred to in Rothschild’s Memo

Economics 199. Basic Mathematics for Economists

Half course (fall term). M., W., F., at 10. Professor G. Hanoch (Hebrew University).

Covers some of the basic mathematical and statistical tools used in economic analysis, including maximization and minimization of functions with and without constraint. Applications to economic theory such as in utility maximization, cost minimization, and shadow prices will be given. Probability and random variables will be treated especially as these topics apply to economic analysis.

Source: Harvard University, Faculty of Arts and Sciences. Courses of Instruction, Harvard and Radcliffe 1969-1970. Published in Official Register of Harvard University, Vol. LXVI, No. 12 (15 August 1969), p. 142.

*  *  *  *  *  *  *  *

Economics 201a. Advanced Economic Theory

Half course (fall term; repeated spring term). Tu., Th., (S.), at 12. Professor D. Jorgenson (fall term); Professor W. Leontief (spring term).

This course will be concerned with production theory, consumption theory, and the theories of firms and markets.
Prerequisite: Economics 199 or equivalent.

Source: Ibid., p. 143.

*  *  *  *  *  *  *  *

Economics 221a. Quantitative Methods, I

Half course (fall term; repeated spring term). Tu., Th., S., at 11. Assistant Professor A. Blackburn (fall term); Assistant Professor M. Rothschild (spring term).

Probability theory, statistical inference, and elementary matrix algebra.

Prerequisite: Economics 199 or equivalent

Source: Ibid., p. 146.

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DRAFT
[Summer or Fall 1970?]

M. Rothschild

Economics 201a, as Professor Jorgenson now teaches it1, presumes much specialized mathematical knowledge. (See attachment 1) There is no single course which covers all these topics, (chiefly the implicit function theorem, constrained maximization and Euler’s theorem), in either the economics or mathematics departments at Harvard. We are in effect demanding that our students arrive knowing these things or that they learn them on their own. The former is unlikely, the latter more so. Imagine trying to learn the mathematics necessary to follow the standard derivation of the Slutsky equation by studying the standard sources such as Allen, Mathematical Analysis for Economists, Lancaster’s Mathematical Economics or the appendices to Samuelson’s Foundations or Henderson and Quandt. These bewildering cook-books are as helpful to those without mathematical training as Escoffier is to weekend barbecue chefs. Those with some knowledge of mathematics will not find the standard sources much more helpful for they are written in a spirit alien to that of modern mathematics; they give almost no motivation or intuition for their results.

There are other bits of mathematics necessary for a thorough understanding of basic economic theory. For instance, the stability theory of difference and differential equations, the theory of positive matrices and rudiments of duality and convexity theory are required for the stability analysis of simple macro models, input output economics, and linear programming respectively. These are hardly new fangled and abstruse parts of economic theory. Indeed they are topics which should be part of every economist’s competence.

There are courses at Harvard where one can learn these things; the difficulty is that there are so many. Advanced courses in mathematical economics treat of positive matrices, duality and much more. Few students take these courses and almost no first year students do. I have no doubt that somewhere in the mathematics or applied math department, there is a course where one may learn all one would want to know and more of difference and differential equations. But all economists really need to know can be taught in three weeks or less.2

There is an obvious solution to these problems, namely for the department to offer a course which truly covers “Basic Mathematics for Economists.”3 A proposed course outline is attached. The course begins with linear algebra because most of the specialized topics needed for mathematical economics are applications of the principles of linear algebra. I know of no one semester course at Harvard which teaches linear algebra in a manner useful to economists. Another advantage to including linear algebra in this course is that it would make it possible to drop the topic from Economics 221a which is presently supposed to teach linear algebra, probability theory, and statistics in a single semester.4 I doubt this can be done. If linear algebra were excluded from the syllabus of 221a, there would be less reason for offering the course in the economics department. We could reasonably expect that our students learn statistics and probability theory from the statistics department (in Statistics 122, 123 or 190).

*  *  *  *  *  *

1…and, I hasten to say, as it should be taught

2A word must be said here about Mathematics 21. This excellent full year course in linear algebra and the calculus of several variables contains all the insights, and almost none of the material, which economists should know. With a slight rearrangement of topics, principally the addition of the implicit function theorem, constrained maximization, and the spectral theory of matrices this would be a great course for economists. As it is now it is a good, but rather time consuming, way to develop mathematical maturity which should make it easy to learn the mathematical facts economists need to know.

3The present title of Economics 199 which is a remedial calculus course taken only by those students with almost no mathematical training.

4I became aware of the need for such a course while teaching 221a. After spending three very rushed weeks developing some of the basic notions of linear algebra I had to drop the subject just when it would have been easy to go on and explain the mathematics behind basic economic theory. The desire of the students that I do so is indicated by the fact that most of them were enticed to sit through a second (optional) hour of lecture on a Saturday by the promise that I would unravel the mysteries of the determinental second order conditions for maximization of a function of several variables.

*  *  *  *  *  *

Proposed course outline:
  1. Linear Algebra, vector spaces, linear independence, bases, linear mappings, matrices, linear equations, determinants.
  2. Cursory review of the calculus of several variable from the vector space point of view, the implicit function theorem, Taylor’s theorem.
  3. Quadratic forms and maximization with and without constraints; diagonalization, orthogonality and metric concepts, projections.
  4. The Theory of Positive matrices; matrix power series.
  5. Linear Difference Equations, stability.
  6. Linear Differential Equations, stability.
  7. Convex sets and Duality. (If time permits.)

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Michael Rothschild

Mike Rothschild first came to Princeton in 1972 as a lecturer in economics and quickly rose to the rank of professor three years later. Mike is an economist with broad interests in social science. His 1963 B.A. from Reed College was in anthropology, his 1965 M.A. from Yale University was in international relations, and his 1969 Ph.D. from the Massachusetts Institute of Technology was in economics.

In the early 1970s, Mike published a string of ground- breaking papers studying decision making under uncertainty and showing the effects of imperfect and asymmetric information on economic outcomes. With Joseph Stiglitz, Mike proposed now- standard definitions of what it means for one random variable to be “riskier” than another random variable. He studied consumer behavior when the same good is offered at different prices and when the consumer does not know the distribution of prices. He studied the pricing behavior of fi when they are uncertain about demand and showed that a fi may end up setting the wrong price even when it optimally experiments to learn about the demand for its product. Arguably, Mike’s most important early work was a 1976 paper with Stiglitz on insurance markets in which insurance companies did not know the heterogeneous risk situations of their customers. Mike and Stiglitz showed that under certain circumstances a market equilibrium exists in which companies offer a menu of policies with different premiums and deductibles that separate customers into appropriate risk groups. This research is one of the landmarks in the field of information economics.

Mike left Princeton in 1976 for the University of Wisconsin and moved to the University of California–San Diego (UCSD) seven years later. His research over this period included papers on taxation, investment, jury-decision processes, and several important papers in finance. Mike’s research contributions led to recognition and awards: he became a fellow of the Econometric Society in 1974, received a Guggenheim Fellowship in 1978, became a fellow of the American Academy of Arts and Sciences in 1994, and in 2005 was chosen as a distinguished fellow of the American Economic Association.

In 1985, Mike decided to branch out from teaching and research, and he spent the next 17 years in university administration. Shortly after arriving at UCSD he became that university’s first dean of social sciences. Under his watch, the division grew dramatically in the number of students, faculty, departments, and programs. He presided over the launching of cognitive science, ethnic studies, and human development. During his deanship, the UCSD social sciences soared in the national rankings, reaching 10th nationally in the last National Research Council tally for 1996.

Mike was lured back to Princeton in 1995 to become the dean of the Woodrow Wilson School of Public and International Affairs. During his seven-year tenure as dean, Mike started the one-year Master in Public Policy program for mid-career professionals; the Program in Science, Technology, and Environmental Policy; the Center for the Study of Democratic Politics; and the Center for Health and Wellbeing. Under his leadership, the Wilson School added graduate policy workshops to the curriculum, expanded course offerings, added multi-year appointments of practitioners to the faculty, and enhanced professional development. Mike shared his dean duties with his trusted and loyal dog, Rosie, who became an important part of the school’s community and accompanied Mike throughout campus.

Finally, Mike likes to wear a hardhat. At UCSD he oversaw the planning and construction of the Social Sciences Building, and at Princeton he built Wallace Hall and renovated Robertson Hall. The Princeton community may remember Mike most for turning Scudder Plaza from the home of a formal reflecting pool where guards kept people out of the fountain into a community wading pool that welcomes and attracts students, families, and children (many under the age of three) each summer evening.

Source: Princeton University Honors Faculty Members Receiving Emeritus Status (May 2009), pp. 18-20.

Image Source: Screenshot from the interview (Posted Dec. 4, 2012 in YouTube).

Categories
Chicago Economics Programs Economists Harvard UCLA War and Defense Economics

Harvard. Economics Ph.D. alumnus, Jack Hirshleifer, 1950

 

This UCLA economics department obituary of Jack Hirshleifer is so good that Economics in the Rear-view Mirror keeps a copy for its “Meet an economics Ph.D. alumnus/a” series. Hirschleifer was Brooklyn born and Harvard bred, but his scientific fruit definitely ripened in the California sun.

__________________________

Harvard Ph.D. 1950

Jack Hirshleifer, S.B. [Harvard] 1946 (1945), A.M. [Harvard] 1948.

Subject, Economics. Special Field, Labor Problems. Thesis, “Price Flexibility and General Interdependence.”

Source: Harvard University. Report of the President of Harvard College 1949-50, p. 197.

__________________________

UCLA
Department of Economics
Obituary of Jack Hirshleifer

Education:

Ph.D. Harvard University

Research Areas:

Economic analysis of conflict; bioeconomics with particular reference to sources of cooperative behavior and the nature of evolutionary equilibrium; voluntary provision of public goods.

Biography:

Jack Hirshleifer, professor emeritus of economics, died July 26, 2005, bringing to a close a career marked by wide- ranging interests and brilliant contributions to the subfields of information economics, investment and capital theory, bioeconomics, and the economic theory of conflict.

After active duty in the U.S. Naval Reserve during World War II, Hirshleifer completed his A.B. degree at Harvard, magna cum laude. Five years later he had earned his doctorate in economics, also at Harvard. From 1949 to 1955 he worked as an economist at the Rand Corporation. Before coming to UCLA in 1958, he took a postdoctoral fellowship in statistics and economics at the University of Chicago where he also taught for five years.

His extensive publications included seven books and close to a 100 scholarly articles. From his first study, Water Supply: Economics, Technology, and Policy [Chicago, 1960] to The Dark Side of the Force: Economic Foundations of Conflict Theory [Cambridge, 2001], Professor Hirshleifer in his scholarship has demonstrated a clarity of analysis and probing for fundamental assumptions which set him apart as one of the most distinguished economists of his generation.

Elected a fellow of both the American Academy of Arts and Sciences and the Econometric Society, Professor Hirshleifer also served on the editorial boards of the American Economic Review, the Journal of Economic Behavior and Organization, and the Journal for Bioeconomics. In 2000 he was elected a Distinguished Fellow of the American Economic Association. He also served as president of the Western Economic Association and as vice- president of the American Economic Association.

Professor Hirshleifer was deeply respected by all his fellow faculty members during his 33 years as a member of the UCLA economics department. His door was always open for any colleague, graduate student or undergraduate who might feel like “popping- in.” While a giant among researchers, Professor Hirshleifer was also deeply committed to the teaching of economics. As a teacher he always strove to give his students a sense of his own deep fascination with the role of competitive markets. This led him to write a revolutionary and best- selling textbook in intermediate microeconomics, Price Theory and Applications. While prior books focused on modeling and theory, the new text added dozens of intriguing real world illustrations of economics forces at work. Through his own text- book and through the many texts that have copied his approach, Professor Hirshleifer continues to influence tens of thousands of undergraduates each year.

Tribute by David Levine

Jack Hirshleifer was an economic theorist with broad-ranging interests. Two areas in economics have especially felt the impact of his work. Early in his career, he was instrumental in the information economics revolution; late in his career, he expanded the domain of economic discourse with his work on evolutionary economics and conflict resolution.

Hirshleifer spanned a broad range of issues in his early work as one of the founding fathers of information economics. He made the abstract ideas of contingent claims concrete through his examples and applications. In the process, he helped develop fundamental tools, such as the covariance of risks, the analysis of gambling and insurance, the Modigliani-Miller Theorem, and the analysis of public investment. He also expanded the range of information economics with two fundamental contributions. His work on the private and social value of information clearly shows that competitive markets need not reflect the social value of information. His example of an inventor who can invest based on the knowledge of the impact of his invention shows that there can be an oversupply of inventive activity. This “race to be first” has its reflection in the current literature on patent races, and represents a fundamental problem in intellectual property law that the profession is only now coming to grips with. His second fundamental contribution showed that differences in taste are not enough to explain speculation. He was the first to analyze speculation in a full general-equilibrium model, with different structures of market completeness carefully considered. Although not generally recognized as such, this is also the first paper to point out the indeterminacy of equilibrium when markets are incomplete.

In addition to his founding contributions in information economics, Hirshleifer had a lifelong interest in conflict, beginning with his earliest work on war damages. Late in his career this area became the focus of his contributions, and he was a leader in extending economic methods to problems more traditionally studied in political science. He wrote broadly on expanding the domain of economic discourse to include the “rational” evolutionary analysis of altruism and spite. His work on conflict showed how “Peace is more likely to the extent that the decisiveness of conflict is low, or … if the stakes are small or the technology favors the defense. More surprisingly, perhaps, increased productive complementarity between the parties does not systematically favor peace…the poorer side is generally motivated to invest more heavily in fighting effort. So conflict can become an income-equalizing process.” Finally, his weakest link/best shot experiment (with Glenn Harrison) demonstrates that economic incentives play a key role in determining how much people will contribute to a public good.

Tribute by Roger Farmer

I was approached last month by Junyao Ying, a UCLA alum who is now working in China. Junyao and his wife Weiyi Qiu have recently translated Jack’s book, Investment Interest and Capital into Chinese. Junyao asked me to write a few words about Jack for the translation. This is what I wrote.

The economics department at UCLA was a very exciting place in the 1980s, not least because of Jack Hirshleifer.  Many of us ate lunch every day in the Faculty Center, and being in Southern California, most days we ate outdoors in the sunshine.  Jack would arrive at 12.00 sharp with an economic question for the day that he would pose to the table. Jack’s questions would be from the news of the day and the analysis he expected would be in the UCLA style.

The department had a unique approach to economics and Jack, along with Harold Demsetz, Armen Alchian, Ben Klein and later, Al Harberger, were a huge part of that. Their economics was intuitive, often verbal, but always incisive.  One story, relayed to me by another UCLA  giant of the era, Axel Leijonhufvud, expresses well the Socratic teaching style that permeated the UCLA curriculum. As Axel relays it, he was sitting in on Armen’s first graduate micro class when the master appeared, paced back and forth for a few minutes, and then boomed loudly: “So why don’t we sell babies anyway?”

Jack had the same approach. Many of our discussions would end up around one of his favorite topics: the economics of disasters. Earthquakes were never far from our minds and Jack was an expert on what today we might call black swan events. LA earthquakes are relatively frequent but they typically register less than 5.0 on the Richter Scale, enough to shake the floor, but usually not to do much damage. Sometimes we see larger quakes and every century or so, an 8.0 magnitude quake brings significant loss of life. Jack pointed out that, if you go far enough back in the fossil record, there have been earthquakes large enough to cause a slippage in the earth’s crust large enough to move two points that were previously next to each other five miles apart!

Jack was an economic imperialist. He believed passionately that the economic method can and should be applied to all of the social sciences. While we may not all share that opinion, in this time of crisis, we can nevertheless benefit from Jack’s insights. He may not be here in person to opine on how to deal with black swan events,  but we can still learn from Jack by reading his written words.

Publications

“War Damage Insurance,” The Review of Economics and Statistics, Vol. 35, No. 2. (May 1953), pp. 144-153. Argues that vulnerability rated war damage insurance would create private incentives to make property less vulnerable to enemy bombing, and that this would be superior to administrative fiat.

“On the Theory of Optimal Investment Decision,” The Journal of Political Economy, Vol. 66, No. 4. (Aug 1958), pp. 329-352. Examines different internal rate of return and present value rules when there is a divergence between borrowing and lending rates, and shows that while the problem can be solved by careful consideration of the budget constraint,  neither of these rules gives the correct answer all the time.

“Risk, The Discount Rate, and Investment Decisions,” The American Economic Review, Vol. 51, No. 2(May 1961), pp. 112-120. Discusses how covariance of new risks with the existing portfolio makes it desirable to diversify by adding new risks.

“Investment Decision Under Uncertainty: Choice-Theoretic Approaches,” The Quarterly Journal of Economics, Vol. 79, No. 4. (Nov 1965), pp. 509-536; and “Investment Decision under Uncertainty: Applications of the State-Preference Approach,” The Quarterly Journal of Economics, Vol. 80, No. 2. (May 1966), pp. 252-277. These two paper develop the time-state-preference approach (what we now call the state-contingent model) applied to traditional problems in economics: gambling and insurance; Modigliani-Miller Theorem and evaluation of public projects.

“Urban Water Supply: A Second Look,” (with  J. W. Milliman) The American Economic Review, Vol. 57, No. 2 (May 1967), pp. 169-178. In a famous earlier work with J.C. DeHaven Water Supply: Economics, Technology and Policy(University of Chicago Press, 1960) alternative methods of supplying water to Southern California were subject to cost-benefit analysis. This paper review what actually happened: policy makers ignored the advice, and chose what both prospectively and retrospectively was the worst economic choice. They conclude: “It appears that the agenda for economists, at this point, should place lower priority upon the further refinement of advice for those efficient and selfless administrators who may exist in never-never land. Rather, it should focus on devising institutions whereby fallible and imperfect administrators may be forced to learn from error.”

“The Private and Social Value of Information and the Reward to Inventive Activity,” The American Economic Review, Vol. 61, No. 4. (Sep 1971), pp. 561-574.   Makes the simple yet crucial point that the benefit of receiving information first bears no necessary relationship to the social value of the information. For example, inventive activity may be oversupplied because the inventor can make investments based upon knowledge of the invention. This paper also makes careful use of an infinitesimal deviant individual in a representative individual world.

“Speculation and Equilibrium: Information, Risk, and Markets,” The Quarterly Journal of Economics, Vol. 89, No. 4. (Nov 1975), pp. 519-542. This paper shows that differences in taste are not enough to explain speculation – differences in beliefs are required. Unlike earlier work on speculation that ignores the endogeneity of prices, the setup here is a full general equilibrium model, with different structures of market completeness carefully considered. In particular, market incompleteness alone cannot explain speculation.  Although not generally recognized as such, this is the first paper to point out the indeterminacy of equilibrium in an incomplete market setting.

“Competition, Cooperation, and Conflict in Economics and Biology,” The American Economic Review, Vol. 68, No. 2 (May 1978), pp. 238-243. This paper draws connections between the economics and sociobiology literature, and marks the beginning of Hirshleifer’s interest in sociobiology and conflict.

“The Expanding Domain of Economics,” The American Economic Review, Vol. 75, No. 6. (Dec 1985), pp. 53-68. This paper is a broad overview of the application of economic logic to a variety of “non-economic” problems. Hirshleifer begins by examining endogeneity of preferences. He identifies the different between altruistic preferences, and what would now be called the “warm-glow” effect of participation. He reviews Becker’s “rotten kid” theorem, which says that an altruistic parent can actually gain from altruism. As an alternative theory of preferences, models of status, such as the rat-race are examined. The underlying point of view is that of “as-if” rationality – altruism must provide some benefit to the altruist. From this perspective, Hirshleifer examines models such as the psychological model of “anger, gratitude, response” and argues that seemingly irrational behavior does indeed benefit the individual. The final topic is once again that of conflict. A narrow range of possible settlements it is argued increases the potential for conflict. Increasing returns followed by diminishing returns explains the monopoly on military force within the state, while also explaining the multiplicity of states.

“An Experimental Evaluation of Weakest Link/Best Shot Models of Public Goods,” (with Glenn W. Harrison) The Journal of Political Economy, Vol. 97, No. 1. (Feb 1989), pp. 201-225. This experimental contribution to the public goods literature explores how the increasing incentives to free ride lead to greater free riding. This paper also introduces the “best-shot” game, a public goods contribution game in which only the largest contribution to the public good matters. In this type of game it is socially and individually optimal for only one player to contribute, and unlike many other types of public goods games, this theoretical prediction is exactly what happens in the laboratory.

“The Technology of Conflict as an Economic Activity,” The American Economic Review, Vol. 81, No. 2  (May 1991), pp. 130-134. “Peace is more likely to the extent that the decisiveness of conflict is low, or … if the stakes are small or the technology favors the defense. More surprisingly, perhaps, increased productive complementarity between the parties does not systematically favor peace…the poorer side is generally motivated to invest more heavily in fighting effort. So conflict can become an income-equalizing process.”

Source: Jack Hirshleifer UCLA page archived by the Wayback Machine.

Image Source: The 1946 Harvard Class Album, p. 153.

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Exam Questions Harvard

Harvard. Examinations for graduate public finance. Otto Eckstein, 1961-1962

While unable to find the syllabus for Otto Eckstein’s public finance course, I was able to transcribe the mid-year and year-end exams for this year long graduate course taught at Harvard in 1961-1962. Generally the Harvard collection of course outlines and syllabi is fairly complete by that point in time. Perhaps the library copy was misfiled or taken home. In the end there are always missing observations.

_____________________________

Course Announcement

Economics 251. Public Finance.

Full course. M., W., (F.), at 10. Associate Professor [Otto] Eckstein

Source: Harvard University, Faculty of Arts and Sciences, Courses of Instruction 1961-1962 in Official Register of Harvard University, Vol. LVIII, No. 19 (August 28, 1961), p. 107.

_____________________________

Mid-year Examination
January 1962

HARVARD UNIVERSITY
Department of Economics
Economics 251

Answer All Questions.

(45 minutes each)

  1. What are the postulates of the “pure theory of public expenditures” of Samuelson? How does the theory differ from the voluntary exchange theory?
  2. Suppose you are asked to evaluate the scheme to build a tunnel from England to France for the British government, to aid the government in its decision. How would you do it? What data would you want? What criteria would you apply? What would be the limitations your analysis?
  3. How would you choose between consumption and income as the proper base for personal taxation? Contrast the actual Federal income tax base with your ideal.
  4. Suppose the U. S. Treasury were in a position to reduce tax revenues by, say, two billion dollars, either by reducing the personal income tax rates or the corporation income tax rates. If growth is the main objective, which tax change would you propose? How would you defend your proposal with economic knowledge and logic?

Source: Harvard University Archives. Papers Printed for Final Examinations [in] History, History of Religions,…, Economics, …, Naval Science, Air Science (January 1962) in Social Sciences, Final Examinations January 1962 (HUC 7000.28, vol. 137).

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Year-End Final Examination
May 1962

HARVARD UNIVERSITY
Department of Economics
Economics 251

Answer 4 out 5 questions

(45 minutes each)

  1. Suppose the government had to choose between a general reduction in the personal income tax and an increase in expenditures to counteract a recession. What economic considerations would enter into the choice? What conclusions would you as an individual reach under the conditions of the early 1960’s?
  2. Neutrality is a criterion frequently applied in tax policy.
    1. What is the theoretical rationale of this criterion?
    2. Does the criterion apply to choices between excise and income taxes?
    3. How does it apply to the taxation of business income from foreign subsidiaries?
    4. How does it apply to the taxation of property?
  3. American grant-in-aid programs from the federal to state and local governments have followed few theoretical principles. Why have these programs grown in recent decades? Is there a case for instituting a system of unconditional grants in the U.S.? What are the arguments against it?
  4. What are the pros and cons of establishing unified governments for metropolitan areas?
  5. Variable depreciation allowances have frequently been advocated as an instrument of short-run policy. For example, the fraction of investment that is permitted to be written off in the first year could be varied by the Treasury. How would you evaluate such a proposal?

Source: Harvard University Archives. Papers Printed for Final Examinations [in] History, History of Religions,…, Economics, …, Naval Science, Air Science (June 1962) in Social Sciences, Final Examinations June 1962 (HUC 7000.28, vol. 140).

Image Source: Otto Eckstein, 1959 Fellow. John Simon Guggenehim Memorial Foundation.

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Exam Questions Harvard Suggested Reading Syllabus

Harvard. Reading List and Final Exam for Games and Strategy. Schelling, 1963

 

Thomas Schelling was hired by the Harvard economics department as a professor in 1958. According to the Harvard course catalogues, he taught the undergraduate course “Games and Strategy” nine times during the 1960’s.  This post provides the syllabus/reading list and final exam for that course from the first term of the 1963-64 academic year.

Materials from Schelling’s course “Economics and National Security” that he taught in 1960 and from his 1970 course “Conflict, Coalition and Strategy” have been transcribed and posted earlier here at Economics in the Rear-view Mirror.

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Course Announcement

Economics 135. Games and Strategy

Half course (fall term). M., W., F., at 10. Professor Schelling

Theories and experimental studies of rational decision in conflict, collusion, coalition, bargaining, collective decision, arbitration, and uncertainty.

Source: Official Register of Harvard University. Vol. LX, No. 21 (September 4, 1963): Faculty of Arts and Sciences. Courses of Instruction for Harvard and Radcliffe 1963-1964, p. 103.

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Economics 135
Games and Strategy
Fall, 1963

Reading Assignments

PART I. COPING WITH AN INTELLIGENT ADVERSARY

  1. Rapoport, Anatol: Fights, Games and Debates, Chapters 7, 8, 9; pages 130-165. (35 pages)
  2. Williams, John D.: The Compleat Strategyst, Chapters 1, 2; pages 1-85, and Chapter 3, pages 86-91 then scan rest of chapter. (91 pages)
  3. Hitch, Charles J. and McKean, Roland: The Economics Defense in the Nuclear Age, Chapter 10, “Incommensurables, Uncertainty, and the Enemy,” pages 182-205. (23 pages)
  4. Read, Thornton: “Strategy for Active Defense,” Papers and Proceedings of the AEA, American Economic Review, Vol. 51, No. 2, May 1961, pp. 465-471.
  5. Alchian, Armen A.: “The Meaning of Utility Measurement,” American Economic Review, Vol. 43 (March 1953) pages 26-50. (25 pages)

(OPTIONAL: R. Duncan Luce and Howard Raiffa, Games and Decisions, Chapters 1-4, pp. 1-87.)

PART II. COERCION AND DETERRENCE

  1. Schelling, Strategy of Conflict, Chapters 1, 2, 5, 7, 8; pages 3-52, 117-161, 175-203. (121 pages)
  2. Ellsberg, Daniel: “The Theory and Practice of Blackmail,” (38 pages) mimeograph
  3. Schelling: “The Threat of Violence in International Affairs,” Proceedings, 57th Annual Meeting, American Society International Law. (INT. 16.8)
  4. Stevens, Carl M.: Strategy and Collective Bargaining Negotiation, chapters 3 and 5, pages 27-56 and 77-96. New York: McGraw Hill, 1963.

PART III. MUTUAL RESTRAINT

  1. Kenneth: Conflict and Defense, Chapters 1, 2, 6, pp. 1-40, 105-122. (58 pages)
  2. Schelling: Chapters 3, 4, 9, 10; Appendix A; pages 53-118, 207-254, 257-266. (121 pages)
  3. Cassady, Ralph, Jr.: “Taxicab Rate War,” Journal of Conflict Resolution, Vol. 1, pages 364-8 (December, 1957). (5 pages)
  4. Valvanis, Stephan: “The Resolution of Conflict When Utilities Interact,” Journal of Conflict Resolution, Vol. 2 (June 1958) pages 156-69. (13 pages)
  5. Rapoport, Chapter 10, pp. 166-79 (14 pages)
  6. Boulding, Chapters 12, 13, pp. 227-73.
  7. Schelling: “War Without Pain and Other Models,” World Politics, XV, (April, 1963) pp. 465-487.

PART IV. COLLECTIVE DECISION AND ARBITRATION

  1. Farguharson, Robin: “Sincerity and Strategy in Voting,” mimeograph (February 5, 1955) (7 pages)
  2. Black, Duncan: “On the Rationale of Group Decision Making,” Journal of Political Economy, Vol. 56 (February, 1948), pages 23-34 (12 pages)
  3. Steinhaus, Hugo: “The Problem of Fair Division,” Econometrica, Vol. 16 (January, 1948), pages 101-109. (9 pages)
  4. Dahl, Robert A.: A Preface to Democratic Theory, Chapter 2, pages 34-60, with special attention to notes 9 and 12, pages 42-43 and 43-44. (26 pages)
  5. Rapoport, Chapter 11, pp. 180-194. (15 pages)
  6. Rapoport, Chapter 12, pages 195-212. (17 pages)

PART V. EXPERIMENTAL GAMES

  1. Flood, Merrill M.: “Some Experimental Games,” Management Science, Vol. 5 (October, 1958) pages 5-26. (22 pages)
  2. Kaplan, Burns, and Quandt: “Theoretical Analysis of the Balance of Power,” Behavioral Science, Vol. 5 (July, 1960), pages 240-52. (12 pages)
  3. Schelling: Chapter 6, pages 162-72. (11 pages)
  4. Rapoport: Chapter 13, pages 213-25. (12 pages)

READING PERIOD

  1. Burns, Arthur L.: “A Graphical Approach to some Problems of the Arms Race,” Journal of Conflict Resolution, Vol. 3, pages 326-42. (16 pages)
  2. Thibaut, John W. and Kelley, Harold H.: The Social Psychology of Groups, Chapter 7, pages 100-125. (26 pages)
  3. Goffman, Irving: “On Face-Work,” Psychiatry: Journal for the Study of Interpersonal Processes, Vol. 18 (August 1955), pp. 213-31.
  4. Twain, Mark, “The Man that Corrupted Hadleyburg,” in The Complete Short Stories of Mark Twain.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 8, Folder “Economics, 1963-64”.

________________________

FINAL EXAMINATION
ECONOMICS 135
January 29, 1964

ANSWER ALL FIVE QUESTIONS: The first two questions should take no more than ten or twenty minutes each, allowing at least forty-five minutes each for the last three.

  1. The following entry was submitted to the PUNCH “Toby competition” calling for an “unpleasing codicil to a will,” and received a runner-up award in the issue of July 6, 1960:

To my daughter, Judith Georgina Margaret, I leave my house, land and all my worldly possessions therein on the condition that it should be run as either an hotel, a college for gardeners or a rest-house for disappointed Beatniks.

My cash and capital are to be put into a trust. My widow, three daughters and nine grandchildren will each have an equal share in the trust. No income or capital can be drawn from the trust until the will is contested by a legatee. If this happens, the contesting legatee will lose his share to the others. If the others pay compensation for this loss, all capital will go untied to a charity.

Describe and discuss in game-theoretical terms the arrangement described in the second paragraph. Draw a matrix to represent it. (For purposes of the matrix, you may reduce the number of legatees to two.) Include, with respect to the two-person matrix, any pertinent references to a “solution,” “equilibrium point,” dominant or dominated strategies, or “efficiency” of outcome.

  1. It has been observed that for many people an important criterion in sending or not sending a Christmas card to someone is whether or not they expect to receive one from the person. They would be embarrassed if they received one and had not sent one, but would rather not bother sending one unless they were going to receive one. They might also not wish to embarrass the recipient by sending a card he did not expect and implying he had been negligent. It may not be going too far to suppose that some people, in deciding whether or not to send a card, recognize that the other person, in deciding whether or not to send his card, is wondering whether or not he will get a card.
    Draw a matrix corresponding to this situation, explaining your choice of numerical payoffs, and analyze the situation in familiar fashion.
  2. Two companies, Vitamins, Inc. and Hormones, Inc., sell to groups of potential customers that partially overlap. Some potential consumers of vitamins can meet their needs with hormones, but not all of them; and some potential consumers of hormones can meet their needs with vitamins, but not all of them. Prices are such that the two commodities are pertinent[sic, “perfect”?] substitutes for each other within the overlapping market. Advertizing is the principle form of competition between the two companies. Advertizing also increases, for Vitamins, Inc., sales to those who have no interest in hormones, and similarly for Hormones, Inc.
    The total advertizing budgets for the two companies are fixed by long-term contracts. In the short run they can vary the content of their advertizing. Specifically, the vitamin company can emphasize those uses of vitamins that compete with hormones or those uses that do not. If it emphasizes the uses that do compete, it tends to increase its share of the common market; if it emphasizes the virtues peculiar to vitamins it will increase consumption of vitamins by those who have no interest in hormones but will tend to lose in the market common to both. And similarly for the hormone company. A good deal of research has been done by both companies, leading to advertizing policies that take the rival’s advertizing campaign into account.

V has settled on the following policy:

      1. If H puts less than 20% of its budget into competitive advertizing, V will put none into that form;
      2. If H puts 20% or more into the competitive form, V will put the same percentage into competitive advertizing as H does.

H has arrived at the following policy:

      1. If V puts less than 25% into competitive advertizing, H will put twice that percentage into competitive advertizing;
      2. If V puts 25% or more into competitive advertizing, H will put exactly 50% into that form.

The Problem:

    1. Sketch the “partial equilibrium curves,” and analyze what may happen if each of the two firms simply reacts to what it sees the other doing.
    2. If H gets sophisticated and understands V’s behavior (but V goes on just reacting to what Hdoes), what policy do you expect H to follow, with what result?
    3. If both get sophisticated and realize the nature of their interacting policies, how does your analysis change?
    4. Reinterpret this problem in terms of two countries with fixed defense budgets, allocating their military resources into “offensive” and “defensive” components.
  1. A three-man board composed of A, B, and C, has held hearings on a personnel case involving an officer of the company. This officer was scheduled for promotion but, prior to final action on his promotion, he took a decision that cost the company a good deal of money. The question is whether he should be (1) promoted anyway, (2) denied the promotion, or (3) fired.
    The board has discussed the matter at length and is unable to reach unanimous agreement. In the course of discussion it has become clear to all three of them that their separate opinions are as follows:

A considers the officer to have been a victim of bad luck, not bad judgment, and wants to go ahead and promote him but, failing that, would keep him rather than fire him.
B considers the mistake serious enough to bar promotion altogether; he’d prefer to keep the officer, denying promotion, but would rather fire than promote him
C thinks the man ought to be fired but, in terms of personnel policy and morale, believes the man ought not to be kept unless he is promoted, i.e. that keeping on an officer who has been declared unfit for promotion is even worse than promoting him.

To recapitulate, their preferences among the 3 outcomes are:

Promote Keep Fire
A 1st 2nd 3rd
B 3rd 1st 2nd
C 2nd 3rd 1st

They must proceed to a vote. Voting is by majority. These are the two alternative procedures for voting, and they must first vote on which procedure to use. These alternative procedures are:

    1. Decide first, by majority vote, whether or not he is guilty of a mistake. If (I) he is not found guilty, promote him; if (II) he is found guilty, decide by another majority vote whether to (i) fire him or (ii) to keep him.
    2. By majority vote decide first, as a matter of principle, on the proper course of action if he is guilty — (I) to fire him or (II) to keep him without promotion. Then, once the appropriate penalty has been decided, decide by another majority vote whether he is guilty or not,

(i) promoting him if not guilty, otherwise
(ii) proceeding in accordance with the penalty decided on (I or II) in the first vote.

They must first elect one of the two procedures. They do this, too, by majority vote. They first hold a majority vote to choose procedure 1 or 2; they then vote in accordance with the procedure so selected.

Assume that (a) everyone’s preferences among the three outcomes are fully evident as a result of discussion, (b) everyone is shrewd enough and willing to vote in whatever fashion will attain his own preferences, and assumes everyone else will do the same, (c) voting is silent, by simultaneous ballot, and (d) no “deals” can he made among the three voters as to how they will vote.

The question:

      1. What happens to the officer? Promoted, just kept, or fired?
      2. Which of the two voting procedures, 1 or 2, did they elect to use?
      3. What would have happened to the officer if board-member A had preferred not to promote him?
      4. What might have happened if A and B could make a deal and vote accordingly?
      5. Describe some third majority-vote procedure which if it were used, would lead to the officer’s being kept (pursuant to the board’s preferences in the above table).
  1. Goffman says, “To study face-saving is to study the traffic rules of social interaction. …By face-work I mean to designate the actions taken by a person to make whatever he is doing consistent with face. …Thus poise in one important type of face-work, for through poise the person controls his embarrassment and hence the embarrassment that he and others might have over his embarrassment.”

See how far you can go in treating “poise” and “embarrassment” by a Richardson-process interaction model along the lines of Boulding or Valavanis.

Source: Papers Printed for Midyear Examinations [in] History, History of Religions, …, Economics, …, Naval Science, Air Science (January, 196) in the bound volume Social Sciences, Final Examinations January 1964 (HUC 7000.28, no. 150).

Image Source: Harvard Kennedy School Magazine, Summer 2012.

 

Categories
Economists Harvard Michigan

Harvard. Economics Ph.D. alumnus. Paul McCracken, 1948

Just as I dream of a digitized data base with a complete historical series of syllabi, examination, and problem sets for the economics courses taught at major universities/colleges from ca. 1870 to the present, I also imagine having a convenient collection of c.v.’s, obituaries, oral histories of members of the overlapping generations of economics graduate students as well as the faculty members who have taught them through the years. Of course there is an overwhelming amount of material out there and Economics in the Rear-view Mirror, thus far, only has the capacity to conduct artisanal scholarship for a prototypical project patiently waiting for generous funding sponsors to help this project grow in scale and scope.

In the meantime, incremental progress for the blog includes occasional additions to its series “Meet an Economics Ph.D.” This post provides information about a 1948 Harvard Ph.D., a former chair of the President’s Council of Economic Advisers, and professor of business economics at the University of Michigan, Paul W. McCracken.

Research Tip: The University of Michigan’s Faculty History Project is a fabulous resource!

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Harvard Ph.D., 1948

Paul Winston McCracken, A.B. (William Penn Coll.) 1937, A.M. (Harvard University.) 1942.

Subject, Economics. Special Field, Economic Fluctuations and Forecasting.
Thesis, “Cyclical Implications of Wartime Liquid Asset Accumulation.”

Source: Harvard University. Report of the President of Harvard College 1947-1948, p. 181.

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Paul W. McCracken
Classroom Profile
(October 21, 1950)

Paul W. McCracken, a member of the faculty of the School of Business Administration since 1948, was promoted to full Professor this summer. He teaches business conditions, but aside from his academic duties, he serves as a Consultant for the Committee for Economic Development, on Monetary and Debt Management Policy. He is also a member of the Economic Policy Committee of the United States Chamber of Commerce, and is Chairman of the Subcommittee on International Commercial Policy, American Economic Association.

Other professional organizations of which he is a member are the Econometric Society, Royal Economic Society (U.K.), Minneapolis Economic Roundtable, Minnesota Economic Club, Midwest Economic Association, Minneapolis Foreign Policy Association, and the Detroit Economic Club. In addition, he is a Trustee of the First Presbyterian Church.

Professor McCracken was born December 29, 1915, in Richland, la. and received his high school education there before entering William Penn College at Oskaloosa, La., and earning the B.A. degree in 1937.  From 1937 to 1940, he served as an Instructor in English at Berea College,  Ky., and then he studied at Harvard University, being granted the A.M. degree in 1942. For the next year he was an Associate Economist for the United States Department of Commerce at Washington, and this was followed by a position as Financial Economist for the Federal Reserve Bank of Minneapolis. He was Director of Research there from 1945 to 1948, and he was granted the Ph.D. degree at Harvard in 1948. Professor McCracken is the author of “Hypothetical Projection of Commodity Expenditures,” “Northwest in Two Wars,” “Future of Northwest Bank Deposits,” “Rising Tide of Bank Lending,” various articles on the “Business Outlook,” and “The Present Status of Monetary and Fiscal Policy,” in the Journal of Finance, March,1950 (a paper which was presented to the joint meeting of the American Finance Association in December, 1949.)

Professor McCracken is married to the former Ruth Siler, a graduate of Berea College, and they have two children, Linda Jo, five, and Paula Jeanne, seven months old.

Source: The Michigan Alumnus 43

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Memoirs, Comments, Discussion
Prof. Emeritus Paul W. McCracken
with Prof. Emeritus Herbert W. Hildebrandt

October 24/31, 2008

What follows are the subjective, human comments of Professor Paul McCracken in an interview on the above date in his office, Ross School of Business, University of Michigan.  The purpose is to collect his personal comments on the years he has spent at the University of Michigan and his reflections in working in Washington DC along with five Presidents:  Eisenhower, Nixon, Ford, Kennedy, Johnson.

While drafted by Prof. Emeritus Herb Hildebrandt, all of the following comments have been approved after editing by Prof. McCracken.

We are quick to admit there is relatively loose organization of the comments inasmuch as at aged 92 both the respondent and questioner let the ideas flow as they wish.  We occasionally will move from the first to third person in the discussion.

General Reflections, Prof. McCracken

1)  On a personal level, it is interesting and laudable that the University of Michigan in its long history can maintain its high academic standing when a major public University gives extraordinary publicity to athletics rather than academics.  Newspapers shout loudly, and vociferously, when the football team, above all other academic achievements, participates in or leads other teams in a winning season.

Of course major research achievements are noted, sotto voce on an inside newspaper page, as compared with blaring headlines of sports achievements; academic achievements rarely seem to surpass the gridiron success of a football team.

Finally, only the monstrosity of the edifice now under construction (Oct. 2008) surrounding the football stadium suggests a diminution in balance between academics and athletics.  It was never always so.

 

2)  When I came to the University, under the persuasion of Dean Stevenson to join the Business School, I faced a major decision.  At the time of the invitation I was the Director of Research at the Federal Reserve in Minneapolis, a city for which, even today, I have warm affection. There I was happy in my job. It seemed like a positive future and with affection looked forward to a career in the Federal Reserve.

On reflection, in comparing the agonies that Michigan faces today, especially in some of its larger cities, Minneapolis was pleasant, inviting, warm, friendly.

 

3)  I must interject a negative reflection.  That said after remembering that I was hired as an Economics Professor in the School of Business.  At the time we had outside our Business School a stand-alone Department of Economics with whom I tried to seek an affiliation and cordial relationship.

Today we use the words of a ‘silo mentality’, i.e., some scholars and departments seek to remain cloistered, absenting themselves from others who do not walk or breathe the same academic air of pure economics, or are housed with them in what was then a cold, gray building. It later burned down. A retribution?

Indeed, I was looked upon then as a useless citizen, an outcast.  Rarely do I use gentle profanity but my inner Presbyterian self said, “to hell with them”.

But I must stop. The then Chairman, Prof. Sharfman, of the Economics Department was warm, as were some other on the faculty. Slowly, ever so slowly, that animosity faded, but I must say those initial years were personally difficult.

 

4) I add the following as additional perceptions of my early academic and slowly emerging Washington DC days.  Let me, thus, comment on some of my views regarding the political tastes of the early days of the American Economic Association. Early on, in my opinion, there was overt political affection for the Democratic Party. And those of who know me realize my world was/is the Republican Party, a leaning I have held for many years.

Thus, on campus and nationally, there may have been an underground of political concern about my views. I have no overt proof of that statement, but sense my political DNA may have interrupted the natural flow of events, even attitudes toward me as an individual.

As time mutes one’s attitudes, I today soften all of the above comments.

Today it is no mortal sin to be a Republican and a member of the American Economic Association. But I had my doubts years earlier.

 

 5) One of the most often asked questions of me, after holding the position of Head of the Council of Economic Advisors to President Nixon, was “How was he, what is your impression of him?”  Let me give a detailed answer, in multiple parts.

  • Prior to my direct involvement with President Nixon, I was appointed as a member of the CEA (Council of Economic Advisors). There I learned, added to my knowledge of the working of the government. The chairperson of the Council at that time was Herb Stein.
  • Prior to Mr. Nixon assuming the Presidency, he or his staff, recommended that three of us, Arthur Burns, myself, and one other person who I’ve forgotten, were to meet in NYC to discuss economic matters. Putting together initial thoughts on the US economy.  Intrigue, guesses, editorials as to who would be President Nixon’s Sec. of State, and other Cabinet members, ran wild.  Hints were given that possibly I would be asked to come back and head the CEA.
  • A later call from the Washington Post put my hairs on end and I indicated to the caller that no one had spoken with me about the possibility of heading the Council.  To be honest, I had little inclination to enter the inevitable world of politics that that position entailed.  Orally, I signed off on the idea.
  • Subsequently I received one of those phone calls one cannot hang up on: the  President of the United States,  President Nixon was on the line.

“How about it?” he asked.

I knew what he was asking.

“I have a meeting in one hour with the Cabinet and really have nothing to tell them,” he continued.

I said, “I really should talk with my wife.”  (“I knew he had talked with Herb Stein and others; he and others had given their assent.”)

“I called my wife. “Ruth agreed  for a longer tenure in Washington.”

“…I agreed,” I told President Nixon, “to be his Chief Economic Advisor and Chair that committee.  President Nixon had something now to tell his new Cabinet.  “I was somewhat relaxed, and unnerved at the same time.”

“Good,” the President said.

I now jump ahead several years.!  I repeat the most often asked question asked of me:  “How was he, what is your impression of President Nixon?”

Most questions seemingly were couched in a negative tone; they came with an undisguised innuendo of sarcasm similar to the numerous editorial cartoons that depict him in a negative light. Even today.

Time dulls one’s memory and one is inclined to be gentle, never speaking ill of those who have gone before.  I’ll try to be unbiased.

He was a master politician, imbued with innate political skills that out-shown many of those around him.  My dealings with him were always warm, friendly, on a high level of friendliness.  Never did I feel he was condescending.  But I did sense he did let our conversations veer off the main topic, letting our thoughts lose a tight focus. He occasionally slipped away, slipstreaming as one would say of a small airplane, into other topics and concerns.

Regardless, I felt he was consistently deeply concerned about the economy.

One story.  We met at Camp David.  Lovely spot.  The purpose was to discuss whether we should have price controls or not. Forgot who was there, but the dominating theme was President Nixon’s insistence on price controls, in my estimation a no-no that I could never support.  Major counter arguments, on both sides crossed our table. President Nixon listened.  For one of the few times in our group meetings I vehemently opposed the President, arguing against any kind of price control.

He excused himself toward the end of the day.

He later announced he would support price controls, in my estimation a foretaste of an economic disaster. In my estimation it was!

A sidenote.  I have the feeling that he spent the entire night wondering about the issue.  He, there at Camp David, seemed to sleep little.  One story.  Early in the AM he was taking a walk and at the crossroads of two paths, in the dark, ran into a navy man who was coming to work to prepare breakfast.  On realizing it was the President, the navy man blurted, “I’m sorry Mam, yes sir, I’m sorry.”

Soon thereafter, I resigned, knowing I had stepped out of sync with the President. He was gracious in accepting my resignation and asked if I would remain until the end of the year, which I did.

In sum.  He was warm, friendly in the years following our parting.  I visited him on occasions and in private got along well.  Attending his funeral was an emotional event, there being seated among leaders of the world, a bit heady for someone from a small Iowa farm.

  1. HWH:“Paul, we’ll speak about four other Presidents, what was your relationship with President Gerald Ford?  Please bring us up-to-date of your interactions with him.”

…Entirely different relationship.  Indeed, we were personal friends, close friends for a long period of time, our paths crossing in more casual environments than in formal meetings. I’d have to say our human connection was one more of friendship than professional interaction.

A newspaper reporter – there were many that I knew over the years – asked me one day if I knew my name had been mentioned as one who had the ear of the President, my name allegedly being mentioned both in the paper and orally.  I was unaware of that pronouncement.  My personal guess was that a staff person may have drawn that inference.  Oh, occasionally, I did leave Ann Arbor to go to DC and responded to some questions on the economy, but those times were of a short duration.  To be honest, I was eager to return to Ann Arbor.

Thus President Ford and I had a personal friendship. It was comfortable to have affection for President Ford because of his genuine warmth, his commonness, his ability to talk with persons from all walks of life, with little awareness of their stature in life.  We got along well.  And as with other Presidents, it was a deep personal loss when he left us.

 

7. While my political world was Republican, an interesting event occurred soon after President Kennedy was elected.An old, long-time friend of  mine from Harvard days, a Democrat, called me.  His invitation was that President Kennedy wished a small bi-partisan group to meet and prepare for his review a memorandum regarding future economic policy suggestions.

Thus three of us met in NYC, a former head of the Federal Reserve of New York, a member of the Council of Economic Advisors, and myself.  For one week we reviewed options, finally arriving at a consensus document to present to President Kennedy.  Our main thrust was our concern over a lack of gold reserves on which the dollar was based.  Should that information become too public we felt there would be an economic calamity. Additionally adding to our concern, was that on the Congressional books was the requirement that enough gold had to be in our vaults to cover the value of the dollar.

President Kennedy accepted our concern and recommended that someone – I forgot who – appear before a Congressional Committee and have the requirement removed.  My memory further dims and thus do not recall the outcome.

In short.  I found President Kennedy an able person, likable and interested  in the economic situation in our country.  My brief time with him was pleasant.

 

8. My work with President Johnson was of a lesser nature, but again honored that a democrat President, or his staff, would ask me to join a small group that had a single purpose:the nature of the national budget, especially how it was to be formed and amended procedures in putting it together.  We all felt the entire process of budget preparation needed an overall, but knew that in a democracy the task would be difficult.  As part of that group, that discussion was my only tangential involvement in economic affairs during the Johnson tenure.

 

9. All of the preceding governmental actions took me away from my beloved University of Michigan, at that time the School of Business, now called the Ross School of Business after a munificent financial gift from Mr. Raymond Ross.Thus one has the right to ask, “did my Washington experiences have an impact on my teaching, research, and service to the University?

        An emphatic positive  “yes.”

  •  There is merit in being able to bring to a class true-to-life stories on the complicated process of running a government, especially its economic policy.  To cast a stone is easy, but when one is involved in the process it is easy to discern that application of economic theory is a highly complex matter, rarely deeply understood by the casual newspaper writer.  Giving to classes the pragmatic and political nuances, both playing out simultaneously, was for me both invigorating and stimulating – or so I thought in discussions in the classroom.
  • In a sense I began to moonlight, as does Prof. Paul Krugman the economist of Harvard [sic!] who recently won the Nobel Prize for Economics.  He is probably better known for his articles in the New York Times than his economic theories.
    Similarly, I was asked to write an occasional article for the Wall Street Journal.  Indeed,  I am told that as part of the preceding vitae, I wrote over 80 such statements.  (Editor’s comment:  Paul wrote all those statements in long-hand, relying on his long-time secretary, Margaret Oberle, to master the intricacies of the computer.  To this day, Paul still writes in long-hand).
    These many WSJ statements were included in my class discussions and occasioned many letters to me and to the editors of the Journal.
  • Not said out of egotism, but adding personal stories also gave life to what some would call the somber world of economics.  I add one story concerning President Eisenhower, simply to suggest that a President may be the most powerful person in the land, yet is underneath as human as the rest of us, especially when lying in a hospital bed.
    I got a call from one of President Eisenhower’s aides suggesting that the President while in the Walter Reed hospital, sought out long-time friends to come by and visit with him.  The aide suggested the President desired company, finding it lonely lying in a hospital room. My cup was full of responsibilities; my agenda was burdened with appointments.  But how to you tell a sick President that “I’m too busy to see you.”  …“You don’t.”
    I went, thinking that after fifteen minutes an aide would suggest time was up.  An hour slipped by;  how does one politely tell a President that one would like to leave?”  …“You don’t.”  Our chat ranged far and wide.  One comment is still vivid in my memory.  He told me that he remembered when his brother attended the University of Michigan, visiting him there on several occasions. This fact I knew nothing about.  That comment gave me sincere pleasure.
    In sum, our hospital visit with President Eisenhower was one of my more memorable Washington experiences.  His memory was astonishing, his ability to tell a story moving and interesting.  With sadness, three months later, I sat in the Washington Cathedral for his funeral, but with the pleasant thought that I had paused to spend time with him.
  1. HWH: Any comments in general about the University as of now, the end of October ’08?

The University is in for rough water, financially.  One has only to read the financial papers to realize that tuition payments, especially for the smaller private schools, is becoming more difficult for many parents.  We too, even though we’re a State school, will feel the financial ripples.  But not as much.

Surely we receive –  I’ve lost the precise percentage – some of our operating costs come from the State, but that figure has been deceasing over the years.  Increases in tuition cover some of that shortfall, but the University too will bump up against a financial ceiling where devoted parents will find it increasingly difficult to husband funds for their children’s education.

While we receive State funds, those who oversaw our endowment have done so carefully and diligently, and with significant success.  Should the State have serious financial problems – and that’s where the rough water come in – our two sources of funding, tuition driven and endowments, become a major sources of our funding.

My above comments in no way paint a picture of gloom and doom. Our great University has existed for over 150 years, slowly nearing two hundred.  We’ll continue to survive, but the financial waters will continue to disturb a smooth pattern of onward flowing success.

All the above raises a specter that has been quietly voiced over the years:  are we approaching, capturing the aura of a private university?  My data is incomplete – and as an economist lack of data is a kiss of professorial death – yet I sense we are yearly beginning to stand on our own bottom.  That metaphor is a silent mantra, or one not so silent at Harvard University, and is slowly joining the chorus of some here on our campus.  There is little doubt, in my mind, that we are on the doorstep of such a transition.  In a lifetime or two that assumption may become a reality.

It is with sincerity that I say the people I have worked with were highly capable; that fact made my journey at the University of Michigan all worthwhile.

Paul McCracken, November 2008.

Source: The University of Michigan Faculty Memoir Project. Paul W. McCracken (October 24/31, 2008).

Image Source: University of Michigan. Faculty History Project