Categories
Economists FU-Berlin M.I.T. Popular Economics Syllabus

Paul Krugman, academic scribbles and glimpses of yore and not so yore.

 

Adam Tooze’s review of Paul Krugman’s Arguing with Zombies: Economics, Politics and the Fight for a Better Future (London Review of Books, Vol. 43, No. 8, 22 April 2021) has received much deserved social media acclaim.

Since you are here now looking at economics in my rear-view mirror, I thought it as good a time as any to assemble a few links from this blog and Freie Universität Berlin that go back a decade and more. Krugman’s adoring fans and fiercest critics are welcome.

__________________

Dr. h.c. FU-Berlin
(December 4, 1998)

Materials from the ceremony awarding Paul Krugman an honorary doctorate at Freie Universität Berlin are linked at this antique webpage archived by the Wayback Machine.

In case you missed the event…

Laudatio by Irwin Collier

Archived text: Original webpage (includes graphics) 

Audio recording

Paul Krugman’s award lecture: The Return of Demand Side Economics

Archived text: Original webpage

Audio recording

__________________

 “The Failure of Crisis Management”
(October 20, 2010)

Paul Krugman’s Ernst Fraenkel lecture for the John F. Kennedy Institute of North American Studies at Freie Universität Berlin.

Video recording

Image Source: https://www.fu-berlin.de/campusleben/campus/2010/101022_krugman/

__________________

Transcribed Artifacts from
Economics in the Rear-view Mirror:

M.I.T. Economics Department. Graduate Student Skit: “The Wizard of E52-383C” in which Paul Krugman played the role of Paul Samuelson and was co-author (1976).

M.I.T. Economics Department. Slides, Problems Sets, Exams for Principles of Macroeconomics taught by Paul Krugman (1998).

 

Categories
Economics Programs M.I.T. Regulations

MIT. Revising Economics Ph.D. General Examinations. E.C.Brown, 1975

 

What makes this memo from E. Cary Brown particularly useful is that it provides us with a list of the graduate economics fields along with the participating faculty members as of 1975. Also the major revision proposed was to have a system of two major fields (satisfied with general examinations) and two minor fields (satisfied by course work). Interesting to note that graduate student input was clearly integrated into the revision procedure.

________________________

Memo from Chairman E. Cary Brown
on a Revision of General Exams, 1975

April 28, 1975

To: Economics Department Faculty and Graduate Students
From: E. C. Brown
Re: Revision of General Examinations

While it has been left that a Committee would be appointed to review the procedures of the general examination (see minutes of the Department Meeting of April 23, 1975), further informal discussion has moved toward a proposed concept of these examinations that I am submitting for consideration and agreement.

  1. There seems reasonable satisfaction about the structure of the present examinations, subject to clarification of the final 2 field examinations and their relationship to the 2 field write-offs.
  2. It is proposed that the 2 fields satisfied by passing the “general” examinations be designated major The examination will be offered in a field, will cover the field in a general way, and will be separated from course examinations. Minor fields will be satisfied by course work. A somewhat lower standard will be imposed in minor fields than in major fields. The “generals” examination, therefore, would apply to the fields of the candidate’s expected expertise, and emphasis would be on a broad coverage of the field.
  3. Each field should, therefore, describe its general requirements for the field as a major one, and list the subjects that may reasonably be offered as a write-off to satisfy the field as a minor one. There should also be some details on the requirements when fields are closely linked (e.g., the proposal for the transportation field and its relationship to urban economics).
  4. Assuming this proposal to be agreeable, the question of term papers still needs settling.

I propose, therefore, the following procedures:

  1. Would each of you give Sue Steenburg a list of your graduate subjects for this academic year, with an indication of whether or not a term paper was required and, if so, the percentage of final grade it represented.
  2. Would faculty in each field submit a list of subjects that may be used to satisfy major and minor requirements in their field as it would ultimately appear in the brochure. The fields to be covered are as follows, the faculty in the field are listed, and the responsible member underlined.
Advanced Economic Theory Bishop, Diamond, Solow, Fisher, Samuelson, Varian, Hausman, Weitzman
Comparative Economic Systems Domar, Weitzman
Economic Development Eckaus, Bhagwati, Taylor
Economic History Kindleberger, Temin, Domar
Finance Merton
Fiscal Economics Diamond, Friedlaender, Rothenberg, Brown
Human Resources and Income Distribution Thurow, Piore
Industrial Organization Adelman, Joskow
International Economics Kindleberger, Bhagwati
Labor Economics Piore, Myers, Siegel
Monetary Economics Fischer, Modigliani
Operations Research Little, Shapiro
Russian Economics Domar, Weitzman
Statistics and Econometrics Hall, Hausman, Fisher, Kuh
Transportation Friedlaender, Wheaton
Urban Economics Rothenberg, Wheaton

If there are any difficulties with these suggestions, let me know right away. If we can proceed along these lines, it appears to be simply a clarification of our recent past and a substantial timesaver. The reports can be looked at this summer by a student-faculty group, with responsibility for faculty on me and for students on Dick Anderson.

Source:  M.I.T. Archives. Department of Economics Records, Box 2, Folder “Grad Curriculum”.

Image with identifications: Economics Faculty group portrait, 1976.

Categories
Economics Programs M.I.T.

M.I.T. Minutes of the Visiting Committee of Department of Economics and Social Science, 1958

 

From a cover letter, dated March 25, 1959, written by R. T. Haslam, Chairman of the Visiting Committee for the Department of Economics and Social and Science at M.I.T., it appears that the mimeographed document  transcribed below was described as “the full transcript of the Meeting” sent by the Department of Economics for the report to be submitted by the visiting committee to the M.I.T. Corporation. At that time the department of economics and social studies included sections for economics, industrial relations, psychology, and political science together with a center for international studies. 

_______________________

DEPARTMENT OF ECONOMICS AND SOCIAL SCIENCE
Meeting of the Visiting Committee
October 7, 1958

Present: Visiting Committee

Robert T. Haslam, Chairman
Consultant and Director, W. R. Grace and Company

James A. Lyles
Senior Vice President, Frist Boston Corporation
Robert L. Moore
Chairman of the Board, Sheraton Corporation of America

Robert V. Roosa
Vice President, Federal Reserve Bank of New York

Willard L. Thorp
Professor, Merrill Center for Economics, Amherst College

Max L. Waterman
Vice President and Director, Singer Manufacturing Company

Clarence Wynd
Eastman Kodak Company

 

M.I.T.

John E. Burchard
Dean, School of Humanities and Social Studies

Robert L. Bishop
Professor of Economics; Head, Department of Economics and Social Science

Ralph E. Freeman
Professor of Economics; former Head, Department of Economics and Social Science

E. Cary Brown
Professor of Economics; in Charge of the Undergraduate Program

Roger W. Brown
Associate Professor of Psychology

Davis H. Howes
Assistant Professor of Psychology

Norman J. Padelford
Professor of Political Science; Director, Political Science Section

Ithiel deS. Pool
Professor of Political Science

Charles A. Myers
Professor of Industrial Relations; Director, Industrial Relations Section

Max F. Millikan
Professor of Economics; Director, Center for International Studies

Charles P. Kindleberger
Professor of Economics; in Charge of the Graduate Program

 

As the membership of the Committee is entirely new to the Department of Economics, Professor Bishop opened the meeting by giving a brief resume of its present organization and activities.

Teaching and research cover four main fields: Economics, Industrial Relations, Political Science, and Psychology. In one or more of these four fields, the Department teaches at least five distinguishable types of students: (1) undergraduates who elect one or more of the Department’s four fields as a part of their Humanities and Social Science program; (2) undergraduates who major in Course XIV, in (a) Economics or Political Science and (b) Science or Engineering; (3) graduate students in Course XIV, who are mostly Ph.D. candidates in either Industrial Economics or Political Science; (4) regular graduate students in the School of Industrial Management; and (5) members of the two Executive Development programs administered by the School of Industrial Management, including both Sloan Fellows (who are here for twelve months) and Senior Executives (who are here for ten weeks in either the Fall or Spring).

(1) Until the 1940’s, all juniors at the Institute took two terms of Economic Principles; and this was the substance of the Department’s contribution to the Humanities and Social Science program. Subsequently, we have added the fields of Industrial Relations, Political Science, and Psychology. As a result, the Department now offers four of the ten fields from which all students select their Humanities and Social Science subjects in their junior and senior years. (The attached Tables I and II [only a Table II was present in the departmental records. It is transcribed below] show total enrollments during 1956-57 and 1957-58 in the Department’s four fields and in the individual subjects within those fields. Most of the undergraduate enrollment represents students in the general Humanities and Social Science program). In 1957-58, as Table II shows, total undergraduate enrollments were: Economics 1206, Labor Relations 242, Political Science 378, and Psychology 519.)

(2) For eleven years the Department has had its own undergraduate major in Economics (Course XIV). At first this was just Economics and Engineering; later the option of Economics and Science was added. More recently there has been added an option in Political Science, which is an alternative to Economics but is also joined with Science or Engineering. In the future, Psychology might become a similar option; but Psychology is not now a major subject for undergraduates.

(3) The program for a Ph.D. degree in Economics, now one of the largest in this country, was in operation for some years before the Department had an undergraduate major in Economics. This year for the first time we are offering a program for a Ph.D. in Political Science. Our S.M. program is relatively small, and it is limited to Economics and Engineering (or Science). Unlike the Ph.D. program, it is open only to students who have studied Science or Engineering at the undergraduate level, as in our own undergraduate Course XIV.

(4) The Department offers several special subjects for the regular graduate students in the School of Industrial Management, who are all S.M. candidates. In addition, these students sometimes enroll in the same classes with our own graduate students in Economics; and, indeed, this has increased the size of some of our graduate subjects substantially during the past year or two. Furthermore, a small but increasing number of Industrial Management graduate students are becoming interested in going on to a Ph.D. in a combination of Economics and Industrial Management. Our colleagues in the School of Industrial Management have also been considering the addition of a Ph.D. program of their own. If this should materialize, it is likely that our Department will continue to participate substantially on the Economics side of such a program.

(5) The other teaching activity carried on in cooperation with the School of Industrial Management is in their two executive development programs. The older of these is the Sloan Fellowship program, for which executives in the 32- to 36- year age bracket spend a full calendar year at M.I.T. The other, shorter executive development program in which the Department teaches is aimed at a higher executive level. Our department handles about one-quarter of both of these programs.

Dean Burchard stated what he considers to be the present problems of the Department of Economics.

(1) To have the undergraduate program in Course XIV better known to secondary schools so that students will come to M.I.T. specifically for these combinations of humanities and sciences.

(2) To organize our offering in Psychology. A number of years ago a committee recommended that a Department of Psychology be established in the School of Science; but the latter was not prepared to take on such a department. Although there are courses in Psychology given in other Schools at M.I.T., the largest amount of teaching in Psychology comes under the School of Humanities. Therefore the development and improvement of the Psychology Section within the Department of Economics and Social Science is our responsibility.

(3) The new Political Science Section is fairly well organized; yet it still faces the problem of integration with the work of the Center for International Studies, particularly on research projects.

 

Undergraduate Program

Professor E. Cary Brown, chairman of the Committee on the Undergraduate Program, reported on his committee’s consideration of possible revisions in the curriculum in Course XIV. Normally the M.I.T. student can spend 80 per cent of his time in Science and Engineering, with the remaining 20 per cent in Humanities or Social Science. In Course XIV, the student spends the equivalent of a year in Economics or Political Science, instead of taking the more advanced or specialized subjects in his field of Science or Engineering.

After reviewing the experience of the past ten years on the Economics side—looking over thesis topics, the electives chosen by our majors, and finally the jobs that our graduates have held—it seems clear that we are dealing mostly with students who become engineers first of all, with social science skills on the side. For these students, we shall continue to offer our option in General Economics. We have also recommended, however, the addition of two other options in Economics. One will be in Industrial Economics, including Industrial Relations. The other will be in Quantitative Economics and Methods.

The program in Industrial Economics will be aimed at the range of problems confronting business firms on an industry-wide basis. We shall aim to turn out students in this option who will be industry analysts in the broadest sense.

The Quantitative Economics option will be even more professional in orientation. Emphasis will be on technical training in analytical methods, with primary attention to statistics, econometrics, and programming and decision theory, including “operations research,” for which there is a rapidly growing demand.

At present, too many of our basic Economics subjects are not taken until the senior year; so we have recommended changes that will allow our majors to take these subjects earlier. We have also recommended several new subjects, including a research seminar as thesis preparation in the first term of the senior year.

There followed a discussion of a variety of departmental problems. One concerns the fact that, in the Economics wing, we have relatively many young full professors, in their early forties, with relatively few associate and assistant professors. The demands of our graduate program and our undergraduate major are such that relatively few senior members of the staff participate at any one time in the elementary subjects, 14.01 and 14.02. There also was discussion of the assistance that can be given by the older members of the Department to graduate students who are carrying out their first teaching assignment in the sections of elementary Economics. As Mr. Haslam pointed out, these are the first instructors that the student meets in the Department of Economics, and a favorable impact is very important.

 

The Psychology Section (reported by Professors Roger W. Brown and Davis Howes)

At present Psychology teaching is limited to the Humanities program; but within the next year or two we hope to set up a Psychology option in Course XIV. The decision that we have to make with the administrative authorities is whether to be content with a purely routine service in teaching elementary Psychology or whether to have a Psychology Section composed of persons with significant research activities who will develop a broader teaching program.

There are other psychologists at the Institute in both the School of Industrial Management and in the new Communications Center. These people are concerned with a limited set of rather specialized applications of Psychology. Collaboration with these other psychologists would be very fruitful if a graduate program of training Ph.D.’s in Psychology could be set up, and some of them occasionally teach Psychology subjects in the Humanities program; but, for the time being, the responsibility for manning and administering that program rests wholly on the Psychology Section in our Department.

There is a remarkable opportunity at M.I.T. for collaboration between psychologists and other scientists—in computers, to name one example, and also in such fields as electronics and the chemical effects of drugs on human behavior. These potential opportunities will always draw able young research-oriented psychologists to M.I.T.; but they will not stay beyond about three years unless there is more chance for growth and development of the psychology program than at present. Now there is no senior member of the Psychology group; the four psychologists of faculty rank consist of one associate professor and three assistant professors. It was agreed that a constructive step would be the appointment of a full professor of psychology.

 

The Political Science Section (reported by Professors Norman J. Padelford and Ithiel de S. Pool)

Political Science has gone through some of the problems that Psychology is now facing. Immediately after the war we started out as a purely service group, offering as part of the Humanities program undergraduate courses which have averaged from 350 to 400 students. Three years ago we came to feel, as the psychologists do now, that a mere service function would not satisfy us professionally. As the first step to broaden our base we set up an undergraduate course combining Political Science with Science and Engineering. After this course was launched and operating satisfactorily, there were discussions about a Ph.D. program in Political Science. The same arguments that were used for Economics and for Psychology came up—namely, that the ablest men cannot be recruited and retained unless they have good graduate students around them. We have had to go to Harvard and to Fletcher School for young teachers in our undergraduate courses.

A program for a Ph.D. in Political Science was launched this Fall. We have 13 mature and talented graduate students whose interests are focused on policy problems. We put these students to work on research projects. This is possible with a small group only slightly outnumbered by staff; for each student can work as assistant to a staff member.

As far as our group is concerned, we see no point in simply duplicating what is done at other institution. Our range of interests covers the following major topics:

(1) We are concerned with the growth and evolution of political communities from an elementary stage to maturity, whether in such places as Burma or at the international level, where we have been studying the process by which a group of nations in the so-called Atlantic community can become knitted together.

(2) We have a strong interest in the role of communications in the political process between men and between groups in the political process. This is an important topic, which has been inadequately stressed elsewhere.

(3) The touchstone of our approach is a study of the place of government and the role of public policy against the background of changes in science and technology.

One final word about our needs as we look ahead. We have set up six fields of study: (1) International Relations and Foreign Policy, (2) Political Communications, (3) Defense Policy, (4) Government and Science, (5) Political and Economic Development, and (6) Political Theory and Comparative Politics. In the areas of Defense Policy and Government and Science, we are not provided with faculty as we should be. We need to find individuals for each of these fields and also the wherewithal to support them at the faculty level. Our second need—and the most urgent at the moment—is for fellowships and scholarships. We are encouraging our graduate students to take loans for their education, paying them back afterwards rather than depending on scholarship money.

 

The Industrial Relations Section (reported by Professor Charles A. Myers)

The Industrial Relations Section is the oldest of the sections in the Department of Economics. Last November we had a 20th Anniversary Conference in which we reviewed what we have been trying to do. Originally we set up our teaching program solely at the undergraduate level; but we have expanded to include participation in the doctoral program of the Department. Today M.I.T. has more students working for doctor’s degrees in Economics with emphasis on Industrial Relations than has any other university in this country. Our activities include courses for management, both in the programs of the School of Industrial management and in the new Greater Boston program for executive development. As we have no staff of our own but share our teachers with the Department of Economics, we confine our activities to certain areas such as the Scanlon Plan—a union-management cooperation plan, which has annual conferences attracting about 200 participants from all over the country. In addition, we have held conferences on research administration; some trade unions have come here for conferences under our auspices; and we hold each year a one-day workshop in connection with the Boston Chamber of Commerce.

Professor Pigors has pioneered in a method of management training and development called the incident process, which is now used by 800 companies. We think it offers more challenge to students than the case method. The case method presents a problem with all the material supplied; the incident process gives the student only an incident, leaving him to seek out the pertinent facts by questioning the discussion leader. As a teaching device it has had wide impact outside of M.I.T.

Some of our recent research has been on comparative international studies. As we learned more about economic development, we saw its close connection with problems of industrial relations. We obtained a Ford Foundation grant; and my two trips to India and a book have come out of that. We plan to cover India, Mexico, Japan, Western Germany, Indonesia, Sweden, England, France, and Italy in our studies of management in industrial societies.

 

The Center for International Studies (reported by Professor Max F. Millikan)

Although the CIS has a Visiting Committee of its own, its work is so closely connected with that of the Department of Economics and Social Science that they share each other’s problems. There are two ways in which the Center’s activities are important to the Department of Economics. First, there is a considerable overlap of staff members who conduct research in the Center and teach in the Department; so the Center and the Department have a joint interest in recruiting an outstanding and stable staff. Second, The Center’s research program provides opportunities for graduate students in the Department to undertake thesis work in the international field.

Briefly, the Center was founded in 1951, growing out of a contract which M.I.T. undertook on behalf of the State Department to explore a defense against jamming the Voice of America. Growing out of this study appeared the need for a research organization on problems related to American foreign relationships, as there are many ways in which technology and science have become involved in foreign policy and international relations. The Center then removed itself from government affiliation and became a permanent member of the M.I.T. family.

Since 1952, with the support of the Ford, Rockefeller, and Carnegie Funds, it has carried on projects in four different fields: (1) relations between the United States and the Soviet bloc, especially in the area of Soviet scientific publications and the administrative handling of research and development in the Soviet Union; (2) economic and political development of the underdeveloped countries—especially the process of economic growth in Indonesia, India and Southern Italy; (3) international communications—especially the pattern of information-flow in foreign countries and its effect upon attitudes and decisions of significant political groups; (4) Professor Rostow, who was responsible for the studies on the Soviet Union and on China which we have published, has now turned his attention to the features in American society which influence our attitude toward foreign policy.

Our principal problem for the future is to provide some stability for our research staff. We have drawn key people to M.I.T. who have made a substantial contribution through their research; but many members of our staff are listed as visiting professors because M.I.T. cannot provide tenure positions for them. What we need is a continuing corps to devote half time to research in the Center and the other half to teaching.

The Center is in a position to offer to graduate students research opportunities second to none in this country. In the future we look toward using the Center’s resources at the undergraduate level. In these new areas it is normal for development to begin at the graduate level and work down.

 

The Graduate Economics Program (reported by Professor Charles P. Kindleberger)

In the first place, our graduate program aims primarily at a Ph.D. degree; we do not offer a Master’s degree except in a combination of Economics with Science or Engineering (mostly as a fifth year for our own Course XIV graduates). In the Ph.D. program we limit ourselves to a small group of high-quality candidates—about 20 to 25 new students each year.

Admission of Graduate Students. These 20 to 25 new students are chosen from a group of about 120 applicants, who have various reasons for wanting to study at M.I.T. Some are attracted by the men on our teaching staff and some by the prestige of M.I.T. in general. We should also face the fact, however, that competitive fellowship offers also play a prominent role in applicants’ decisions to come here or go elsewhere. On the other side of the picture, some would-be applicants are scared away if they are not highly skilled in mathematics, even though only a minority of our graduate students specialize in areas of economics where high-powered mathematical techniques are used.

Financing Graduate Students. There are various ways in which a graduate student can pay his way here: he may get a fellowship from an outside source to be used at any university of his choice—National Science Foundation, Ford Foundation, and Woodrow Wilson Fellowship support comes this way; also, we have some privately endowed “name” fellowships in our department—Goodyear, Westinghouse, and Hicks; and we have some departmental and Institute funds to offer; lastly, a student may pay his own way. Sometimes students who do not qualify for financial assistance at first, but who come on their own, turn out to be very good. We hire no teachers from the group of first-year graduate students, so this source of earning is not open until at least the second year of graduate study, and usually not until the third.

Ph.D. Curriculum. At the end of the second year, the graduate student takes his general examinations—four written and four oral. After this comes his thesis. We are very much interested in the process of writing a thesis, as we believe that it is here that the student acquires professional maturity. We do not go along with the movement to cut down on the time of the Ph.D. degree by reducing the thesis to the proportions of an article.

Post-Doctoral Students. More and more M.I.T. is attracting post-doctoral scholars from abroad—last year a Swede, a Norwegian, a Dutchman, and a Turk; this year two Germans, a Swede, an Italian, a Belgian and a Frenchman. These people add to the scholarly atmosphere; and we need mature students for training at a post-doctoral level. This, however, requires more money; and we have already applied to the Ford Foundation for funds for this purpose.

*  *  *  *  *  *

            In the general discussion of pressing problems Professor Bishop mentioned the following:

The Economics Library Budget. The state of our Dewey Library budget can be held over for discussion at the next meeting of this committee. If we have not been successful in our drive for funds, we shall need to ask the assistance of the committee.

Ours is very much of a library department, as we have no laboratory. Although our library budget is high compared with that of some engineering departments, it is low compared with that of other leading departments in Economics. For example, our library budget stands at $4,000 annually, compared with $6,000 for that of Johns Hopkins. Ours is possibly the best industrial relations library in the country; but it is a second-class economics library. I should like to see the budget figure raised by $2,000.

(Mr. Maslam offered to approach Mr. Bradley Dewy for a donation for this purpose.)

Age Distribution of Department Members. It happens that our department has an unusual age distribution in the field of Economics. There is a great gap between the full professors and the instructors. The former are all in their early forties; and there are few runners-up at the associate professor and assistant professor level. This is a problem of major importance.

*  *  *  *  *  *

            Professor Thorp suggested this kind of Committee report to the Corporation: that the Committee has met; that all its members are new; that they therefore need time to get acquainted with what is going on in the Department; that they find no problems requiring immediate action; and that they are looking forward to a meeting next year. There was also agreement in recommending that there be somewhat more continuity of membership on the Visiting Committee than in the past.

*  *  *  *  *  *

TABLE II
Comparative Numbers of Students Completing Individual Subjects in the Department of Economics and Social Science, 1956-57 and 1957-58
[Note: Course titles provided after Table II]

1956-57

1957-58
Subject Fall Spring Total Fall Spring Total

Net Change

Economics—Undergraduate

14.01

466 292 758 460 316 776 +18
14.02 58 117 175 94 143 237

+62

14.03

26 26 26 18 44 +18
14.04 14 14 8 8

-6

14.09

27 28 55 25 19 44 -11
14.20 23 23

-23

14.30

25 25 -25
14.32 20 20 17 17

-3

14.33

18 18 16 21 37 +19
14.40 20 20 20 20

14.43

11 11 13 13 +2
14.54 11 11 10 10

-1

Totals

1156 1206

+50

 

 

1956-57

1957-58
Subject Fall Spring Total Fall Spring Total

Net Change

Economics—Graduate

14.101

11 11 14 14 +3
14.102 5 5 8 8

+3

14.115

34 34 36 36 +2
14.116 34 34 36 36

+2

14.117

18 24 42 15 20 35 -7
14.121 32 32 31 31

-1

14.122

30 30 31 31 +1
14.132 6 6

-6

14.151

6 6 11 11 +5
14.161 15 15 15 15

14.162

12 12 16 16 +4
14.171 11 11 8 8

-3

14.172

6 6 9 9 +3
14.174 5 5 14 14

+9

14.192

5 5 1 1 -4
14.195 10 10 1 1

-9

14.196

11 11 5 5 -6
14.271 11 11 7 7

-4

14.272

7 7 7 7
14.281 13 13 15 15

+2

14.282

18 18 +18
14.292 7 7 10 10

+3

14.371

34 34 35 35 +1
14.372 15 15 16 16

+1

14.381

56 56 27 27 -29
14.382 1 1

+1

14.451

23 23 24 24 +1
14.461 8 8 8 8

14.471

15 15 12 12 -3
14.481 9 9 6 6

-3

14.581

20 20 23 23 +3
14.582 16 16 17 17

+3

Totals

509

497

-12

Totals—Economics

1665

1703

+38

 

*  *  *  *  *  *

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Industrial Relations—Undergraduate
14.61 12 12 -12
14.63 86 75 161 80 75 155 -6
14.64 47 75 122 36 51 87 -35
Totals 295 242 -53

 

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Industrial Relations—Graduate
14.671 6 6 7      7 +1
14.672 10 10 -10
14.673 18 18 +18
14.674 10 10 +10
14.681 17 17 18 18 +1
14.682 19 19 10 10 -9
14.694 16      16 +16
Totals 52 79 +27
Totals—Industrial Relations 347 321 -26

 

*  *  *  *  *  *

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Political Science—Undergraduate
14.51 50 93 143 73 72 145 +2
14.52 29 25 54 31 25 56 +2
14.53 7 7 25 25 +18
14.90 17 13 30 14 11 25 -5
14.91 25 36 61 26 23 49 -12
14.92 18 18 42 42 +24
14.93 7 11 18 26 26 +8
14.95 22 22 -22
14.96 14 14 14
14.97 6 6 3 3 -3
14.98 3 3 +3
14.99 4 4 +4
Totals 373 378 +5

 

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Political Science—Graduate
14.521 6 6 -6
14.523 4 4 +4
14.524 2 2 +2
14.531 15 15 3 3 -12
14.533 18 18 12 12 -6
14.571 34 34 36 36 +2
14.941 8 8 +8
14.953 10 10 7 7 -3
14.954 1 1 5 5 +4
14.956 5 5 8 8 +3
14.957 6 6 7 7 +1
14.958 6 6 +6
Totals 95 98 +3
Totals—Political Science 468 476 +8

 

*  *  *  *  *  *

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Psychology—Undergraduate
14.70 112 175 287 83 126 209 -78
14.73 83 73 156 32 35 67 -89
14.77 47 47 27 16 43 -4
14.79 42 42 8 29 37 -5
14.81 14 14 9 9 -5
14.82 11 43 54 +54
14.84 35 35 +35
14.85 32 32 +32
14.86 18 32 50 +30
14.88 3 3 +3
Totals 546 519 -27

 

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Psychology—Graduate
14.771 32 32 -32
14.772 6 6 +6
14.774 12 12 5 5 -7
14.791 5 5 8 8 +3
14.792 11 11 2 2 -9
Totals 60 21 -39
Totals—Psychology 606 540 -66

 

1956-57 1957-58
Subject Fall Spring Total Fall Spring Total Net Change
Grand Totals for the Department 3086 3040 -46

Source: M.I.T. Archives. MIT Department of Economics Records, Box 4, Folder “V.C. [19]47-64”.

________________________

Course numbers, names and instructors
1957-58*

ECONOMICS (UNDERGRADUATE)
14.01 Economic Principles I (Bishop)
14.02 Economic Principles II (E. C. Brown)
14.03 Prices and Production (A. Williams)
14.04 Industrial Organization and Public Policy
14.09 Economic Problems Seminar (Bishop)
14.20 Building Economics (Maclaurin)
14.30 Elementary Statistics (Ando)
14.32 Statistical Quality Control (H. A. Freeman)
14.33 Elementary Statistics (Ando)
14.40 Money and Income (R.E. Freeman)
14.43 Public Finance (E.C. Brown)
14.54 International Trade (Kindleberger)
ECONOMICS (GRADUATE)
14.101 Mathematics for Economists (H. A. Freeman)
14.102 Mathematics for Economists (H. A. Freeman)
14.115 Economics and Finance: Principles and Policies II (Kindleberger, R.E. Freeman)
14.116 Economics and Finance: Principles and Policies III (Kindleberger)
14.117 Economics and Industrial Management (Solow, E.C. Brown)
14.121 Economic Analysis (Bishop)
14.122 Economic Analysis (Samuelson)
14.132 Schools of Economic Thought (Bishop)
14.151 Mathematical Approach to Economics (Samuelson)
14.161 Economic History (W. W. Rostow)
14.162 Economic History (W. W. Rostow)
14.171 Theory of Economic Growth (Rosenstein-Rodan)
14.172 Research Seminar in Economic Development (Millikan)
14.174 Non-Economic Factors in Economic Growth (Hagen)
14.192 Economics Seminar
14.195 Reading Seminar in Economics
14.196 Reading Seminar in Economics
14.271 Problems n Industrial Economics (Bishop)
14.272 Government Regulation of Industry (N.N.)
14.281 Entrepreneurship, Innovation and Economic Development (Maclaurin)
14.282 Economics of Innovation Seminar (Maclaurin)
14.292 Industrial Economic Seminar
14.371 Statistical Theory (H. A. Freeman)
14.372 Statistical Theory (H. A. Freeman)
14.381 Statistical Method (Houthakker, Durand)
14.382 Economic Statistics (Houthakker)
14.451 National Income (Millikan)
14.461 Monetary and Banking Problems (Higgins)
14.471 Fiscal Policy? (E. C. Brown)
14.481 Business Cycles (Houthakker)
14.581 International Economics (Kindleberger)
14.582 International Economics (Kindleberger)
INDUSTRIAL RELATIONS (UNDERGRADUATE)
14.61 Industrial Relations (D. V. Brown)
14.63 Labor Relations (Siegel)
14.64 Labor Economics and Public Policy (A. R. Weber)
INDUSTRIAL RELATIONS (GRADUATE)
14.671 Problems in Labor Economics (Miernyk)
14.672 Public Policy on Labor Relations (Myers)
14.673 Labor-Management Relations and Public Policy (D. V. Brown, Myers)
14.674 The Labor Movement: Theories and Histories (Siegel)
14.681 Seminar in Personnel Administration (Pigors)
14.682 Seminar in Personnel Administration (Pigors)
14.694 Seminar in Union-Management Cooperation (N.N.)
POLITICAL SCIENCE (UNDERGRADUATE)
14.51 International Relations (Padelford)
14.52 Principles and Problems of American Diplomacy (Pye)
14.53 Seminar in International Politics (Schilling)
14.90 Government, Politics and Technology (R. C. Wood)
14.91 The American Political System (Tillman)
14.92 Comparative Political and Economic Systems (L. W. Martin)
14.93 Seminar: Issues in Contemporary American Politics
14.95 Politics, Society, and Policy Making (Pool)
14.96 Influences on Policy Decisions (N.N.)
14.97 Political Science Seminar (Padelford)
14.98 Political Science Seminar (Padelford)
14.99 International Political Communication (Davison)
POLITICAL SCIENCE (GRADUATE)
14.521 Strategic and Political Geography (N.N.)
14.523 National Security and Military Technology (McCormack, Schilling)
14.524 Politics and National Defense Policy (Schilling)
14.531 Asian Politics and United States Foreign Policy (Pye)
14.533 Social Science and U. S. Foreign Policy (Millikan)
14.571 Major Problems in Untied States Foreign Policy (Padelford)
14.941 Government and Public Administration (R. C. Wood)
14.953 Mass Media and Communication Systems (Lerner)
14.954 Methods of Communication Research (Lerner)
14.956 Public Opinion and Propaganda (Davison)
14.957 Research Seminar in International Communications (Davison)
14.958 Research Seminar in International Communications (Davison)
PSYCHOLOGY (UNDERGRADUATE)
14.70 Introductory Psychology (Swets)
14.73 Organization and Communication in Groups (Swets, Gleicher)
14.77 Psychology of Language and Communication (N.N.)
14.79 Learning (Howes)
14.81 Psychology of Perception (Swets in 1958-59)
14.82 Psychology of Motivation (N.N. in 1958-59)
14.84 Theories of Personality (R. W. Brown in 1958-59)
14.85 Social Psychology (R. W. Brown in 1958-59)
14.86 Behavior in Groups (M. E. Shaw in 1958-59)
14.88 Advanced Psychology Seminar (Staff in 1958-59)
PSYCHOLOGY (GRADUATE)
14.771 Interpersonal Relations Seminar (N.N.)
14.772 Industrial Sociology Seminar (N.N.)
14.774 Social Psychology Seminar (R. W. Brown)
14.791 Reading Seminar in Social Science
14.792 Reading Seminar in Social Science

 

SourceThe Massachusetts Institute of Technology Bulletin, General Catalogue Issue 1957-58. Chapter 10, Descriptions of Subjects, 14. Economics and Social Science, pp. 233-238.

*For 14.81/14.82/14.84/14.85/14.86/14.88 information from the General Catalogue Issue 1958-59 pp. 237-8.

Image Source:  From Technique (1949), M.I.T. Yearbook cover.

Categories
Economics Programs M.I.T.

M.I.T. Economics and Political Science, excerpt from President’s Report, 1961

 

M.I.T.’s department of economics has done historically well in attracting graduate students who have received third-party funding, e.g. National Science Foundation Graduate Fellowships. Besides offering a top-down report of the position of the economics department at M.I.T., the excerpt from the President’s 1961 Centennial Year Report transcribed below offers the factual nugget: “This year, too, M.I.T. was selected as first choice by more Woodrow Wilson Fellows in economics — eighteen out of eighty — than any other school in the country”.

_____________________

Also from 1961

M.I.T. Graduate Economics Brochure of 1961.

General Examinations in Economic Theory at M.I.T. from 1961: Microeconomics; Macroeconomics.

Fun antique video. Round table discussion with Jerome Wiesner, Jerrold Zacharias, and John Burchard of MIT with Raymond Aron of the Université de Paris-Sorbonne, Isidor Rabi of Columbia University, and Sir Eric Ashby of Cambridge University was filmed as part of the Tomorrow television series produced by CBS Television Network for MIT on occasion of MIT’s Centennial in 1961.

_____________________

From the President’s Report 1961, M.I.T.

The Social Sciences In the light of the concerns of the Centennial for the larger influences of science upon society, I think it appropriate to review this year the state of the social sciences at the Institute. That we should have become occupied with these areas was inevitable, and the Institute has a clear obligation to cultivate especially those that relate most directly to modern developments in engineering, science, and mathematics. M.I.T. has recognized this responsibility and has responded with strong and growing support to work in the social sciences in the School of Humanities and Social Science and elsewhere. These activities are giving to the Institute an entirely new dimension that few not associated intimately with M.I.T. yet appreciate.

It is a simple truth that the interests of the great physical and social sciences were never more interwoven than today. The overriding practical problems of our time — defense; disarmament; the economics of change; the politics of peace; the relationships among industry, science, and government — require joint technical and social analysis. The very progress of science is influenced by the broader social context, and the advances of engineering affect all our human institutions.

In our decision to encourage the growth of certain key social sciences at M.I.T., we determined not only to build on strength, but also to exploit particularly those that have special relevance to our central concerns with science and engineering. We hope to create more points of contact between the social and physical sciences and to foster more fruitful collaboration between them. In this way, in spite of enormous pressures for growth, we can delimit the domain of our interests and the way in which we allocate our resources to them.

We have given special attention to those fields in which mathematics and statistical techniques are playing an increasingly important role. This is, of course, completely compatible with our M.I.T. style, with our desire to be governed in our approach to problems by a sense of the quantitative, the analytical, the mathematical. But by no means are we seeking to build our social sciences in the image of the physical. We recognize full well the many differences in set and attitude that distinguish them. An exaggerated insistence on emphases that are too narrow or criteria that are too rigid will only defeat our long-range objective of making the social sciences an integral part of the modern scientific university. Each field must be free to develop in its own way, to follow with complete freedom its own professional instincts.

From this point of view, the flowering of the social sciences at M.I.T. represents a new experience for us. Accustomed as we are to the demonstrable factual data of the physical sciences, we must accept the larger subjective element of judgment that enters into the social sciences in their present state. Since developments in many of these areas are open to a variety of interpretations, we must foster, within the limits of our aims and resources, a range of views and interests. The ultimate safeguard, however, lies not in seeking an impossible balance among modes of thought, but in recruiting a faculty of the highest intellectual power and integrity. This we have done.

In my report of a year ago I touched on a faculty survey of the social sciences which gave highest priority for development to fields of economics and economic history, political science, and psychology. I want now to comment briefly on the current status of these fields at the Institute and to examine in passing our commitments and our hopes in these areas.

ECONOMICS The oldest social science at M.I.T., economics is still by a sizable margin the largest. The teaching of economics goes back to 1881 and Francis Amasa Walker. General Walker, the Institute’s third president and one of its great builders, was an authority on political economy — as economics was then called — and his understanding of the processes in American industrial development notably influenced his views on the education of engineers. He gave an outstanding lecture course on political economy and was the author of a distinguished text in the field. He also brought other economists to the Institute.

Yet, until well into the modern era of M.I.T., economics remained largely a service department for the School of Engineering. Only since World War II has the department matured and assumed a truly professional character. Today it is universally conceded to be among the most distinguished. Indeed, by any of the usual measures — the stature of its teachers, the quality of its research, the achievements of its graduates — it ranks in the small handful of leaders. This year the president of the American Economic Association [Paul Samuelson] and the presidents-elect of the Econometric Society [Franco Modigliani] and of the Industrial Relations Research Association [Charles A. Myers] are members of this department. This year, too, M.I.T. was selected as first choice by more Woodrow Wilson Fellows in economics — eighteen out of eighty — than any other school in the country. The strengths which have won this kind of recognition within the profession are substantial indeed. They were achieved, essentially, by encouraging economics at M.I.T. to chart its own professional course; by the development of a distinguished graduate curriculum and of a major research program; and by insistence on the same standards of excellence we demand of our scientific and engineering departments. As a consequence, we have accomplished in economics the same kind of comprehensive renovation of purpose that Karl Compton undertook at an earlier date for the School of Science.

Economics at M.I.T. is also an important resource for other areas of teaching and research, and for the School of Industrial Management in particular. Management education at M.I.T. grew out of our teaching in economics, and today the teaching and research of the Department and the School reinforce one another more strongly than ever. Much of the research of the Department bears directly on the interests of the School — research on the economics of particular technologies; on the problems of measurement of productivity and output; on the contribution of technical progress to economic growth; on the origin and growth of new enterprises. Through this close relationship between the Department and the School, we also enjoy a fruitful interchange of theoretical and practical points of view.

The history and current role of economics at M.I.T. is the model for our development of other social sciences. We have now established sections of political science and of psychology within the Department of Economics and Social Science. Both are fields in which student and faculty interest is keen and in which we have unusual opportunities to make important contributions.

POLITICAL SCIENCE Because of the interweaving of technology with all the affairs of the modern world, and especially with those of government, we have set high priority on the development of political science. It is an area in which we have been moving rapidly ahead. This June we awarded our first Ph.D. degrees in this field, and there are now about thirty doctoral candidates within the Section. In addition, some five hundred undergraduates take elective courses in political science each year.

The Section now offers courses in six fields of political science, all of which are related to other interests of the Institute: international relations and foreign policy, political communication, defense policy, government and science, political and economic development, and political theory and comparative politics. Besides providing opportunities for combining work in political science with a scientific or engineering field, the faculty of the Section maintain close ties with their colleagues in economics, psychology, industrial management, and city and regional planning.

In the past two years, we have developed superlative strength in the field of comparative politics of developing areas, and through the association of the Section with the Center for International Studies we probably have as strong a faculty as is to be found anywhere in the politics of development. In support of this work, the Institute received two notable gifts this year. One, the donation of $500,000 from Dr. Arthur W. Sloan and Dr. Ruth C. Sloan of Washington, D.C., establishes a professorship in political science with emphasis on African studies. Not only does this gift provide an important new endowed professorship, but it also recognizes in a most dramatic way the growing stature of political science at the Institute.

The second grant is one of $475,000 from the Carnegie Corporation for research in training on the politics of transitional societies. The grant will make possible expansion of our research on the problems of nation-building in transition countries such as the newly emerged African and Asian nations. It, too, gives substantial recognition to the quality of our program. The Carnegie grant, among other benefits, establishes graduate fellowships both for course work at M.I.T. and for field work towards the doctoral thesis. We are enthusiastic about the values to be derived from this aspect of the grant which will permit us to send our students overseas for on-the-spot research in developing areas.

We have enjoyed magnificent opportunities for field studies in other areas of our political science activities through the generous support of the Maurice and Laura Falk Foundation, the Ford Foundation, and the Rockefeller Foundation. The Ford Foundation has also underwritten much of our work on government and science, and the Rockefeller Foundation this year supported a new seminar on arms control. This seminar brought together some thirty individuals in the Cambridge academic community with strong interests in both the technological and political aspects of this subject. We very much hope that this may prove to be the beginning of a substantial new research program on defense policy.

This brief sampling of our progress in political science is intended only to suggest the vitality of this field at the Institute. It has grown quickly, but without over- stretching itself. It has set high standards in research, and it has developed both its undergraduate and graduate courses in a most creative and constructive spirit. This new venture for M.I.T., in sum, has met with outstanding success.

[Reports on Psychology and Linguistics complete this  section of the President’s Report]

 

Source: Massachusetts Institute of Technology. The President’s Report 1961. pp. 11-16.

Image Source: The M.I.T. mascot beaver on the cover of its yearbook, Technique 1949.

Categories
Exam Questions M.I.T.

M.I.T. Comprehensive Theory Exams in Macroeconomics, 1961

 

The Microeconomics examination questions for the economic theory general examinations of May and September at M.I.T. have also been transcribed and posted.

__________________

From the 1961 Economics Graduate Program Broschure
[boldface emphasis added]

Major Program and General Examinations

Work taken in the Department of Economics and Social Science for the doctorate in economics is divided—broadly speaking—into two separate options: economics and industrial relations. But there is considerable overlap between the two.

All students in both options are examined five fields. Among the fields presently available are the following: economic theory, advanced economic theory, monetary and fiscal economics, industrial organization, economic development, international economics, economics of innovation, labor economics and labor relations, personnel administration, human relations in industry, statistical theory and method, and economic history. Each student selects one field as having primary importance for this professional career; ordinarily this is the field in which he writes his dissertation, though exceptions may be made. The remaining four fields are designated secondary fields. One of the five fields must be economic theory.

Students are also required to have at least a minimum knowledge of statistics and economic history. This minimum is presently interpreted to mean one semester of work in each at the graduate level. Candidates who present statistics or economic history as a primary or secondary field normally take two or three semester subjects in the field and automatically satisfy the requirements in that area.

Students may qualify in one of the secondary fields through course work only, provided that they receive a mark of B or better in two subjects. Students are examined in writing in the remaining four fields during an eight-day period (Monday, Wednesday, Friday, and Monday). The theory examination is four hours long (divided roughly between microeconomics and macroeconomics), while the other three are each three hours long.

Following these written examinations, the student takes a two-hour oral examination which covers theory, his primary field, and one secondary field.

Source: Excerpt from Graduate Economics Program Brochure, 1961. MIT Archives, Department of Economics Records, Box 2, Folder “Department Brochures”.

____________________

GENERAL EXAMINATION IN ECONOMIC THEORY
Macroeconomics—Two Hours
[May 22, 1961]

Answer THREE questions, at least ONE from each part. (Course XV students answer ONE question from each part only.)
USE A SEPARATE EXAMINATION BOOK FOR EACH QUESTION.

Part I.

  1. Write a comprehensive essay on the subject of “The Measurement of Economic Growth”. Include in it the description of existing methods, their rationale (the most important part) and your suggestions for improvement.
  2. Write an essay on “The General Theory after Twenty-Five Years”.
  3. (a) Explain the nature and the rationale of the definition of the concept of money in “Price Flexibility and Employment” problems.”
    (b) “If the ‘Balanced-Budget Multiplier’ is correct, isn’t Say’s Law also correct?” Comment fully.

Part II.

  1. “By making existing capital assets obsolete, technological progress is alleged to create new investment opportunities and thus raise the level of income and employment. But to the extent that such obsolescence was foreseen, the assets were depreciated over a shorter period and thus gave rise to larger gross savings. Therefore, expected technological progress fails to stimulate the economy.” Comment fully.
  2. Present your favorite (traditional, eclectic, or original) business cycle theory. Indicate the empirical tests to which it will be subjected.
  3. “In order to prevent a cost-push inflation, wage rates in each firm or industry should not increase faster than its labor productivity price increases will thus be avoided.”
    Comment fully and critically; indicate and justify your wage and price policy.

____________________

GENERAL EXAMINATION IN ECONOMIC THEORY
Macroeconomics—Two Hours
[September 18, 1961]

Answer FOUR questions, TWO from each part. USE A SEPARATE EXAMINATION BOOK FOR EACH QUESTION.

Part I.

  1. State, explain and justify the treatment of government expenditures (Federal, state and local) in the computation of national product and its components. Why is government treated differently from other sectors? What is the logical foundation for such treatment?
  2. Compare and contrast the Keynesian and the so-called Classical systems.
  3. Contrast the investment criteria applicable to (a) an individual firm, (b) the U.S. government, (c) the government of an undeveloped country. Explain clearly your reasons for such differences, if any.
  4. Write an essay on “The History of the Consumption Function.” Indicate and evaluate the major contributions. How significant are they? Which one do you prefer and why?

Part II.

  1. Describe fully the “economic indicator” approach to economic forecasting. Evaluate its performance. Compare it with the use of projected models of GNP.
  2. Describe the long-term trends in (a) population, (b) output, (c) capital, (d) real wage rates, (e) interest, (f) relative shares, (g) capital-output and other important ratios. What constancies have people claimed to observe? What behavior is explicable by a simple neoclassical model? What points to technological change or to various non-neoclassical growth theories? Mention authors as well as theories.
  3. Summarize briefly the historical facts on business cycles or fluctuations here and abroad. What theories have been suggested? Besides naming names, give your own best way of cataloguing the different theories (e.g. non-linear, etc.).
  4. Give the basic facts on “growth” here and abroad, recently and in history. How could America increase its sustained growth rate? Be analytical and specific.

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Evsey D. Domar Papers, Box 16, Folder “Ph.D. Examinations, Macroeconomics”.

Image Source: Boston Public Library, Tichnor Brothers Postcard Collection. Massachusetts Institute of Technology, Cambridge, MassTichnor Bros. Inc., Boston, Mass., 1930.

 

Categories
Exam Questions M.I.T.

M.I.T. Comprehensive Theory Exams in Microeconomics, 1961

 

The Macroeconomics examination questions for the economic theory general examinations of May and September at M.I.T. have also been transcribed and posted.

Note:  S.I.M. = School of Industrial Management

__________________

From the 1961 Economics Graduate Program Broschure
[boldface emphasis added]

Major Program and General Examinations

Work taken in the Department of Economics and Social Science for the doctorate in economics is divided—broadly speaking—into two separate options: economics and industrial relations. But there is considerable overlap between the two.

All students in both options are examined five fields. Among the fields presently available are the following: economic theory, advanced economic theory, monetary and fiscal economics, industrial organization, economic development, international economics, economics of innovation, labor economics and labor relations, personnel administration, human relations in industry, statistical theory and method, and economic history. Each student selects one field as having primary importance for this professional career; ordinarily this is the field in which he writes his dissertation, though exceptions may be made. The remaining four fields are designated secondary fields. One of the five fields must be economic theory.

Students are also required to have at least a minimum knowledge of statistics and economic history. This minimum is presently interpreted to mean one semester of work in each at the graduate level. Candidates who present statistics or economic history as a primary or secondary field normally take two or three semester subjects in the field and automatically satisfy the requirements in that area.

Students may qualify in one of the secondary fields through course work only, provided that they receive a mark of B or better in two subjects. Students are examined in writing in the remaining four fields during an eight-day period (Monday, Wednesday, Friday, and Monday). The theory examination is four hours long (divided roughly between microeconomics and macroeconomics), while the other three are each three hours long.

Following these written examinations, the student takes a two-hour oral examination which covers theory, his primary field, and one secondary field.

Source: Excerpt from Graduate Economics Program Brochure, 1961. MIT Archives, Department of Economics Records, Box 2, Folder “Department Brochures”.

__________________

GENERAL EXAMINATION IN ECONOMIC THEORY
Part I—Microeconomics—Two Hours
[May 22, 1961]

Economics Candidates: Answer any FOUR questions (thirty minutes each).
S.I.M. Candidates: Answer any TWO questions (thirty minutes each).

  1. Within the framework of static, partial-equilibrium theory, indicate under what circumstances advertising will reduce product prices in the long run, (a) if the advertiser is a simple monopolist, (b) if the advertisers are members of a large, perfectly symmetrical, Chamberlinian group of suppliers of differentiated products (the number of firms being large enough to rule out oligopolistic relationships, and variable in accordance with a long-run-equilibrium condition of zero profit for all firms).
  2. How is a firm’s demand schedule for a particular factor of production derived (a) when that factor is the only variable one, and (b) when the quantities of all factors are variable? Show which of these demands is, if anything, the more elastic.
  3. The demands for two products are: q1 = q2 = 54 – p1 -p2. How would you characterize their relationship? If they are produced by separate sellers at constant average costs of c1 = 12 and c2 = 6, respectively, calculate each man’s equilibrium price, quantity, and profit under each of the following conditions:
    1. Each seller assumes that the other’s price is a constant;
    2. The second seller behaves that way and the first seller realizes that he does;
    3. Both sellers maximize their joint profit and share it equally.
  4. Two countries can produce food (F) and clothing (C) with labor (L) as the only factor of production. Country A has 20 billion units of L, each of which can produce either 5 units of F or 2 units of C. Country B has 10 billion units of L, each of which can produce either 8 units of F or 6 units of C. Everyone always spends half of his income on F and the other half on C. In a purely competitive equilibrium with balanced trade between the two countries (and no transportation costs), what is the effect on the quantities of F and C produced and consumed in each country? Could either country benefit by imposing a tariff on the imported good?
  5. What are the various reasons why a free-private-enterprise economy may fail to allocate its resources in an optimally efficient way? Explain.
  6. Discuss the roles of “real” and “monetary” elements in a satisfactory theory of interest. Is it logically possible to fashion an interest theory exclusively in terms of one or the other of those elements? Explain.

__________________

GENERAL EXAMINATION IN ECONOMIC THEORY
Part I—Microeconomics—Two Hours
[September 18, 1961]

A. Answer any TWO of the three questions (40 minutes each).

A.1. Choose one theory of oligopoly. State its principal assumptions and conclusions and criticize them.

A.2. “The fact that a position on the contract curve is always better than one off it implies that we should move toward a situation of perfect competition.” Discuss.

A.3. What changes must be introduced into the conventional theory of the household to take account of the fact of capital?

B. Answer all three questions.*

B.1 Suppose that the coal industry is perfectly competitive. A certain coal-mining machine uses coal for fuel physically identical to that which it mines. What is the numerical value in equilibrium of the marginal product of the coal burned in the mining of more coal? Why? Are there any difficulties with the answer if explicit account is taken of the fact that coal production takes time?

B.2 Are demand curves faced by monopolists generally inelastic? Why or why not? How about their supply curves?

B.3 “In long-run equilibrium, a perfectly competitive firm which gives each unit of each factor that factor’s marginal physical product will precisely exhaust its own output.” Comment.

*Hint about the examiner’s preferences: Two carefully thought-out, good answers are better than three hurried, incomplete and sloppy answers. If you give good answers to any two of the three questions in Part B, don’t worry (about Part B).

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Evsey D. Domar Papers, Box 16, Folder “Ph.D. Examinations, Microeconomics”.

Categories
Brown Chicago Columbia Cornell Dartmouth Economics Programs Harvard Illinois Kansas M.I.T. Michigan Michigan State Minnesota Ohio State Pennsylvania Princeton Purdue Rochester Swarthmore Vanderbilt Vassar Virginia Washington University Wellesley Williams Wisconsin Yale

United States. Courses of Study of Political Economy. 1876 and 1892-93.

 

The first article in the inaugural issue of The Journal of Political Economy, “Courses of Study in Political Economy in the United States in 1876 and in 1892-93,” was written by the founding head of the University of Chicago’s department of political economy, J. Laurence Laughlin. This post provides Laughlin’s appendix that provided information about economics courses taught in 65 colleges/universities in the United States during the last quarter of the 19th century. The bottom line of the table is that “aggregate hours of instruction in 1892-3 [were] more than six times the hours of instruction given in 1876”.

__________________________

How little Political Economy and Finance were taught only fifteen years ago, as compared with the teaching of to-day, must be surprising even to those who have lived and taught in the subject during that period…. At the close of the war courses of economic study had practically no existence in the university curriculum; in short, the studious pursuit of economics in our universities is scarcely twenty years old. These considerations alone might be reasons why economic teaching has not yet been able to color the thinking of our more than sixty millions of people. But about the close of the first century of our national existence it may be said that the study of Political Economy entered upon a new and striking development. This is certainly the marked characteristic of the study of Political Economy in the last fifteen years. How great this has been may be seen from the tables giving the courses of study, respectively, in about 60 institutions in the year 1876 and in 1892-3. (See Appendix I.) The aggregate hours of instruction in 1892-3 are more than six times the hours of instruction given in 1876.” [Laughlin, p. 4]

__________________________

Courses of Study in Political Economy in the United States in 1876 and in 1892-93.

Note: Returns could not be obtained from Johns Hopkins University, Amherst College, and some other institutions.

Institution.

Description of Courses.

1876.

1892-3.

No. hours per week.

No. weeks in year. No. hours per week.

No. weeks in year.

University of Alabama.

Text Book and Lectures, Senior Year

Finance and Taxation

4

2

36

36

[Total hours of instruction per year] 216
Boston University. Principles of Political Economy 3 20
[Total hours of instruction per year] 60
Bowdoin College, Brunswick, Maine.

Elementary (Required)

Advanced (Elective)

5

14

4

4

12

10

[Total hours of instruction per year] 70 88
Brown University, Providence, R. I.

Elementary

History of Econ. Thought

Advanced Course

[2nd] Advanced Course

Seminary of History, Pol. Sci., and Pol. Econ.

16-17

3

3

3

3

2

33-34

11-12

11

11

23

[Total hours of instruction per year] 40-42½ 242-250
University of Chicago, Chicago, Ill. 1.     Introductory Political Economy

2.     Descriptive Political Economy

3.     Advanced Political Economy

4.     Industrial and Economic History

5.     Scope and Method

6.     History of Political Economy

7.     Unsettled Problems

8.     Socialism

9.     Social Economics

10.   Practical Economics

11.   Statistics

12.   Railway Transportation

13.   Tariff History of U.S.

14.   Financial History of U.S.

15.   Taxation

16.   Public Debts

17.   Seminary

5

4

5

4

4

5

4

4

4

4

4

4

4

4

4

4

4

12

12

12

24

12

12

12

12

12

12

12

12

12

12

12

12

36

[Total hours of instruction per year] 996
Colby University, Waterville, Maine.

Elementary [1st]

Elementary [2nd]

Theoretical

Historical

5

7

2

2

4

4

13

10

13

10

[Total hours of instruction per year] 35 138
Columbia College (School of Political Science, New York City. 1.     Principles of Political Economy (Element.)

2.     Historical Practical Political Economy (Advanced)

3.     History of Economic Theory (Advanced)

4.     Public Finance (Adv.)

5.     Railroad Problems (Adv.)

6.     Finan. History of U.S. (Adv.)

7.     Tariff History of U.S. (Adv.)

8.     Science of Statistics (Adv.)

9.     Communism and Socialism (Adv.)

10.   Taxation and Distribution (Adv.)

11.   Seminarium in Political Economy (Element.)

12.   Seminarium in Public Finance and Economy (Adv.)

13.   Law of Taxation (Adv.)

3 and 5, 6 and 7, 8 and 9
given in alternate years.

2

 

 

 

17

 

 

 

2

 

3

2

 

2

2

2

2

2

2

2

 

 

2

2

17

 

34

34

 

34

25

34

17

34

34

17

34

 

34

17

[Total hours of instruction per year] 34 764
Columbian University, Washington, D.C. Elements of Political Economy 5 8
[Total hours of instruction per year] 40
Cornell University, Ithaca, N. Y. 1.     Elementary Political Economy

2.     Advanced Political Economy

3.     Finance

4.     Financial History

5.     Railroad Problems

6.     Currency and Banking

7.     Economic History

8.     Statistics

2

11

3

2

2

2

2

2

2

1

34

34

34

13

11

10

34

34

[Total hours of instruction per year] 22 408
Dartmouth College, Hanover, N.H. 1.     Elementary

2.     Advanced

3.     Advanced Finance and Tariff

6

6

6

6

6

6 2/3

4 1/6

3 1/3

[Total hours of instruction per year] 36 85
University of Denver, Col. 1.     Ely’s Introduction

2.     Ingram’s History

3.     Gilman’s Profit-Sharing

4.     Ely, Labor Movement in America

5.     Kirkup’s and Rae’s Socialism

6.     Finance and Taxation

7.     International Commerce

2

1

1

2

2

4

2

15

5

5

5

5

5

5

[Total hours of instruction per year] 90
DePauw University, Greencastle, Ind.

Economics (Elementary)

Seminarium (Advanced)

4

12

4

2

18

36

[Total hours of instruction per year] 48 144
Drury College, Springfield, Mo. Elementary Course 5 6 5 12
[Total hours of instruction per year] 30 60
Emory College, Oxford, Ga. Jevons’ Text, and Lectures. 5 12
[Total hours of instruction per year] 60
Franklin and Marshall College. Political Economy, (Walker’s) 2 15 2 20
[Total hours of instruction per year] 30 40
Georgetown College, Ky. 1.     General Economics

2.     Special Topics

5

15

3

3

20

20

[Total hours of instruction per year] 75 120
Harvard University, Cambridge, Mass. 1.     Introductory

2.     Theory (Advanced)

3.     Economic History from 1763

4.     Railway Transportation

5.     Tariff History of U.S.

6.     Taxation and Public Debts

7.     Financial Hist. of U.S.

8.     Condition of Workingmen

9.     Economic Hist. to 1763

10.   History of Theory to Adam Smith

Seminary

3

3

30

30

3

3

3

3

2

3

2

3

3

2

2

30

30

30

15

15

30

15

30

30

15

30

[Total hours of instruction per year] 180 735
Haverford College, Pa. Economic Theory 2 40
[Total hours of instruction per year] 80
Howard University, Washington, D. C. Elementary 5 10 5 10
[Total hours of instruction per year] 50 50
Illinois College and Whipple Academy, Jacksonville, Ill. Newcomb’s Polit. Economy, Seniors 5 15
[Total hours of instruction per year] 75
University of Illinois, Champaign, Ill. Senior Class 5 11 5 11
[Total hours of instruction per year] 55 55
Iowa College, Grinnell, Iowa.

Political Economy

Taxation

Railroad Problems

Socialism

5

10

3

3

3

3

37

14

12

11

[Total hours of instruction per year] 50 222
State University of Iowa, Iowa City, Iowa.

Elements of Economics

Currency and Banking

Industrial Revolutions of 18th Century

Recent Econ. History and Theory

Railroads, Pub. Regulation of

Seminary in Polit. Econ.

5

 

14

 

5

5

2

 

2

2

1

14

11

14

 

11

10

35

[Total hours of instruction per year] 70 230
Kansas State Agricultural College, Manhattan, Kan. Elementary, 4th year 5 8 5 11
[Total hours of instruction per year] 40 55
Kansas State University, Lawrence, Kansas. 1.     Elements of Political Economy

2.     Applied Economics

3.     Statistics

4.     Land Tenures

5.     Finance

5

19

5

3

2

2

2

19

19

19

19

19

[Total hours of instruction per year] 95 266
Lake Forest University, Lake Forest, Ill. 1.     Elementary

2.     Advanced

3

11

3

3

16

13

[Total hours of instruction per year] 33 87
Massachusetts Institute of Technology, Boston, Mass. 1.     Political Economy, Elem., Junior Year

2.     Financial Hist. of U.S., Jun. and Sen. Year

3.     Taxation, Junior and Senior Year

4.     History of Commerce

5.     History of Industry, Junior and Senior Year.

6.     Socialism, etc. (Option), Jun. and Sen. Year

7.     History of Economic Theory (Opt.), Senior

8.     Statistics and Graphic Methods, Junior

9.     Statistics and Sociology (Option) Senior

2

 

 

 

15

 

 

 

3

3

 

3

3

 

3

2

 

2

3

15

15

 

15

15

 

15

15

 

15

15

[Total hours of instruction per year] 30 375
Michigan Agricultural College. Primary Course 5 12
[Total hours of instruction per year] 60
University of Michigan, Ann Arbor, Mich. 1.     Elements of Political Economy

2.     Elements of Political Economy

3.     Hist. Devel. of Industr. Society

4.     Finance

5.     Problems in Pol. Econ

6.     Transportation Problem

7.     Land Tenure and Agrarian Movements

8.     Socialism and Communism

9.     Currency and Banking

10.   Tariff History of U.S.

11.   Indust. and Comm. Develop. of U.S.

12.   History of Pol. Econ.

13.   Statistics

15.   Economic Thought

16.   Labor and Monopoly Problems

17.   Seminary in Finance

18.   Seminary in Economics

20.   Social Philosophy with Economic Relations

21.   Current Econ. Legislation and Literature

 

18

 

3

4

3

4

4

2

2

2

2

2

2

2

1

1

1

2

2

1

 

2

18

18

18

18

18

18

18

18

18

18

18

18

18

18

18

18

18

18

 

18

[Total hours of instruction per year] 45 756
Middlebury College, Middlebury, Vermont. 1.     Elementary (Junior Class)

2.     Advanced (Senior Class)

3.     Finance (Senior Class)

4.     Seminary

4

4

10

10

3

2

2

1

35

21

14

21

[Total hours of instruction per year] 80 196
University of Minnesota. 1.     Elementary

2.     Advanced

3.     Am. Pub. Economy

4.     Undergraduate Seminary

5.     Graduate Seminary

5

13

4

4

4

2

1

13

13

10

23

36

[Total hours of instruction per year] 65 226
University of Mississippi, University, Miss. Advanced 5 30
[Total hours of instruction per year] 150
Mt. Holyoke College, South Hadley, Mass.

Polit. Econ. (General)

Polit. Econ. Seminary

4

2

12

12

[Total hours of instruction per year] 72
College of New Jersey at Princeton.

Pol. Econ. (Elem., Elective)

Pol. Econ. (Elem., Required)

Finance (Elective)

Historics—Econ. Semin.

2

13

2

2

2

16

16

15

[Total hours of instruction per year] 26 94
College of the City of New York. 16
[Total hours of instruction per year] 48*
New Hampshire College of Agriculture and Mechanic Arts, Hanover, N. H. Elementary—Perry or Walker 4 10-12 5 10
[Total hours of instruction per year] 48 50
Oberlin College, Oberlin, Ohio. 1.     Elementary Polit. Econ.

2.     Advanced Polit. Econ.

3.     Finance

4.     History Econ. Thought

5.     Economic and Social Problems

6.     “Money,” etc.

5

12

5

5

3

3

3

2

11

12

25

13

12

36

[Total hours of instruction per year] 60 337
Ohio State University.

Elementary

Advanced

Finance

Seminary (Indust. History)

2

2

2

2

38

26

12

38

[Total hours of instruction per year] 228
Ohio Wesleyan University, Delaware, Ohio. 4 12 4 12
[Total hours of instruction per year] 48 48
Penn. Military Academy, Chester, Penn. Elementary 5 13
[Total hours of instruction per year] 65
University of Pennsylvania, Wharton, School of Finance and Economy, Philadelphia, Penn. 1.     Grad. Course in Finance

2.     Grad. Course in Theoretical Polit. Econ.

3.     Grad. Course in Statistics

4.     Elem. Course in Finance

5.     Elem. Course in Theoret. Polit. Econ.

6.     Elem. Course in Statistics

7.     Elem. Course in Practical Polit. Econ.

8.     Course in Money

9.     Course in Banking

10.   Advanced Course in Political Economy

11.   Economic History of Europe

12.   Grad. Course in Practical Polit. Econ.

13.   Econ. and Fin. History of U.S.

14.   Grad. Econ. History of the U.S.

15.   Grad. English Econ. History from 13th to 17th century

16.   Modern Econ. History.

 

 

1

2

3

3

2

2

2

2

1

2

3

2

2

4

 

3

3

30

30

30

30

30

15

15

15

30

30

30

30

30

30

 

30

30

[Total hours of instruction per year] 1020
Purdue University, Lafayette, Ind. Elementary Course 3 19
[Total hours of instruction per year] 57
Randolph Macon College, Ashland, Va. Elementary 2 32 2 32
[Total hours of instruction per year] 64 64
University of Rochester, Rochester, N.Y.

Elementary

Econ. Polit. History U.S.

5

14

5

1

14

20

[Total hours of instruction per year] 70 90
Rutger’s College. Polit. Econ. (Elementary) 3 12 4 22
[Total hours of instruction per year] 36 88
Smith College, Northampton, Mass.

Elementary Course

Adv. Course in Theory

Seminarium

Practical Studies

3

12

3

3

2

2

14

14

10

12

[Total hours of instruction per year] 36 128
South Carolina College, Columbia, S.C.

Polit. Econ. Senior Class

Applied Polit. Econ.

2

2

40

20

[Total hours of instruction per year] 120
Swarthmore College, Swarthmore, Penn.

Polit. Econ. (Walker)

Finance

Protection and Free Trade

Money and Banking

History of Econ. Theories

4

4

4

4

4

20

10

10

10

10

[Total hours of instruction per year] 240
Syracuse University, Syracuse, N.Y.

Elementary

Finance

Industrial Development since 1850

Seminary

3

2

2

2

14

10

12

38

[Total hours of instruction per year] 162
University of Tennessee, Knoxville, Tenn.

Elementary

Advanced (Post-Graduate)

3

2

20

Varies

[Total hours of instruction per year] 100?
University of Texas, Austin, Texas. General 3 36
[Total hours of instruction per year] 108
Trinity College, Hartford, Connecticut.

Elementary

Advanced

Finance

4

13

3

4

2

17

17

17

[Total hours of instruction per year] 52 153
Vanderbilt University, Nashville, Tennessee.

Political Economy, Elementary

Political Economy, Advanced

3

36

3

3

36

36

[Total hours of instruction per year] 108 216
Vassar College, Poughkeepsie, New York.

Principles of Economics

Economic History

Railroads, Trusts, and Relation of State to Monopolies

Labor Problem and Socialism

Seminary

 

 

3

3

2

 

2

2

18

18

18

 

18

18

[Total hours of instruction per year] 216
University of Vermont, Burlington, Vermont.

Elementary

Advanced

3

2

20

20

[Total hours of instruction per year] 100
University of Virginia, Charlottesville, Va.

Theory of Economics

Science of Society

3

26

3

16

16

[Total hours of instruction per year] 78 88
Washington and Jefferson College, Washington, Pa. Political Economy 3 11 3 16
[Total hours of instruction per year] 33 48
Washington and Lee University, Lexington, Va.

Elementary

Advanced

3

3

14

26

[Total hours of instruction per year] 120
Washington University, St. Louis. Prescribed Course 3 20 3 20
[Total hours of instruction per year] 60 60
Wellesley College, Wellesley, Mass.

Industrial History

Economic Theory

Statistics (Seminary)

Socialism (Seminary)

3

3

3

3

18

18

18

18

[Total hours of instruction per year] 216
Wesleyan University, Middletown, Connecticut.

General Introductory (Sen.)

General Introductory (Jun.)

Economic Problems

36

2

3

2

36

18

36

[Total hours of instruction per year] 54 198
West Virginia University, Morgantown, West Virginia.

Elementary Pol. Economy

Advanced Pol. Economy

2

2

14

36

[Total hours of instruction per year] 100
Williams College, Williamstown, Mass. Political Economy 6 14 3 15
[Total hours of instruction per year] 84 45
University of Wisconsin, Madison, Wis.

Econ. Seminary

Distribution of Wealth

History of Pol. Econ.

Money

Public Finance

Statistics

Recent Econ. Theories

Synoptical Lectures

Outlines of Economics

2

5

5

5

3

3

3

1

4

37

14½

12

10½

37

12

14½

15

37

[Total hours of instruction per year] 612½
Yale University, New Haven, Conn.

Pol. Econ.**—Elem. (2)

Pol. Econ.—Adv. (3)

Economic History (2)

Finance, Public (2)

Finance, Corporate (2)

Mathematical Theory (1)

Seminary Instruction (2)

3

2

 

36

36

36

4

3

4

2

3

1

1

36

36

36

36

36

36

36

[Total hours of instruction per year] 180 648

* [College of the City of New York] A few hours additional are given in the work of the Department of Philosophy; the whole number amounting to some 52 or 53.

** [Yale University] Figures in brackets represent numbers of courses under each head.

SourceAppendix I to “The Study of Political Economy in the United States” by J. Laurence Laughlin, The Journal of Political Economy, vol. 1, no. 1 (December, 1892), pp. 143-151.

Image Source:  J. Laurence Laughlin drawn in the University of Chicago yearbook Cap and Gown (1907), p. 208.

 

 

Categories
Gender M.I.T. Modigliani Race Suggested Reading Syllabus Undergraduate

M.I.T. Undergraduate Finance Reading List. Kuh, 1962

 

Edwin Kuh (1925-86) was hired by the Sloan School at M.I.T. in 1954, completing his Harvard Ph.D. in 1955. He was promoted to full professor of economics and finance in 1962 and was a joint appointment of the Sloan School and the department of economics. Mostly known as a pioneer in the application of econometric methods to forecasting, his New York Times obituary notes that in 1971 he worked together with Lester Thurow and John Kenneth Galbraith to devise proposals to promote affirmative action.

The undergraduate course reading list for finance transcribed for this post was fished out of Franco Modigliani’s papers at the Economists’ Papers Archive at Duke University.

_______________________

15.46 FINANCE
E. Kuh
Fall Semester, 1962

I. CAPITAL MARKETS (2 weeks)

W.L. Smith, “Monetary Policy and Debt Management”, Chapter 9, Staff Report on Employment, Growth and Price Levels, Joint Economic Committee, 1959, pp. 315-407.

R. L. Rierson, The Investment Outlook, Bankers Trust Co., 1962.

II. CAPITAL BUDGETING (8 weeks)

A. Decision Criteria—New Asset Demand

P. Massé, Optimal Investment Decisions, Ch. 1.

V. L. Smith, Investment and Production, Ch. 1, Ch. 3, pp. 62-72, Ch. 9.

E. Solomon, editor, The Management of Corporate Capital, Essays II—3, 5, 6, 7, 8.

D. Bowdenhorn, “Problems in the Theory of Capital Budgeting”, Journal of Finance, December 1959, pp. 473-92.

B. Decision Criteria—Replacement Demand

V. L. Smith, Investment and Production, Ch. 5.

P. Massé, Optimal Investment Decisions, Ch. 2.

C. Cost of Capital—Risk and Uncertainty

H. Markowitz, Portfolio Selection, 1959, pp. 1-34, 180-201, 287-97.

J. Hirschleifer, “Risk, the Discount Rate and investment Decisions”, Proceedings of the American Economic Association, May, 1961, pp. 112-120.

F. Modigliani and M. H. Miller, The Cost of Capital, Corporation Finance and the Theory of Investment, American Economic Review, June, 1958, pp. 473-492.

L. Fisher, “Determinants of Risk Premiums on Corporation Bonds”, Journal of Political Economy, June, 1959, pp. 217-37.

E. Kuh, “Capital Theory and Capital Budgeting”, Metroeconomics, (August-December, 1960), pp. 64-80.

D. Cost of Capital—Rationing

V. L. Smith, Investment and Production, Ch. 7.

E. Kuh, Capital Stock Growth, excerpts from Ch. 2 (mimeo).

E. Solomon, ed., The Management of Corporate Capital, Essay II-4.

III. DIVIDEND POLICY (2 weeks)

J. Lintner, “Distribution of Incomes of Corporations Among Dividends, Retaining Earnings, and Taxes,” American Economic Review, Supplement, May, 1956.

S. Dobrovolsky, Corporate Income Retention, 1915-1943.

IV. CURRENT POSITION (1 week)

D. Greenlaw, “Liquidity Variations Among Selected Manufacturing Companies,” M.I.T. Masters Thesis, 1957.

C. H. Silberman, “The Big Corporation Lenders,” in Readings in Finance from Fortune, Holt, 1958.

V. DEPRECIATION (2 weeks)

R. Eisner, “Depreciation Allowances, Replacement Requirements and Growth,” American Economic Review, December, 1952.

E. C. Brown, “The New Depreciation Policy Under the Income Tax: An Economic Appraisal,” National Tax Journal, March, 1955.

Article on Depreciation Practices in Europe, National City Bank Newsletter, September, 1960.

E. C. Brown, “Tax Incentives for Investment”, Proceedings, American Economic Review, May, 1962, pp. 335-45.

William H. White, “Illusions in the Marginal Investment Subsidy”, National Tax Journal, March 1962.

E. C. Brown, “Comments on Tax Credits as Investment Incentives”, National Tax Journal, June 1962, pp. 198-204.

 

Source:  Duke University. David M. Rubenstein Rare Book and Manuscript Library, Economists’ Papers Archive. Franco Modigliani Papers, Box T1, Folder: “Capital Markets, 15.432. Spring 1963”.

Image Source: MIT Museum website. People: Kuh, Edwin.

Categories
M.I.T. Regulations Teaching Undergraduate

M.I.T. Dean’s request for writing requirements for elective subjects in economics department, 1953

 

The following exchange between the M.I.T. Dean of Humanities and Social Studies (John E. Burchard) and the representative of the chairperson of the Economics Department (Charles A. Myers covering for Ralph E. Freeman) gives us a short list of undergraduate courses that would have regularly had non-economics B.S. students attending to satisfy their distributional requirements in 1953. Dean Burchard’s informational request seems to be a fishing expedition with the hope of landing any evidence that some instructor in some course was helping to improve M.I.T. undergraduate writing skills. It is also interesting to see that sociology, psychology, and political science were all subjects  administered by the economics department.

____________________________

Dean Reminding Economics Department about Information Request

May 6, 1953

Memorandum to Professor [Charles Andrew] Myers:

I asked Ralph [Evans Freeman] a while ago to get me some information but have not heard from him and imagine it got left and wonder if you could undertake this survey for me in the near future and give me an answer.

The problem is that those of us who were worried about the English style of our students at M.I.T. are pretty certain that we will never get a good overall performance on the mere basis of instruction in the first two years where writing is required and read and criticized. The burden of continuously upholding the standard obviously is going to rest with the professional departments and I have no doubt there are great inconsistencies in this throughout the Institute, and I also have no doubt most of them are pretty remiss in this obligation.

Before starting any campaign on this question, however, it is obvious that I need to know whether the house of my own School is in point of fact in order, or if not how far it is out of order.

I accordingly asked Professor [Howard Russell] Bartlett and Professor [Ralph] Freeman to get me an indication of the amount of writing required in the various subjects which might be elected by students in the School. In the History Department this was obviously limited to non-professional subjects and for the moment I am more interested in the general electives in the Department of Economics than I am in what policing you do of your own majors. It would be more helpful to know about both.

What Professor Bartlett did was write me a general answer which told me how many papers were required each semester, the approximate length, and how many written examinations. I wonder if it would be possible for you to dig out the same information for the various appropriate subjects in the Department of Economics and report to me fairly soon. I would like to be thinking about this problem during the summer.

Sincerely yours,
[unsigned]
John E. Burchard
Dean of Humanities and Social Studies

Jeb/h

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

Economics Department’s First Response to Dean’s Request for Information

Massachusetts Institute of Technology
Industrial Relations Section
Department of Economics and Social Science
Cambridge, Massachusetts

May 11, 1953

Memorandum to Dean John E. Burchard

Dear John:

This is in answer to your memorandum of May 6th. I guess this is something Ralph was unable to compete before he left and I thought I should get done promptly since I will be leaving tomorrow for the annual research meeting of the Committee on Labor Market Research of the Social Science Research Council in Minneapolis. George Shultz is one of the invited guests.

Perhaps the best way to answer your question is to list what the various people in charge of the various undergraduate subjects reported:

14.01 [Economic Principles I] ([Robert Lyle] Bishop) — 3 or 4 written hour examinations, mostly of the essay type
14.02 [Economic Principles II] ([Edgar Carey] Brown) — 4 written hour examinations, no term papers
14.03 [Prices and Production] ([Robert Lyle] Bishop) — 2 to 3 hour examinations; no term papers
14.09 [Economic Problems Seminar] ([Paul Anthony] Samuelson) — no written exams, but 2 written papers, one long and one short, plus oral presentation of the content of the paper prior to the submission of the written paper
14.51 [International Relations] ([Norman Judson] Padelford) — 8 written quizzes of 35 to 40 minutes in length; no term paper, except that sometimes there are written projects.
14.61 [Industrial Relations] (Doug [Douglass Vincent] Brown and [John Royston] Coleman) — 3 hour examinations and 3 written case reports
14.63 [Labor Relations] ([George Pratt] Shultz) — 3 written hour examinations and one term paper
14.64 [Labor Economics and Public Policy] ([George Benedict] Baldwin) — 3 hour examinations and one written term paper
14.70 [Introductory Psychology] ([George Armitage] Miller) — 2 or 3 written hour examinations, partly objective in character; no term paper
14.72 [Union-Management Relations] ([Joseph Norbert] Scanlon) — 2 hour examinations and a special paper on a particular case
14.73 [Organization and Communications in Groups] ([Alex] Bavelas and [Herbert Allen] Shepard) — 2 objective-type examinations and one written essay-type examination
14.75 [Experimental Psychology] ([Joseph Carl Robnett] Licklider) — no examinations, but a written paper on the experiment, suitable for publication — this latter test is never quite met but students are expected to write with that end in view
14.77 [Psychology of Communication] ([George Armitage] Miller) — 3 objective-type examinations
14.91 and 14.92 [The American Political System;
Comparative Political and Economic Systems]
([Jesse Harris] Proctor and [Roy] Olton) — 3 written hour exams, no term paper in the first term — 3 written hour exams plus a written term paper in the second term
15.30 [Personnel Administration] ([Paul] Pigors) — 4 written cases, one term paper and one hour examination

 

I think this pretty well covers the principal courses which are taken by undergraduate students in other departments. I think my own experience in teaching such undergraduate courses as 14.61 and 14.63 is similar to that of most of the staff, in that I have called attention to students of misspelled words, poor grammar, and generally poor organization and expression of written answers and papers. I really doubt if we can do much more or should do much more. It would be quite a task to go over each written examination with each student in detail, or even to do this after they have submitted a term paper. From time to time I have done this with some theses but not as a general rule, since the student is warned in advance that his grade will depend not only on content, but on expression.

I hope this gives you the information you need.

Sincerely
[signed] Charlie
Charles A. Myers

m:g

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

Follow-up Request by Dean

May 12, 1953

Memorandum to Professor Myers

Dear Charlie:

Your memorandum of yesterday answers my question about the writing in part.

I guess I agree, though I wish I didn’t have to, that people in the department cannot be expected to act as writing critics for students who are still defective in their English. Though I wish more people required papers and fewer examinations, this is obviously a matter of individual teachers’ methods.

The remaining question which I think is not answered is I believe a critical one, namely, does poor writing really result in a lower grade, and if it does is that single comment written on to the paper when it is returned with the grade to the student?

I hate to trouble you further but wonder if you would be able to explore this with the same group of people.

Sincerely yours,
[unsigned]
John E. Burchard
Dean of Humanities and Social Studies

Jeb/h

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

Economics Department’s Response to Follow-up Request by the Dean

Massachusetts Institute of Technology
Industrial Relations Section
Department of Economics and Social Science
Cambridge, Massachusetts

June 1, 1953

Memorandum to Dean John E. Burchard

Dear John:

These are some further thoughts on your memo of May 12th, asking me to check again on whether poor writing really results in a lower grade in our courses and whether comments are written on the papers when they are returned with grades to the students.

Nearly everyone with whom I have talked here agrees that poor writing does result in a lower grade, if by “poor writing” is meant poor organization, hasty sentence construction, and confusing or fuzzy thinking as expressed in written words. Poor spelling apparently does not count so much, although Bob Bishop and I specifically do encircle misspelled words on written exams and papers. Comments on poor organization, etc., are specifically written on papers and exams when returned to students, and I know that many of us have stressed to students before writing exams and papers that their grades will depend in part on the way in which their material is organized and presented.

One further experience might be of interest in connection with your comment that you wish more people would require papers and fewer examinations. During the past term Jim Baldwin gave term papers in 14.64 and found that the pressure of senior theses on the students was so great that they did a very poor job on the papers. His grades reflect this, but he is bothered about the apparent conflict between the senior thesis and the term paper requirement in senior Humanities and Social Studies courses. Maybe we ought to place more emphasis on good writing in the senior thesis in the Department and in other Departments.

Sincerely,
[signed] Charlie
Charles A. Myers

CAM:dg

Source: M.I.T., Institute Archives and Special Collections, School of Humanities and Social Sciences. Office of the Dean, Records, 1934-1964. Box 3, Folder “103, Economics Department, General, March 1951-1956”.
For [first and middle names of instructors] and [course titles]: Course Catalogue of the Massachusetts Institute of Technology, 1952-53.

Image Source: (Left) John Burchard ; (Right) Charles A. Myers. MIT Museum Legacy Website (People Collection).

Categories
M.I.T. Suggested Reading Syllabus

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

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

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

_____________________

Earlier versions

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

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

_____________________

14.462—Monetary Economics
Franco Modigliani and William Poole
Spring 1977

Asterisks indicate required reading

Abbreviations

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

General References

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

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

I. Introduction—The Nature of Money and Other Claims

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tobin, James, Manuscript, Chapter 8.

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

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

III. Other Financial Intermediaries and their Balance Sheets

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

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

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

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

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

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

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

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

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

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

IV. The Demand for Money

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

Brunner, Karl and Allan Meltzer, op. cit.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

___________, Rasche and Cooper, op. cit.

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

V. Interest Rate Determination and Term Structure

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

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

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

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

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

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

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

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

Modigliani, Rasche and Cooper, op. cit.

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

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

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

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

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

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

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

VI. The Transmission Mechanism, etc.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

VII. Monetary Policy: Optimal Control and Related Issues

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

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

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

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

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

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

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

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

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

VIII. Monetary Policy: Rational Expectations and Related issues

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

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

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

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

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

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

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

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

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

 

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

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