Category: Suggested Reading

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Cornell Harvard Suggested Reading

Harvard. Local taxation. Suggested topics and readings. Durand, 1902

 

This posting was prepared at the INET Festival for New Economic Thinking in Edinburgh (October 19-20, 2017). It turned out to be a nice case-study of preparing an artifact for Economics in the Rear-view Mirror. Edward Dana Durand was a Cornell Ph.D. in economics and statistics who was to go on to be a director of the U.S. Census. He taught at Harvard in 1902, between jobs. For this course I was only able to find the instructions for preparing a report on taxation with suggested reading.  Course description, enrollment figures as well as two short biographical pieces are included below.

A memorial piece by K. Pribram was published as “Edward Dana Durand (1871-1960)” in Revue de l’Institut International de Statistique / Review of the International Statistical Institute  Vol. 28, No. 1/2 (1960), pp. 118-120.

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EDWARD D. DURAND
THE NEW CENSUS DIRECTOR

The Outing Magazine, August 1909

WHEN your chief says it will take a “corking” good man to fill your place, it means he is paying you the best compliment possible. This is what Commissioner of Corporations Herbert Knox Smith said of his deputy, Edward Dana Durand, when the commissioner was told that President Taft had decided to place Mr. Durand at the head of the Census Bureau. In his office on the floor above Mr. Durand received the news with the pleasure of feeling that a part of his ambitions were about to be realized. He felt that he had at last been chosen to fill the most exacting office that could be assigned to a statistician.

Naturally Mr. Durand will encounter many difficulties in his new position, but it is expected that his confidence in himself will be of as great aid as it has been in the past. Different from Mr. North, his work is academic, Mr. Durand being possibly the best-trained statistician ever appointed to the position of Director of the Census Bureau.

While he has held various positions as a teacher, Mr. Durand has not gained the distinction in academic work that he has outside. Nevertheless his success in government service has been speedy and gratifying. His most significant work in the public eye has been his book on the finances of New York City, his work with the Industrial Commission, and with the Bureau of Corporations. While serving as secretary of the Industrial Commission he edited a very creditable report of nineteen volumes. This proved that while Mr. Durand is not a good writer he is a good organizer. As Deputy Commissioner of Corporations he gained experience with the report on the Beef Trust, for which report he was chiefly responsible. He set his standard as a statistician, however, in his report on the Standard Oil Trust, which was issued from the same bureau.

Mr. Durand was born in Romeo, Michigan, October 18, 1871, his father being Cyrus Y. Durand, a druggist. He is one of five children, all now living.

He lived for about eleven years at Romeo, when the family moved to Huron, South Dakota, then a very new town, and “took up a claim” of land near there. Mr. Durand finished his high-school education at Huron, and then went for one year to Yankton College. From there he went to Oberlin College, Ohio, and graduated there in 1893. During the summer of 1893 Mr. Durand was stenographer to the Secretary of the World’s Columbian Exposition at Chicago. He then went to Cornell University and took a post-graduate course in political science, economics, and statistics. During this time he was assistant to Prof. J. W. Jenks, Secretary of the American Economic Association. He received the degree of Doctor of Philosophy from Cornell, in 1896.

After leaving Cornell Mr. Durand was employed for nearly two years in the New York State Library, at Albany, his special duty being to prepare material for the assistance of members of the Legislature, including the publication of indices and digests of the laws passed annually by the various states of the country.

At the beginning of 1898 Mr. Durand was appointed Assistant Professor of Political Economy and Finance at Stanford University, California, where he remained for a year and a half. When the Industrial Commission, of which he was secretary, was disbanded, he lectured on corporation and labor questions for a year at Harvard University. In 1903 he was appointed an expert on street railways in the Census Bureau, where he held the position of special examiner for about four months before being called to the Bureau of Corporations.

He was married in 1903 to Mary Elizabeth Bennett, who had been a classmate of his at Oberlin College. They have two children, both boys.

When he finishes his work with the Census he may have his other ambition gratified of being called back to academic work, possibly as president of some college.

Mr. Durand becomes Director of the Census Bureau upon the eve of taking the Thirteenth Census of the United States. This is the government’s largest statistical job, and since our census is more elaborate and detailed than that of any foreign country, it can be recognized what the new officer has to encounter. Some idea of the immensity of the work can be gained by a study of the act of Congress authorizing the taking of the census.

While Mr. Durand is very affable in his manners there is nothing effusive about him. Of medium height and build, his forehead so high as to give the impression of being slightly bald, and wearing a small moustache, he is withal of striking appearance. During the last few days that he was Deputy Commissioner of Corporations he could be found busily engaged in putting the office in order for his successor. The days were warm and he worked without his coat, wearing most of the time a white shirt and a double-ply collar with a small black bow-tie.

Source: The Outing Magazine, Vol. 54, August 1909, pp. 563-564.

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 U. S. Census Bureau: History/Directors

Edward Dana Durand (1909-1913): Durand was born, in 1871, in Romeo, Michigan. When he was still a child, however, his parents moved to a homestead in South Dakota. Durand attended Yankton College for one year before transferring to Oberlin College. He received a Ph.D. from Cornell University in 1896. After receiving his doctorate, Durand moved between several government and academic positions until 1909, when he became deputy commissioner of corporations. Later that year, President Taft appointed him the new director of the census. He replaced Samuel North, who had left after repeated clashes with the secretary of commerce and labor, and took over the Census Bureau well into the planning process for the 1910 census.

Durand concentrated much of his energy on improving the preparation of census reports. He pioneered several lasting innovations in the presentation of data at the Census Bureau. For example, Durand introduced the publication of state-level reports and the early release in press releases of statistics for which there was the greatest demand (such as the total population of individual cities, states, and the United States population). These releases were be followed by bulletins, abstracts, and final reports with greater detail.

After leaving the Census Bureau in 1913, Durand eventually took a place on the U.S. Tariff Commission, where he served from 1935 until his retirement in 1952. He died in 1960.

Source:  From webpage of the U.S. Census Bureau. History, Directors 1909-21  .

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Course Description

[7b2 hf. The Theory and Methods of Taxation, with special reference to local taxation in the United States. Half-course (second half-year).]

Omitted in 1902-03. [sic]

In this course both the theory and practice of taxation will be studied. Attention will be given at the outset to the tax systems of England, France, and Germany; and the so-called direct taxes employed in those countries will receive special consideration. After this, the principles of taxation will be examined. This will lead to a study of the position of taxation in the system of economic science, and of such subjects as the classification, the just distribution, and the incidence of taxes. Finally, the existing methods of taxation in the United States will be studied, each tax being treated with reference to its proper place in a rational system of federal, state, and local revenues.

Written work will be required of all students, as well as a systematic course of prescribed reading. Candidates for Honors in Political Science and for the higher degrees will be given the opportunity of preparing theses in substitution for the required written work.

Course 7b is open to students who have taken Economics 1.

Source:   Harvard University, Faculty of Arts and Sciences. Division of History and Political Science comprising the Departments of History and Government and Economics, 1902-03 (University Publications, New Series, no. 55, June 13, 1902), pp. 49-50.

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Course Announcement

7b1 hf. The Theory and Methods of Taxation, with special reference to local taxation in the United States. Half-course (first half-year). Mon., Wed., Fri., at 12. Dr. Durand.

 

Source:   Harvard University, University Publications, new Series, No. 8 Extra Ed., Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year, 1902-03 (1902), p. 44.

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Course Enrollment

7b 1hf. Dr. Durand.—The Theory and Methods of Taxation, with special reference to local taxation, in the United States.

Total: 21.   3 Graduates, 13 Seniors, 4 Juniors, 1 Other.

 

Source: Harvard University, Annual Report of the President of Harvard College, 1902-03, p. 68.

http://pds.lib.harvard.edu/pds/view/427018754?n=70&oldpds

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ECONOMICS 7b
REPORTS AND THESES, 1902

Each student is expected to prepare a brief, informal report on the system of State and local taxation in some particular State. The report should describe chiefly present methods, with considerable fullness, but need not enter into extensive criticism of the working of the system. The amount received by the State treasury from various sources should be stated wherever practicable. Reliance should be placed mainly on original documents. Among the States whose finances are most interesting and can be most easily and satisfactorily treated are: Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Ohio, Indiana, Michigan, Illinois, Wisconsin, Iowa, Maryland, North Carolina, Kansas, Mississippi, Georgia. Students will do well to write to the State comptroller or auditor for copies of tax laws and financial reports.

A more extensive and formal thesis will also be presented by each student. it should be primarily descriptive, but should involve some account of historical development, and careful criticism of the working of the system or method covered.        Exact references, by title, volume, and page, or by chapter and section, must be given for all facts cited, whether in reports or theses, and a bibliography of works consulted must be appended. Large diagrams should be prepared where statistics suitable for graphic presentation are found.

The following topics for theses are suggested, but others may be chosen if desired: —

SUGGESTED THESIS SUBJECTS

  1. The United States Internal Revenue System.
  2. History of the Tariff up to the Civil War.
  3. The Tariff during and since the War.
  4. Special War Taxes in the United States.
  5. The Federal Income Tax.
  6. Constitutionality of the Income Tax of 1894.
  7. The Tax System of Great Britain.
  8. The Tax System of Prussia.
  9. Taxation in the Australasian Colonies.
  10. Taxation in Massachusetts.
  11. Taxation in New York.
  12. Taxation in Pennsylvania—or some other selected State.
  13. Progressive Taxation in Practice.
  14. Excise Taxes in the United States and Europe.
  15. Stamp and Transaction Taxes.
  16. The Income Tax in the United States and Foreign Countries.
  17. Personal Property under the General Property Tax.
  18. Double Taxation under the General Property Tax.
  19. Theoretical Comparison of Property and Income Taxes.
  20. The Inheritance Tax.
  21. Taxation of Land Values.
  22. Business License Taxes.
  23. General Corporation Taxes.
  24. Taxation of Railroads.
  25. Taxation of Banks and insurance Companies.
  26. Legal Aspects of Corporation Taxes.
  27. Relation of State and Local Taxation.
  28. Special Assessments.
  29. Exemptions from Taxation in the United States.

CHIEF SOURCES FOR REPORTS ON STATE TAXATION

Poor, B. P.: Constitutions.

Clapperton, Geo.: Taxation in Various States and Canada. In Reports of the Industrial Commission. Vol. XI.

New York State Library: State Finance Statistics, 1890, 1895.

Census of 1890: Valuation and Taxation.

Ely, R. T.: Taxation in American States and Cities.

Seligman, E. R. A.: State Finance Statistics. In Publications of American Statistical Association, 1889.

Hollander, J. H., Ed.: Studies in State Taxation.

Chapman, J. W.: State Tax Commissions in the United States. In Johns Hopkins University Studies, 1897.

Reports of special State commissions and committees on taxation. The most important are the following, which are mostly in the library: Massachusetts, 1875, 1897; New York, 1871-72, 1894, 1900; Pennsylvania, 1889; Connecticut, 1887; Ohio, 1893; Maine, 1889; New Jersey, 1897; Illinois, 1885; Wisconsin, 1899-1901; Oregon, 1886.

Reports of State Bureaus of Labor Statistics in Illinois, 1894 and 1896; Missouri, 1896; Connecticut, 1896.

Compilations of tax laws of individual states, published separately, or in general compilations, known as Revised Statutes, General Laws, etc. Accessible in Law School.

Reports of State comptrollers or auditors, State treasurers, and State boards of assessment, equalization, etc. Few are in the Harvard Library, but many may be found in the Massachusetts State Library and the Boston Public Library, and others may be obtained by correspondence.

 

BIBLIOGRAPHY OF GENERAL WORKS

Many of the above references will be useful in preparing theses.

Wells, D. A.: Theory and Practice of Taxation.

Cossa, L.: Taxation, its Principles and Methods.

Cohn, G.: The Science of Finance (translation).

Leroy-Beaulieu, P.: Traité de la Science des Finances.

Wagner, A.: Finanzwissenschaft.

Palgrave, R. H. I.: Dictionary of Political Economy.

Conrad, J.: Handwörterbuch der Staatswissenschaften.

Say, L.: Dictionnaire des Finances.

Statesman’s Yearbook.

United Kingdom: Statistical Abstracts for Foreign Countries.

United States Treasury Reports.

Industrial Commission: Vol. XIX, Taxation: Vol. IX, Taxation of Transportation Companies; Vol. XI, Clapperton’s report.

Reports of the Special Commissioner of the Revenue, 1866-69.

Cooley, T. M.: Law of Taxation.

Howe, F. C.: Taxation under the Internal Revenue System.

Columbia College Studies in History, Economics, and Public Law; Various monographs on State systems and on special methods of taxation.

Seligman, E. R. A.: Essays in Taxation, Shifting and Incidence of Taxation, Progressive Taxation in Theory and Practice.

 

Source: Harvard University Archives. Syllabi, Course Outlines and Reading Lists in Economics, 1895-2003 (HUC 8522.2.1), Box 1, Folder “Economics, 1902-03”.

 

 

 

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Harvard Suggested Reading Syllabus

Harvard. Undergraduate Honors Economic Theory Readings. Duesenberry and Kaysen, 1951-52

 

 

For some reason the annual Report of the President of Harvard College for 1951-52 does not include the staffing and enrollment figures for courses offered during the academic year. I have been using these annual reports to verify the actual staffing for courses because the course announcements are sometimes inaccurate, being by their nature listings published before the academic year gets going, but at least certainly before the second semester begins. Many times, though not always, there is an instructor’s name at the head of the course reading assignments that have been filed with the library for placing items on reading reserve. Thus for the undergraduate honors course “Economic Theory and Policy” (Economics 101), I am only certain that James Duesenberry taught the first semester (he is named in the Crimson article excerpt below, also in the course announcement, and finally on the first semester reading list itself). Carl Kaysen is mentioned in the course announcement for the second semester of the course, but there is no name on the second semester reading list nor can I verify without an ex post staffing report for the course. Let’s just say there is a strong presumption that Carl Kaysen indeed taught the second semester of Economics 101.

Note the second semester reading list ends with “to be continued” but, alas,  there is no further list to be found in the file.

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Harvard Crimson Report

Three Steps to Economics

The Department’s courses have been organized on three levels, although Economics 1 is the only prerequisite for any course. Economics 1 is the first level course, a dull but thorough introduction to the field. A department committee is now at work considering revising the curriculum, and it is hoped that this basic course will be brighter next year.

There are four courses on the second level, each covering a division of the department. Theory and Policy (101) discusses current theories of production, exchange, and distribution. Professor Duesenberry will take over complete charge of this course next year. It is generally considered dull but important. Almost all of the students are honors candidates, and the course is graded accordingly….

Source: The Harvard Crimson, April 28, 1950.

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Course Announcement

For Undergraduates and Graduates

The courses for Undergraduates and Graduates, unless otherwise stated, are open only to students who have passed in Economics 1.

Economics 101. Economic Theory and Policy

Full course. Mon., Wed., and (at the pleasure of the instructor) Fri., at 12.
Fall term: Assistant Professor Duesenberry; Spring term: Assistant Professor Kaysen.

Current theories of production, exchange, and the distribution of the national income, with some indications as to their relevance to contemporary economic problems. The course will be carried on mainly by discussion. It is intended primarily for candidates for the degree with honors and may be taken only with the consent of the instructor.

 

Source. Final Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1951-52. Official Register of Harvard University, Vol. XLVIII (September 10, 1951) No. 21, p. 76.

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James S. Duesenberry

Economics 101a—Economic Theory
Fall term, 1951-52

I. The Problems of Economics

Samuelson: Economics. Chapter 1
Phelps-Brown: Framework of the Pricing System. Chapter 1
Council of Economic Advisers: Mid-year Report. July 1951

 

II. The Classical System

Ricardo: Principles of Political Economy and Taxation. Chapters 1, 2, 4, 5, 6, 21
Mill: Principles of Political Economy. Book I, Chapters 4, 5, 6, 10, 11, 12, 13
Book II, Chapters 11, 12, 13, 15, 16
Baumol: Economic Dynamics. Chapter 2

 

III. General Equilibrium Theory

Phelps-Brown: Framework of the Pricing System. Chapters 2-5
Marshall: Principles of Economics 8th edition. Books V and VI
Stigler: Theories of Production and Distribution. Chapters 4, 9

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Economics 101, Spring Term 1951-52
Reading List

I. The Keynesian System

  1. Keynes, General Theory, Chs. 1-3, 8-11, 13, 15, 18
  2. J. R. Hicks, “Mr. Keynes and the Classics”, No. 24 in Blakiston, Readings in Business Cycle Theory.
  3. L. R. Klein, The Keynesian Revolution, Ch. 1-3.

 

II. Dynamics

  1. Keynesian Dynamics
    1. Keynes, General Theory, Ch. 22
    2. E. D. Domar, “Expansion and Employment,” American Economic Review, March 1947
    3. W. J. Fellner, Monetary Policy and Full Employment, Ch. 1, 2, 3
  2. Schumpeterian Dynamics
    1. Schumpeter, Business Cycles, Volume I, Ch. 3, 4, 6
  3. Marxian Dynamics
    1. Schumpeter, Capitalism, Socialism and Democracy, Ch. 1-4
    2. J. Robinson, Essay on Marxian Economics
  4. General Review
    1. W. J. Baumol, Economic Dynamics, Chs. 3, 4

[to be continued]

Source:   Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Fox 5, Folder “Economics, 1951-1952 (1 of 2)”.

Image Source: Duesenberry in Harvard Class Album 1951; Kaysen as 1955 John Simon Guggenheim Memorial Foundation Fellow

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Bibliography Columbia Courses Economists Suggested Reading

Columbia. Friedman’s lecture notes to first Hotelling lecture in Mathematical Economics, 1933

 

 

On October 3, 2017, Antoine Missemer tweeted an image of an undated examination question by Harold Hotelling “Describe two mathematical contributions to economics published before 1910”. One should note that asking students to talk about work published at least a quarter century before the current academic year is not necessarily a deep dive into the history of economics, though of course Cournot, Bertrand and Edgeworth had achieved “historical” fame by 1933.

From Harold Hotelling’s course in Mathematical Economics taught in the first semester of 1933/34 at Columbia, Milton Friedman kept about forty-five 3 by 5 inch index cards worth of notes (both sides). From his first lecture, we can put together a convenient “short list” of Hotelling’s chosen greatest hits in mathematical economics. I have taken the liberty of expanding Friedman’s abbreviations, figuring the main purpose of transcribing archival material is to ease digital search down the road.

Earlier postings include a list of Hotelling’s courses and his class rolls at Columbia as well as an outline and exam for his course in mathematical economics offered at North Carolina (1946, 1950).

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Milton Friedman’s student notes to Harold Hotelling’s first lecture in Mathematical Economics (1933)

9/2/33 (1)

Hotelling, Harold on Mathematical Economics

Has been stated that methodological difference between economics + natural sciences is that in former cannot + in latter do experiments

Not entirely true: in econonomics may experiment, + in some physical sciences (e.g. astronomy, meteorology etc.) do not experiment.

Better dividing line to be found in number of relevant factors

 

Use of Mathematics in Economics:

A. Cournot 1838

J. Bertrand 1883 Journal des Savants (reviewed Cournot)

F. Y. Edgeworth 1881 Math. Psychics. Papers relating to Pol. Economy.

Pareto

Alfred Marshall Principles of Economics

(Edgeworth laid foundation of many theories more modern than Marshall

Using higher Mathematics in Economics

G. C. Evans

C. F. Roos

Zeuthen

Pareto in Encyclopedie des Science Math, Vol I, Tome IV part 4 (Tome I, Vol. IV)

[Yes, that is all that Friedman wrote down for that lecture]

Source: Hoover Institution Archives. Milton Friedman Papers, Box 120, Class note cards.

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Links to Works Referred to by Hotelling

Cournot, Augustin. Recherches sur les Principes Mathématiques de la Théorie des Richesses. Paris: Hachett, 1838.

Nathaniel T. Bacon translation: Researches into the Mathematical Principles of the Theory of Wealth with a bibliography of Mathematical economics by Irving Fisher. New York: Macmillan, 1897.

Bertrand, J. (Review of) Théorie Mathématique de la Richesse Sociale par Léon Walras: Recherches sur les Principes Mathématiques de la Théorie des Richesses par Augustin Cournot. Journal des Savants 67 (1883), 499-508.

Edgeworth, F. Y. Mathematical Psychics. An Essay on the Application of Mathematics to the Moral Sciences. C. Kegan Paul & Co., 1881.

Edgeworth, F. Y. Papers Relating to Political Economy.  Volume I;  Volume II; Volume III. London: Macmillan, 1925.

Pareto, Vilfredo. Économie mathématique, —in Encyclopédie des sciences mathématique, Tome I, vol. 4 (Fascicule 4, pp. 590-640), 1906 [?].

Marshall, Alfred. Principles of Economics (8th edition). London: Macmillan, 1920.

Griffith C. Evans. Mathematical Introduction to Economics. New York: McGraw-Hill Book Co., 1930.

Reviewed by Hotelling in Journal of Political Economy, 39, no. 1 (Feb 1931) pp. 107-09.

F. Zeuthen Problems of Monopoly and Economic Warfare. London: Routledge, 1930.

Reviewed by Corwin D. Edwards (New York University) in AER, 21, no. 4 (December, 1931), pp. 701-704.

Charles Frederick Roos. Dynamic Economics—Theoretical and Statistical Studies of Demand, Production and Prices. Monographs of the Cowles Commission for Research in Economics, No. 1. Bloomington, Indiana: Principia Press, 1934.

 

Image source: From a photo of the Institute of Statistics leadership around 1946: Gertrude Cox, Director, William Cochran, Associate Director-Raleigh and Harold Hotelling, Associate Director-Chapel Hill. North Carolina State University.

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Berkeley Suggested Reading Syllabus

Berkeley. Graduate Macroeconomics. Syllabus, 1959

 

The following reading list from the University of California (Berkeley), Spring 1959, was found in the papers of Martin Bronfenbrenner who as far as I can determine was at Michigan State at the time. Perhaps someone who looks at the reading list (formatted more-or-less to look like the original mimeo) could identify which of the instructors listed for the course (Papandreou, Scitovsky, Caves, Minsky) might have assembled the reading list. The capitalization of book titles is not common. It is also interesting to note that income distribution, typically part of the second term of price theory elsewhere, is covered before turning to more familiar (today) macroeconomics territory.  Something else worth noting is the use of “macro-statics” and “macro-dynamics”. Comments welcome!

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Course Announcement

Graduate Courses

Admission to graduate courses requires, in all cases, the consent of the instructor. Undergraduate courses are not prerequisite to graduate courses, except where indicated.

 

200A-200B. Fundamentals of Economic Theory. (3-3) Yr.

            [Harvey Leibenstein, Ph.D., Associate Professor of Economics, in residence, fall semester only, 1958-59; Tibor Scitovsky, M.Sc., J.D., Professor of Economics; Philip W. Bell, Ph.D., Associate Professor of Economics, in residence, fall semester only, 1958-59; Richard E. Caves, Ph.D., Assistant Professor of Economics; Hyman P. Minsky, Ph.D., Assistant Professor of Economics.]

200A. Micro-economics: the behavior of firms and households, and the determination of prices and resource allocation patterns in a decentralized economy. Mr. Bell, Mr. Leibenstein, Mr. Scitovsky.

200B. Macro-economics: general interdependence and the behavior of aggregates in a decentralized economy. National income and employment determination. The impact of fiscal and monetary policies on employment, national income and its distribution. [Andreas G. Papandreou, Ph.D., Professor of Economics (Chairman of the Department)], Mr. Scitovsky, Mr. Caves, Mr. Minsky.

Source:   Bulletin of the University of California 1958-59. General Catalogue. Announcement of Courses, Departments at Berkeley. Fall and Spring Semesters, 1958-59. (July 10, 1958), pp. 109, 114.

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UNIVERSITY OF CALIFORNIA
Department of Economics
Spring, 1959

Reading List
Economics 200B

 

It is suggested that students purchase the following works:

J. M. Keynes, THE GENERAL THEORY OF EMPLOYMENT, INTEREST, AND MONEY
U. S. Department of Commerce, 1954 NATIONAL INCOME SUPPLEMENT to the survey of CURRENT BUSINESS.

I. The Pricing of Productive Services and the Distribution of Income

G. J. Stigler, THE THEORY OF PRICE, chaps. 10, 15
J. R. Hicks, THE THEORY OF WAGES, chaps. 1-4
E. Rolph, “The Discounted Marginal Productivity Doctrine,” in American Economic Association, READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 278-293
F. A. v. Hayek, “The Mythology of Capital,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 355-383
D. H. Buchanan, “The Historical Approach to Rent and Price Theory,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 599-637
F. H. Knight, “Profit,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp., pp. 533-546
B. F. Haley, “Value and Distribution,” SURVEY OF CONTEMPORARY ECONOMICS, Vol. I (ed. H. S. Ellis), pp. 26-48
N. Kaldor, “Alternative Theories of Distribution,” REVIEW OF ECONOMIC STUDIES, XXIII (1955-56), pp. 83-100
M. Kalecki, “The Distribution of the National Income,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 197-217

II. Macro-statics: National Income and Aggregate Demand

U. S. Department of Commerce, 1954 NATIONAL INCOME SUPPLEMENT
O. Lange, “Say’s Law: A Restatement and Criticism,” STUDIES IN MATHEMATICAL ECONOMICS AND ECONOMETRICS (ed. O. Lange, F. McIntyre, and T. O. Yntema), pp. 49-68

III. Consumer Behavior, the Consumption Function and Income Levels

J. S. Duesenberry, “Income-Consumption Relations and Their Implications,” in INCOME, EMPLOYMENT AND PUBLIC POLICY, ESSAYS IN HONOR OF ALVIN H. HANSEN, pp. 54-81.
J. Tobin, “Relative Income, Absolute Income, and Saving,” MONEY, TRADE, AND ECONOMIC GROWTH, ESSAYS IN HONOR OF J. H. WILLIAMS, pp. 135-156
M. Friedman, A THEORY OF THE CONSUMPTION FUNCTION, chaps. 2, 3
P. A. Samuelson, “The Simple Mathematics of Income Determination,” INCOME, EMPLOYMENT AND PUBLIC POLICY, pp. 133-155

IV. Business Behavior, the Level of Investment and the Rate of Interest

T. Scitovsky, WELFARE AND COMPETITION, pp. 216-226
J. Meyer and E. Kuh, “Acceleration and Related Theories of Investment,” REVIEW OF ECONOMICS AND STATISTICS, XXXVII, (August, 1955), pp. 217-230
A. P. Lerner, “On the Marginal Product of Capital and the Marginal Efficiency of Investment,” JOURNAL OF POLITICAL ECONOMY, LXI (February, 1953), pp. 1-15
J. R. Hicks, VALUE AND CAPITAL, chaps. 11-13
N. Kaldor, “Speculation and Economic Stability,” REVIEW OF ECONOMIC STUDIES, VII (October, 1939), pp. 1-27
J. Tobin, “Liquidity Preference and Monetary Theory,” REVIEW OF ECONOMICS AND STATISTICS, XXIX (May, 1947), pp. 124-130

V. Macro-static Models

P. Lerner, THE ECONOMICS OF CONTROL, chaps. 21-25
L. R. Klein, “Theories of Effective Demand and Employment,” JOURNAL OF POLITICAL ECONOMY, LV (April, 1957), pp. 108-131
J. R. Hicks, “Mr. Keynes and the ‘Classics’; A Suggested Interpretation,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 461-476
F. Modigliani, “Liquidity Preference and the Theory of Interest and Money,” READINGS IN MONETARY THEORY, pp. 186-240
D. Patinkin, “Price Flexibility and Full Employment,” READINGS IN MONETARY THEORY, pp. 252-283

VI. Macro-dynamics and Economic Growth

E. D. Domar, “Expansion and Employment,” AMERICAN ECONOMIC REVIEW, XXXVII (March, 1947), pp. 34-55
R. Solow, “A Contribution to the Theory of Growth,” QUARTERLY JOURNAL OF ECONOMICS, LXX (February, 1956), pp. 65-93

VII. Inflation

A. C. L. Day, AN OUTLINE OF MONETARY ECONOMICS, CHAPS. 19-31

Source: Duke University, Rubenstein Library. Economists’ Papers Archive. Martin Bronfenbrenner Papers, 1939-1995. Box 26, Folder “Micro-econ + Distribution, 2 of 2, 1958-67, n.d.”.

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Exam Questions Harvard Suggested Reading Syllabus

Harvard. Galbraith’s Business Organization and Control. Syllabus and Exams. 1949-50

 

 

Materials for the undergraduate course “Business Organization and Control” taught by Sidney Alexander in 1948-49 has been transcribed and posted earlier. The course was taught the following year by John Kenneth Galbraith and others. Below you will find enrollment data followed by transcriptions of  the syllabi for both semesters along with the mid-year and final examinations for the course.

_______________________

 Course Enrollment

[Economics] 161 (formerly Economics 61a and 62b). Business Organization and Control. (Full Co.) Dr. Galbraith

(F) Total 179: 2 Graduates, 61 Seniors, 75 Juniors, 32 Sophomores, 1 Freshman, 8 Radcliffe.
(Sp) Total 160:  2 Graduates, 56 Seniors, 70 Juniors, 24 Sophomores,  7 Radcliffe, 1 Other.

Source: Harvard University. Report of the President of Harvard College and Reports of the Departments for 1949-59, p. 73.

_______________________

[Fall Term, 1949-50]

Economics 161
Business Organization and Control
Dr. Galbraith

Date

 Topic Lecturer

Reading
Sept. 28 Preview Galbraith Bain, Ch. 1,2 (omitting pp. 26-41), 4, 5, 6, 8.

TNEC No. 21, pp. 20-48, 113-121.
Sept. 30 Applied Theory of Markets Galbraith
Oct. 3

“

 Galbraith
Oct. 5

“

 Galbraith
Oct. 7 Section
Oct. 10 Section
Oct. 12 HOLIDAY
Oct. 14 Forms of Business Enterprise Gordon Guthmann & Dougall, Chapter 2
Oct. 17 24 The Corporation: Origin and Legal Characteristics Gordon Buchanan, Ch. 3; Berle & Means, Book II, Ch. 1; Dewing, Book I, Ch. 1-2.
Oct. 19 26

“

 Gordon
Oct. 21 28 Section
Oct. 24 31 Concentration & Market Organization: The Role and peration of the Large Corporation Galbraith Gordon, Chapters 2, 4, 5.
Berle and Means, Book I, Ch. 1;
Book IV, Chapters 1-4.
Oct. 26
Nov. 2

“

 Galbraith
Oct. 28
Nov. 4		 Section
Oct. 31
Nov. 7		 Concentration & Market Organization: Holding companies and interest groups Galbraith Purdy, Chapter 7. Structure of the American Economy, Part I, Appendix 13
Nov. 2
Nov. 9		 Concentration & Market Organization: Trade Associations Gordon TNEC No. 18, pp. 45-67
TNEC No. 21, pp. 234-258
Nov. 4

Nov. 11

 Section

 

Bain, Joe S., Pricing, Distribution, and Employment, 1948.

U.S., Temporary National Economic Committee Monographs:

No. 18, Trade Association Survey;
No. 21, Competition & Monopoly in American Industry.

Guthmann, H. G., & Dougall, H. E., Corporate Financial Policy, 1948.

Buchanan, N. S., The Economics of Corporate Enterprise.

Berle, A. A., & Means, G. C., The Modern Corporation and Private Property, 1932.

Dewing, A. S., Financial Policy of Corporations, 1941, 2-volume edition.

Gordon, R. A., Business Leadership in the Large Corporation, 1945.

Purdy, H. L., Lindahl, M.L., and Carter, W. A., Corporate Concentration & Public Policy, 1942.

U.S., National Resources Committee, Structure of the American Economy, Part I, “Basic Characteristics.

_______________________

[Fall Term (cont.), 1949-50]

Economics 161
Business Organization and Control
Messrs. Galbraith and Gordon

Topic

 Lecturer

Reading
November 14 Price Leadership and Market Sharing Gordon Burns, Ch. III (ex. pp. 118-140), and Ch. IV.
November 16 Patents and Trademarks Gordon T.N.E.C. Monograph No. 21, pp. 158-165; Edwards, pp. 216-248.
November 18 Section
November 21 Advertising Galbraith Burns, Ch. VIII
November 23 Price Discrimination Gordon Boulding, pp. 533-43
November 25 Section
November 28 Basing Point System—Exposition Galbraith Machlup, Ch. 1 (ex. Appendix) and Ch. 3;

Kaysen, “Basing Point Pricing and Public Policy”
November 30 Basing Point System—Consequences Kaysen
December 2 Section
December 5 Economic Norms of Public Policy Duesenberry Hansen, Fiscal Policy and Business Cycles, Ch. XV
December 7

“

 Duesenberry
December 9 Section Galbraith, Essay on Monopoly and Concentration of Economic Power in Ellis, Review of Contemporary Economics
December 12 Economic Norms of Public Policy Duesenberry
December 14 Promoting Competition: The Anti Trust Laws Gordon Purdy et al., Chs. 16, 17, 18 (omitting pp. 354-360), 20 (omitting pp. 393-401), 28;

Adelman, “Effective Competition and the Anti Trust Laws”;
Mason, “The Current Status of the Monopoly Problem in the United States
December 16 Section
December 19 Promoting Competition: The Anti Trust laws
December 22

“

 

Adelman, M. A., “Effective Competition and the Anti Trust Laws,” M.I.T., Publications in the Social Sciences, Series No. 1, Reprint from Harvard Law Review, Sept. 1948.

Boulding, Kenneth, Economic Analysis, Revised Edition.

Burns, A. F., The Decline of Competition, 1936.

Edwards, Corwin, Maintaining Competition, 1949.

Kaysen, Carl, “Basing Point Pricing and Public Policy,” Q.J.E., August, 1949, pp. 289-314.

Machlup, Fritz, The Basing Point System, 1949.

Mason, Edward S., “The Current Status of the Monopoly Problem in the U.S.,” Harvard Law Review, June, 1949, pp. 1265-1285.

Purdy, H. L., Lindahl, M. L., and Carter, W. A., Corporate Concentration & Public Policy, 1942.

U.S., T.N.E.C. Monograph No. 21, Competition and Monopoly in American Industry, 1940.

Hansen, Alvin, Fiscal Policy and Business Cycles, 1941, First Edition.

Ellis, Howard, Review of Contemporary Economics, 1948.

_______________________

Final Examination, Fall Term 1949-50

1949-50
HARVARD UNIVERSITY
ECONOMICS 161

I.
(one hour)

Required

  1. A book published a couple of years ago entitled The American Individual Enterprise System, has the following to say about “the meaning of competition”;

“How a seller chooses to exercise his freedom, as long as he is independent, does not furnish a test of competition. The only true test, and the basic distinguishing feature of competition, is whether there are at least two suppliers of a market who make independent decisions on the prices and conditions at which they will offer their goods and services.”

Using the word “competition” in this sense, the book’s authors stat that “competition serves the public in the following ways”:

“It tends to assure that goods and services will be produced and distributed at the lowest possible cost.
“It tends to assure that profits will be held to the minimum.
“It tends to assure that the energy and raw materials and productive capacity of the nation will be used for providing those goods and services which the public wants, and in proportion to the relative demands of the public.
“It assures freedom of opportunity. Anyone at any time, if he has the necessary capital, can enter any line of business he desires.”

Questions:

(a) Do you concur in this definition of competition? Why or why not?

(b) Would an economic system which is “competitive” in the sense of the above quotation necessarily produce the results which the authors mention? Consider in turn each of the “results” mentioned above. Be specific, and make certain that you explain each step in your reasoning.

 

II.
(Seventy-five minutes)

Answer any three of the five.

  1. Give a concise, clear explanation of the mechanics of a multiple-basing point pricing using graphs if you wish.
  2. Under what circumstances and why are business firms likely to prefer non-price to price competition? Define your terms precisely.
  3. In what ways may it be argued that the American patent system is a stimulus and in what ways a deterrent, to invention and to realized technical progress in American industry?
  4. What is price discrimination? Outline a set of conditions under which discriminatory pricing operates to the advantage of buyers.
  5. State definitely but concisely the way in which each of the following cases affected the development of antitrust law.

C. Knight Case
Standard Oil Case
U. S. Steel Case
Aluminum Case

III.
(Forty-five minutes)

Required.

  1. Schumpeter and Clark appear to agree in advocating (or condoning) certain restraints on competition. Develop fully and discuss the lines of argument by which they arrive at their respective conclusions.

 

Mid-Year. January 1950.

_______________________

[Spring Term, 1949-50]

Economics 161
Business Organization and Control
Professor Galbraith and Mr. Gordon

Subject

 Lecturer

Reading
Feb. 8 Promoting Competition: Cartel Policy Gordon Mason, Controlling World Trade, Ch. 1, 2.
Feb. 10 Promoting Competition: The Recent Antitrust Cases Gordon Oppenheim, Cases on Federal Antitrust Laws, Ch. 5.
Nicholls, “The Tobacco Case of 1946,” American Economic Review, May 1949, pp. 284-96.
Feb. 13 Regulating Competition: Retail Trade and Regulation Galbraith TNEC Monograph 35, pp. 5-14, 145-160.
Adelman, “The A & P Case,” Quarterly Journal of Economics, May 1949.
Feb. 15 Regulating Competition: Retail Trade and Regulation Galbraith
Feb. 17 Section
Feb. 20 Limiting Competition: Agriculture Galbraith Black, Parity, Parity, Parity, Ch. 5, 20, 21.
Schultz, Production and Welfare of Agriculture, Ch. 4, 5, 8, 9, 12, 13, 15.
Feb. 22 HOLIDAY
Feb. 24 Limiting Competition: Agriculture Galbraith
Feb. 27 Limiting Competition: Agriculture Galbraith
Mar. 1 Regulated Monopoly: The Public Utility Concept Gordon Lyon, Abramson et al, Government and Economic Life, Vol. II, Ch. 21.
Mar. 3 Section
Mar. 6 Regulated Monopoly: Power and Transport Gordon
Mar. 8 Regulated Monopoly: Power and Transport Gordon Locklin, Economics of Transportation, Ch. VIII, XV, XVI.
Mar. 10 Section
Mar. 13 Regulated Monopoly: Power and Transport Gordon
Mar. 15 Corporate Financial Structure Gordon Dewing, Financial Policy of Corporations, Bk. I, Ch. 4 to p. 83, Ch. 7, 8, 9 to p. 218, and pp. 230-42; Bk. III, Ch. 1, 2.
Merrill, Lynch, How to Read a Financial Report (entire pamphlet)
Mar. 17 Section
Mar. 20 Corporate Financial Structure Gordon
Mar. 22 Corporate Financial Structure Gordon
Mar. 24 Section
Mar. 27 Regulation of Securities and Markets Gordon Stein, Government and the Investor, Ch. 2, 3, 4, 6.
Mar. 29 Regulation of Securities and Markets Gordon
Mar. 31 Section
Recess from April 2 through 9
Apr. 10 Conservation: Forest Products Nixon Jensen, Lumber and Labor, Ch. 1,2.
Apr. 12 Conservation: Oil and Gas Manne Rostow, A National Policy for the Oil Industry, Ch. 1-9, 13-15.
Apr. 14 Section
Apr. 17 Conservation: Oil and Gas Manne
Apr. 19 HOLIDAY
Apr. 21 Public Development: Housing Galbraith Fortune Magazine: The Industry Capitalism Forgot, August 1947, & Editorial, September 1947.

TNEC Monograph #8, Towards More Housing, Ch. IV, V, IX.
Apr. 24 Public Development: Housing Galbraith
Apr. 26 Economic Mobilization Galbraith Galbraith, “The Disequilibrium System,” American Economic Review, 1947.

Johnson, G. G., Economic Stabilization Program.
Apr. 28 Section
May 1 Economic Mobilization Galbraith
May 3 Reconciliation of Policy Galbraith
May 5 Summary Galbraith
Reading Period begins May 8

 

Mason, Edward S., Controlling World Trade, 1946.

Oppenehim, S. C., Cases on Federal Antitrust Laws.

Nicholls, W. H., “The Tobacco Case of 1946” in American Economic Review, May 1949, pp. 284-96.

Lyon, Abramson, et al, Government and Economic Life 1940.

Dewing, Arthur S., Financial Policy of Corporations, 1941, 2-volume edition.

Merrill, Lynch, Pierce, Fenner, and Beane, How to Read a Financial Report (pamphlet).

Stein, Emanuel, Government and the Investor.

Locklin, D. Philip, Economics of Transportation, 1947.

TNEC Monograph #8, Toward More Housing.

TNEC Monograph #35, Large-Scale Organization in the Food Industries.

Adelman, M. A., “The A & P Case. A Study in Applied Economic Theory,” Quarterly Journal of Economics, Vol. LXIII, No. 2, May 1949.

Schultz, T. W., Production and Welfare of Agriculture, 1949.

Black, J. D., Parity, Parity, Parity, 1942.

Jensen, Vernon, Lumber and Labor.

Rostow, Eugene V., A National Policy for the Oil Industry, 1947.

Galbraith, J. K., “The Disequilibrium System,” American Economic Review, Vol. XXXVII, #3, June 1947.

Fortune Magazine, “The Industry Capitalism Forgot,” August 1947, “Editorial,” September 1947.

Johnson, G. G., Suggestions for the Development of an Economic Stabilization Program for a War Emergency, National Security Resources Board, Document 47.

_______________________

Economics 161
[Midterm] Examination
April, 1950

  1. Retailing and agriculture are both industries composed of many small firms. What are the similarities in government policy toward these industries? What are the important differences?
  2. What were the principal provisions of the Securities Exchange Act of 1934? Discuss briefly in light of the abuses they were designed to remedy.

_______________________

Spring Term, Final Examination

1949-50
HARVARD UNIVERSITY
ECONOMICS 161

I.
(Forty-five minutes)

Required

  1. The special appeals court, which heard the Alcoa case in 1945, said that Congress, in passing the federal antitrust laws, “was not necessarily actuated by economic motives alone.” “It is possible,” the court said, “because of its indirect social or moral effect, to prefer a system of small producers, each dependent for his success upon his own skill and character, to one in which the great mass of those engaged must accept the direction of a few.”

Does this point of view seem to you to provide a persuasive argument for the fair trade laws, Robinson-Patman Act and the position of the government in the A & P cases? Explain.

II.
(Ninety minutes)

Answer three out of four.

  1. Explain the importance of the following in relation to public regulation of the petroleum industry:
    1. The rule of capture.
    2. The Connally “Hot Oil” Act.
    3. The Interstate Compact.
    4. Marginal well Acts.
    5. Compulsory unit operation.
  2. What are the Acts of Congress administered by the Securities and Exchange Commission? Outline the principal provisions of any three of them and the ends they were designed to achieve.
  3. Under what circumstances do you believe a certificate of convenience and necessity should be required for entry into a business? What industries would you add (or delete) from a list where such certificates are required and why?
  4. “The pricing system is not an appropriate means for stabilizing income from farming over time. To place this burden on the pricing system, as has been done in recent years can only reduce greatly its capacity [for allocating resources between alternative employments in agriculture and between agricultural and non-agricultural enterprise].”

What is the general character of the legislation “of recent years” to which Professor Schultz refers? Do you agree that it has inhibited resource allocation? Does the same objection hold for the Brannan Plan?

III.
(Forty-five minutes)

Required.

  1. Before signing or vetoing important legislation, the President customarily requests the Bureau of the Budget—or occasionally some other Executive department or agency—to prepare a confidential memorandum setting forth the main features of the proposed legislation, the principal groups favoring and opposing it together with their arguments and motives, a careful statement of the economic consequences of the legislation; and the recommendation to the President, properly defended, as to whether he should accept or veto the legislation.
    Would you prepare such a memorandum on the amendments to the Natural Gas Act of 1938 (the Kerr Bill), as passed by the Eighty-first Congress and keeping in mind the following:

    1. That you are asked to pass only on the economic questions posed by the legislation. You are at liberty to ignore any purely legal issues that may have been involved.
    2. That your concern is solely with the public welfare. You may ignore any political problems which the legislation poses for the President or his party.
    3. That the President is a busy man and should not be burdened with an unnecessarily long-winded discourse.

(The quality of your memorandum and its economic analysis and argument, not the particular recommendation you make, will be the guiding factor in marking your paper.)

 

Final. May 1950.

 

Source: John F. Kennedy Presidential Library, Papers of John Kenneth Galbraith. Box 519, Folder “Economics 161, 1949-50.”

Image: John Kenneth Galbraith in Harvard Class Album 1952.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Graduate Money and Banking, Reading List, Final Exam. Williams and Goodwin, 1947

 

Today’s post is the second of three devoted to the year long graduate sequence “Principles of Money and Banking” taught by Alvin H. Hansen, John H. Williams, and Richard M. Goodwin (second semester) at Harvard in 1946-47.

The reading list for Econ 141b is transcribed below, along with the corresponding final examination questions. The previous post provided  transcriptions for the first semester’s list of readings and final examination (Econ 141a) and course enrollments in each semester. The next post will have the “General Reference Reading” list for both semesters.

____________________________

SECOND SEMESTER
ECONOMICS 141b: PRINCIPLES OF MONEY AND BANKING

III. International Monetary Equilibrium:

  1. Cassel, G., The Downfall of the Gold Standard (1936).
  2. Copland, Douglas, Australia in the World Crisis (1934).
  3. Ellis, H. S., Exchange Control in Central Europe (1941).
  4. Graham and Whittlesey, Golden Avalanche (1939).
  5. Hall, M. F., The Exchange Equalization Account (1935).
  6. Hahn, George, International Monetary Cooperation (1945).
  7. Hansen, Alvin, H., America’s Role in the World Economy (1945).
  8. Hardy, C. O., Is There Enough Gold (1936).
  9. Harris, S. E., Exchange Depreciation (1936).
  10. Harris, S.E., Economic Problems of Latin America (1944).
  11. Iverson, Carl, International Capital Movements (1936).
  12. Kindelberger, C. P., International Short-term Capital Movements (1937).
  13. League of Nations: Final Report on Gold (1932).
  14. League of Nations: Economic Fluctuations in the United States and the United Kingdom, 1918-22 (1942).
  15. Nurkse, R., International Currency Experience (1944).
  16. Warren and Pearson: (a) Gold and Prices (1935);
    (b) World Prices and the Building Industry (1937).
  17. Williams, John H., Postwar Monetary Plans (Second Edition, 1945)

IV. Monetary and Fiscal Policy:

  1. Beveridge, Sir William, Full Employment in a Free Society (1945).
  2. British White Paper on “Employment Policy” (1944).
  3. de Chazeau, Hart, and Others, Jobs and Markets (1946).
  4. Economics of Full Employment. Six Oxford Economists (1945).
  5. Fellner, W., Monetary Policies and Full Employment (1946).
  6. Financing American Prosperity, Twentieth Century Fund (1945).
  7. Groves, H. M.: (a) Production, Jobs and Taxes (1944).
    (b) Postwar Taxation and Economic Progress (1946).
  8. Hansen, Alvin, H., Economic Policy and Full Employment (1946).
  9. Harris, S. E., Postwar Economic Problems (1943).
  10. Harris, S. E., Economic Reconstruction (1945).
  11. Hayes, H. Gordon, Spending, Saving and Employment (1945).
  12. League of Nations: Anti-Depression Policy (1945).
  13. Langum, John K., Postwar Banking Problems (1946).
  14. Postwar Economic Studies No. 3, Public Finance and Full Employment (1945).
  15. Postwar Economic Studies No. 8, Federal Reserve Policy (1946).
  16. Ruml and Sonne, Fiscal and Monetary Policy (1944).
  17. Terborgh, George, The Bogey of Economic Maturity (1945).
  18. Williams, John H. Postwar Monetary Plans (Second Edition, 1945), Chapters 4, 5.

 

Source: Harvard University Archives. Alvin Harvey Hansen Papers. Box 1 of Lecture Notes and Other Course Material, Folder “Econs 141”. Also found in Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1) Box 4, Folder “Economics, 1946-47 (2 of 2)”.

____________________________

1946-47
HARVARD UNIVERSITY
ECONOMICS 141b

PRINCIPLES OF MONEY AND BANKING

(Three hours)

Discuss one question in each part.

I

  1. Your own appraisal of Keynes’ “General Theory.”
  2. The consumption function as a guide to monetary and fiscal policy.

 

II

  1. The treatment of the interest rate in modern monetary theory.
  2. Hayek’s criticism of the Foster and Catchings thesis.
  3. Hawtrey’s theory of the business cycle.

 

III

  1. The problem of international monetary and trade adjustment in the postwar world.
  2. One of the following:

(a) The International Monetary Fund;
(b) The International Bank for Reconstruction and development;
(c) The ITO Charter.

  1. Keynes’ paper on the “Balance of Payments of the United States,” Economic Journal, June, 1946.

 

Final. May, 1947.

 

Source: Harvard University Archives. Harvard University Final Examinations 1853-2001. Box 14. Papers Printed for Final Examinations: History, History of Religions…, Economics, … , Military Science, Naval Science, May, 1947.

Image Source: John H. Williams in Harvard Class Album, 1950.

 

Categories
Exam Questions Suggested Reading Syllabus

Harvard. Money and Banking graduate course, readings and exam. Hansen, 1946-47

 

 

Today’s post is the first of three devoted to the year long graduate sequence “Principles of Money and Banking” taught by Alvin H. Hansen, John H. Williams, and Richard M. Goodwin (second semester) at Harvard in 1946-47.

The reading list for Econ 141a is transcribed below, along with the corresponding final examination questions as well as enrollment numbers for both semesters.

Following posts will provide transcriptions for the following semester’s list of readings and final examination (Econ 141b) plus the “General Reference Reading” list for both semesters.

____________________________

Course Enrollment

[Economics] 141a. (fall term) Professors J. H. Williams and Hansen.—Principles of Money and Banking.

Total 130: 88 Graduates, 1 Senior, 26 Public Administration, 15 Radcliffe.

 

[Economics] 141b. (spring term) Professors J. H. Williams and Hansen and Assistant Professor Goodwin.—Principles of Money and Banking.

Total 113: 75 Graduates, 23 Public Administration, 15 Radcliffe.

 

Source: Harvard University. Report of the President of Harvard College and Reports of Departments for 1946-1947, p. 71.

____________________________

ECONOMICS 141
PRINCIPLES OF MONEY AND BANKING

 

Economics 141a — First Semester, 1946-47 (Professor Hansen)

  1. Central Banking: Current Problems and Policies
  2. Theory of Money, Liquidity-Preference, Interest and Prices

Economics 141b — Second Semester, 1946-47 (Professor Williams)

III. International Monetary Equilibrium

  1. Monetary and Fiscal Policy

 

 

READING LIST FOR ECONOMICS 141a
Principles of Money and Banking
1946-1947

Note: Pre-requisite reading (for those who are deficient in undergraduate preparation in Money and Banking:

  1. Banking Studies, Board of Governors, Federal Reserve System, (1941).
  2. Southard, F. A., Foreign Exchange Practice and Policy, (McGraw-Hill, 1940).
  3. Any one standard textbook in Money and Banking, such as: Thomas, Our Modern Banking and Monetary System, (Prentice-Hall, 1942); or Reed, Money, Currency and Banking, (McGraw-Hill, 1942).

 

I. Central Banking: Current Problems and Policies.

A. Minimum Reading List:

I. Books and Pamphlets:

  1. International Currency Experience (League of nations, 1944), Chapters I-IV, pp. 7-112.
  2. World Economic Survey, 1942-44 (League of Nations, 1945), Chapter IV “Finance and Banking” (pp. 173-213).
  3. Money and Banking: 1942-44 (League of Nations, 1945).
  4. Ellis, H. S., (in Harris: Economic Reconstruction, McGraw-Hill, 1945), Chapter 13, “Central and Commercial Banking in Postwar Finance” (pp. 237-252).
  5. Hansen, Alvin H., America’s Role in the World Economy (Norton, 1945), Chapter XVII, “Gold, Exports and Liquidity” (pp. 144-157).
  6. Harris, S. E., Inflation and the American Economy (McGraw-Hill, 1945), Chapter XXIV, “Money and Savings” (pp. 372-383).
  7. Hawtrey, R. G., The Art of Central Banking (Longmans, 1933) pp. 116-207.
  8. Keynes, J. M., Treatise on Money, Volume II, Chapters 25, 32, 33.
  9. Robertson, D. H., Essays in Monetary Theory (King, 1940), Chapter II, “Theories of Banking Policy” (pp. 39-59); Chapter XII, “British Monetary Policy” (pp. 154-167).
  10. Williams, John H., Postwar Monetary Plans (Knopf, second edition, 1945), Chapter 6, “The Banking Act of 1935” (pp. 112-129); Chapter 8, “The Crisis of the Gold Standard” (pp. 154-172); Chapter 9, “Monetary Stability and the Gold Standard” (pp. 172-190).
  11. Financing American Prosperity (Twentieth Century Fund, 1945):
    1. Ellis, H. S., “Monetary Controls and the Business of Banking” (pp. 140-153).
    2. Hansen, Alvin, H., “Management of the Debt and Internal Stability” (pp. 246-256).
    3. Williams, John H., “Money and Banking” (pp. 381-5).
  12. Postwar Economic Studies, No. 3 (Board of Governors, Federal Reserve System, 1945):
    1. Robinson, R. I., “Monetary Aspects of National Debt Policy” (pp. 69-83).
    2. Wallich, H. C., “Public Debt and Income Flow” (pp. 84-100).
    3. Hansen, Alvin H., “Comments” (pp. 131-5).

II. Reports and Articles:

  1. Annual Report of the Secretary of the Treasury on the State of the Finances:
    1. Fiscal year ended June 30, 1944 (pp. 1-10).
    2. Fiscal year ended June 30, 1945 (pp. 1-10).
  2. Federal Reserve Bulletins:
    1. May 1946 (pp. 461-8), “Treasury Financing and Banking Developments.”
    2. July 1946 (pp. 707-15), “Postwar Business Finance”.
    3. February 1946 (pp. 122-3), “Estimated Liquid Assets of Individuals and Business”.
  3. Bopp, K. R., “Central Banking at the Crossroads”, Supplement, American Economic Review, March 1944 (pp. 260-77).
  4. Hansen, Alvin H., “Inflation”, Yale Review, Summer 1946.
  5. Macmillan Report, Royal Commission on Industry and Commerce, Cmd. 3897 (1931), pp. 2-45; 106-160.
  6. Samuelson, Paul, “The Effect of Interest Rate Increases on the Banking System”, American Economic Review, March 1945.
  7. Seligman, H. L., “The Problem of Excessive Commercial Bank Earnings”, Quarterly Journal of Economics, May 1946.
  8. Whittlesey, C. R., “Federal Reserve Policy in Transition”, Quarterly Journal of Economics, May 1946.

B. Supplementary Reading List:

I. Books

  1. Arndt, H. W., The Economic Lessons of the Nineteen Thirties, (Oxford, 1944).
  2. Coulborn, W, A. L., An Introduction to Money, (Longmans, 1938) Chapters 5, 13-14 (pp. 48-64, 209-241).
  3. Fisher, Irving, 100 Per Cent Money, (Adelphi, 1935; Third Edition City Printing Co., New Haven, 1945).
  4. Johnson, G. G., The Treasury and Monetary Policy, (Harvard 1939), Chapter I-V (pp. 3-160).
  5. Hawtrey, R. G., The Gold Standard in Theory and Practice (Longmans, Fourth Edition, 1939).
  6. Hawtrey, R. G., A Century of Bank Rate. (Longmans, 1938).
  7. Lewinski, J., Money, Credit and Prices, (King, 1929) Chapters IV-V (pp. 99-144).
  8. McCracken, Paul W., The Future of Northwest Bank Deposits, Federal Reserve Bank, Minneapolis, 1946.
  9. Mints, L. W., A History of Banking Theory (Chicago, 1945), Chapters VI and X (pp. 74-100; 178-197).
  10. Morgan, E. V., The Theory and Practice of Central Banking, (Macmillan, 1943).
  11. Niebyl, Karl H., Studies in the Classical Theories of Money, (Columbia, 1946).
  12. Sayers, R. S., Modern Banking, (Oxford, 1938), Chapters 4-5 (pp. 70-145).
  13. Viner, J. Studies in the Theory of International Trade, (Harper, 1937), Chapter V, “English Currency Controversies” (pp. 218-289).
  14. Wernette, P., Financing Full Employment, (Harvard, 1945), Chapter 3 (pp. 33-61).

II. Articles

  1. Abbott, C. C. (Review articles on Financing Problems and Bank Liquidity), Review of Economic Statistics, February 1946 (pp. 48-51).
  2. Abbott, C. C., “Management of the Federal Debt”, Harvard Business Review, Autumn 1945.
  3. Goldenweiser, E. A., “Commercial Banking After the War”, Federal Reserve Bulletin, September 1944.
  4. Seltzer, Lawrence, “Is a Rise in Interest Rates Desirable or Inevitable?”, American Economic Review, December 1945.
  5. Treasury Bulletin, April 1946, “Federal War-time Financing and the Growth of Liquid Assets”.
  6. Keynes, J. M., “The Objective of International Price Stability”, Economic Journal, June-September 1943.

C. General Reference Reading (see below).

II. Theory of Money, Liquidity Preference, Interest and Prices.

A. Minimum Reading List:

I. Books:

  1. Haberler, G., Prosperity and Depression, (League of Nations, 1939), Chapters 8, 13, (pp. 168-254; 455-507).
  2. Hansen, Alvin H.:
    1. Fiscal Policy and Business Cycles, (Norton, 1941), Chapters 1-5; 11-15; (pp. 13-105; 225-338).
    2. Full Recovery or Stagnation, (Norton, 1938), Chapters 1-5 (pp. 13-133); Appendix, pp. 331-343.
  3. Hayek, F. A., Prices and Production, (Routledge, 1935), Chapters 1 and 4 (pp. 1-31; 105-128).
  4. Hicks, J. R., Value and Capital, (Oxford, 1939), Chapters 12-13 (pp. 153-170).
  5. Keynes, J. M., Monetary Reform, (Harcourt, 1924), pp. 81-95; 152-191.
  6. Keynes, J. M., A Treatise on Money, (Harcourt, 1930), Chapters 9-13 and 30 (Volume I, pp. 123-220; Volume II, pp. 148-208).
  7. Keynes, J. M., General Theory of Employment, Interest and Money, (Harcourt, 1936), pp. 3-45; 61-65; 74-221; 245-271; 292-332; 372-384.
  8. Lerner, A. P., The Economics of Control, (Macmillan, 1944), Chapters 22-25 (pp. 271-345).
  9. Marget, Arthur W., The Theory of Prices, Volume I, (Prentice-Hall, 1938), Chapters 12 and 15 (pp. 302-343, 414-459).
  10. Marget, Arthur W., The Theory of Prices, Volume II, (Prentice-Hall, 1942), Chapter 3 (pp. 89-133).
  11. Marshall, A., Official Papers, (Macmillan, 1926), pp. 19-31.
  12. Pigou, A. C., Lapses from Full Employment, (Macmillan, 1945), Chapters 1-5; 8-9; 12. (pp. 1-29; 38-51; 69-73).
  13. Robertson, D. H., Money, (Harcourt, 1929), chapters 2-4; 7-8 (pp. 18-91; 144-197).
  14. Robertson, D. H., Essays in Monetary Theory, (King, 1940), Chapters 1, 6, 11 (pp. 1-38; 92-7; 113-153).
  15. Schumpeter, J. A., Business Cycles, (McGraw-Hill, 1939), Volume II, Chapter 8, (pp. 449-482).
  16. Wicksell, K., Interest and Prices, (Macmillan, 1936), Introduction by Bertil Ohlin; also author’s Preface; Chapters 5, 7-8, 11 (pp. 38-50; 81-121; 165-177).
  17. Wicksell, K., Money: Lectures on Political Economy, Volume II, (Macmillan, 1935), Chapter IV (pp. 127-228).
  18. Wright, David McC., The Creation of Purchasing Power, (Harvard, 1939), Chapters 4-6 (pp. 60-121).
  19. Macmillan Report, Royal Commission on Finance and Industry, Cmd. 3897 (1931), Part I, Chapter 11.

II. Articles:

  1. Clark, Colin, “Public Finances and Changes in the Value of Money”, Economic Journal, December 1945.
  2. Hicks, J. R., “Mr. Keynes and the Classics: A Suggested Interpretation”, Econometrica, April 1937.
  3. Hawtrey, R. G. and Hicks, J. R., “Interest and Bank Rate”, The Manchester School of Economic and Social Studies, October 1939.
  4. Keynes, J. M., “Relative Movement of Real Wages and Output”, Economic Journal, March 1939.
  5. Lange, O., “The Rate of Interest and the Optimum Propensity to Consume”, Economica, February 1938.
  6. Lerner, A. P., “Alternative Formulations of the Theory of Interest”, Economic Journal, June 1938.
  7. Lerner, A. P., “Interest Theory: Supply and Demand for Loans or Supply and Demand for Cash”, Review of Economic Statistics, May 1944.
  8. Lerner, A. P., “Ex Ante Analysis and Wage Theory”, Economica, November 1939.
  9. Lerner, A. P., “Some Swedish Stepping Stones in Economic Theory”, Canadian Journal of Economics and Political Science, November 1940.
  10. Mints, Hansen, Ellis, Lerner, Kalecki, “A Symposium on Fiscal and Monetary Policy”, Review of Economic Statistics, May 1946.
  11. Modigliani, F., “Liquidity Preferences and the Theory of Interest and Money”, Econometrica, January 1944.
  12. Pigou, A. C., “Employment Policy and Sir William Beveridge”, Agenda, August 1944.
  13. Reder, M. W., “Interest and Employment”, Journal of Political Economy, June 1946.
  14. Simons, H. C., “Debt Policy and Banking Policy”, Review of Economic Statistics, May 1946.

B. Supplementary Reading List:

I. Books:

  1. Adarkar, B. P., The Theory of Monetary Policy, (King, 1935), Chapter 1-8; 13-15 (pp. 3-52; 101-122).
  2. Chandler, L. V., An Introduction to Monetary Theory (Harper, 1940), pp. 1-205.
  3. Coulborn, W. A. L., An Introduction to Money, (Longmans, 1938), Chapters 6-8; 15-16 (pp. 65-116; 242-264).
  4. Lindahl, Erik, Studies in the Theory of Money and Capital, (Allen and Unwin, 1939), Part II, Chapters 4-6, (pp. 199-268).
  5. Myrdal, Gunnar, Monetary Equilibrium, (Hodge, 1939), Chapters 1-3 (pp. 1-48).
  6. Polanyi, M. Full Employment and Free Trade, (Cambridge Univ. Press, 1945), Chapters 1, 4, (pp. 1-66; 87-103).
  7. Sayers, R. S., Modern Banking. (Oxford, 1938), Chapter 6 (pp. 146-164).
  8. Thomas, Brindley, Monetary Policy and Crises, (Routledge, 1936), Chapters 3-4 (pp. 62-156).

II. Articles:

  1. Lange, O., “Economic Controls After the War,” Political Science Quarterly, March 1945.
  2. Marschak, J., “Wicksell’s Two Interest Rates”, Social Research, November 1941.
  3. Simons, H. C., “On Debt Policy”, Journal of Political Economy, June 1945.
  4. Warburton, Clark, “The Volume of Money and the Price Level Between the World Wars”, Journal of Political Economy, June 1945.
  5. a. Warburton, Clark, “The Monetary Theory of Deficit Financing”, Review of Economic Statistics, May 1945.
    b. Arndt, H. W., “The Monetary Theory of Deficit Financing; A Comment”, Review of Economic Statistics, May 1946.

C. General Reference Reading (see below).

Source: Harvard University Archives. Alvin Harvey Hansen Papers. Box 1 of Lecture Notes and Other Course Material, Folder “Econs 141”. Also found in Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1) Box 4, Folder “Economics, 1946-47 (2 of 2)”.

____________________________

Mid-Year Final Examination

1946-47
HARVARD UNIVERSITY
ECONOMICS 141a

(Write on any THREE questions.)

    1. Give a thorough discussion of current monetary and banking problems including in your essay the following topics:
      1. The increase in the quantity of money in the U. S. since 1934; causes and effects.
      2. War-time financing; the role of the Federal Reserve Banks and of the commercial banks.
      3. Recent and prospective trends in interest rates; causes and effects.
      4. New proposals with respect to reserve requirements, composition of bank assets, and control of bank credit.
      5. Management of the public debt.
    1. Write an essay on Keynes’ theory of interest, explaining the significance and role of the marginal efficiency schedule, the consumption function, liquidity preference, and monetary policy. In connection with Keynes’ interest theory, discuss the ideas and contributions of Hicks, Lerner and Modigliani.
    2. Compare Fisher, Marshall (Cambridge cash-balance school), Wicksell and Keynes with respect to the role of the quantity of money in the theory of money and prices.
    3. Write an essay (about an hour) on any two of the following:
      1. Hayek: Prices and Production
      2. Keynes: A Treatise on Money; or General Theory of Employment, Interest and Money
      3. Marget: The Theory of Prices
      4. Robertson: Money; or Essays in Monetary Theory
      5. Wicksell: Money; or Interest and Prices
      6. Hansen: Fiscal Policy and Business Cycles; or Economic Policy and Full Employment

Final. January, 1947.

Source: Harvard University Archives. Harvard University Final Examinations 1853-2001. Box 13. Papers Printed for Final Examinations: History, History of Religions…, Economics, … , Military Science, Naval Science, January, 1947.

Image Source: Alvin Hansen from Harvard Class Album 1952.

Categories
Harvard Suggested Reading Syllabus

Harvard. Principles of Economics. Enrollment, Staffing, Readings, 1947-48

 

The previous post provided transcriptions of the mid-year and end-year final examinations for Harvard’s principles of economics course for the academic year 1947-48. The second-term examination included over fifty multiple choice questions, which appears to me to be the first use of that examination format in the Harvard economics department. Today’s post gives additional information for the course: the course announcements, staffing, enrollment and reading lists. Should I ever come across the printed Course Syllabus: Economics A, I will try to get at least portions of it transcribed.

_____________________________

Course Announcements

Economics Aa. Principles of Economics

Half-course (fall term). Tu., Th., Sat., at 11. Depending on enrolment, sections will also be arranged at other hours. Radcliffe sections will meet Tu., Th., Sat., at 11 and at such other times as the enrolment may justify.
Professor Burbank, Assistant Professor Bradley, Dr. Papandreou, and other Members of the Department.

Economics Aa may be taken by properly qualified Freshmen with the consent of the instructor.

Economics Ab. Principles of Economics

Half-course (spring term). Tu., Th., Sat., at 11. Depending on enrolment, sections will also be arranged at other hours. At Radcliffe Tu., Th., Sat., at 11 and at such other times as the enrolment may justify.
Professor Burbank, Assistant Professor Bradley, Dr. Papandreou, and other Members of the Department.

Economics Aa is a prerequisite for this course.

 

Source: Final Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences during 1947-48, published in Official Register of Harvard University , Vol. XLIV, No. 25 (September 9, 1947), p. 69.

_____________________________

Course Enrollments and Staffing

[Economics] Aa. Professor Burbank, Assistant Professor Bradley, and Messrs. Brecher, Campbell, M.G. Clark, Duesenberry, Farrell, Fels, Ferguson, Garbarino, Heany, Hunter, Kahn, Meredith, Passer, Powelson, Schelling, Thompson, Ulman.—Principles of Economics (F).

Total 834: 1 Graduate, 52 Seniors, 134 Juniors, 453 Sophomores, 184 Freshmen, 10 Other.

 

[Economics] Ab. Professor Burbank, Assistant Professor Bradley, and Messrs. Brecher, Campbell, M.G. Clark, P. Clark, Cochrane, Eckley, Farrell, Fels, Ferguson, Garbarino, Heany, Hirchleiger, Hunter, Kahn, McClelland, Margolis, Meredith, Morgan, Passer, Powelson, Reynolds, Thompson, Ulman.—Principles of Economics (Sp).

Total 747: 1 Graduate, 57 Seniors, 209 Juniors, 358 Sophomores, 109 Freshmen, 13 Other.

 

Source: Report of the President of Harvard College and Reports of Departments for 1947-48,p. 89.

_____________________________

Course Readings

ECONOMICS Aa
Fall, 1947

Benham and Lutz Economics, American Edition (1941)
Bowman and Bach Economic Analysis and Public Policy (1944)
*Chandler, L. V. A Preface to Economics (1947)
*Federal Reserve System Federal Reserve Charts on Bank Credit, Money Rates and Business
Federal Reserve System Its Purposes and Functions (1939)
Luthringer, Chandler and Cline Money, Credit, and Finance (1938)
*Staff Members Syllabus: Economics A

*To be purchased by the students.

 

PART I. INTRODUCTION TO ECONOMICS (1 week)
A. THE INSTITUTIONAL BACKGROUND
Chandler, Ch. 1, The Scope of Economics 16
Chandler, Ch. 2, Production and Exchange; Their Meaning and Structure 21
Chandler, Ch. 3, Technology and Economics 28
Chandler, Ch. 4, Business Firms 29
Chandler, Ch. 5, Some Implications of the Industrial Revolution 14
103
B. THE COORDINATION OF ECONOMIC ACTIVITY
Chandler, Ch. 8, The Social Control of Economic Processes 20
Chandler, Ch. 9, Laissez-Faire and Competition 18
Chandler, Ch. 10, Competitive Control of Rationing, Price and Production 19
57
PART II. THE NATIONAL INCOME, MONEY, AND PRICES
A. THE NATIONAL INCOME
Syllabus, The National Economy

Ch. 1, National Income

 48
48
B. MONEY
Syllabus, The National Economy
Ch. 2, Nature and Functions of Money 4
Ch. 3, The Existing Supply of Money in the United States 1
Ch. 4, The Banking System of the United States 9
Ch. 5, The Federal Reserve Banks and the Money Supply 4
Luthringer, Ch. 6, Quantitative Control of Bank Credit
Fed. Res. System
Ch. 1, A General Outline of the Federal Reserve System 12
Ch. 2, The Service Functions of the Federal Reserve Banks 14
Ch. 7, Federal Reserve Powers and Limitations 11
Ch. 8, Member Bank Reserves and Related Items 9
81
C. MONEY, PRICES AND THE NATIONAL INCOME
Syllabus, The National Economy

Ch. 6, Money, Prices, and the National Income

 41
41
PART III. MARKET DETERMINATION OF THE RELATIVE PRICE OF CONSUMER GOODS AND SERVICES (4 weeks)
A. MARKETS
Benham, Ch. 2, Markets, omit Appendix A. 21
B. CONSUMER DEMAND
Benham, Ch. 3, Demand 16
Benham, Ch. 4, Price with a Fixed Demand, pp. 71-74 4
Benham, Ch. 5, Changes in Demand 11
31
C. THE BUSINESS FIRM—COST AND REVENUE
Bowman and Bach, Ch. 4, The Unit of Business Enterprise 15
Syllabus, Value
Ch. 1, Problems of the Firm 17
Ch. 2, Problems of Production, Real Input and Real Output 16
Ch. 3, Problems of Production: Money Costs and Money Returns 18
66
D. THE INDUSTRY—DEMAND AND SUPPLY
Bowman and Bach
Ch. 14, Pure Competition and the Law of Supply and Demand 9
Ch. 15, The Firm and Short-run Market Adjustments, pp. 216-220 4
Ch. 16, Long-run Price and Output Adjustments 14
27
E. MODIFICATIONS OF COMPETITION
Chandler, Ch. 12, Competition Today 27
PART IV. PUBLIC CONTROL OF MARKETS (2 weeks)
Bowman and Bach
Ch. 26, Foundations of Power 29
Ch. 27, Some Monopolistic Price Policies 17
Ch. 28, Public Policy Attacking Restraints of Trade in Business 18
Ch. 29, Public Utility Regulation 21
Ch. 56, Agriculture: A Case Study 31
Chandler, Ch. 13, Laissez-Faire Today 21
137

 

ECONOMICS Ab
Spring 1948

Benham and Lutz Economics, American Edition (1941)
Bowman and Bach Economic Analysis and Public Policy (1944)
Committee for Economic Development Taxes and the Budget
*Hoover, C. B. International Trade an Domestic Employment
*League of Nations Economic Stability in the Post-War World (1945)
Slichter, S. H. Basic Criteria Used in Wage Negotiations
Slichter, S. H. Trade Unions in a Free Society
*Staff Members Syllabus: Economics A
Twentieth Century Fund How Collective Bargaining Works
Williamson and Harris Trends in Collective Bargaining
Witte, Edwin Labor-Management Relations Under Taft-Hartely Act
*U.S. Dept. of Commerce The United States in the World Economy

*To be purchased by the students.

 

PART V. THE MARKETS FOR FACTOR SERVICES
(15 sessions including Part VI)
A. PRINCIPLES GOVERNING FACTOR COMBINATIONS
Review Syllabus: VALUE
Ch. I—Problems of the Firm 16
Ch. II—Problems of Production 16
Ch. III—Problems of Production 18
50
B. GENERAL THEORY OF DISTRIBUTION
Syllabus: DISTRIBUTION
Ch. I—Definitions 3
Ch. II—General Theory of Distribution 15
Benham & Lutz
Ch. 18: Rent 13
Ch. 17: Interest 31
62
C. PERSONAL DISTRIBUTION OF INCOME
Class Discussion: No assignment
PART VI LABOR ORGANIZATION AND LABOR MARKET
Bowman & Bach
Ch. 30: History and Philosophy of Trade Unionism 16
Williamson & Harris
Ch. 1: What is Collective Bargaining 8
Ch. 2: Bargaining Agencies for the Workers 11
Ch. 3: Employer Bargaining Agencies 11
Ch. 4: Union Recognition 14
Ch. 5: Collective Agreements 11
Ch. 6: Wages 17
Slichter
Sections I and II: Basic Criteria Used in Wage Negotiations 34
20th Century Fund
How Collective Bargaining Works 47
Slichter
Trade Unions in a Free Society 31
Witte
Labor-Management Relations Under the Taft-Hartley Act 22
222
PART VII. INTERNATIONAL ASPECTS OF MARKETS AND FINANCE
(7 sessions)
Benham & Lutz
Ch. 25: The Theory of International Trade 22
Ch. 26: Balances of Payments 10
Ch. 27: Free Exchange Rates 10
Ch. 28: The Gold Standard 22
Ch. 29: Exchange Control 8
Ch. 30: Import Duties and Quotes 9
The United States in the World Economy
Summary and Recommendations 26
Ch. 1: The Setting of the Problem 9
Hoover
Ch. 1: The Determination of National Policy and National Trade 17
Ch. 2: The International Monetary Fund 16
Ch. 3: The Problem of International Loans and Investments 19
Ch. 4: The Newer Forms of Trade Barriers 15
Ch. 5: Our Tariff Policy 15
198
PART VIII. PUBLIC FINANCE AND THE ECONOMIC PROBLEM
(7 sessions)
Bowman & Bach
Ch. 46: Introduction to the Public Economy 11
Ch. 47: Public Expenditures 13
Ch. 48: Public Revenues: Taxation 26
Ch. 49: Taxation (continued) 29
C.E.D., Taxes and the Budget
II. Tax Program for Nineteen-Fifty-X 25
III. Tax Policy for 1948 5
Bowman & Bach
Ch. 50: Fiscal Policy and the National Income 18
Ch. 51: Social Security 16
143
PART IX. PROSPERITY AND DEPRESSION
(7 sessions)
Section I: The Nature of Depressions
League of Nations: Economic Stability in the Post-War World
Ch. 1: The Nature of Depression 16
Ch. 2: Types of Depression 5
Bowman & Bach
Ch. 44: General Business Fluctuations 24
League of Nations: Economic Stability in the Post-War World
Ch. 4: The Strategic Role of Investment 26
Ch. 5: Depressions and Primary Production 11
Ch. 6 International Spread of Booms and Depressions 23
125
Section II: Anti-Depression Policies
League of Nations: Economic Stability in the Post-War World
Ch. 7: Regulation of Total Expenditure 9
Ch. 8: Constituents of national Expenditures 6
Ch. 9: Private Consumption Expenditure 10
Ch. 10: Private Investment 17
Ch. 11: Credit Policy and the Stabilization of Total Expenditure 10
Ch. 12: Public Expenditure and Fiscal Policy 26
Ch. 13: Foreign Investment 12
Ch. 14: Employment and Inflation 14
104

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003 (HUC 8522.2.1). Box 4, Folder “1947-48, (1 of 2)”.

Image Source:  Harold H. Burbank in Harvard Class Album, 1934.

 

 

 

Categories
Exam Questions Northwestern Suggested Reading Syllabus

Northwestern. Monetary Policy Readings and Exam. Modigliani, 1961

 

Between his professorships at Carnegie and MIT, Franco Modigliani briefly held a professorship at Northwestern. It appears that Northwestern could not be faulted in its pursuit and courtship of Modigliani, but one sees that Modigliani’s academic heart was left in Cambridge. He answered the call to MIT, undoubtedly leaving a broken hearted colleague or two in Evanston.

Below the reading list and final exam questions for Franco Modigliani’s course at Northwestern “Monetary Policy”.

____________________________

Modigliani remembers Northwestern

Carnegie granted me a sabbatical year in 1957-58, during which I was a visiting professor at Harvard, where I stood in for Leontief (who was on leave)…At the end of 1959 I was again invited to be a visiting professor, but this time at MIT. I intended to accept, but the administration at the Carnegie Institute was against it. In that period I felt rather annoyed by the university, for I had the impressiona that the administration did not intend to invest resources in the economics sector. To my dismay, they decided not to replace an excellent economist, Alexander Henderson, who had worked alongside me and died prematurely…
Serena and I therefore decided it was time to move on and accepted MIT’s offer and an invitation to occupy a permanent chair at Northwestern University, with the proviso that I be allowed to retain my post of visiting professor at MIT. The year 1960, then, was a crucial one, for I fell in love with MIT. It was a delight to have so many colleagues who were both at the top of the profession and pleasant. The administration aimed only to oil the wheels of the teacher’s liffe, and the students were all of the first quality…
At MIT everyone knew I had the commitment to go to Northwestern and, nobless oblige, no one tried to deter me. The University of Northwestern [sic] gave us a grand welcome. We found a large funished house awaiting us near the campus, and we were taken to avarious areas in order that we might choose where to buy our home. But we made too many comparisons with MIT and could not make the decision to put down roots. Everyone was too kind, too solicitous, and maybe we had the feeling as of being animals in a zoo, with everybody asking us about Italy. Well, our hearts were still back at MIT. Judge, then, how happy we were when, at Christmas, the dean of the Sloan School at MIT phone me and asked: “Franco, now you’ve had a taste of Northwestern…what about coming back to us?” We had no hesitation, and in June 1962 Serena returned to Massachusetts alone and bought our house in Belmont, where I joined her as soon as I had finished my classes in Evanston and where we spent 36 happy years.

Source:  Franco Modigliani, Adventures of an Economist. New York: Texere, 2001, pp. 91-2.

____________________________

NORTHWESTERN UNIVERSITY
Department of Economics
Economics C-30
Mr. Modigliani

Fall Term 1961

C-30 MONETARY POLICY

Reading List I

Books suggested for general background and review

Chandler—The Economics of Money and Banking, 3rd edition
Day and Bean—Money and Income
Sayers—Modern Banking

  1. The Supply of Money, the Banking System, Financial Intermediaries and the Matrix of Claims

Meade, J. E.—“The Amount of Money and the Banking System”—Readings in Monetary Theory.
The Federal Reserve System—Purposes and Functions—Ch. I-VIII and XIII
H.C. Carr—“Why and How to read the Federal Reserve Statement” Journal of Finance, Dec. 1959
Roosa, R. V.—Federal Reserve Operations in the Money and Government Securities Markets
Chandler, L. V.—“Federal Reserve Policy and the Federal Debt”—Readings in Monetary Theory
Federal Reserve Bulletin—August 19959 “A quarterly presentation of Funds, Saving and Investment”

 

Reading List II

  1. The Demand for Money

Fisher, I.—The Purchasing Power of Money, Chs. 1-6 and 8
Robertson, D.—Money, Chs. 4-6
Pigou, A.C.—“The Value of Money”, Readings in Monetary Theory
Hicks, J. R.—“A suggestion for simplifying the Theory of Money”, Readings in Monetary Theory
Tobin, J.—“The interest elasticity of Transaction Demand for Cash”, Review of Economics and Statistics (RE&S), August 1956
Keynes, J. M.—General Theory, Ch. 15
Friedman, M.—“The Restatement of the Quantity Theory of Money”, in Studies in the Quantity Theory of Money
Latané, H.A.—“Cash Balances and the Interest Rate”, RE&S, Nov. 1954, pp. 456-460
___________–“Income Velocity and Interest Rates”, RE&S, Nov. 1960, pp. 445-449
Stedry, A.C.—“A Note on Interest Rates and the Demand for Money”, RE&S, August 1959
Bronfenbrenner and Mayer—“Liquidity Functions in the American Money”, Econometrica, October 1960, Sects. I-IV
Friedman, M.—“The Demand for Money: Some Theoretical and Empirical Results”, JPE, August 1959

 

Reading List III

  1. The Modus Operandi of Monetary Policy—Money and Liquidity—Monetary and Fiscal Tools.

Keynes, J.M.—A Treatise on Money—Ch. 13, 31, 37.
Keynes, J.M.—The General Theory of Employment, Interest and Money—Ch. 2, 6, 10, 11, 18, 19, 21.
Hicks, J.R.—“Mr. Keynes and the Classics”—Readings in the Theory of Income Distribution.
Modigliani, F.—“Liquidity Preference and the Theory of Interest and Money”—Readings in Monetary Theory (except sections 10 and 13)
Patinkin, D.—“Price Flexibility and Full Employment”—Reading in Monetary Theory
Tobin, J.—“A Dynamic Aggregative Model”, JPE, April, 1955 (espec. pp. 103-111)
Modigliani, F.—“Long Run Implications of Alternative Fiscal Policies and the Burden of the National Debt”—(Mimeographed)
Roosa, R.V.—“Interest Rates and the Central Bank”—Money, Trade and Economic Growth; Essays in Honor of John H. Williams
Kareken, J.H.—“Lender’s Preferences, Credit Rationing and the Effectiveness of Monetary Policy”, Review of Economics and Statistics, August 1957.
Friedman, M.—“A Monetary and Fiscal Framework for Economic Stability” Readings in Monetary Theory.
American Assembly—United States Monetary Policy Ch. 1, 2, 7.
Friedman, M.—A Program for Monetary Stability, (Fordham University Press)
Axilrod, S.H.—“Liquidity and Public Policy,” Federal Reserve Bulletin, October 1961.

 

Reading List IV

  1. The Term Structure of Interest Rates, Monetary Policy and Debt Management

*Lerner, A.P.—“Essential Properties of Interest and Money”, QJE, May 1952
*Lutz, F.—“The Structure of Interest Rates”, Readings in the Theory of Income Distribution.
Hawtrey, H. G.—A Century of Bank Rates, Ch. VI
*Tobin, J.—“Liquidity Preference as Behavior Toward Risk”, Review of Economic Studies, Feb. 1958
*Meiselman, D.—“Expectations, Errors, and the Term Structure of Interest Rates” (mimeographed)
*Riefler, W.W.,–“Open Market Operations in Long Term Securities”, FRB, Nov. 1958
*Young, R.A. and Yager, C.A.—“The Economics of ‘Bills Preferably’” QJE, August, 1960.
Conrad, J.W.—An Introduction to the Theory of Interest. University of California Press, 1959 (especially part Three)

 

Final Examination
December 14, 1961
8:00-10:00

ANSWER ANY FOUR QUESTIONS

  1. Under the present system commercial member banks are required to keep a reserve proportional to their demand deposit liability in the form of cash or deposits with the Federal Reserve Banks.
    1. What is the function and role of these reserve requirements?
    2. What would be the major implications of requiring a reserve proportional to their commercial loans rather than to their demand deposits. Explain whether and why you would favor or oppose such a change?
  2. Some authors have maintained that the ability of certain financial intermediaries other than banks to create close money substitutes seriously impairs the effectiveness of monetary policy. Spell out the argument and assess its validity.
  3. Evaluate the relative merits and shortcomings of monetary and fiscal policies in dealing with “cost push” inflation.
  4. Explain the essence of the so called “availability doctrine” and its relevance for an understanding of the modus operandi of monetary policy.
  5. State the main arguments for and against the “bills only” doctrine and give your own evaluation and recommendation.
  6. The Federal Reserve Board and the Federal Deposit Insurance Corporation have recently raised the maximum rate payable on time deposits from 3 to 4%.
    1. What are the purposes and the likely effects of this move?
    2. Even though the new provision does not apply to Saving and Loan Institutions a spokesman for the United States Saving and Loan League was quoted by the Sun-Times of December 2 to the effect that the change “may very well mean some dividend rate increase by Savings and Loan institutions in different parts of the country” and “If Savings and Loans have to pay more for dividends they will have to increase rates on mortgages. This is a surprising development in view of the administration’s announced drive to hold mortgage rates down.” Assess this statement critically.

 

Source: Duke University, Rubenstein Library. Franco Modigliani Papers, Box T6, Folder “Teaching material, Economics, 1961”.

Image Source: Website Archivio Storico degli economisti.

 

 

 

Categories
Chicago Exam Questions Suggested Reading

Chicago. Jacob Viner’s Price and Distribution Theory Course, 1941

 

 

Jacob Viner’s graduate course on price and distribution theory has become a legend in the history of economics. Milton Friedman (1932) [links to many of the course readings assigned by Viner found in the posting for 1932] attended Viner’s lectures as did Paul Samuelson (1935). During the Fall quarter of 1941, Norman M. Kaplan attended Viner’s price and distribution theory course. From Kaplan’s approximately 100 pages of handwritten class notes plus 150 pages of handwritten notes on the course readings, I am able to post today a transcription of his notes from the first week of the course along with a list of titles of readings that I have found referred to in his class notes and/or in his reading notes. In the folder with these notes one also find course examination questions together with Kaplan’s answers. I only include Viner’s examination questions today.

________________________

Course Description

  1. Price and Distribution Theory.—A study of the general body of economic thought which centers about the theory of value and distribution and is regarded as “orthodox theory.” This course includes the critical examination of some modern systems of this character. Prerequisite: Economics 209 or equivalent and the Bachelor’s degree. Summer, 8:00, Knight; Autumn, 9:00, Viner.

Source: Announcements of the University of Chicago. Vol. XLI, No. 10. (April 25, 1941). The College and the Divisions for the Sessions of 1941-1942. p. 306.

________________________

First Week: Introduction
Kaplan’s notes to Viner’s lectures

Oct. 7

I.   Changes in econ. theory in last 10 years.

  1. Increasing tendency now to general as vs. partial equilibrium analysis. (More than one variable permitted to vary as vs. Marshall,: ceteris paribus relaxed). You surrender usually the breadth of the generalization in the interest of reality, of closer approximation to facts. Since Walras-Pareto school, technical skill of economists has increased so that little is lost in way of generalization. Few now use Walras-Pareto method; Schultz last used Lausanne method preceded by Henry Moore.
  2. A more definite and thorough incorporation of monetary theory in general theory. In Marshall’s Principles, e.g., equilibrium is described with monetary theory & banking structure excluded. This stemmed from Classical Economists’ criticism of Mercantilists as exaggerating role of money; money was a “veil covering other things”. Since 1929, emphasis has been placed on monetary theory due to depression (depressions always yield concentration on monetary matters) and to special influence of Keynes.
  3. Increasing attention to cyclical phenomena (now on wane, thinks Viner)—depression is normal & prosperity an aberration.
  4. Greater attention paid to monopolisitic practices and to deviations from perfect competition.
  5. Substitution of production theory for distribution theory. Distribution theory in Marshallian sense is disappearing from theory.

Viner will give little of these changes; this is a course in Marshallian econ., primarily.

II. Most of econ. propositions are quantitative in nature, mathematical

(Includes “greater than”, and “less than” concepts; though qualitative may also be math.).

Criteria: (1) Have you been logically consistent; (2) If you have been logically consistent, where have you gotten in deduction from premises. Another important issue is selection of premises; here is where economists frequently fall down.

Premises must be examined: (1) what variables are you recognizing; (2) how many & nature of variables; (3) nature of preconceptions—what do you assume with regard to econ. rationality, e.g. Part of reason for controversial nature of econ. is wide range of possible choices as to premises due to wide range of variables in any situation as vs. physical sciences where there are few variables & laboratory control can reduce the no. of these. On the other hand, variables in econ. are too few to apply probability theory as in actuarial science or celestial mechanics where you don’t have to worry about nature of variables, since great no. of variables none of which has any intelligible significance.

III. Two types of analysis:

(1) Reduction of variables in any situation & particular scrutiny of variables; (2) Probability theory. Criteria of probability theory: (1) Population is large; (2) Population is homogeneous; (3) All members are roughly coordinate in effect. Economist uses probability in his statistical analyses; he selects dominant variables & leaves the rest to probability theory on grounds that none of these variables exert a very important influence on result. Leaving the rest to probability is an euphemism for neglecting them.

IV. Marshallian approach is a static equilibrium approach.

Changes & disturbances through time have been dealt with not through process analysis [illegible parenthetical insert here: perhaps “(time implicit)”)] but through comparative statics—no analysis of how you get from one place to another through time but a comparison of two static equilibriums with slight changes. Marshallian economics is a balanced aquarium system, with individual inhabitants undergoing cycles of life & death but with the equilibrium undisturbed by individual dynamics.

 

Oct. 8

I. We ordinarily assume a stationary economy in some sense (something not changing through time) in orthodox theory.

  1. Often you start out with “exchange economy”—no change in production; no consumption. All participants have commodities, swap; who has what & how much?
  2. Another type of assumption.—fixed quantity of resources or factors of production
  3. Another type of assumption.—fixed quantity of services
  4. Another type of assumption.—fixed supply functions of resources (not inconsistent with stationary state)
  5. Another type of assumption.—fixed supply functions of services (not inconsistent with stationary state)

II. [Meaning of stable equilibrium]

In assuming stable equilibrium, you may assume that all atoms are in equil. or that atoms may be in disequilibrium but over all equil. is possible because disequil. in one direction are offset by disequil. in other direction.[Note by Kaplan:

III. Theorists are tending to work from individuals to aggregate rather than vice versa.

IV. Neo-classical theory is criticized as being abstract.

  1. But abstraction is necessary to generalizations & generalization is the only thought we know.
  2. Such critics usually meant that it’s too abstract, if they mean anything.
    1. Complete absence of concrete detail is practically inconceivable. There always must be some factual or allegedly factual material or you wouldn’t know it was econ.
    2. Complete particularism (no generalization) can’t be found.
      1. Even an infant beginning to talk uses generalizations—“cat” as label
      2. Use of symbols is so tied with generalization it’s impossible to use words without generalization.

Walton H. Hamilton is a particularist; generalizations are dangerous because they lead to abstraction. His book on prices shows each industry has peculiarities of its own. Of course, but particularism is dangerous because it shows absence of thought; no inquiry into uniformities.

The degree of abstraction depends on the purpose of economic inquiry—eternal economic truths or problem solving.

V. 4 kinds of purposes in economic analysis.

  1. Intellectual exercise
  2. Cultural value—throwing light on history & nature of mankind
  3. Tool sharpening—to teach skill in use & invention of tools of analysis
  4. (Social) problem solving—most important for profession as a whole.

Degree of abstraction depends on purpose.

VI. Econ. is criticized for assuming the rationality of man

(Cf. Mitchell’s [word illegible: appears to be “Phillisipl”, probably a misspelling of “Felicific. See Wesley Clair Mitchell, “Bentham’s Felicific Calculus”. Political Science Quarterly (June, 1918), pp. 161-183.] Calculation of Bentham) Mitchell says we have now learned man is not dominated by rational behavior—thinking of Freud & Behaviorism.

But what is rational behavior? What proportion of time must a man spend so behaving (after rational is defined) to be dominated by such behavior? Sentence is meaningless. Habit may be rational in origin, habitual behavior does not mean irrational behavior.

  1. does assume rationality in some sense.
  2. To econ. rationality means:
    1. Correct use of means to attain desired ends, given the state of kg. [knowledge] of the actor.
    2. Substantial degree of reliable accurate kg. [knowledge]
    3. Immediate ends of behavior econ. is looking at are primarily economic—i.e., directed towards wealth, leisure, productive activity.

Testing rationality would be very difficult probably impossible.

  1. Classical economist believed that except for depraved & degraded persons the behavior of man was substantially close to the three criteria to constitute rationality. They were biased in favor of rationality because they were essentially democrats (politically) & equalitarians [sic]. They had a technological (professional) bias in favor of rationality because they were proficient in such an assumption, they had been taught that. (A professional bias, not a class bias, says Viner). That technological bias was for a priori deductive analysis because earlier classicals were deductive and it was easier & body of kg. [knowledge] was deductive. Deductive analysis is tied up with rationality because otherwise you would have to make observations to know how men would behave. Econ. even deductive econ., is not absolutely tied to rationality but only to some predictable pattern of human behavior (which may be irrational, but must be predictable if science is to be a priori.[)]

Oct. 9

I. Assumption of rationality.

  1. No reason why econ. couldn’t take account of irrationality if it could find such patterns, but that would take systematic observation. Rationality is easier.
  2. Economic man:
    1. Is he selfish? Unit is the family; it’s an economic family not an economic man; Ricardo, e.g., took it for granted that wife would be taken care of & children raised. Ends which economist treats are not final ends, though they may be final as far as economist analyzes. Assumption is only that in market place, man is economic. Whatever altruistic motives man may have are not directed towards other party to contract. Altruism or hostility to other bargainer disturbs economic theory; participant is neutral towards other. This is extent of selfishness. Such an assumption—indifference of party A in contrast to welfare of party B—may be unrealistic in some markets: hostility in Irish landlord-tenant and Negroe [sic] sharecropper relation and benevolence in English landlord-tenant relation. English landlord may be acting rationally, though not an economic man.
    2. Not synonymous with rationality.

II. [When the “means” themselves are “ends”]

You don’t get very far with definition of econ. as application of scarce resources to desired ends because one of the most difficult problems is to distinguish between means and ends. Adam Smith dealt with division of labor as allocation of scarce resources to desired ends but Ferguson criticized Smith for not seeing the values in the activities. What Smith thought were means may have been ends. Agriculture may be a means, but it may also be an end—agr. as a “way of life”.

III. What is rational attitude towards risk taking?

Value all risks which could be valued at actuarial values? But is abhorrence of risks & therefore undervaluing them or love of chance & therefore overvaluing any the less rational.[?]

IV. Even Classical did not always assume rationality:

  1. Dealt with ignorance factor—patterns of behavior due to misinformation or lack of it
  2. In connection with savings they said masses failed to make adequate provision for future, did not foresee needs of the future or hadn’t the will to so provide (former is ignorance; latter is irrationality)
  3. Population theory based on irrationality—family decisions not made on grounds of economic welfare.

We will assume rationality in this course, but in economics generally we must be flexible and willing to drop the assumption if necessary.

End of introduction

[Oct. 9 notes continue with a preliminary discussion of the Marshallian demand curve]

________________________

 Suggested/Required Course Readings
Compiled from Kaplan’s notes
Notes on these readings ( made by Kaplan

Demand & Supply: Cost of Production

*Marshall, Book V, Ch. 1, 2, 3, 4, 5, 12, Appendix H
*Viner, Cost Curves & Supply Curves
*Chamberlin, Theory of Monopolistic Competition, Ch. II & Appendix B, pp. 190-93.
Harrod, Theories of Imperfect Competition (get article)

On Cobweb Adjustment

*M. Ezekiel “The Cobweb Theorem” QJE, Feb. 1938
*N. W. Buchanan “On the Cobweb Theorem” JPE, Feb 1939

Empirical Analysis

(Optional) Joel Dean, “Statistical Investigation of Costs with Especial Reference to Marginal Costs”, Supplement to 1936, U. of C. Journal of Business.
*Stigler, “The Limitations of Statistical Demand Curves,” J. of Am. Stat. Assn. Sept 1939, pp. 469-81

Austrian Theory of Value

*Smart, Intro. to Theory of Value, pp. 64-83
*Wicksteed, Commonsense of P.E. Robbins edition Intro. Vol. I p. XX, Vol. II, pp. 784-88

Joint Demand & Joint Supply.

*Marshall, Bk. V, Ch. 6 & Math Appendix H

Monopoly Value.

*Marshall Bk. V., Ch. 14

Distribution Theory

*Distribution theory. Marshall, Bk. VI, Ch’s 1 & 2
J.B. Clark, Dist. of Wealth. Preface & chapters 1, 7, 8.

Some items mentioned as suggested readings

Cf. A. L. Meyers. Elements of Modern Economics (1941 ed.), Ch. V on Indifference Curves.
or *Boulding Economic Analysis, [Ch. 30 Advanced Theory of Consumption]

Cf. Hans Staehle. Elasticity of Demand & Social Welfare. QJE, Feb. 1940.

Betterman, Elasticity of Supply Am. Ec. Rev. 1934, pp. 417 ff. Better: R. F. Fowler “The diagrammatical representation of elasticity of supply” Economica, May 1938.

Cf. p. 24 of Viner article on conflict between English & Austrian schools.

Cf. Ch. 23 Boulding

Halevy, Westminister Review

 

Not recorded as assignments in lecture notes,
but reading notes were taken by Kaplan

*F. H. Knight. “Demand” in Encyclopedia of Soc. Science.

Marshall

*Book III, Ch. I, II, III, IV, V, VI, Note III in math appendix. Ch. III A, Ch. IV B., Note IV
*Book V, Ch 1 Note A, B
*Book V, Ch. 2. Note A, B
*Book V, Ch. 3. Note A, B, C
*Book V, Ch. IV
*Book V, Ch. 5, Note A, B, C, D, E, F
*Book V, Ch. 6, Note. A, B, C, D, E, F, G, H, I, J, K
*Book V, Ch. VI, mathematical note XIV appended to note D.

________________________

Course Exams

ECONOMICS 301
[Perhaps midterm: Kaplan answers only for 1-3]

Comment briefly on each of the following passages (explanation, justification, disproof, qualification, as may be appropriate).

  1. “It is not the case that an increased demand for mutton must in the long run necessarily operate to lower the price of wool. An increased demand for mutton will stimulate sheep farming, but it will also stimulate the substitution of crossbred [mutton type] for merino [wool type] breeds; and the resultant of these two opposite tendencies is logically indeterminate.”
  2. “When Consols are at 93½ , and business in in a tranquil state, it matters not how many buyers of these securities there are at 93, or sellers at 94. They are really off the market. Those only are operative who may be made to buy or sell by a rise or a fall of an eighth. The question is, whether the price shall remain at 93½, or rise to 93 5/8, or fall to 93 3/8. This is determined by a very few persons and by the sale or purchase of very small amounts.”
  3. “The degree of monopoly control by a seller equals the degree by which price exceeds marginal revenue.”
  4. “The degree of monopoly control by an employer as employer equals the degree by which the value of the marginal product of labor exceeds the marginal supply price of labor.”
  5. “Where it is the case that people would not give as large a total sum for a larger quantity of an article than for a smaller, this would be expressed geometrically by saying that the demand curve would cut negatively a rectangular hyperbola.” [negatively means cut from above]
  6. “The fact that supplying labor with better or more instruments results in an increase in output has sometimes led to the conclusion that capital is productive, a phrase which must be used with care. The strictly accurate statement is that labor applied in some ways is more productive than labor applied in other ways. Tools and machinery, buildings and materials, are themselves made by labor, and represent an intermediate stage in the application of labor. Capital as such is not an independent factor in production, and there is no separate productiveness of capital.”

 

 

ECONOMICS 301
Thursday [December 18, 1941]

Time: 1 hour.

  1. a. If elasticity of demand is unity, and original rate of sales is 1,000 per month, what will happen to the rate of sales if price falls 50 per cent?
    b. If elasticity of demand is two, and original rate of sales is 1,000 per month, what will happen to the rate of sales if price falls 25 per cent?
    c. “Since elasticity of demand measures variations in quantity demanded divided by variations in price, the elasticity of the demand for anything will be seven times as large for seven similar demanders taken together as it is for one.” Comment.
  2. Discuss the probable shapes for a particular plant of its short-run and its long-run average cost curves, and given these curves, explain the derivation of the corresponding marginal cost curves.
  3. On what grounds can it be held that in any important industry, increase in output is in the static long-run likely to be subject to conditions of increasing cost? Give and discuss the arguments which have been presented in support of different views.

 

ECONOMICS 301
Friday [December 19, 1941]

Time: 1 hour.

  1. Suppose that a single monopolist takes charge of an industry which has hitherto been in the hands of a large number of independent producers and which makes extensive use of a specialized type of labor. Give an account of the factors which will determine the effect of the change on (a) the industry’s output, and (b) the volume of employment of labor by the industry.
  2. A power monopoly, operating within the range where there are net internal economies of large-scale production sells current for both industrial and domestic use. The distribution costs on the latter are 20 cents per unit higher than for the former. Given: (a) the industrial demand schedule for current; (b) the domestic demand schedule for current; (c) the average cost schedule for generating current plus distributing it to industrial users.
    What rates should be charged to each type of customer to maximize the net income of the company?
  3. a. What conditions are necessary if the demand curves for particular firms in an industry are to have negative inclinations, but without any net monopoly profits?
    b. Are these conditions compatible with long-run equilibrium?

 

Source: The University of Chicago Archives. Norman M. Kaplan Papers, Box 4, Folder 1.

Image Source: Image Source: University of Chicago Photographic Archive, apf1-08490, Special Collections Research Center, University of Chicago Library.