Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Business Cycles and Economic Forecasting. Schumpeter, 1948

Business Cycles and Economic Forecasting was a two semester graduate course at Harvard. The fall term (Economics 245a) was taught by Joseph Schumpeter and the spring term (Economics 245b) was jointly taught by Assistant Professor Richard Goodwin and Professor Gottfried Haberler. This posting includes a transcription of a carbon copy of the final exam questions for Schumpeter’s course along with his course reading list for the fall term of 1948. An undated note to the veteran’s office that identifies books that veterans be reimbursed for purchasing is included below.

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1948-49
Economics 245a
[Professor Joseph Schumpeter]
Fall Term

Work in this course will concentrate on a number of selected topics in business-cycle analysis and forecasting rather than aim at covering the entire field systematically. As much opportunity as possible will be given for discussion of, and essays on, individual problems. Some knowledge of advanced theory and advanced statistics is necessary in order to reap the full benefit from this course: providual [sic, individual] needs will be taken care of in consultation.

I.

a. Students are expected to be, or to make themselves, familiar with the two following standard works:

Haberler, Prosperity and Depression, 1941.
Pigou, Industrial Fluctuations, 1929.

b. There are a number of useful textbooks that less advanced students may usefully consult for survey purposes: E. C. Bratt, Business Cycles and Forecasting, 3rd ed., 1948, is recommended (not “assigned”).

c. Attention is called to Readings in Business-Cycle Theory (Vol. II of the Blakiston Series of Republished Articles on Economics, 1944. See especially Nos. 2, 4, 10, 12, 14, 21 and Bibliography by H. M. Somers).
William Fellner, Employment Theory and Business Cycles in A Survey of Contemporary Economics (ed. H. S. Ellis, Blakiston, 1948)

d. Perusal of The Federal Reserve Board’s Chart Books I and II is strongly recommended, and so is the study of

e. E. Frickey, Economic Fluctuations in the United States (Harvard Economic Studies, 73) which should be supplemented by
E. Frickey, Production in the United States, 1860-1914 (Harvard Economic Studies, 82)

[f. This time, the program of the course does not include Business Cycles (National Bureau of Economic Research, 1946). Owing to its importance, the book is nevertheless mentioned here for the benefit of students who propose to specialize in business cycles.]

 

II. Further suggestions with reference to topics that will be dealt with in the course.

a. Books:

J. G. Stigler, Trends in Output and Employment (N. B. E. R., 1947)
J. M. Clark, Strategic Factors in Business Cycles, 193
A. H. Hansen, Economic Policy and Full Employment, 1947
A. H. Hansen, Fiscal Policy and the Business Cycle, 1941.

b. Articles:

(1) S. H. Slichter, The Period 1919-36 in its Significance for Business-Cycle Theory, Review of Economic Statistics, 1937.
H. L. Beales, The Great Depression, Economic History Review, October, 1934.

(2) M. Kalecki, A Theory of the Business Cycle, Review of Economic Studies, February, 1937.
L. A. Metzler, Business Cycles and the Modern Theory of Employment, American Economic Review, June, 1946.
N. Kaldor, A Model of the Trade Cycle, Economic Journal, March, 1940.

(3) G. Haberler, Some Reflections on the Present Situation of Business-Cycle Theory, Review of Economic Statistics, 1936.
Hansen, Boddy, and Langum, Recent Trends in Business-Cycle Literature, Review of Economic Statistics, 1936.
H. S. Ellis, Notes on Recent Business-Cycle Literature, Review of Economic Statistics, 1938.
Jacob Marschak, A Cross Section Of Business-Cycle Discussion, American Economic Review, June, 1945.
J. Tinbergen, Critical Remarks on Some Business-Cycle Theories, Econometrica, April, 1942
T. Koopmans, The Logic of Econometric Business-Cycle Research, Journal of Political Economy, 1941.

(4) J. Einarsen, Reinvestment Cycles, Review of Economic Statistics, 1938.
W. Isard, A Neglected Cycle: The Transport-Building Cycle, Review of Economic Statistics, 1942.
O. Morgenstern, On the International Spread of Business Cycles, Journal of Political Economy, 1943.
Irving Fisher, The Debt-Deflation Theory of Great Depressions, Econometrica, 1933.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1), Box 4, Folder “Economics, 1948-1949 (2 of 2)”.

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[Final Examination]

HARVARD UNIVERSITY
Economics 245 A

One question may be omitted. Arrange your answers in the order of the questions.

  1. Describe the various underconsumption theories of depressions and discuss their explanatory value.
  2. Explain the mechanism of inventory cycles and state your opinion about the importance of the phenomenon.
  3. Prolonged periods of prosperity and depression have been traced to expansions and contractions in gold productions. Analyze the action of increases or decreases in gold stocks upon the economic process of the periods in which they occurred and show how they could, or could not, have produced the cycles or sequences of cycles attributed to them.
  4. Examine the validity of harvest theories of business cycles.
  5. Accepting, for the sake of argument, the innovation theory of cycles, how would you expect money wages and real wages to behave in the course of the cyclical phases?

Final, January 1949

 

Source: Harvard University Archives. Joseph Schumpeter Papers (HUG(FP)-4.62). Lecture Notes Box 2, Folder “Business Cycle Lecture notes Fall 1948”.

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To the Veteran’s Office, with apologies for delay: [undated]

Note: Economics 203 and 245 are advanced courses in which no textbooks are assigned, and the assignments of other books are of the character of advice rather than of strict requirement. However, I mention below books which I do advise students to buy. Most of them are required in other courses.

I. For Economics 203

J. R. Hicks, Value and Distribution [sic, “Capital”], Oxford Press, New edition just out.
A. Marshall, Principles, Macmillan, any edition from 4th to 8th.
Lord Keynes, General Theory of Employment, Interest and Money, Harcourt Brace, 1st edition, 1936.
E. H. Chamberlin, Theory of Monopolistic Competition, Harvard Press, last edition.
Irving Fisher, Theory of Interest, MacMillan, 1930
K. Wicksell, Lectures Vol. I, Routledge, 19334 (if available)

 

II. For Economics 245

Alvin Hansen, Economic Policy and Full Employment, McGraw-Hill
Edwin Frickey: a) Fluctuations, b) Production, both Harvard Press
Burns and Mitchell, Measuring Business Cycles, National Bureau of Economic Research, 1819 Broadway, New York 23, N.Y.
Bratt, Business Cycles, 3rd edition, 1948, (Irwin).
[handwritten addition:] Reading in Bus. Cycles. Blakiston.

Source: Harvard University Archives. Joseph Schumpeter Papers (HUG(FP)-4.62). Lecture Notes Box 2, Folder “Misc course notes 1943-48 (found in Littauer M-5)”.

Image Source: Harvard Album, 1947.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Mathematical Economics. Leontief, 1948

There are only marginal differences to be found  from the course outline for 1941-42 and 1942-43, e.g. “Time lags and sequences” instead of “Cobweb Model” plus addition of Mosak (General Equilbrium Theory in International Trade) and Samuelson (Foundations of Economic Analysis) to the course bibliography. We also see that Marshall’s Mathematical Appendix was a “new” assignment for the reading period.  Midterm and Final exam questions are included in this posting.

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[Course Outline, Leontief]

Economics 4a
Spring Term, 1948

Introduction to the Mathematical Treatment of Economic Theory

  1. Introductory remarks
    Profit function
    Maximizing profits
  2. Cost functions: Total costs, fixed costs, variable costs, average costs, marginal costs, increasing and decreasing marginal costs.
    Minimizing average total and average variable costs
  3. Revenue function
    Price and marginal revenue
    Demand function
    Elasticity and flexibility
  4. Maximizing the net revenue (profits)
    Monopolistic maximum
    Competitive maximum
    Supply function
  5. Joint costs and accounting methods of cost imputation
    Multiple plants
    Price discrimination
  6. Production function
    Marginal productivity
    Increasing and decreasing productivity
    Homogeneous and non-homogeneous production functions
  7. Maximizing net revenue, second method
    Minimizing costs for a fixed output
    Marginal costs and marginal productivity
  8. Introduction to the theory of consumers’ behavior
    Indifference curves and the utility function
  9. Introduction to the theory of the market
    Concept of market equilibrium
    Duopoly, bilateral monopoly
    Pure competition
  10. Time lag and time sequences
  11. Introduction into the theory of general equilibrium

Bibliography:

R. G. D. Allen, Mathematical Analysis for Economists
Evans, Introduction into Mathematical Economics
Antoine Cournot, Researches into the Mathematical Principles of the Theory of Wealth
Jacob L. Mosak, General Equilibrium Theory in International Trade
Paul A. Samuelson, Foundations of Economic Analysis

Reading Period Assignment: Alfred Marshall, Principles of Economics, Mathematical Appendix

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. HUC 8522.2.1, Box 4, Folders “Economics, 1947-1948 (1 of 2)”.  Copy also in Harvard University Archives, Wassily Leontief Papers. Course Material Box 2 (HUG 4517.45); Folder “Spring 1948-Econ. 4A”.

 

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[Midterm Exam]

Economics 4a
Hour Examination
March 23, 1948

Answer two questions, including Question 3.

1.  Prove that the average costs tend either

(a) toward equality with the marginal costs, or
(b) toward infinity

as the output of an enterprise is reduced toward zero.

2. Describe the relationship between the cost curve and the supply curve of an enterprise.

3.  An industrial enterprise produces jointly two kinds of outputs, X and Y and uses one kind of input, Z. Given

(a)  the production function z = f(x,y), where z, x and y are quantities of Z, X and Y and
(b)  the prices Pz, Px and Py of Z, X, and Y

derive the equations the solution of which would determine the most profitable input-output combination. Don’t forget the secondary conditions.

 

Source: Harvard University Archives, Wassily Leontief Papers. Course Material Box 2 (HUG 4517.45); Folder “Spring 1948-Econ. 4A”.

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[Final Exam]

1947-48
HARVARD UNIVERSITY
ECONOMICS 4a

Please write legibly

Answer four questions including question 6.

  1. Show how a change in the magnitude of the fixed costs would affect the supply curve of a profit-maximizing enterprise selling its product on a competitive market.
  2. Given:

      The production function,

x = yz2

where x is the quantity of output, and y and z represent the amounts of two different inputs purchased at the fixed prices py and pz respectively,

Derive:

            The total cost curve of the enterprise. (A total cost curve represents the functional relationship between various outputs and the smallest total costs at which they can be produced.)

  1. A monopolistic producer sells his output in two separate markets. His cost curve is:

C = K + Q

where C represents the total cost, Q the total output, and K a positive constant. The demand curves in the two markets are:

p1 = A q1

p2 = Bq2,

p1, p2 and q1, q2 represent the prices charged and quantities demanded in the two markets respectively. A and B are positive constants.

What prices would the monopolist charge in the two markets in order to maximize his total net revenue?

  1. A worker maximizes his utility function:

u(c, l)

where c represents his consumption and l the number of hours worked. The hourly wage rate is w dollars.

Determine the equation showing how many hours of labor, l, the worker will supply at any given wage rate, w. Analyze the conditions under which an increase in the wage rate might reduce the number of hours worked.

  1. Discuss the problem of measurability of utility.
  2. A consumer receives a fixed income y1 in “year I” and a fixed income y2 in “year II.” He is free to augment his consumption during year I by borrowing money from the outside on condition that it be paid back with interest out of the income of year II. He can also spend during the first year less than his total income y1. The resulting savings plus the accrued interest will be added in this case to the second year’s consumption. No transfer of any savings beyond the second year and no borrowing against the income of the later years is allowed.

Given:

(a) the utility function,

u(x1, x2)

to be maximized where x1 and x2 stand for the consumption of the first and the second year, and

(b)  the rate of interest i

Derive:

(1) the equations which determine the optimum amount of savings (or borrowings) s;

(2) the formula showing the effect of an infinitesimal change in the rate of interest i on the amount of savings (or borrowings) Interpret the meaning of such a formula.

 

Final. May, 1948.

Source: Harvard University Archives, Wassily Leontief Papers. Course Material Box 2 (HUG 4517.45); Folder “Spring 1948-Econ. 4A”.

Image Source: Harvard Album, 1947.

Categories
Harvard Suggested Reading Syllabus

Harvard. Money, Banking, and Cycles, Seymour Harris, 1933-34

The course at Harvard on Money, Banking and Commercial Crises was usually co-taught by Professor John Williams with junior people. In 1933-34 Assistant Professor Seymour Harris was solely responsible for teaching the course. Interesting to note is that Harris clearly preferred to speak of “cycles” to “crises”, at least judging by the slight change in the course title for that year alone.

The mid-year exam is posted here.

The final exam for the course in May or June of 1934 has been transcribed in a later post.

Here a link to the syllabus for the Williams/Harris 1937-38 syllabus and exam.

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[From the Course Catalogue]

Economics 3. Money, Banking, and Cycles

Th., Th., at 12, and a third hour to be arranged. Asst. Professor Harris.

Source: Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences, 1933-34 (Second Edition). Official Register of Harvard University, Vol. 30, No. 39, Sept. 20, 1933, p. 125.

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[Course Enrollment: Economics 3, 1933-34]

3. Asst. Prof. Harris.—Money, Banking, and Cycles.

2 Graduates, 40 Seniors, 73 Juniors, 9 Sophomores, 3 Others:   Total 127

Source: Harvard University. Report of the President of Harvard College and reports of departments for 1933-34, p. 84

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ECONOMICS 3
Outline, 1933-1934

Important Books

Burgess: Reserve Banks and the Money Market.
Clare: The ABC of Foreign Exchanges.
Dunbar: Chapters on the Theory and History of Banking.
Fisher: The Purchasing Power of Money.
Hardy: Credit Policies of the Federal Reserve System.
Harris: Twenty Years of Federal Reserve Policy.
Hawtrey: Currency and Credit (Third edition).
Hawtrey: Trade Depression and the Way Out.
Keynes: Tract on Monetary Reform.
Keynes: Treatise on Money.
Lavington: The English Capital Market.
League of Nations: Final Report on Gold.
Pigou and Robertson: Economic Essays and Addresses.
Robertson: Money (Revised edition—Seventh). [1926 edition]
Withers: Meaning of Money.  [3rd ed. 1914]

 

A. BANKING

I. The Banks and Industry (September 26—October 14)

Lecture 1. The banks and industry.
Lecture 2. The banks and the price level.
Lecture 3. Forced savings.
Lecture 4. Banks and the capital market.
Lecture 5. The banks and speculation.
Lecture 6. The movement of bank deposits and the problem of bank failures.

Assignment:

Dunbar: Chapters 1-5.
Keynes, Treatise on Money: Vol. I, pp. 23-43; Vol. II, pp. 49-79.
Robertson: Chapter 5 (Money and Saving), pp. 85-108.

 

II.  Central Banking and Banking Policy (October 17—November 18)

Lecture 7. Peculiarities of central banking
Lecture 8. Rate policy
Lecture 9. Open market policy
Lecture 10. Moral suasion
Lecture 11. Eligibility
Lecture 12. Policy in boom times
Lecture 13. Policy in war times
Lecture 14. Policy in depressed times
Lecture 15. Coöperation between central banks
Lecture 16. The Federal Reserve Act

Assignment:

Burgess: Chapters 3-5, 9-14.
Hardy: Pp. 74-179.
Harris: Chapters 8, 9, 42, 44.

 

III. Banking Abroad (November 21—December 23)

Lecture 17. English banking before 1844
Lecture 18. The Bank Act of 1844
Lecture 19. English banking, 1844-1914
Lecture 20. English banking, 1914-1928
Lecture 21. English banking, 1928-1933
Lecture 22. German banking before the War
Lecture 23. German banking since the War
Lecture 24. French money market and the Bank of France
Lecture 25. Canadian Banking

Assignment:

Withers: Meaning of Money.
Keynes, Treatise: Vol. II, pp. 225-262.
Lavington: Pp. 125-182.

 

HOUR EXAMINATION: Thursday, November 2

Reading Period:

Read ONE of the following:

Sprague: Crises.
Andreades: History of the Bank of England: Pp. 1-72, 161-407.
Hawtrey: The Art of Central Banking: Pp. 116-303.

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B.  MONEY

IV. The Pure Theory of Money (February 6—March 3)

Lecture 1. What is money?
Lecture 2. How to measure the value of money.
Lecture 3. The Fisherian quantity theory.
Lecture 4. The old Cambridge quantity theory.
Lecture 5. Keynes’ theory of the value of money—the level of efficiency earnings.
Lecture 6. Keynes, continued—Savings and investments and the value of money.
Lecture 7. Keynes, continued—The price level of investment goods.

Assignment:

Robertson: Chapters 1-3, pp. 1-63.
Fisher: Pp. 8-73.
Keynes, Treatise: Vol. I, Pp. 53-79, 221-233.
Hawtrey, Currency and Credit: Chapters 3-4, pp. 30-60.

 

V. Monetary Policy (March 13—April 21)

Lecture 8. The gold standard before the War
Lecture 9. The gold standard since the War
Lecture 10. The silver standard
Lecture 11. The gold exchange standard in theory
Lecture 12. The gold exchange standard in practice
Lecture 13. Inconvertible paper money—value at home
Lecture 14. Inconvertible paper money—value abroad
Lecture 15. Inconvertible paper money—other problems
Lecture 16. Problems of stabilization
Lecture 17. Monetary and non-monetary factors in the British situation
Lecture 18. The British situation, continued, and some discussion of the French situation
Lecture 19. Monetary problems of the British Dominions
Lecture 20. Monetary and non-monetary factors in the American situation

Assignment:

Keynes: A Tract on Monetary Reform: Chapters 1, 3, 4.
Pigou and Robertson: Pp. 116-138.
Hawtrey, Trade Depression and the Way Out: Pp. 1-84.
League of Nations, Final Report on Gold: Pp. 1-57.

 

VI. The Theory of the Cycle (April 24—May 5)

Lecture 21. A monetary theory of the cycle–Hawtrey
Lecture 22. Non-monetary theories of the cycle—Schumpeter and Pigou
Lecture 23. Semi-monetary theory—Keynes.
Lecture 24. Robertson’s criticisms of the monetary theories

Assignment:

Clare: The ABC of the Foreign Exchanges (Discussed under V—Monetary Policy)

HOUR EXAMINATION: Thursday, March 15

Reading Period:

Read ONE of the following:

Hawtrey, Currency and Credit: Part 2.
Ackerman, Economic Progress and Economic Crises
Laughlin, History of Bimetallism.
https://archive.org/details/historybimetall00goog
White, Money and Banking: Pp. 60-193, 232-369.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. HUC 8522.2.1, Box 2, Folder “Economics, 1933-1934”.

Image Source: Seymour Harris from the Harvard Album 1935.

Categories
Bibliography Suggested Reading

Society for Political Education. Popular Economic Tracts. 1880-1891

 

 

During the decade of the 1880s the Society for Political Education founded by the independent Republican (“Mugwump”) Richard Rogers Bowker (1848-1933) published a series of popular works on politics and economics so that American voters might educate themselves concerning the great issues of their day. I came across this organization after checking up on David A. Wells who later endowed a prize in his name for works written at Harvard in political economy (a few past winners: Paul Samuelson, Robert Solow, Michael Spence, Peter Kenen, Deirdre McCloskey, Edward Chamberlin, Harry Dexter White). Wells was the head of the Society’s Finance Committee.

I became curious about Wells after reading in Joseph Dorfman’s The Economic Mind in American Civilization, Vol. 3, 1865-1918, pp. 81-82 that Wells attached a couple of conditions to his prize:

“The prizes ‘shall be paid in gold coin of standard weight and fineness,’ or in the form of a medal of gold of corresponding value. ‘No essay shall be considered which in any way advocates or defends the spoliation of property under form or process of law; or the restriction of commerce in times of peace by legislation, except for moral or sanitary purposes; or the enactment of usury laws; or the impairment of contracts by the debasement of coin; or the issue…by government of irredeemable notes…as a substitute for money.’”

This posting includes (i) an overview of Bowker and his Society for Political Education taken from his biography, (ii) front-and-back cover material describing the Society, its purpose and leadership and (iii) links to almost every single publication

One might regard the Society for Political Education as a counterpoint to William Rainey Harper’s (first president of the University of Chicago) Methodist summer school at Chautauqua where Richard Ely regularly taught his variant of popular economic doctrine.

 

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[Overview of R. R. Bowker’s Society for Political Education]

…It was clear to him [R. R. Bowker] that to get free trade and other desired reforms under the democratic system, it was eternally necessary not only to educate the voter but to perfect the machinery whereby the voter was able to register his will. To these ends he continued to work through his Society for Political Education and a half-dozen other reform organizations to inform and rally the average citizen, to promote ballot reform and civil service reform. In this he was, perhaps, most typically fulfilling the social-engineering mission of the scholar to which he had committed himself.

In directing the fortunes of the Society for Political Education which he had founded in 1880, Bowker had the continuous counsel of Putnam, the Society’s publisher, Wells, who undertook to raise funds for its program, and Richard Dugdale, its indefatigable secretary. Its basic purpose of educating the voter through inexpensive, sound reading matter was pushed without pause. Its Economic Tracts contained original contributions from Horace White, A. D. White, Talcott Williams, W. C. Ford, and Shepard; the second series of its Library of Political Education contained works by Blanqui, Jevons, Mill, Wells, and Herbert Spencer. In addition, the Society distributed gratuitously 1,700 copies of Henry George’s Progress and Poverty and an equal number of his Irish Question, as well as 1,500 copies of Atkinson’s pamphlet on “The Elements of National Prosperity.” It then planned an “Auxiliary Series” of tracts to be given away.

Dugdale’s death in 1883 was a great blow, but his work was ably taken up by Worthington C. Ford. In 1889 George lles, an energetic Canadian liberal with a strong interest in bibliography became the Society’s secretary. Tracts were planned to cover tariff, education, prison legislation, municipal reform, the Southern question, and Canadian relations. The Society’s last publication, issued in 1891, was, perhaps, its finest, The Reader’s Guide in Economic, Social, and Political Science. In this Bowker and lles collaborated with the assistance of twenty-five specialists, including E. R. A. Seligman, W. C. Ford, James Bryce, Gifford Pinchot, D. R. Dewey, D. A. Wells, Andrew D. White, and Horace White. The result was a comprehensive list, not confined to the writings of any one school of economics or one nation. The Reader’s Guide met with hearty response from both librarians and professors of economy, and by 1903 had to be reissued in a second and revised edition.

With such an admirable program of service and a membership fee of only fifty cents, the Society might have been expected to flourish, but it most emphatically did not. Nothing, perhaps, is more indicative of the basic lack of popular support for Bowker’s version of the liberal program than the fact that the Society’s membership never exceeded 1,000 during these years. By the end of 1890 the number of subscribers fell to 113, and income from the casual sale of its pamphlets did not exceed seventy dollars a year. lles felt that the field which the Society had entered as a pioneer was now supplied by such organizations as the American Economic Association and the new trend toward social essays in Century, Forum, and Harper’s magazines. It was therefore decided to close the Society’s books.

From Bowker’s own pen came several items to strengthen the cause of civic education. At the end of 1883 the Society published his first popular summary of economic principles, Of Work and Wealth. The little volume was dedicated to Richard Dugdale, acknowledged in particular its indebtedness to such economists as Walker, Jevons, and Henry George, and deliberately steered a commonsense course between the extremes of the Manchester school and the German school. For some time Bowker had felt the need of a simple presentation of elementary economic principles for the man in the street, and this effort was a very considerable success. Professor Johnson of Princeton reported that his students were “delighted” with it, President Hadley of Yale was enthusiastic, and Wells called it “exceedingly clever.”…

 

Source: Fleming, Edward McClung. R.R. Bowker: Militant Liberal. Norman: University of Oklahoma Press, pp. 219-220

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The Society for Political Education.
(ORGANIZED 1880.)

OBJECTS. — The Society was organized by citizens who believe that the success of our government depends on the active political influence of educated intelligence, and that parties are means, not ends. It is entirely non-partisan in its organization, and is not to be used for any other purpose than the awakening of an intelligent interest in government methods and purposes tending to restrain the abuse of parties and to promote party morality.

Among its organizers are numbered Democrats, Republicans, and Independents, who differ among themselves as to which party is best fitted to conduct the government, but who are in the main agreed as to the following propositions:

The right of each citizen to his free voice and vote must be upheld.
Office-holders must not control the suffrage.
The office should seek the man, and not the man the office.
Public service, in business positions, should depend solely on fitness and good behavior.
The crimes of bribery and corruption must be relentlessly punished.
Local issues should be independent of national parties.
Coins made unlimited legal tender must possess their face value as metal in the markets of the world.
Sound currency must have a metal basis, and all paper money must be convertible on demand.
Labor has a right to the highest wages it can earn, unhindered by public or private tyranny.
Trade has the right to the freest scope, unfettered by taxes, except for government expenses.
Corporations must be restricted from abuse of privilege.
Neither the public money nor the people’s land must be used to subsidize private enterprise.
A public opinion, wholesome and active, unhampered by machine control, is the true safeguard of popular institutions.
Persons who become members of the Society are not, however, required to endorse the above.

METHODS .— The Society proposes to carry out its objects by submitting from time to time to its members lists of books which it regards as desirable reading on current political and economic questions; by selecting annual courses of reading for its members; by supplying the books so selected at the smallest possible advance beyond actual cost; by furnishing and circulating, at a low price and in cheap form, sound economic and political literature in maintenance and illustration of the principles above announced as constituting the basis of its organization; and by assisting in the formation of reading and corresponding circles and clubs for discussing social, political, and economic questions.

ORGANIZATION. — The Society is to be managed by an Executive Committee of twenty-five persons, selected from different sections of the United States. At the end of the first year the Executive Committee is to resolve itself into three sections, holding office respectively one, two, and three years from that date, and at the expiration of the term of office of each section, the remaining two thirds of the Committee shall elect, by ballot, members to fill vacancies. The correspondence of the Society is to be divided among five secretaries, one each for the East, the Northwest, the Southeast, the Southwest, and the Pacific Slope.

MEMBERSHIP. — Active Members are such persons as will pledge themselves to read the Constitution of the United States, and that of the State in which they reside ; who will agree to read at least one of the annual courses as included in the Library of Political Education, and who will pay an annual fee of 50 cents (which may be forwarded in postage-stamps), entitling the member to receive the tracts and lists published by the Society during the year.

Parents, guardians, or teachers will be considered as having fulfilled the above obligations if they make their children, wards, or pupils follow the prescribed course of reading.

In order to make the membership widespread, and especially to enable students in the public schools and colleges to take part in the Society, the annual fee for Active Members has been made so small that the proceeds are inadequate to carry out the objects of the Society. To provide for the resulting deficiency, the Executive Committee has established a special membership for such public-spirited persons as wish to promote political and economic education, as follows: —

Any person may become a CO-OPERATING Member on the annual payment of $5.00 or more, which shall entitle such member to receive the tracts and lists published by the Society, and to nominate two Fellowship Members. To persons so nominated the Secretary will send the series of Economic Tracts for 1880-81, stating that they are presented through the courtesy of such Coöperating Member.

FIRST YEAR’S WORK, 1880-81. — During the past year the Society has received fees from one thousand five hundred members, of whom one hundred and seventy-five are Coöperating Members, and one hundred and five Lady Members. There have also been seven Auxiliary Societies established, of which two are in connection with colleges or schools.

For the first series of the Library of Political Education, the following elementary works were selected for the year’s course of reading :

  1. Politics for Young Americans, by Chas. Nordhoff. (Including the Constitution of the United States, etc.) Harper & Bros. [Copyr. 1875.] 200 pp., 75 cents.
  2. History of American Politics by Alex. Johnston.  Henry Holt & Co. [Copyr. 1879.] 12×274 pp., 75 cents.
  3. Introduction to Political Economy, by Prof. A. L. Perry. Chas. Scribner’s Sons. [Copyr. 1877.] 348 pp., $1.50.
  4. Alphabet in Finance, by Graham McAdam. G. P. Putnam’s Sons. [Copyr. 1876.] 22×210 pp., $1.25.

The price of the set of four books of the first series, delivered at any post-office in the United States, will be $3.25. (If bought separately, in the publishers’ editions, these volumes would cost $4.25,) The price of the Society’s edition of the second series (the three volumes of which are issued by the publishers at $7.00) will be $5.00.

If any member cannot procure these books from the local booksellers, he should address Messrs. G. P. Putnam’s Sons, 27 and 29 West 23d Street, New York; Jansen, McClurg & Co., 119 State Street, Chicago ; or W. B. Clarke & Carruth, 340 Washington Street, Boston, Mass., who are the publishing agents of the Society.

The official year begins on the 1st of January.

Letters of inquiry should enclose return postage.

Money should be sent by draft, postal order, or registered letter to the Secretary.

 

EXECUTIVE COMMITTEE.

Finance Committee:
Hon. David A. Wells, Norwich, Conn.; Geo. S. Coe, New York City; Horace White, New York City.

E. M. Shepard, Treasurer (120 Broadway), office address, 4 Morton St.,
R. L. Dugdale, Secretary for the East, 4 Morton St., N. Y. City.
Edwin Burritt Smith, Secretary for the Northwest, 142 Dearborn St., Chicago, Ill.
B. R. Forman, Secretary for the Southwest, P. O. Box 2415, New Orleans, La.
F. W. Dawson, Secretary for the Southeast, P. O. Box D 5, Charleston, S. C.
W. W. Crane, Jr., Secretary for the Pacific Slope, P. O. Box 915, Oakland, Cal.

Prof. W. G. Sumner, Yale College, New Haven, Ct.
Charles Francis Adams, Jr., Boston, Mass.
Geo. Haven Putnam, New York City.
R. R. Bowker, New York City.
A. Sydney Biddle, Philadelphia, Pa.
Jno. Watts Kearny, Louisville, Ky.
Worthington C. Ford, Brooklyn, N. Y.
Horace Rublee, Milwaukee, Wis.
Archibald Mitchell, New Orleans, La.
Franklin MacVeagh, Chicago, Ill.
Gen. Bradley Johnson, Baltimore, Md.
Robert P. Porter, New York City.
John H. Ames, Lincoln, Neb.
Geo. Mason, Galveston, Texas.
Peter Hamilton, Mobile, Ala.
E. D. Barbour, Boston, Mass.
M. L. Scudder, Jr., Chicago, Ill.

The following Economic Tracts have been issued during the year (series 1880-81):

  1. What is a Bank ? What Services does it Perform?” by Edward Atkinson, of Boston. Price 10 cents.
  1. Political Economy and Political Science: a priced and classified list of books on political economy, taxation, currency, land tenure, free trade and protection, the Constitution of the United States, civil service, co-operation, etc., compiled by Prof. W. G. Sumner, of Yale College, David A. Wells, W. E. Foster, R. L. Dugdale, and G. H. Putnam. Price, 25 cents.
  1. Present Political and Economic Issues: a collection of questions for debate, and subjects for essays on current topics in American politics; with an appendix of questions proposed for discussion before the Political Economy Club of London, by J. Stuart Mill, George Grote, and others; and questions debated by the Société d’ Économie Politique of Paris. Price 10 cents.
  1. The Usury Question: comprising an abridgment of the famous essays of Jeremy Bentham and the letters of John Calvin; the speech of the Hon. Richard H. Dana, Jr., before the Massachusetts Legislature; a summary of the results of the present usury laws of the United States, by the Hon. David A. Wells ; and a short bibliography on the subject of interest. Price, 25 cents.

There have been six thousand of these Economic Tracts distributed, every member receiving a set of the series for his membership fee. (These tracts may still be obtained of the Secretary at the prices named, or by forwarding 50 cents for the series.)

A series of tracts will be published and distributed to members during 1882 as in 1880-81, the subjects of which will be announced from time to time.

The Executive Committee has selected the following books for the course of reading for 1882, which will constitute the second series of the LIBRARY OF POLITICAL EDUCATION:

 

A History of Political Economy in Europe, by Jérôme-Adolphe Blanqui; translated by Miss Emily J. Leonard. 628 pp., $3.50.

Money and the Mechanism of Exchange, by J. Stanley Jevons. 402 pp., $1.75.

On Liberty, by John Stuart Mill, 204 pp., $1.50.

 

Members who join for the year 1882 may read either the first or the second series of the Library, but the Committee recommends them to begin with the first series, unless they have already read the books comprised in it.

In order to enable persons in places where no public library is accessible, to procure, at a reduced rate, the volumes recommended by the Executive Committee for the annual courses of reading, the Committee has arranged for special editions of these in uniform binding, with the imprint of the Society upon the cover, which will be issued in annual series under the general title of the Library of Political Education, and can be supplied only in sets.

 

Source: From the front and back material included with Alphonse Courtois, Political Economy in One Lesson. Translated from the Journal des Économistes by Worthington C. Ford. New York: The Society for Political Education, Economic Tract No. V., 1882.

________________________________

ECONOMIC TRACTS
The Society for Political Education.

  1. Atkinson, Edward. What is a Bank? What Service does a Bank Perform? A Lecture Given before the Finance Club of Harvard University, March, 1880.
  2. Sumner, W. G. et al. Political Economy and Political Science: A Priced and Classified List of Books…, 1881.
  3. Subjects and Questions pertaining to Political Economy, Constitutional Law, the Theory and Administration of Government, and Current Politics. Recommended to Students as Suitable for Special Investigation or as Topics for Essay-Writing and Debate. With an Appendix of Questions discussed by the Political Economy Club of London and the Société d’Économie Politique of Paris. 1881.
    Enlarged and Revised Reissue of Economic Tract No. III. Questions for Debate in Politics and Economics, with Subjects for Essays and Terms for Definition (1889).
  4. Wells, David A. The Usury Question
  5. Courtois, Alphonse. Political Economy in One Lesson. Translated from the Journal des Économistes by Worthington C. Ford. 1882.
  6. White, Horace. Money and Its Substitutes. 1882.
  7. White, A. D. Paper Money in France. 1882. [1876Revised edition, 1896]
  8. Whitridge, Frederick W. The Caucus System.
  9. Canfield, James H. Taxation. A Plain Talk for Plain People.
  10. Bowker, R. R. Of Work and Wealth: A Summary of Economics. 1883.
  11. Green, George Walton. Repudiation.
  12. Shepard, E. M. The Work of a Social Teacher: Memorial of Richard L. Dugdale.
  13. Ford, W. C. The Standard Silver Dollar and the Coinage Law of 1878.
  14. Shepard, Edward M. The Competitive Test and the Civil Service of States and Cities.
  15. Richardson, H. W. The Standard Dollar.
  16. Giffen, Robert. The Progress of the Working Classes in the Last Half Century.
  17. Foster, W. E. References to the History of Presidential Administrations—1780-1885.
  18. Hall, C. H. Patriotism and National Defence.
  19. Atkinson, E. The Railway, the Farmer, and the Public. [reprint: 1888]
  20. Weeks, Joseph D. Labor Differences and Their Settlement.
  21. Bowker, R. R. Primer for Political Education.
  22. Bowker, R. R. Civil Service Examinations. 1886.
  23. Bayles, J. C. The Shop Council.
  24. Williams, Talcott. Labor a Hundred Years Ago.
  25. Electoral Reform, with the Massachusetts Ballot Reform Act, and New York (Saxton) Bill.
  26. Iles, George. The Liquor Question in Politics. 1889.
  27. Bowker, R. R. and George Iles. The Reader’s Guide in Economic, Social and Political Science being a Classified Bibliography, American, English, French and German, with Descriptive Notes, Author, Title and Subject Index, Courses of Reading, College Courses, etc., 1891
  28. Questions for Debate in Politics and Economics, with Subjects for Essays and terms for Definition. An Enlarged and Revised Reissue of Economic Tract No. III, 1889.

________________________________

THE LIBRARY OF POLITICAL EDUCATION
The Society for Political Education.

 

Nordhoff, Charles. Politics for Young Americans. Harper & Bros., 1875.

[Revised, 1876Revised, 1899]

Johnston, Alex. History of American Politics. Henry Holt & Co., 1879.

[Second edition, 1882; Third edition, 1890Fifth edition (with William M. Sloane), 1901;  Johnston and Sloane continued by Winthrop More Daniels, 1902

Perry, A. L. Introduction to Political Economy. Chas. Scribner’s Sons, 1877.

[Second edition, 1880]

McAdam, Graham. Alphabet in Finance. G. P. Putnam’s Sons, 1876.

Categories
M.I.T. Suggested Reading Syllabus

MIT. Business Cycles Reading List. Samuelson, 1952

We can see an enormous change in the syllabus of Paul Samuelson’s graduate course on business cycles in this first term of the 1952-53 academic year compared to the course he taught in the second term of the 1942-43 academic year

 

_________________________________________________

[Course Description]

14.481. Business Cycles (A). Statistical, historical, and theoretical examination of determinants of income, production and employment. Modern methods of analysis, forecasting, and control.

 

Source: Massachusetts Institute of Technology Bulletin. Catalogue Issue for 1952-1953 Session. June 1952, p. 149.

_________________________________________________

[in pencil: 14.481]

Reading Assignments
Business Cycles, Fall, 1952

The periods of time allocated to various subjects are very approximate.

 

I. Some fundamental notions about economic dynamics, 2 weeks.

Frisch: “On the Notion of Equilibrium and Disequilibrium,” Review of Economic Studies, Vol. 3, 1935, pp. 100-105.
Baumol: Economic Dynamics, Chapters 1, 7, 8.
Anyone who would like to learn a little about difference equations might study Chapters 9, 10, 11 of Baumol’s book.
Samuelson: Foundations of Economic Analysis, Ch. 11, pp. 311-344.
Harrod: Towards a Dynamic Economics, Lecture 1.
Samuelson: “Dynamic Process Analysis,” Chapter 10 in a Survey of Contemporary Economics, ed. Ellis, pp. 352-387.

II. Examples of informal theories of the business cycle, 2 weeks.

Pigou: Industrial Fluctuations, Chapters II-XII, pp. 18-138.
Clark: Strategic Factors in Business Cycles, pp. 160-226.
Mitchell: “Business Cycles” in Readings in Business Cycle Theory, pp. 43-60.

III. Examples of formal models of the business cycle, 2 weeks.

Goodwin: Chapter 22 in Hansen: Business Cycles and National Income, pp. 417-468.
Goodwin: Innovations and the Irregularity of Economic Cycles,” Review of Economic Statistics, 1946.
Hicks: A Contribution to the Theory of the Trade Cycle, Chapters 7, 8, pp. 83-107.
Samuelson: “Interaction of the Multiplier and the Acceleration Principle,” Review of Economic Statistics, 1939, pp. 75-78. Reprinted in Readings in Business Cycle Theory.
Kaldor: “A Model of the Trade Cycle,” Economic Journal, 1940, pp. 78-92.
Kalecki: Essays in the Theory of Economic Fluctuations, Chapter 6.
Metzler: “The Nature and Stability of Inventory Cycles,” Review of Economic Statistics, 1941, pp. 113-129.
Metzler: “Factors Affecting the Length of Inventory Cycles,” Review of Economic Statistics, 1947, pp. 1-15.
Abramowitz: Inventories and Business Cycles, pp. 3-34, 90-131, 312-326.

IV. Econometric Models, 2-3 weeks.

Clark: “A System of Equations Explaining the United States Trade Cycle,” Econometrica, 1949, pp. 93-125.
Klein: Economic Fluctuations in the United States, pp. 1-12; 84-122.
Christ: “A Test of an Econometric Model for the United States, 1921-1947,” National Bureau of Economic Research, Conference on Business Cycles, pp. 35-130.

V. The Economics of Long-Run Growth, 3-4 weeks.

Harrod: Towards a Dynamic Economics, Lecture 3.
Hicks: Trade Cycle, Chapters 5, 6, pp. 56-83.
Domar: Expansion and Employment,” American Economic Review, 1947, pp. 34-55.
Baumol: Economic Dynamics, Chapters 2, 4, 9.
Robinson: The Rate of interest and Other Essays, pp. 67-142.
Schelling: “Capital Growth and Equilibrium,” American Economic Review, 1947, pp. 864-876.
Abramowitz: “Economics of Growth,” in Survey of Contemporary Economics, Vol. II, pp. 132-182.
Alexander: “The Accelerator as a Generator of Steady Growth,” Quarterly Journal of Economics, 1949, pp. 174-197.
Rostow: Aspects of Economic Growth, Part I.

VI. Reading Period, 1 week.

Hansen: Business Cycles and National Income, Part III, pp. 211-498.

 

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

Image Source: MIT, Technique 1950.

 

Categories
Chicago Suggested Reading

Chicago. History of Economic Thought. Frank Knight, 1946

This is now the fifth course reading list  I have posted from the valuable collection of University of Chicago lecture notes taken by the economist Norman Kaplan. The other four syllabi are from courses taught by Douglas, FriedmanLange, and Mints. Today we have the “Working Bibliography” that Frank Knight provided students taking his graduate course on the history of economic thought. I have managed to add a good number of links to the items he cited just as I have for the analogous course offered at Harvard by Joseph Schumpeter in 1940.

Incidentally, the distinguished economic historian Stanley Engerman is the person to whom we all owe an enormous debt of gratitude. Professor Engerman was a colleague and friend of Norman Kaplan at the University of Rochester. After Kaplan’s death Engerman helped sort through the papers left in his deceased colleague’s office, spotted the extraordinary collection of extensive student notes for Kaplan’s years at the University of Chicago and then had the notes shipped to the University of Chicago Archives. 

___________________________

[Course Announcement]

[Economics] 302. History of Economic Thought. Brief survey of the whole field of economic thought and a more intensive study of the “classical school” of British economists, whose doctrines are studied in relation to the problems and discussions of today. Prereq: Econ 301 or equiv. Win: TuThu 3:30-5; Knight.

 

Source:  University of Chicago, Announcements–The College and the Divisions, Sessions of 1945-1946, p. 216.

___________________________

 

ECONOMICS 302
HISTORY OF ECONOMIC THOUGHT
Winter 1946

Working Bibliography

General Character of the Course: A very brief survey of economic thought prior to the “classical school,” with chief attention devoted to the latter, especially to the price and distribution theory of Smith, Ricardo, Senior and Mill. Limited reference to Historical or Socialistic Schools. Matter outside the classical doctrine to be obtained chiefly from reading.

General Works (“Manuals”)

Ferguson, John M., Landmarks of Economic Thought.

Gray, Alexander, The Development of Economic Doctrine.

Two recent books very readable, and excellent within their scope. Gray has nothing on the historical schools. Neither is adequate on the classical writers.

 

Roll, Erich, History of Economic Thought. Somewhat Marxist slant.

Haney, L. H., History of Economic Thought. The fullest book covering the field; table of contents gives a fairly good arrangement of authors into groups or tendencies.
[1920 edition]

Ingram, J. K., A History of Political Economy. Briefer than Haney, and usable.

Spann, O., History of Economics. Translated from the German. Valuable for its intense opposition to the viewpoint of the classical school in favor of an organismic or universalistic standpoint. [Original: Othmar Spann, Die Haupttheorien der Volkswirtschaftslehre, 17th ed. 1928.]

Schumpeter, Joseph, Epochen der Dogmen- und Methodengeschichte, contained in Grundriss der Sozialökonomik Vol. I. [English translation]

Oncken, A. Geschichte der National Ökonomie. (Down to Adam Smith).

Gide, C., and Rist, C., History of Economic Doctrines (in French, or Translated from the French). (Begins with the Physiocrats). A competent but uninspired book. Emphasis on French work and on the socialistic schools.

Scott, William A., The Development of Economics. Covers modern period, beginning with background of classical economics. Excellent summaries, notable omissions (esp. Mathematical economists).

Whittaker, Edmund, A History of Economic Ideas. The best book in the field in content but massive, confusing, and repetitious through organization on the topical principle. First half deals with institutional and intellectual history rather than analytical economic thought. [Cf. his Schools and Streams of Economic Thought. Chicago: Rand McNally, 1960.]

Heimann, Eduard, History of Economic Doctrines. An Introduction to Economic Theory. Oxford University Press, 1945. Pp. ix, 263 (245). More introduction than history.

Salin, Edgar, Geschichte der Volkswirtschaftslehre. Covers the field briefly in an interpretive, historical-philosophical manner.

Encyclopedias; esp. Palgrave, Dictionary of Political Economy. (Ed. Henry Higgs 1926) and the Encyclopedia of the Social Sciences; on men and movements, and especially, Bibliographies. [Palgrave, 1912-1915.  Vol I (A-E), Vol II (F-M), Vol III (N-Z)]

See Bibliographical Notes in Haney (above) 3d Revised Edition, 1936, pp. 803-809.

 

On the Whole Period before the Classical School

Monroe, A. E. Early Economic Thought. Lengthy excerpts from some twenty important writers.

Oncken, A. See under General Works.

Sewall, H. R. The Theory of Value before Adam Smith, Publications of the American Economic Association, 1901.

Dunning, W. A., History of Political Theories, Ancient and Modern; also ibid. From Luther to Montesquieu. (Pre-classical economic thought being essentially political thought.)

 

Greco-Roman Economics

Simey, Miss E., article entitled “Economic Theory among the Greeks and Romans.” Economic Review, 1900. Copies on reserve. Best short account.

Laistner, M. L. W., Greek Economics. Valuable introduction and excerpts.

Calhoun, G. M., Business Life of Ancient Athens. Introduction and text valuable for background.

 

Medieval

Ashley, W. J. English Economic History and Theory, Vol. 1, pt. I, Chap. 3, and Vol. I, Pt. II, Chap. 6. Best general account.

O’Brien, Geo., An Essay on Medieval Economic Teaching. Highly important, especially because written from a Catholic point of view.

Tawney, R. H., Religion and the Rise of Capitalism. Chapter One, on The Medieval Background

 

Mercantilism

Heckscher, Eli F., Mercantilism, 2 vols. [Volume One; Volume Two]

Horrocks, J. W., A Short History of Mercantilism.

Schmoller, Gustav, The Mercantile System. Ashley Economic Classics. Invaluable also as a specimen of the German historical economics. Inquire at desk. E11.

Ashley, W. J. The Tory Origin of Free Trade Policy, in the Quarterly Journal of Economics, Vol. 11. Also in Surveys Historical and Economic.

Johnson, E. A. J. The Predecessors of Adam Smith.

Mun, Thomas, England’s Treasure by Forraign Trade. Ashley Economic Classics

Furniss, E. S., The Position of the Laborer in a System of Nationalism.

Viner, J., English Theories of Foreign Trade before Adam Smith, in Journal of Political Economy, Vol. 38, nos. 3 and 4. Reprinted in Studies in the Theory of International Trade, Harpers, 1937.

 

Physiocrats
(Given very little attention in this course.)

Higgs, Henry, The Physiocrats.

Ware, Norman, article on “The Physiocrats” in American Economic Review, 1931.

Bloomfield, Arthur I., Foreign Trade Doctrines of the Physiocrats. American Economic Review, Volume XXVIII, no. 4, December 1938 (Reprint on Reserve).

Turgot, A. R. J., Formation and Distribution of Riches. (Ashley Economic Classics.)

 

Classical School

Whitaker, A. C., Labor Theory of Value in English Political Economy. Nearly essential, if obtainable (Purchase).

Bowley, Marian, Nassau Senior and Classical Economics (Purchase, alternative to Whitaker). Better, but more difficult.

Cannan, Edwin, Theories of Production and Distribution. Valuable, but laborious reading.

Cannan, Edwin, Review of Economic Theory. Used selectively, more available than his other book.

Taussig, F. W. Wages and Capital (London School Reprint).

Knight, F. H. The Ricardian Theory of Production and Distribution. Reprint from the Canadian Journal of Economics and Political Science.

Cannan, Edwin, (ed.), Lectures of Adam Smith.

Smith, Adam, Wealth of Nations.  Full text, Everyman’s Library (2 vols.) or Modern Library (Reprint of Cannan edition—1 vol.) most available. Abridged edition edited by W. J. Ashley gives portions covered in the course conveniently in one small volume.  Cannan edition (2 vols.) the definitive edition, but expensive and bulky for class use.

Ricardo, David, Principles of Political Economy. Available in Everyman’s Library (1 vol.)  Gonner edition best. (London, C. Bell and Sons: Bohn’s Libraries). [Sraffa edition]

Senior, N. W., Outline of Political Economy. Reprinted 1938, Allen and Unwin.

Mill, J. S., Principles of Political Economy. Ashley ed., Longmans, 1 vol.

 

Subjective Value or Marginal Utility School

Smart, Wm., Introduction to the Theory of Value.

Jevons, W. S. Theory of Political Economy.

Wieser, F., Natural Value.

Smart’s prefaces to Böhm-Bawerk’s two main volumes and to Wieser, Natural Value.

Böhm-Bawerk, Capital and Interest and Positive Theory of Capital.

Weinberger, Otto. Die Grenznutzenschule.

Mises, Ludwig, Bemerkungen zum Grundproblem der subjektivistischen Wertlehre, contained in Archiv für Sozialwissenschaft und Sozialpolitik, Band 59, Heft 1.

 

Historical and Institutional and Socialistic Schools

See articles in Palgrave’s Dictionary of Political Economy and in the Encyclopedia of the Social Sciences.

 

 

Source: University of Chicago Archives. Norman Maurice Kaplan Papers. Box 1, Folder 10.

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

Categories
Suggested Reading Syllabus Yale

Yale. Graduate Course Keynesian Economics, Tobin. 1951-52

James Tobin came to Yale in 1950 at the rank of associate professor following his three years as a Junior Fellow of Harvard’s Society of Fellows that included a research stay at Richard Stone’s Department of Applied Economics in Cambridge. His Yale graduate course on “Aggregative Theory” covered contemporary Keynesian macroeconomics at mid-century.

This picture in his navy uniform is dated December 1945 according to the Yale archives.

_______________________________

Economics 110: 1951-52

1. Introduction to Model-building. Equilibrium Systems and their Stability

T. C. Schelling, National Income Behavior, Chs. 2, 3, 4 (pp 41-2), 5, 12.
R. G. D. Allen, Mathematical Analysis for Economists, Sections 2.9, 11.6, 11.7.
P. A. Samuelson, Foundations of Economic Analysis, Chs. I, II, and pp. 257-260.
Schelling, pp. 42-52.

2. The Keynesian and Classical Aggregative Models

J. R. Hicks, “Mr. Keynes and the Classics; a Suggested Interpretation”, Econometrica, V, 1937, p. 147.
R. F. Harrod, “Keynes and Traditional Theory” Econometrica, V, 1937 (reprinted, in The New Economics, p. 591.)
F. Modigliani, “Liquidity Preference and the Theory of Interest and Money” Econometrica, XII, 1944.
O. Lange, “The Rate of Interest and the Optimum Propensity to Consume” Economica, 1938 (reprinted in Readings in Business Cycle Theory, p. 169.
L. R. Klein, The Keynesian Revolution, Ch. III.

J. E. Meade, “A Simplified Model of Keynes’ System”, Review of Economic Studies, February 1937 (reprinted in The New Economics, p. 606)
Samuelson, Foundations, pp. 276-283.

W. Leontief, “The Fundamental Assumption of Keynes’ ‘General Theory’” Quarterly Journal of Economics, LI, 1936, p. 192.
W. Leontief, “Postulates: Keynes’ General Theory and the Classicists,” The New Economics, p. 232.

L. R. Klein, The Keynesian Revolution, 199-206.
J. Marschak, Income, Employment, and the Price Level, Lectures 18, 19, 20, Supplementary Lectures II, III.

3. The Consumption Function

a. Asset Holdings and the “Pigou Effect”

A. C. Pigou, “The Classical Stationary State”, EJ, 1943, 343-351.
M. Kalecki, “Professor Pigou on ‘The Classical Stationary State’—A Comment”, EJ 1944, 131-2.
Pigou, “Economic Progress in a Stable Environment”, E, 1947, 180-90.
Don Patinkin, “Price Flexibility and Full Employment”, AER 1948, 543-64 and Comment by H. Stein and Reply by Patinkin, AER 1949, 725-8.
Klein, 206-213
[Handwritten addition:] G. Ackley, “The Wealth-Saving Relationship”, JPE 1951, 154-161.

b. Problems of Aggregation

Klein, 192-196.
Staehle, “Short-period Variations in the Distribution of Incomes,” REStat 1937, 133-143, and 1939, 129-30.
Marschak, “Personal and Collective Budget Functions” REStat 1939, 161-70.
T. Haavelmo, “Family Expenditures and the Marginal Propensity to Consume”, Ec 1947, 335-341.
J. S. Duesenberry, Income, Saving and the Theory of Consumer Behavior, Chapters III, IV.
H. Lubell, “Effects of Income Redistribution on Consumers’ Expenditures” AER 1947, 157-170 and 930-1.
D. Brady and R. Friedman, “Savings and the Income Distribution”, Studies in Income and Wealth, X, 247-265.

c. The “secular” and “cyclical” functions

A. H. Hansen, Economic Policy and Full Employment, Ch. XIV.
A. H. Hansen, “A Note on the Secular Consumption Function” AER 1950, 662-4.
F. Modigliani, “Fluctuations in the Saving-Income Ratio” Studies in Income and Wealth, XI, 371-443.
J. S. Duesenberry, op. cit., Chapters III, IV, V.
L. Metzler, “Three Lags in the Circular Flow of Income”, in Income, Employment, and Public Policy (in honor of Hansen), 11-32.
R. P. Mack, “The Direction of Change in Income and the Consumption Function”, REStat, 1948, 239-258.

4. Liquidity Preference and the Theory of Interest

T. Wilson, Fluctuations in Income and Employment, Chapters I, II.
D. H. Robertson, Essays in Monetary Theory, Ch. I.
D. H. Robertson, “Some Notes on the Theory of Interest” in Money, Trade, and Economic Growth (in honor of J. H. Williams) 193-209.
A. H. Hansen, Monetary Theory and Fiscal Policy, Chapters 3, 4.
W. Fellner, Monetary Policies and Full Employment, Chapters V, VI.
N. Kaldor, “Speculation and Economic Stability” RES Oct. 1939, 1-27.
M. Kalecki, “The Short-Term and the Long-term Rate of Interest” Studies in Economic Dynamics, 32-46.
J. R. Hicks, Value and Capital, Chapters XI, XII, XIII.
P. A. Samuelson, Foundations, 122-4.
T. Scitovsky, “A Study of Interest and Capital” E 1940, 293-317.
A. Smithies, “Process Analysis and Equilibrium Analysis” EC 1942, 26-38.
[Handwritten addition:] L. Metzler, “Wealth, Saving, and the Rate of Interest”, JPE 1951, 93-113.

5. The Investment Function

Klein, 196-199.
Wilson, op. cit., Chapters V, VI, VII.
N. Kaldor, “A Model of the Trade Cycle” EJ 1940, 78-92.
M. Kalecki, “A New Approach to the Problem of Business Cycles” RES, Vol. XVI, 1949-50, 57-64.
A. P. Lerner, The Economics of Control, Chapter 25.
R. M. Goodwin, “Econometrics in Business-Cycle Analysis” in Hansen, Business Cycles and National Income, 442-449 (rest of chapter will be assigned later)
M. Kalecki, “The Principle of Increasing Risk”, Essays in the Theory of Economic Fluctuations, 95-106.

H. D. Henderson, “The Significance of the Rate of Interest” OEP #1, October 1938, 1-13.
J. Meade and P. W. S. Andrews, “Summary of Replies to Questions on the Effects of Interest Rates” OEP #1, October 1938, 14-31.
R. S. Sayers, “Business Men and the Terms of Borrowing” OEP #3, Feb. 1940, 23-31.
P.W. S. Andrews, “A Further Inquiry into the Effects of Rates of Interest”, OEP #3, Feb. 1940, 32-73.

K. Arrow, “Alternative Approaches to the Theory of choice in Risk-taking Situations” EC October 1951.

 

End of First Term

Abbreviations:

AER:                American Economic Review
EJ:                   Economic Journal
E:                     Economica
EC:                  Econometrica
QJE:                 Quarterly Journal of Economics
JPE:                 Journal of Political Economy
OEP:                Oxford Economic Papers
RES:                Review of Economic Studies
REStat:            Review of Economic(s and) Statistics

_______________________________

 

Economics 110
Reading List for Second Term: Dynamic Aggregative Theory

1. The Meaning of “Dynamics”

Samuelson, “Dynamic Process Analysis,” in Survey of Contemporary Economics, 352-355, 374-376.
Frisch, “On the Notion of Equilibrium and Disequilibrium,” Review of Economic Studies, 1935-36, 100-106.
Samuelson, Foundations of Economic Analysis, 311-320, 350-355.
Harrod, Towards a Dynamic Economics, 1-19.

[Handwritten marginal comment: Baumol? Schelling?]

2. The Mathematics of Dynamics

Samuelson, “Dynamic Process Analysis,” 356-367, 377-387.
Tinbergen, Business Cycles in the U.S.A. 1919-1932, 15-18, 140-147.

Suggested for further study:
Allen, Mathematical Analysis for Economists, Chapter XVI.
Samuelson, Foundations, Appendix B.
[Handwritten addition:] Schelling, Appendix.

3. The Nature and Logic of Dynamic Business Cycle Theory

Tinbergen, “Econometric Business Cycle Research”, in Readings in Business Cycle Theory.
Samuelson, Foundations, 335-342.
Frisch, “Propagation Problems and Impulse Problems in Dynamic Economics”, Economic Essays in Honour of Gustav Cassel, 171-206.
Tinbergen, “Annual Survey: Quantitative Business Cycle Theory”, Econometrica, 1935, 241-308.
Schumpeter, Business Cycles, 179-192, 533-535.

4. The Short-run Stability of Aggregative Models

Samuelson, Foundations, 257-269, 276-283.
Kaldor, “A Model of the Trade Cycle,” Economic Journal, 1940, 78-92.
Smithies, “Process Analysis and Equilibrium Analysis,” Econometrica, 1942, 26-38.
Metzler, “Three Lags in the Circular Flow of Income,” in Income, Employment, and Public Policy (Essays in Honor of Alvin H. Hansen).
Metzler, “The Nature and Stability of Inventory Cycles,” Review of Economic Statistics, 1941, 113-129.

5. Capital Accumulation and Growth

Domar, “Capital Expansion, Rate of Growth, and Employment,” Econometrica, 1946, 137-148.
Domar, “Expansion and Employment,” American Economic Review, 1947, 42-55.
Harrod, “An Essay in Dynamic Theory”, Economic Journal 1939, 14-33.
Fellner, Monetary Policies and Full Employment, Chapter II.
Schelling, “Capital Growth and Equilibrium,” American Economic Review, 1947, 864-876.
Alexander, “The Accelerator as a Generator of Steady Growth,” Quarterly Journal of Economics, 1949, 174-197.

6. Capital Accumulation and Cycles

Samuelson, “Interaction between the Multiplier Analysis and the Principle of Acceleration,” in Readings in Business Cycle Theory, 261-269.
Kalecki, Essays in the Theory of Economic Fluctuations, 116-149.
(Suggested: Kalecki, “A Macrodynamic Theory of Business Cycles,” Econometrica, 1935, 327-344.)
Hicks, The Trade Cycle.
Leontief, “Recent Developments in the Study of Interindustrial Relationships, American Economic Review (Proceedings), Mar. 1949, 211-225.
Georgescu-Roegen, “Relaxation Phenomena in Linear Dynamic Models,” in Activity Analysis of Production and Allocation, (Cowles Commission Monograph 13).

7. The Dynamic Theory of Inflation

Keynes, How to Pay for the War, 57-74.
Koopmans, “The Dynamics of Inflation,” Review of Economic Statistics, 1942, 53-65.
Smithies, “The Behavior of Money National Income under Inflationary Conditions”, Quarterly Journal of Economics, 1942-43, 113-128.
Duesenberry, “The Mechanics of Inflation,” Review of Economics of Statistics, Mar. 1950, 144-149.
Holzmann, “Income Determination in Open Inflation,” Review of Economics & Statistics, Mar. 1950, 150-158.

 

Source: Yale University Library, Manuscripts and Archives. James Tobin Papers, Box 18, Folder “Ec 103 [sic]” and “Ec 110, 1951-52].

 

Image Source: Yale University Manuscripts & Archives. Digital Images Database. “James Tobin in war uniform (1945-December)”.

 

Categories
Harvard Suggested Reading Syllabus

Harvard. Honors Economic Theory, Chamberlin/Leontief/Taylor, 1939-40

In the following academic year (1940-41) this year-long course was broken into two distinct semester courses, Economics 1a (Economic Theory/Chamberlin) and Economics 1b (The Intellectual Background of Economic Thought/Taylor). From the enrollment statistics and the course catalogue we see that this was mainly a course taken in the junior year by undergraduates pursuing an A.B. with honors in economics.

Since this posting, I have included a transcription of the final examination questions for the second term of this course.

____________________

[Harvard Catalogue Course Listing]

Economics 1. Economic Theory

Mon., Wed., and (at the pleasure of the instructors) Fri., at 11. Professor Chamberlin, Dr. O. H. Taylor, and Associate Professor Leontief.

This course will be conducted mainly by discussion. It is open only to candidates for the degree with honors. The first half (but not the second) may be taken as a half-course with the consent of the instructor.

Source: Harvard University. Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1939-40 (2nd ed.). Official Register of Harvard University, Vol. XXXVI, No. 42 (September 22, 1939), p. 154.

____________________

[Course Enrollment]

[Economics] 1.  Professor Chamberlin, Dr. O. H. Taylor, and Associate Professor Leontief. – Economic Theory.

1 Graduate, 1 Senior, 51 Juniors, 1 Other:  Total, 54.

Source: Harvard University. Report of the President of Harvard College and Reports of the Departments, 1939-40, p. 98.

____________________

ECONOMICS 1

1939-40

First Semester

  1. The Law of Supply and Demand. Meaning and Generality. Relation to the Law of Cost. Cost curves and supply curves. Relation to monopoly and to competition. Pure and perfect competition. Market problem illustrating deviations from “equilibrium” as defined by perfect competition. Equilibrium vs. the equation of supply and demand.
    Mill – Principles, Book III, chapters 2, 3, 5.
    Chamberlin – Monopolistic Competition, chapters 1, 2.
    Henderson – Supply and Demand, chapters 1, 2.
    Marshall – Principles, pp. 348-50; p. 806 note.
  2. Competitive theory, illustrated by Marshall.
    Marshall – Principles, Book V, chapters 1-5; Book IV, chapter 13; Book V, chapters 8, 9, 10, 12.
  3. The effect of small numbers in the market.
    Monopolistic Competition, chapter 3.
  4. Product differentiation. Co-existence and blending of monopoly and competition. Output (sales) as a function of price, “product” and selling outlays. Price-quantity relationships examined in some detail, selling costs and products as variables more briefly.
    Monopolistic Competition, chapters 4, 5, 6, 7 (pp. 130-149); Appendices C, D, E.
    Alsberg, C.L. – “Economic Aspects of Adulteration and Imitation”, Q.J.E., Vol. 46, p. 1 (1931).
  5. Production and Distribution. Diminishing returns. Diminishing marginal productivity. The laws of cost. General effect of monopoly elements on the analysis.
    Garver & Hansen – Principles, chapter 5.
    Wicksell – Lectures on Political Economy, Vol. I, pp. 101-133 (omit all small type except on pages 111, 113, 114 and 115.) [Knut Wicksell, Vorlesungen über Nationalökonomie auf Grundlage des Marginalprinzipes, 2 vols. [1913]]
    Viner, J.  – “Cost Curves and Supply Curves,” Zeitschrift für Nationalökonomie, 1931.
    Monopolistic Competition, Appendix B.
  6. Theory of Wages.
    Hicks – Theory of Wages, Part I.

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Economics 1
Second Semester
1939-40

  1. Theory of Wages (continued). Professor Leontief.
    Hicks, J. R., Theory of Wages, Chs. 9 and 10.
    Lester, R. A., “Overtime Wage Rates,” The American Economic Review, December, 1939. (Suggested)
    Douglas, P. H., The Theory of Wages, Ch. 13.
  2. Theory of Rent.
    Ricardo, D.Principles, Ch. 3 [sic, Ch. 2 intended].
    Marshall, Principles, Book V, Chs. 10,11.
  3. Theory of Capital and Interest.
    Clark, J. B., Distribution of Wealth, Chs. 9, 20.
    Böhm-Bawerk, Positive Theory of Capital, Books II, Chs. 2 and 5, Book V.
    Fisher, Irving, The Rate of Interest, Chs. 5, 6, and 7.
  4. Production and Distribution Interrelated.
    Wicksell, Lectures on Political Economy, Vol. I, pp. 196-206 (omit small type)
    [Knut Wicksell, Vorlesungen über Nationalökonomie auf Grundlage des Marginalprinzipes, 2 vols. [1913]].
    Keynes, The General Theory of Employment, Interest and Money, Chs. 2 and 8, paragraph B.
  5. Profits. Professor Chamberlin.
    Marshall, Book VI, chapter 5, section 7; Chs. 7, 8.
    Taussig, Principles, Vol. II, Ch. 50, section 1.
    Henderson, Supply and Demand, chapter 7.
    Berle and Means, The Modern Corporation, Book IV.
    Chamberlin, Monopolistic Competition, Ch. 5, section 6; Ch. 7, section 6: Appendices D, E; Ch. 8.
  6. Welfare Economics. Dr. O. H. Taylor.
    Pigou, A. C. Economics of Welfare (3rd ed.), Part I, Chs. 1, 2, 3, 7, 8; and Part II, Chs. 1-8 inclusive, 9, 11, 14, 15, 16, 17. [4th edition, 1932]
  7. Criticisms of Economic Theory, its Method and Assumptions. I. Psychology and Economics.
    Mitchell, W. C., “The Rationality of Economic Activity,” Journal of Political Economy, Vol. 18, pp. 97 ff., and 197 ff. (February, March 1910).
    Mitchell, W. C., “Human Behavior and Economics,” Quarterly Journal of Economics, Vol. 29, p. 1 ff. (November 1914).
    Mitchell, W. C., “The Prospects of Economics,” in The Trend of Economics, volume edited by R. G. Tugwell.
  8. Criticisms of Economic Theory, its Method and Assumptions. II. Economic Principles as “Natural Laws.”
    Tugwell, R. G. “Experimental Economics,” part on “Natural Law,” in volume The Trends of Economics.
    Taylor, O. H., “Economics and Natural Law,” Quarterly Journal of Economics, Vol. 44, p. 1ff., and p. 205 ff.

 

___________________________

Source:  Harvard University Archives. Syllabi, course outlines and Reading lists in Economics, 1895-2003 (HUC 8522.2.1), Box 2; Folder: “Syllabi, course outlines and reading lists in Economics, 1939-40”.

Categories
Chicago Exam Questions Suggested Reading Syllabus

Chicago. Theory of Income and Employment. Domar, 1948


Jacob Marschak’s course “The Theory of Income and Employment” was taught by the (visiting) assistant professor of economics and research associate in the Cowles Commission, Evsey D. Domar, in the Spring Quarter of 1948. The appointment must have taken place after the Announcements for 1947-1948 were published in May, 1947, so one presumes there was a relatively late change in plans.

For those interested in Domar’s early backstory,  Evsey (Joshua) Domashevitsky arrived in the U.S. on the S.S. Taizo Maru that departed 27 July 1936 from Kobe, Japan and arrived at the port of Los Angeles, California August 16. Domar (“race: Hebrew; nationality: White Russian”) was born April 16, 1914 in Lodz, Poland and last resided in Dairen, Manchuria (now Dalian or Talien, China) before he left for the U.S. He worked his way through UCLA and his graduation photo from the college yearbook graces this posting.

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ECONOMICS 335
THE THEORY OF INCOME AND EMPLOYMENT

Spring, 1948
E. D. Domar

Required Reading List

It is assumed that the students are familiar with the contents of the first 20 chapters of A. P. Lerner’s Economics of Control.

 

PART I.   THE MEASUREMENT OF TOTAL OUTPUT.         March 30 – April 1

Simon Kuznets, National Income and Its Composition, V. I, Ch. 1.
J. R. Hicks and A. G. Hart, The Social Framework of the American Economy, ch. 3, 8, 10-13, 15, 16.
National Planning Association, National Budgets for Full Employment.
Survey of Current Business, National Income Supplement, July, 1947.

 

PART II.   THE ESSENCE OF THE THEORY.    April 3- 28.

J. M. Keynes, The General Theory of Employment, Interest and Money.
A. P. Lerner, Economics of Control, ch. 21-25.
American Economic Association, Readings in Business Cycle Theory, ch. 5-12.
S. E. Harris, editor. The New Economics, ch. 9, 11-15, 19, 33, 36.
Oscar Lange, Price Flexibility and Employment, pp. 1-90.
Milton Friedman, “Lange on Price Flexibility and Employment,” American Economic Review, Sept. 1946 (Reprints in Harper Reserve Room).
Lawrence Klein, The Keynesian Revolution, ch. 3-5.
Gottfried Haberler, Prosperity and Depression, Ch. 8, 13.
A. C. Pigou, “The Classical Stationary State,” The Economic Journal, December 1943.
J. E. Meade and P. W. S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” and “A Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, No. 1, 1938 and No. 3, 1940.
Simon Kuznets, “Relation between Capital Goods and Finished Products in the Business Cycle,” in Economic Essays in Honor of Wesley Clair Mitchell.
R. F. Kahn, “The Relation of Home Investment to Unemployment,” Economic Journal, 1931.

 

PART III.   UNDERCONSUMPTION, MATURE ECONOMY, AND CAPITAL ACCUMULATION.        May 4-14.

A. H. Hansen, Fiscal Policy and Business Cycles.
A. H. Hansen, Economic Policy and Full Employment, ch. 15, 16, Appendix B.
E. D. Domar, “Expansion and Employment,” American Economic Review, 1947 (reprints on reserve).
E. D. Domar, “The Problem of Capital Accumulation,” (Mimeographed).
P. M. Sweezy, The Theory of Capitalist Development, ch. 10, 12.
J. A. Schumpeter, Capitalism, Socialism and Democracy, Part II.
G. Terborgh, The Bogey of Economic Maturity.
Readings in Business Cycle Theory, ch. 19-20.

 

PART IV.   POLICY          May 15- June 10.

(in addition to preceding readings)

Board of Governors of the Federal Reserve System, Public Finance and Full Employment, Postwar Economic Studies No. 3, pp. 1-21, 53-68.
A. H. Hansen, Economic Policy and Full Employment, parts IV, V, VI.
M. De Chazeau and others (Committee for Economic Development) Jobs and Markets: How to Prevent Inflation and Depression.
E. F. Burchard and others (Oxford University Institute of Statistics), The Economics of Full Employment.
Mints, Hansen and others. Symposium of Fiscal and Monetary Policy, The Review of Economic Statistics, May 1946.
J. Mosak and Arthur Smithies, “Forecasting Post-War Demand,” Econometrica, 1945.
H. Simons, “Hansen on Fiscal Policy,” The Journal of Political Economy, 1942.
National Budgets for Full Employment
Economic Report of the President
, January 1948.
A. P. Lerner and F. D. Graham, Planning and Paying for Full Employment.
M. Friedman, “A Monetary and Fiscal Framework for Economic Stability,” (Mimeographed).
W. H. Beveridge, Full Employment in a Free Society, a general survey, with emphasis on Appendix C.

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Economics 335
Final Examination

June 17, 1948
One hour and fifteen minutes

Answer all questions. They carry equal weights.

  1. Ever since the end of the war, it has been asserted by various authorities that increased production is the best cure against inflation. But it can be also argued that while increased production enlarges the supply of goods, it also generates additional income and therefore demand. So in the end it may or it may not mitigate inflation.
    Analyze this question and try to find the correct answer. The quality and depth of your analysis will count more than its quantity.
  2. “In spite of his claims to the contrary, Keynes did not succeed in proving the possibility of underemployment equilibrium if wages and prices were flexible. That a long period of unemployment could persist as a result of wage and price rigidity we had known long before Keynes.”
    Comment on this statement and show what effects would flexible prices and wages have on elimination of unemployment (in a depression) and stabilization of the price level (in an inflation). Indicate clearly every step in your analysis. What practical recommendations follow from your discussion?
  3. You were employed by the U. S. Bureau of the Budget in 1941 to make an economic forecast and to recommend practical policy measures to prevent both unemployment and inflation in the year 1942, when large war expenditures were expected. Following roughly the method of national budgets (or an equally good alternative one) set up a hypothetical but reasonable numerical model for the year 1942. Show clearly (a) the information you will require; (b) the assumptions you will make; (c) how (a) and (b) are brought together; and (d) policy recommendations you will make. Indicate each step explicitly.
  4. Write for some twenty minutes on any subject covered in the course, but not included in the preceding questions and not studied in your term paper. Make sure you have something worth-while to say.

 

___________________

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Evsey D. Domar Papers, Box 15, Folder: “Macroeconomics, Old Reading Lists”; Box 16, Folder: “Final Exams. Johns Hopkins, Stanford, U of Michigan”.

Image Source: Joshua Domashevitsky (Evsey D. Domar), University of California at Los Angeles, Bruin Life Yearbook/Southern Campus Yearbook, 1939, p. 52. Caption to graduation picture: “Joshua Domashevitsky, A. B./Economics/ Transferred from State College of Law, Manchuria: Foreign Trade Club; Artus, Chancellor of the Exchequer 4.”

Categories
Chicago Suggested Reading Syllabus

Chicago. International Trade and Policy. Advanced Graduate. Metzler, 1948 and 1950

Today we have the reading list for an early iteration of Lloyd A. Metzler’s second advanced course in international economics: the theory of foreign trade and commercial policy. The course was held in the Winter quarter of 1948 at the University of Chicago. I have used squared brackets and bold-blue text to indicate additions and  other changes or deletions for his Spring Quarter 1950 reading list.

______________________________________

[Course Description]

[Economics] 371. INTERNATIONAL TRADE AND COMMERCIAL POLICY. Price theory and international trade; the gains from international specialization. International trade and the distribution of income. Historical and theoretical discussion of the theory of tariffs. Commercial policies of particular countries, including the United States, the United Kingdom, and France. Commodity agreements and cartels. The growth of state trading. The new mercantilism. Prereq: Econ 330 or equiv. Spr: TuThS 9:30; Metzler.

Source: University of Chicago Announcements Division of the Social Sciences, 1949-1950. p.28.

______________________________________

[Handwritten] Winter 1948
[Date noted with course title in 1950]

 

ECONOMICS 371
[Spring Quarter – 1950]

Major Topics and Selected Reading

I. Mercantilism and the Classical Theory of the Gains from Trade.

J. Viner, Studies in the Theory of International Trade, Chapters 1, 2.
Adam Smith, The Wealth of Nations, Book IV.
David Ricardo, Principles of Political Economy and Taxation, Chapter 7.
J. S. Mill, Principles of Political Economy, Book III, Chapters 17, 18.
J. M. Keynes, General Theory of Employment, Interest and Money, Chapter 23.

II. Modern Price Theory and the Gains from Trade.

Alfred Marshall, Money, Credit and Commerce, Appendix J.
Gottfried Haberler, The Theory of International Trade, Chapters 9, 10, 11, 12.
J. Viner, Studies in the Theory of International Trade, Chapters 8, 9.
W. W. Leontief, “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, 1933. [reprinted in Readings in the Theory of International Trade]
P. A. Samuelson, “Welfare Economics and International Trade,” American Economic Review, 1938.
[F. D. Graham, “The Theory of International Values Reexamined,” Quarterly Journal of Economics, 1923, reprinted in Readings in the Theory of International Trade.
F. D. Graham, The Theory of International Values, Princeton, N. J., 1948.

E. F. Heckscher, “The Effect of Foreign Trade on the Distribution of Income,” Ekonmish Tidshrift, 1919, reprinted in Readings in the Theory of International Trade.
P. A. Samuelson, “International Trade and the Equalization of Factor Prices,” Economic Journal, June, 1948.
P. A. Samuelson, “International Factor Price Equalization Once Again,” Economic Journal, June, 1949.]

III. The Theory of Tariffs

Gottfried Haberler, The Theory of International Trade, Chapters 13, 14, 15, 16, 17.
Alfred Marshall, Money, Credit and Commerce, Chapters 6, 7, 8, 9, 10, 11.
Tibor de Scitovsky, “A Reconsideration of the Theory of Tariffs,” Review of Economic Studies, Vol. 9, 1941-42.[reprinted in Readings in the Theory of International Trade.]
F. W. Taussig, International Trade, Chapter 13.
W. F. Stolper and Paul A. Samuelson, “Protection and Real Wages,” Review of Economic Studies, 1941. [reprinted in Readings in the Theory of International Trade.]
F. D. Graham, “Some Aspects of Protection Further Considered,” Quarterly Journal of Economics, 1923. [Item replaced by: F. D. Graham, Protective Tariffs, Princeton, N. J., 1942.]

 

IV. Some Aspects of Commercial Policy

F. W. Taussig, Some Aspects of the Tariff Question.
F. W. Taussig, Tariff History of the United States.
F. Benham, Great Britain Under Protection.
E. B. McGuire, The British Tariff System.
F. A. Haight, French Import Quotas.

 

V. The Reciprocal Trade Agreements Program of the United States [Section title changed: Recent Developments in Commercial Policy]

H. J. Tasca, The Reciprocal Trade Policy of the United States, 1938.
G. Beckett, “The Effect of the Reciprocal Trade Agreements upon the Foreign Trade of the U. S.,” Quarterly Journal of Economics, November 1940.
[J. M. Letiche, Reciprocal Trade Agreements in the World Economy, 1948.
U. S. Department of State, Analysis of General Agreement on Tariffs and Trade, Washington, D. C., 1947.
U. S. Department of State, Havana Charter for an International Trade Organization, 1948.]

 

VI. Cartels and Commodity Agreements.

C. Edwards, International Cartels, 1945.
E. S. Mason, Controlling World Trade, 1946.
J. S. Davis, International Commodity Agreements: Hope, Illusion, or Menace?, 1947.
[G. W. Stocking and M. W. Watkins, Cartels or Competition?, 1948.]

 

VII. The International Trade Organization [This section dropped in 1950]

Draft Charter of Proposed International Trade Organization, Geneva, 1947.

 

VIII. International Relations and the Structure of World Trade.

A. O. Hirschmann [sic], National Power and the Structure of Foreign Trade, 1945.
J. Viner, “International Relations Between State Controlled National Economies,” American Economic Review, 1944 Supplement.
H. S. Ellis, Bilateralism and the Future of International Trade, Princeton University Essays in International Finance.
J. M. Keynes, “National Self Sufficiency,” Yale Review, 1933. [Keynes dropped in 1950]
D. H. Robertson, “The Future of International Trade,” Economic Journal, 1938.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Econ. 371”.