Category: Syllabus

M.I.T. Advanced Economic Theory (Capital and growth). Solow and Phelps, 1962

Post author By Irwin Collier
Post date 2016-04-02

Edwin Burmeister (MIT PhD, 1965) took the advanced theory course that was devoted to capital theory and economic growth during the fall term 1962-63. The course that term was co-taught by Robert Solow (2 hour 37 minute oral history interview at this link) and Edmund Phelps. Burmeister’s notes for the course are available in the Burmeister Papers at Duke University Rubenstein Library’s Economists’ Papers Project. The reading list for the course has a Part I, but I could find no corresponding part II. However, Burmeister’s notes appear to be complete otherwise so that it seems likely that Solow and Phelps wanted to divide the course into positive and normative parts with the reading list for optimal saving not ready at the start of the term. I have inserted five titles between Parts D and E that were explicitly mentioned in the lectures but not included in the Part I reading list.

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If you find this posting interesting, here is the complete list of “artifacts” from the history of economics I have assembled thus far. You can subscribe to Economics in the Rear-View Mirror below. There is also an opportunity for comment following each posting….

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ADVANCED ECONOMIC THEORY
14.123
Fall 1962

R. M. Solow and E. S. Phelps

Part I: INVESTMENT AND ECONOMIC GROWTH

A. Capital and Production

Lutz, “Essentials of Capital Theory”, The Theory of Capital (International Economic Association).

Scitovsky, T., Welfare and Competition, Chapter 9.

Lutz and Lutz, The Theory of the Investment of the Firm, Chapters 5 and 6.

Kaldor, N., Essays on Value and Distribution, Part IV.

Lange, O., “The Place of Interest in the Theory of Production”, REStud, 1935-36.

Dorfman, R., “Waiting and the Period [of] Production”, QJE, August 1959.

Robinson, “The Production Function and the Theory of Capital”, REStud, 1953-54.

Comment and Reply:

Solow, R., “The Production Function…”, REStud, 1955-56.

Robinson, Ibid.

Swan, T., Appendix to “Economic Growth and Capital Accumulation,” Ec Record, November, 1956.

Solow, R., “Substitution and Fixed Proportions in the Theory of Capital,” REStud, June, 1962.

Phelps, E., “Substitution, Fixed Proportions, Growth and Distribution,” Parts 1-3 and Appendix B only. CFDP [Cowles Foundation Discussion Paper] 133, Feb. 1962.

Samuelson, P., “The Surrogate Production Function,” REStud, June 1962.

N. & N. Ruggles, “Concepts of Real Capital Stocks and Services,” Output, Input and Productivity Measurement, No. 25 in Studies in Income and Wealth (NBER).

[handwritten addition: Wicksell, LECTURES]

B. Technical Change

Dickinson, H., “A Note on Dynamic Economics”, REStud, 1954-55.

Uzawa, H., “Neutral Inventions and the Stability of Growth Equilibrium,” REStud, Feb. 1961.

Fellner, W., “Two Propositions in the Theory of Induced innovation,” Econ. Journ., June 1961.

C. Models of Investment, Technical Progress and Growth

Johnson, H., “A Simple Joan Robinson Model of Accumulation with One Technique,” Osaka Econ. Papers, Feb. 1962.

Swan, T., “Economic Growth and Capital Accumulation,” op. cit.

Solow, R., “A Contribution to the Theory of Economic Growth,” QJE, Nov. 1956.

Pitchford, J., “Growth and the Elasticity of Factor Substitution,” Ec. Record, Dec. 1960.

Phelps, E., “Substitution, Fixed Proportions, Growth and Distribution,” CFDP [Cowles Foundation Discussion Paper] 133, Feb. 1962, Parts 4-5.

Arrow, K., “The Economic Implications of Learning by Doing,” REStud, June, 1962.

Kaldor, N., and J. Mirlees, “Growth and Obsolescence,” Ibid.

D. The Quantitative Importance of Investment and Technical Change for Economic Growth

Solow, R., “Technological Change and the Aggregate Production Function,” REStat, August 1957.

Masslee, B., “A Dissaggregated View of Technical Change,” JPE, Dec. 1961.

Solow, R., “Investment and Technical Progress, “Mathematical Methods in the Social Sciences, (Stanford, 1960).

Phelps, E., “The New View of Investment”, QJE, Nov. 1962.

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[Insert: Optimal problems in capital theory…beginning ca Dec. 14, 1962]

[Ramsey problem, optimal control à la Pontryagin]

von Weizsäcker, Carl Christian. Wachstum, Zins und optimale Investitionsquote. Ph.D. dissertation, University of Basel, 1961. Published in Veröffentlichungen der List Gesellschaft Bd. 26, Reiche B Studien zur Ökonomie der Gegenwart, Kyklos-Verlag, 1962

Phelps, Edmund. 1961. “The Golden Rule of Accumulation: A Fable for Growthmen”. The American Economic Review 51 (4): 638–43.

Robinson, Joan. 1962. “Comment”. The Review of Economic Studies 29 (3): 258–66.

Goodwin, R. M., 1961. “The Optimal Growth Path for an Underdeveloped Economy”. The Economic Journal,Vol. 71, No. 284: 756–74.

Chakravarty, S., 1962. “Optimal Savings with Finite Planning Horizon”. International Economic Review 3 (3): 338–55.

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E. Investment in Knowledge and Skills

Nelson, R., “The Simple Economics of Basic Scientific Research, JPE, June 1959.

Arrow, E., “The Allocation of Scientific Resources” in The Rate and Direction of Innovative Activity, (NBER).

Schultz, “Investment in Human Capital,” AER, March 1961.

Source: Duke University, David M. Rubenstein Rare Book & Manuscript Library. Edwin Burmeister papers, 1960-2008. Box 23.

Image Source: Robert Solow, MIT Web Museum.

Tags Phelps, Solow

Courses Harvard Suggested Reading Syllabus

Harvard. Methods of Social Reform. Frank A. Fetter, 1906.

Post author By Irwin Collier
Post date 2016-03-29

Thomas Nixon Carver was granted a sabbatical leave from Harvard for the academic year 1906-07. Frank Albert Fetter from Cornell was hired to teach Carver’s course that covered economic utopias and proposed social reforms.

Inspecting university course catalogues from where Fetter had previously taught, I was able to find that he did indeed once teach a one term course at Cornell before teaching Carver’s course in 1906: “Political Science 55a: Socialism and Communism” that was given in the Fall term of a three term academic year 1894-95.

After Fetter returned to Cornell, it appears he then taught a course very similar to what he taught at Harvard: Political Science 66b Social Reforms. “History and growth of the more radical modern plans for changing industrial conditions; program and spirit of the socialistic parties in Europe and America.” (1907-08)

Here are the main dates in Fetter’s career:

1891 A. B. Indiana University
1892 Ph.M. Cornell University
1894 Ph.D. University of Halle
1894-1895   Instructor in Political Economy, Cornell University
1895-1898   Professor of Economics and Social Science, Indiana University
1898-1901   Professor, Stanford University
1901-1911   Professor, Cornell University
1911-1933   Professor, Princeton University

1912 President of the American Economic Association

Comparing this syllabus with those used by Carver before and after this year, one sees that Fetter essentially added items to Carver’s syllabus and made some minor rearrangements of the topics, e.g. anarchism moved to the end of the term.

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_______________________________

[Course Enrollment First Half-year 1906-07]

[Economics] 14b ¹hf. Professor Fetter (Cornell University).—Methods of Social Reform. Socialism, Communism, the Single Tax, etc.

4 Graduates, 8 Seniors, 10 Juniors, 3 Sophomores, 7 Other. Total 32.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College, 1906-07, p.71.

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ECONOMICS 14b
METHODS OF SOCIAL REFORM

First Half-Year, 1906 – 07, F. A. Fetter.

BIBLIOGRAPHY

I. Evil’s and Discontent Portrayed.

Engels, F., Condition of the Working Class in England in 1844.
Rowntree, B. S., Poverty (a study of York, Eng.).
London, J., The People of the Abyss (in London).
Brooks, J. G., The Social Unrest (1903).
Hunter, R., Poverty (a pessimistic view of the U. S.).
Spargo, J., The Bitter Cry of the Children (1906).

II. Utopian Romances (chronological order of publication).

Plato, The Republic (4^th century B.C.).
Morley, H. (ed.), Ideal Commonwealths (containing Plutarch’s Lycurgus, More’s Utopia (1516), Bacon’s New Atlantis (1629), Campanella’s City of the Sun (1520), Hall’s Mundus Alter et Idem (1607)).
Cabet, E., Voyage en Icarie (1839)
Bellamy, E., Looking Backward (1887).
Morris, W., News from Nowhere.
Hertzka, Freiland.
Bellamy, E., Equality (1897).
Wells, H. G., Anticipations (1902).
________, Mankind in the Making (1904).
Parry, The Scarlet Empire (1906, anti-utopian).

III. Communistic Experiments (American books in chronological order).

Kautsky, Karl, Communism in Central Europe in the Time of the Reformation.
Cabet, E., Icaria (history of the society in America, 1852).
Noyes, J. H., History of American Socialisms (1870).
Nordhoff, Charles, The Communistic Societies of the United States (1875).
Hinds, W. A., American Communities (1878, and later revised edition).
Shaw, Albert, Icaria, a Chapter in the History of Socialism (1884).
Codman, J. T., Brook Farm; Historic and Personal Memoirs (1894).
Randall, E. O., The Zoar Society (1899).
Landis, G. B., The Separatists of Zoar.
Lockwood, George B., The New Harmony Communities.
Broom, Isaac, The Last Days of the Ruskin Coöperative Association (1902).
Hillquist, M., History of Socialism in the United States (1903).

IV. Religious and Altruistic Socialism

Lamennais, Les Parole d’un Croyant.
Kaufman, Lamennais and Kingsley. Contemporary Review, April, 1882.
Kingsley, Charles, Alton Locke.
Stubbs, Charles Kingsley.
Woodworth, A. V., Christian Socialism in England (1903).
Gladden, Washington, Tools and the Man, A View of Christian Socialism.
Strong, Josiah, Our Country (1885), The New Era (1893).
Ballon-Adin, Practical Christian Socialism.
Nitti, F., Catholic Socialism (trans. 1895).
Carlyle, Thomas: “The Socialism and Unsocialism of Thomas Carlyle,” a selection of chapters by W. D. P. Bliss.
Ruskin, John: “The Communism of John Ruskin,” a selection by W. D. P. Bliss from Unto This Last, The Crown of Wild Olive, and Fors Clavigera.
“William Morris, Poet, Artist, Socialist,” a collection of his socialistic writings, by F. W. Lee.

V. History and Exposition of Collectivism (alphabetic by authors).

Dawson, W. H., German Socialism and Ferdinand Lassalle (1888).
Ely, R. T., French and German Socialism (1883); Socialism, an examination of its nature, strength, and weakness (1895).
Flower, B. O., How England Averted a Revolution of Force (1903).
Gonner, E. C. K., The Socialist Philosophy of Rodbertus (1899).
Graham, William, Socialism, New and Old.
Kirkup, Thomas, A History of Socialism.
Peixotto, Jessica B., The French Revolution and Modern French Socialism (1901).
Rae, John, Contemporary Socialism (2d ed. 1891).
Russell, Bertrand, German Social Democracy.
Schaeffle, Albert, The Quintessence of Socialism (1874).
Sombart, Werner, Socialism and the Social Movement in the 19^th Century (1^st ed. translated; 5^th ed. revised, in German, 1905).
____________, Der moderne Capitalismus, 2 vols.

VI. Collectivist arguments.

German.

Karl Marx and F. Engels, The Communist Manifesto (1847).
Karl Marx, Das Kapital (1867).
Engels, F., Socialism: Utopian and Scientific.
Bebel, A., Woman in the Past, Present and Future (trans. 1894).
Kautsky, K., The Social Revolution (trans. 1903).
Bernstein, E., Ferdinand Lassalle (trans. 1893).
_________, Die Voraussetzungen des Sozialismus (1899).
_________, Zur Geschichte und Theorie des Sozialismus (2d ed. 1901).

English and American.

Hyndman, H. M., The Economics of Socialism (English of the Marxist school).
Webb, Sydney and Beatrice, Problems of Modern Industry.
Fabian Essay in Socialism, B. Shaw and others.
Fabian Tracts, 1-86 (1884-1899).
Blatchford, R., Merrie England (1895).
Gronlund, L., The Coöperative Commonwealth (1895).
_________, The New Economy (1898).
Bliss, W. P. D., A Handbook of Socialism (1895).
Vail, Modern Socialism (1899).
Ghent, W. J., Our Benevolent Feudalism.
_________, Mass and Class.
London, J., War of the Classes.
Spargo, John, Socialism (1906).

Various.

Selections from Fourier.
Jaures, J., Studies in Socialism (trans. 1906).
Ensor, R. C. K., Modern Socialism as set forth by Socialists (collection of 29 articles, 1904).
Labriola, A., Essays on the Materialistic Conception of History (trans. 1904).
Vandervelde, E., Collectivism.

VII. Anti-Collectivist Arguments.

Brunhuber, Dr. Robert, Die heutige Sozialdemokratie (1906).
Cathrein, Rev. Victor, Socialism Exposed and Refuted (trans. 1902).
______________, Socialism, its Theoretical Basis and Practical Application.
Gilman, N. P., Socialism and the American Spirit.
Gonner, E. C. K., The Socialist State.
Guyot, Y., The Tyranny of Socialism.
Le Bon, G., Psychology of Socialism (trans. 1899).
Mackay, T., A Plea for Liberty.
Malloch, W. H., Labor and the Popular Welfare (new ed., 1894).
___________, Classes and Masses.
___________, Aristocracy and Evolution (1898).
Menger, A., The Right to the Whole Produce of Labor (trans. 1899).
Sanders, G. A., Reality, or Law and Order vs. Anarchy and Socialism, a reply to E. Bellamy (1898).
Schaeffle, A., The Impossibility of Social Democracy (1884).
Simonson, G., A Plain Examination of Socialism (1900).
Spencer, H., The Coming Slavery.

VIII. Land Nationalization.

Favorable.

George, H., Progress and Poverty.
______________, Our Land and Land Policy.
Wallace, A. R., Studies, Scientific and Social (in Vol. II, articles on land nationalization).
Loria, A., Problèmes Sociaux Contemporains.
George, H., Jr., The Menace of Privilege.
Shearman, T. G., Natural Taxation.

Unfavorable.

Cathrein, Rev. Victor, The Champions of Agrarian Socialism, A Refutation of Lavelèye and George (trans. 1889).
Huxley, T. H., Evolution and Ethics (chs. on single tax, 1894).
_________, Social Diseases and Worse Remedies (1891).
Rae, John, Ch. 12 of Contemporary Socialism.
Smart, W., Taxation of Land Values (1900).
Walker, F. A., Land and Its Rent (1883).

General.

Epps, Land Systems of Australia.
Lefèvre-Shaw, English Commons and Forests.

IX. The Extension of State Action

Adams, H. C., The Relation of the State to Industrial Action.
Ely, R. T., Problems of To-day (chs. 17-23).
Hobson, J. A., The Social Problem, Life and Work (1901).
Jevons, W. S., Methods of Social Reform (last 5 chs.).
Ritchie, D. C., Principles of State Interference.
_________, Darwinism and Politics.
Taylor, F. M., The Right of the State to Be (1891).
Willoughby, W. W., Social Justice.

X. Anarchism and Nihilism.

Godwin, William, Political Justice; on Property.
Tolstoi, L., The Slavery of Our times (1900).
Kropotkin, The Scientific Basis of Anarchy. Nineteenth Century, 21: 238.
______________, The Coming Anarchy. Nineteenth Century, 22: 149.
Reclus, Elisée, Anarchy. Contemporary Review, 14: 627.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1), Box 1, Folder “Economics, 1906-1907).

Tags Carver, FetterFA

Chicago Courses Suggested Reading Syllabus

Chicago. Monetary Dynamics Seminar. Milton Friedman, 1952

Post author By Irwin Collier
Post date 2016-03-25

Welcome to Economics in the Rear-View Mirror. If you find this posting interesting, here is the complete list of “artifacts” from the history of economics I have assembled thus far. You can subscribe to this blog below. There is also an opportunity for comment following each posting….

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Transcribed from items in the Milton Friedman papers at the Hoover Institution today’s posting includes the bibliographic handout provided by Milton Friedman to the participants in his graduate seminar “Monetary Dynamics” that took place in the Spring Quarter of 1952 along with the official class list. We note that one of the graduate students enrolled in the seminar was Gary S. Becker. It is also interesting to note that “empirical studies” essentially meant “case studies” as of mid-twentieth century.

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The University of Chicago
Office of the Registrar

OFFICIAL CLASS LIST
SPRING QR. 1952

Instructor: FRIEDMAN MILTON
Department: ECON
Course number: 432

Student name:

Axilrod, Stephen H.
Becker, Gary S.
Deaver, John V.
Drayton, James
Fisher, Lawrence
Klein, John
Oort, Coenraad J.
Timberlake, Richard H. Jr.
Venetianer, Edmond

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Economics 432: Monetary Dynamics
Spring Quarter, 1952

The central topic for this quarter will be monetary inflation. We hope to cover the theory of monetary inflation and empirical evidence on monetary inflations. The major issues in this area are, the process whereby changes in the stock of money produce their effect on prices and output or conversely, whereby changes in prices and output affect the stock of money; the role of the interest rate in inflation or, conversely, the effect of monetary changes on the interest rate; the role of exchange rates in monetary inflation as both cause and effect; the relative value of alternative simplified theories for predicting the course of inflationary movement; the role and problems of governmental monetary policy in inflationary periods; empirical regularities in monetary inflations and hyperinflations.
We shall of course not be able to cover all these issues at all adequately; the interests of the members of the seminar will guide the selection made.
There is a vast literature on these problems. The following bibliography, despite its length, is highly selective and is designed to suggest material available and to give leads to people working on particular topics rather than to be exhaustive. The three parts into which the essentially theoretical material is classified (1 to 3) are by no means mutually exclusive and many entries could with equal justification have been classified elsewhere; the sections are meant only to indicate major broad divisions and the order within the sections, the rough lines of theoretical development. Similarly, many of the items in Section 4, supposedly dealing with policy, could readily have been classified in the earlier sections; and many of the entries in section 5, labeled empirical studies, contain discussions of policy or of theory.

1. Classical analysis of inflation

A. Original sources

David Hume, “Of Money,” “Of Interest” in Essays, Moral, Political and Literary, part II (first published 1752).

Adam Smith, Wealth of Nations (1776), Vol I. Bk. II, Chap 4; Bk 1, Ch xi, part of Pt. III (pp. 188-210 in Cannan edition); Bk. II, Ch. 11, esp. pp. 283-87 of Cannan edition.

Henry Thornton, An Essay on Paper Credit (1802), esp pp. 254-8, 281, 296-7, and 335-9 of reprint.

David Ricardo, Principles of Political Economy, (3rd ed. London (1821), Ch. 21; The Works and Correspondence, edited by P. Sraffa, Volume III, passim. (Cambridge 1951).

Nassau Senior, On the Value of Money (1840)

________________, Three Lectures on the Cost of Obtaining Money (1930)

John Stuart Mill, Principles of Political Economy, (1848), Bk. III, Ch. 8, 9, 23.

J. E. Cairnes, “Essays Toward a Solution of the Gold Question,” (written, 1858 to 1860) in Essays in Political Economy, Theoretical and Applied, (London, 1873) pp. 1 to 165.

B. Secondary sources

T. E. Gregory, Introduction to Tooke and Newmarch (London (1928), esp. pp. 22-31.

F. A. Hayek, “A Note on the Development of the Doctrine of ‘Forced Savings’”, Quarterly Journal of Economics, 1932, pp. 123-33.

J. W. Angell, The Theory of International Prices – history, criticism, and restatement (Cambridge, Mass., 1926)

Jacob Viner, Studies in the Theory of International Trade, (New York, 1937), Ch. III, IV, V.

Lloyd W. Mints, History of Banking Theory (Chicago, 1945)

2. Neo-classical

A. Swedish school

Knut Wicksell, Interest and Prices, esp introduction, by Bertil Ohlin, Preface, (London 1936) and Ch. 5-9.

_______________, Lectures, Vol. 2, Ch. IV; pp. 127-222 (London 1935)

Gunner Myrdal, Monetary Equilibrium, London (1939).

E. Lundberg, Studies in the Theory of Economic Expansion, (Stockholm, 1937)

E. Lindahl, Studies in the Theory of Money and Credit (London, 1939)

A. P. Lerner, “Swedish Stepping Stones in Economic Theory,” Canadian Journal of Economics, November 1940.

Brinley Thomas, Monetary Policy and Crisis, Ch. 3 and 4. (1936)

J. Marschak, “Wicksell’s Two Interest Rates,” Social Research, Nov. 1941.

B. Austrian school

L. von Mises, The Theory of Money and Credit (1934) Eng. Translation.

F. A. Hayek, Prices and Production (2nd edition (1935)).

C. Cambridge school

Alfred Marshall, Principles of Economics, pp. 593-5; Money, Credit, and Commerce, pp. 38-50 (1923)

__________________, Official Papers, Ch. II, esp. 38-41, 45-6, 123-32, 157-60. (1926)

D. H. Robertson, Essays in Monetary Theory, esp. Ch. II, XII (1940)

__________________, Banking Policy and the Price Level (3rd ed, 1950)

__________________, “Notes on the Theory of Money,” Readings in Monetary Theory, (Blakiston, 1951), pp. 159-61.

A. C. Pigou, Industrial Fluctuations (1927)

J. M. Keynes, Monetary Reform (London, 1923) especially Ch. III.

F. Langston, The Trade Cycle.

D. Other

J. M. Keynes, A Treatise on Money, esp Vol I, Ch. 13, pp. 293-302, Vol. II, Ch. 25, 30, 32, 33 (1930).

R. G. Hawtrey, The Art of Central Banking (1933), esp. pp. 116-207, 366-71.

__________________, Capital Employment, (1937) Ch. 4-6.

Irving Fisher, Elementary Principles of Economics, Ch. IX (N.Y. 1912) (revised)

__________________, The Purchasing Power of Money, (1926) Ch. 8.

__________________, The Rate of Interest, Ch. 8, 14, 16.

Bertrand Nogaro, Modern Monetary Systems (London, 1927)

M. Albert Aftalion, Monnaie, Prix et Change (Paris, 1927)

Joseph Schumpeter, Business Cycles, Vol II, Ch. 8 (1939)

MacMillan Report, Royal Commission on Finance and Industry, Cmd 3897 (1931), Ch. 11, pp. 92-160.

E. Critiques

H. Ellis, German Monetary Theory (1934) Ch. 8, 9, 19.

R. J. Saulnier, Contemporary Monetary Theory (1938)

Arthur Marget, The Theory of Prices (1938, 1942) Vol 1, Ch. 2, 12-16, Vol 2, Ch. 3.

R. S. Sayers, Modern Banking, Ch. VI (1939, rev. ed.)

G. Haberler, Prosperity and Depression, (1941, 3rd ed.) Part I.

3. Keynes of General Theory

A. General

J. M. Keynes, The General Theory of Employment, Interest, and Money. (London, 1936)

R. F. Kahn, “The Relation of Home Investment to the Multiplier,” Economic Journal, 1931.

Joan Robinson, Essays in the Theory of Employment (1938)

________________, “The Economics of Hyper-Inflation,” (Economic Journal, Sept. 1938), “War Time Inflation,” both in Collected Economic Papers (New York, 1951).

M. Kalecki, Essays on the Theory of Economic Fluctuations (1939)

J. R. Hicks, Value and Capital (2nd ed. 1946) Parts 3 and 4.

Alvin H. Hansen, Fiscal Policy and Full Employment, (1941).

________________, Monetary Theory and Fiscal Policy (1949) Chapter. 7, 8, 9.

________________, Economic Policy and Full Employment (1947).

L. Klein, The Keynesian Revolution (1947)

T. Wilson, Fluctuations in Income and Employment (3rd ed. 1948)

W. Fellner, A Treatise on War Inflation (1942)

A. G. Hart, Money, Debt and Economic Activity, (1948) Ch. 10.

A. P. Lerner, The Economics of Control, Ch. 21-25 (1944)

Walter A. Salant, “The Inflationary Gap, Meaning and Significance for Policy Making,” American Economic Review (June, 1942) pp. 308-14.

Milton Friedman, “Discussion of the Inflationary Gap,” American Economic Review (June, 1942) pp. 314-20.

Arthur Smithies, “The Behavior of Money National Income under Inflationary Conditions,” Quarterly Journal of Economics, 1942.

T. C. Koopmans, “The Dynamics of Inflation,” Review of Economics and Statistics, 1942, pp. 53-65 (comment by A. Smithies and reply, pp. 189-90.)

Franklin Holzman, “Income Determination in Open Inflation,” Review of Economics and Statistics, 1950.

Clark Warburton, “Monetary Expansion and the Inflationary Gap,” American Economic Review, 1944.

Lloyd A. Metzler, “Wealth, Saving, and the Rate of Interest,” Journal of Political Economy, April, 1951.

B. Wage-Price Spiral

Ralph Turvey, “Period Analysis and Inflation,” Economica, 1949.

________________, “Some Aspects of the Theory of Inflation in a Closed Economy,” Economic Journal, Sept. 1951.

J. Dusenberry, “The Mechanics of Inflation,” Review of Economics and Statistics, 1950.

W. A. Morton, “Trade Unionism, Full Employment, and Inflation” American Economic Review, March 1950.

_______________, “Keynesianism and Inflation,” Journal of Political Economy, June 1951.

M. W. Reder, “Theoretical Problems of a National Wage Policy,” Canadian Journal of Economics (Feb. 1948)

_____________, “On Money Wages,” Industrial Relations Research Association conference, 1950.

A. Rees, “Postwar Wage Determination in the Basic Steel Industry,” American Economic Review (June 1951).

4. Government Policy in Inflationary Periods

David Ricardo, “Funding System,” in The Works and Correspondence of David Ricardo, ed by Piero Sraffa (Cambridge, 1951), Vol. IV, esp pp. 185-200; also Vol. III, passim.

A. C. Pigou, The Political Economy of War (revised ed., 1940)

A. G. Hart, E. D. Allen, and collaborators, Paying for Defense (Philadelphia, 1941)

M. Kalecki, “General Rationing,” Bulletin of Oxford Institute of Statistics, January 1941.

G. L. Bach, “Rearmament, Recovery, and Monetary Policy,” American Economic Review, 1941

W. A. Wallis, “How to Ration Consumer Goods and Control Their Prices,” American Economic Review, 1942.

Carl Shoup, Milton Friedman, and Ruth Mack, Taxing to Prevent Inflation (New York, 1943).

Milton Friedman, “The Spendings Tax as a Wartime Fiscal Measure,” American Economic Review, 1943.

J. J. Polak, “On the Theory of Price Control,” Review of Economics and Statistics, 1945.

L. Seltzer, “Is a Rise in Interest Rates Desirable or Inevitable,” American Economic Review, December, 1945.

R. I. Robinson, “Monetary Aspects of Public Debt Policy,” Postwar Economic Studies #3, Board of Governors of Federal Reserve System.

H. C. Wallich, “The Changing Significance of the Interest Rate,” American Economic Review, December 1946.

R. G. Hawtrey, “Monetary Aspects of the Economic Situation,” American Economic Review, March 1948.

Ten Economists on Inflation, Review of Economics and Statistics, 1948.

L. V. Chandler, “Federal Reserve Policy and Federal Debt,” American Economic Review, March 1949.

R. S. Sayers, “Central Banking in Light of Recent Experience,” Quarterly Journal of Economics, 1949.

H. C. Murphy, The National Debt in War and Transition (1950)?E. A. Goldenweiser, American Monetary Policy (1951)

L. W. Mints, Monetary Policy for a Competitive Society. (1950)

Subcommittee on Monetary, Credit and Fiscal Policies (“Douglas subcommittee”), Hearings, 81^st Congress, 1^st Session and Report, 81^st Congress, 2^nd Session, Senate Document 129.

“The Controversy over Monetary Policy,” (Seymour Harris, Lester Chandler, Milton Friedman, Alvin Hansen, Abba Lerner, and James Tobin), Review of Economics and Statistics, August 1951.

J. K. Galbraith, The Theory of Price Control (1952)

Joint Committee on the Economic Report, Monetary Policy and the Management of the Public Debt, Joint Committee Print, 82^nd Congress, 2^nd Session (Washington, 1952) in two volumes.

5. Empirical Studies

W. C. Mitchell, History of the Greenbacks (Chicago, 1903)

_______________, Gold, Prices, and Wages under the Greenback Standard (Berkeley, 1908)

N. S. Silberling, “Financial and Monetary Policy of Great Britain during the Napoleonic Wars,” Quarterly Journal of Economics (1924), pp. 214-33, 397-439.

C. Bresciani-Turroni, The Economics of Inflation.

E. L. Dulles, The French Franc (New York, 1929)

W. De Bordes, The Austrian Crown (London, 1924)

S. S. Katzenellenbaum Russian Currency and Banking, 1914-24 (London, 1925)

James H. Rogers, The Process of Inflation in France, 1914-27 (New York, 1929)

Frank D. Graham, Exchange, Prices, and Production in Hyper-inflation: Germany, 1920-23 (Princeton, 1930)

Seymour Harris, The Assignats (1930)

R. A. Lester, Monetary Experiments (1939)

E. J. Hamilton, “Prices and Wages at Paris under John Law’s System,” Quarterly Journal of Economics (November, 1936).

______________, “Prices and Wages in Southern France under John Law’s System,” Economic History, a supplement of the Economic Journal (February, 1937)

Bertrand Nogaro, “Hungary’s Monetary Crisis,” American Economic Review (Sept. 1948).

Henry W. Spiegel, “A Century of Prices in Brazil,” Review of Economics and Statistics, 1948

A. J. Brown, “Inflation and the Flight from Cash,” Yorkshire Bulletin of Economic and Social Research, Vol. 1 (Sept., 1949)

L. V. Chandler, Inflation in the United States, 1940-49. (1951)

Milton Friedman, “Price, Income, and Monetary Changes during Three Wartime Periods,” [American Economic Review, Papers and Proceedings, May 1952, pp. 612-625]

Source: Hoover Institution Archives. Milton Friedman Papers, Box 78, Folder 4 (University of Chicago, Econ 432).

Tags Becker, Friedman

Courses M.I.T. Syllabus

MIT. Course Outline of Economic Statistics. Robert Solow, 1960

Post author By Irwin Collier
Post date 2016-03-21

Welcome to my blog, Economics in the Rear-View Mirror. If you find this posting interesting, here is the complete list of “artifacts” from the history of economics I have assembled for you to sample or click on the search icon in the upper right to explore by name, university, or category. You can subscribe to my blog below. There is also an opportunity to comment following each posting….

______________________

Robert Solow’s name is typically associated with neo-classical growth theory and MIT macroeconomics of the Keynesian persuasion. This posting reminds us that he was originally hired to beef up the statistics instruction in the MIT economics department. Like his Harvard professor Wassily Leontief, his theoretical work never really left the gravitational field of empirical economics.

_____________________________

14.382 Economic Statistics (A)
Prereq.: 14.371T [Statistical Method]
Year: G(2) 3-0-6

Study of selected statistical techniques found useful in recent economic work, especially the regression analysis of economic time series.

Solow

Source: The Massachusetts Institute of Technology Bulletin 1959-1960. General Catalogue Issue, p. 248.

_____________________________

COURSE OUTLINE
14.382
[Economic Statistics, Robert M. Solow]

Spring Semester, 1960

I. AGGREGATION AND INDEX NUMBERS (3 weeks)

A. Aggregation

R. G. D. Allen, Mathematical Economics, Chapter 20.

Stedman B. Noble, “Structure and Classification in Resource Flow Models”, George Washington University Logistics Research Project, May 1959.

____________________, “Resource Flow Models with Application”, delivered to the Econometric Society, December 1959.

Zvi Griliches and Y. Grunfeld, “Is Aggregation Necessarily Bad?”, The Review of Economics and Statistics, forthcoming.

E. Malinvaud, “L’agrégation dan les Modéles Économique”, Cahiers du Séminaire d’Économetrie, No. 4, 1956, pp. 69-143.

B. Index Numbers

Kenneth J. Arrow, “The Measurement of Price Change”, The Relation of Prices to Economic Stability and Growth, Joint Economic Committee Compendium, March 1958.

C. S. Carter, W. B. Reddaway and R. Stone, The Measurement of Production Movements, Cambridge University Press: England, 1948.

Federal Reserve Bulletin, “Revised Industrial Production Index”, December 1959, pp. 1451-1466.

II. ESTIMATION TECHNIQUES (4 weeks)

A. Small Sample Properties of Simultaneous Equation Estimators

Robert L. Basmann, “An Experimental Investigation of Some Small Sample Properties of (GCL) Estimators of Structural Equations”, November 1958 (dittoed).

_____________________, “On Finite Sample Distributions of Identifiability Test Statistics”, March 1959 (dittoed).

Harvey M. Wagner, “A Monte Carlo Study of Estimates of Simultaneous Linear Equations”, Econometrica, Vol. 26, 1958, pp. 117-133.

Robert Summers, “Capital-Intensive Approach to the Small Sample Properties of Various Simultaneous Linear Equation Estimators”, 1958 (unpublished).

Richard J. Foote, “An Experiment to Test the Relative Merits of Least Squares and Limited Information Coefficients for Forecasting Under Specified Conditions”, Analytical Tools for Studying Demand and Price Structures, 1958, pp. 128-42.

B. Specification

G. E. P. Box and Norman Draper, “A Basis for Selection of a Response Surface Design”, Journal of the American Statistical Association, September 1959.

Henry Scheffe, The Analysis of Variance, “The Effects of Departures from Underlying Assumptions”, Chapter 10, 1959.

Hans Theil, Economic Forecasts and Policy, Chapter 6.2, pp. 204-39, “Statistical Methodology”, and Appendix 6B, “Analysis of Specification Errors”, pp. 326-33.

III. MEASUREMENT OF SUPPLY, COST, AND PRODUCTION FUNCTIONS (3 weeks)

Robert M. Solow, “Technical Change and the Aggregate Production Function”, The Review of Economics and Statistics, August 1957.

Luigi Pasinetti, “On Concepts and Measures of Changes in Productivit” and Comment by R. Solow, Review of Economics and Statistics, August 1959, pp. 270-86.

Jack Johnston, “Statistical Cost Functions: Reappraisal”, Review of Economics and Statistics, 1958.

Zvi Griliches, “Hybrid Corn: And Exploration in the Economics of Technical Change,” Econometrica, October 1957, pp. 501-22.

Paul H. Douglas, “Are There Laws of Production?”, American Economic Review, March 1948, pp. 1-41.

Irving Hoch, “Simultaneous Equation Bias in the Context of the Cobb-Douglas Production Function”, Econometrica, October 1958, pp. 566-78.

John R. Meyer, M. J. Peck and others, The Economics of Competition in the Transportation Industries, Harvard University Press: Cambridge, 1959.

Lawrence R. Klien, Econometrics, “A Cross-Section Model of Production of Railway Services”, Chapter 5, Section 4, pp. 226-41.

Hollis Chenery, “Engineering Production Functions”, Quarterly Journal of Economics, November 1949.

Kenneth J. Arrow, Marvin Hoffenberg, A Time Series Analysis of Inter-industry Demands, The RAND Corporation, North-Holland Publishing Co.: Amsterdam, 1959.

Hollis Chenery and Paul G. Clark, Interindustry Economics, 1959.

IV. MACRO MODELS AND DECISION THEORY (5 weeks)

Hans Theil, Chapter 3, “Postwar Macro Economic Forecasts in the Netherlands and Scandinavia,” Chapter 5, “Underestimation of Changes,” pp. 154-183, Chapter 7, “Forecasts and Policy: Problems and Tools,” pp. 379-410, Chapter 8, “Underestimation of Changes: Analysis and Implications,” pp. 411-529.

James Duesenberry, Quarterly Model of U.S. Economy.

New Klein Model, Suits-Klein-Goldberger Model.

_____________________________

Source: Robert Solow papers. Box 68, Folder “Reading lists”, David M. Rubenstein Rare Book & Manuscript Library, Duke University.

Image Source: MIT Museum.

Tags Solow

Courses Exam Questions Harvard Socialism Suggested Reading Syllabus

Harvard. Schumpeter’s Socialism Course. Syllabus and Exam, 1946

Post author By Irwin Collier
Post date 2016-03-20

Welcome to my blog, Economics in the Rear-View Mirror. If you find this posting interesting, here is the list of “artifacts” from the history of economics I have already assembled for you to sample or click on the search icon in the upper right to explore by name, university, or category. You can subscribe to my blog below. There is also an opportunity to comment below….

______________________

…Regular vistors to this blog have seen that an economics course on socialist thought and movements was a regular part of the curriculum at Harvard during the first half of the twentieth century. Up to this posting I have included material from the following courses: Thomas Nixon Carver’s SINGLE TAX, SOCIALISM, ANARCHISM (1919-20), Edward Mason and Paul Sweezy’s ECONOMICS OF SOCIALISM (1938), and Paul Sweezy’s ECONOMICS OF SOCIALISM (1940).

This course became part of Joseph Schumpeter’s teaching portfolio in the 1940s. His course outline and exam for the winter semester of 1943-44 has been posted as well.

______________________

[Course Announcement]

Economics 11b. Economics of Socialism

Half-course (spring term). Mon., Wed., and (at the pleasure of the instructor) Fri., at 10. Professor Schumpeter.

Source: Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1945-46. Official Register of Harvard University, Vol. 42, No. 8 (March 31, 1945), p. 36.

______________________

[Enrollment]

[Economics] 11b (spring term) Professor Schumpeter. –Economics of Socialism.

5 Graduates, 18 Seniors, 21 Juniors, 15 Sophomores, 1 Freshman, 8 Radcliffe, 9 Other.

Source: Harvard University. Report of the President of Harvard College and Reports of Departments for 1945-46, p. 58.

______________________

ECONOMICS 11b
1945-46
OUTLINE AND ASSIGNMENTS

[Joseph A. Schumpeter]

I. FIRST TWO WEEKS: The Socialist Issue.

Socialist ideas and socialist parties. Socialism and the labor movement. Laborite and intellectualist socialism. The definition of socialism.

*H. W. Laidler, Social-Economic Movements, 1944, esp. Parts V and VI.
Encyclopaedia of the Social Sciences, article on Socialist and Labor Parties.

II. THIRD TO FIFTH WEEK: The Theory of Centralist Socialism., 1938

*O. Lange and F. M. Taylor, The Economic Theory of Socialism, 1938.
[A. P. Lerner, The Economics of Control, 1944.]

III. SIXTH TO NINTH WEEK: The Economic Interpretation of History. The Class Struggle, and the Marxist Theory of Capitalism.

*Karl Marx, Capital, Volume I, chs. I, IV, V, VI.
Marx and Engels, The Communist Manifesto.
*Paul M. Sweezy, The Theory of Capitalist Development, 1942, chs. I-VI
(pp. 1-108).

IV. TENTH TO TWELFTH WEEK: The Socialist Theory of the State and of the Proletarian Revolution, Imperialism, National Socialism.

V.I. Lenin, State and Revolution, 1926.
[M. Dobb, Political Economy and Capitalism, ch. VII.]
Paul M. Sweezy, The Theory of Capitalist Development, Chs. XIII-XIX.

READING PERIOD ASSIGNMENT

Read E. Bernstein, Evolutionary Socialism, 1909, especially pp. 18-95, and survey again the items in the reading list marked *.

NOTE: The items in square brackets are recommended but not assigned. So is: Bienstock, Gregory, and Schwartz, Management in Russian Industry and Agriculture, 1944.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. HUC 8522.2.1. Box 4, Folder “Economics, 1945-1946 (1 of 2)”.

______________________

1945 – 46
Harvard University
Economics 11b

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

What is Syndicalism?
Characterize the type, aims, and importance of the group that called itself Fabians.
“Rational allocation of factors of production presupposes the existence of prices. Prices presuppose free markets. Hence the problem of rational allocation of factors of production would be insoluble in a socialist society.” Criticize.
Discuss the various methods by which investment could be financed (that is, the resources for the extension of the productive apparatus could be provided) in a socialist society.
Explain and criticize what is known as the Marxist Theory of Exploitation.
What meaning do you attach to, and what do you think of, the proposition that Socialism is “inevitable?”

Final, May 1946

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes Box 2, Folder “Course notes (Jan 1950—Found in Drawer—Cambridge Study) Misc 1945-1947”.

Image Source: Harvard Album 1947.

Tags Schumpeter

Courses Exam Questions M.I.T. Suggested Reading Syllabus

M.I.T. Intermediate Macroeconomics. Modigliani, 1961

Post author By Irwin Collier
Post date 2016-03-15

______________________

These course materials for undergraduate intermediate macroeconomics at MIT in the Spring term of the 1960/61 academic year are clearly identified as being for a course taught by Franco Modigliani. As it happens from time to time, one finds syllabi and reading lists in the files of colleagues and not just in the papers of students who took the course or the professors who taught them. These materials from reading list through class-assignments, term-paper assignment, up to and including the final examination all come from Robert Solow’s papers at the Duke University library’s Economists’ Papers Project.

___________________________________________

14.05 Economic Fluctuations and Growth

Prereq.: 14.02
Year: U(1,2) 3-0-5

Analytical study of determinants of national income level, employment, and prices; study of their fluctuations and long-run trends. Consideration of historical and current behavior of the economic system, and role of stabilization policies.

Modigliani

Source: Massachusetts Institute of Technology Bulletin. The General Catalogue Issue for the Centennial Year 1960-61. p. 240.

___________________________________________

Spring, 1961
Professor Modigliani

14.05—Economic Fluctuations and Growth
READING LIST

Suggested Purchases: Dernburg & McDougall, Macro-Economics (1960)—(referred to below as D&M)
US Department of Commerce, U.S. Income and Output (1958)
Federal Reserve Chart Book, Historical Supplement (1960)

Review references in each section are to Samuelson, Economics (4^th ed., 1958)

I. Introduction

Review: Samuelson, Ch. 1
New: D&M, Ch. 1

Friedman: Essays in Positive Economics, pp. 1-30.

II. National Income and Other Measures of Economic Activity.

Review: Samuelson, Ch. 10
New: D&M, Ch. 1-5

Hart, Money, Debt, and Economic Activity (2^nd ed., pp. 167-171)
G. Moore, Statistical Indicators of Cyclical Revivals and Recessions, pp. 1-20, 63-77
Survey of Current Business—“The Business Situation” in a recent issue, and look at annual review in February, 1960, number.

References: For current business conditions and course problems, get acquainted with the following, by examining thoroughly at least one recent issue:

Survey of Current Business (monthly; annual summary in February; National Income issue in July)
Federal Reserve Bulletin (monthly)
Economic Indicators (monthly; historical supplement, 1957)
See Bratt, Business Cycles and Forecasting (1953), Chapter 15, for additional source material

III. The Supply of Money and the Banking System.

Review: Samuelson, Chap. 15 and Appendix, 16.
New: Hart, Money, Debt, etc., Ch. 4 and 6.

Federal Reserve System: Purposes and Functions

IV. The Determinants of the Level of National Income.

A. Monetary Approaches

Review: Samuelson, Ch. 14 and Appendix
New: D&M, Ch. 9

Hart, Money, Debt, Ch. 10, 12

B. The Theory of Effective Demand

Review: Samuelson, Ch. 11, 12
New: D&M, Ch. 6, 7

Hart, Money, Debt, Ch. 11, pp. 167-179
(optional) Modigliani & Brumberg, “Utility Analysis and the Consumption Function”, in Post-Keynesian Economics (esp. pp. 388-418)
(optional) Ando, “Aggregative Implications of the Modigliani-Brumberg Consumption Function” (mimeographed), pp. 1-118 and Summary

V. Cyclical Fluctuations and Growth.

A. Nature and Causes of Economic Fluctuations

Review: Samuelson, Ch. 13
New: D&M, Ch 19, Section 1-3

Metzler, “The Nature and Stability of Inventory Cycles”, Review of Economics and Statistics, 1941-42
Modigliani, “Business Reasons for Holding Inventories and their Macro-economic Implications”, pp. 495-506
Modigliani, “Discussion of Hickman on Capacity, Capacity Utilization and the Acceleration Principle”, pp. 450-463 N.B.E.R. reprint
Cobren, “Inventories in Postwar Business Cycles”, Survey of Current Business, April, 1959
Tinbergen, The Dynamics of Business Cycles, Ch. 13
Hicks, Trade Cycle, Ch. 8, 9 (optional)
Fortune, series on the capital goods market in August, September, November, and December, 1958. (Sample, especially December issue.)

References only: Summaries of historical development of business cycle theories: Haberler, Prosperity and Depression, Part I.

B. Growth and its Interrelation with Cycles

D&M Ch. 16, 17
Abramovitz, Resource and Output Trends in the U.S. since 1870
(optional) Ando & Modigliani, “Growth Fluctuations and Stability”, AER, May 1959, pp. 501-524
Bratt, Business Cycles and Forecasting (1953 ed.), Ch. 3
“A New Look at Production Growth Rates”, in Survey of Current Business, April 1957
Fortune, “The Market of the 1960’s” (series of 9 articles, Jan.-Sept. 1959) (Sample, esp. April issue)
Committee for Economic Development, Economic Growth in the United States (hurriedly)

VI. Business Forecasting.

Charles Roos, “Survey of Economics Forecasting Techniques”, Econometrica, October 1955
Moore, Statistical Indicators of Cyclical Revivals and Recessions, pp. 63-77 (National Bureau of Economic Research Method)
Moore, Measuring Recessions, esp. pp. 259-272
Sidney S. Alexander, “Rate of Change Approaches to Forecasting—Diffusion Indexes and First Differences”, The Economic Journal, June 1958
Fortune, “The Business Roundup”, January 1960
“1959 Survey of Consumer Finances”, Federal Reserve Bulletin, July and September 1959 (note supplementary tables)
Klein & Lansing, “Decisions to Purchase Consumer Durable Goods”, Journal of Marketing, October 1955
Fortune, series cited above on “The Market of the 1960’s” and on “The Coming Capital Goods Boom”
Modigliani & Weingartner, “Forecasting Uses of Anticipatory Data on Investment and Sales”
Bassie, Economic Forecasting (good general reference)
Abramson and Mack, Business Forecasting in Practice (for reference)

VII. Public Policy and Economic Stabilization.

A. Synthesis of Monetary and Income Analysis

Review: Samuelson, Ch. 17
New: D&M, Ch. 8, 9, 10

B. Monetary Policy

D&M, Ch. 11
United States Monetary Policy (American Assembly) –(esp. Ch. 1, 2, 4, 6)
Friedman, “The Supply of Money and Changes in Output”, in The Relationship of Prices to Economic Stability and Growth (Joint Econ. Committee)
Bach, “The Economics and Politics of Money”, Harvard Business Review 1953 (reprint)
Committee on the Economic Report (Patman Subcommittee)—Replies pp. 368-384, 402-428 (for reference)

C. Fiscal and Debt Policy

Review: Samuelson, Ch. 18
New: D&M, Ch. 20, 21

The Federal Budget in Brief for Fiscal 1961 (get acquainted; copy of complete budget also on reserve)
Committee on Economic Development, Taxes and the Budget; also reprinted in Readings in Fiscal Policy (Parts I and II only)
Committee on Economic Development, The Budget and Economic Growth
Samuelson, “The New Look in Tax and Fiscal Policy”, in Federal Tax Policy for Economic Growth and Stability, pp. 229-34
Butters, “Taxation, Incentives, and Financial Capacity”, in Readings in Fiscal Policy
McCracken, “The Debt Problem and Economic Growth”, Michigan Business Review, November 1956

D. Wages, Productivity, Prices, and Inflation

D&M, Ch. 12, 14, 18
Wages, Prices, Profits and Productivity, American Assembly, (esp. Ch. 1, 3, 4, 6)

E. Overall Stabilization Policy and Economic Growth.

Friedman, “Framework for Monetary-Fiscal Stability”, Readings in Monetary Theory, OR;
Bach, “Monetary-Fiscal Policy Reconsidered”, Readings in Fiscal Policy
Rockefeller Committee, The Challenge to America
C. E. D. Defense Against Inflation, July 1958
Eckstein, “Inflation, the Wage-Price Spiral, and Economic Growth”, in The Relationship of Prices to Economic Stability and Growth (Joint Economic Committee)
Bach, Inflation, Ch. 2, 4
Samuelson and Solow, “Analytical Aspects of Anti-Inflation Policy”, AER May 1959 (reprint)

VIII. International Aspects.

Review: Samuelson, Ch. 31 and Appendix
New: D&M, Ch. 15

___________________________________________

Spring 1961
Professor Modigliani

14.05 – Economic Fluctuations and Growth
GUIDE SHEET TO BASIC ECONOMIC DATA SOURCES.

BASIC HISTORICAL INFORMATION:

Historical Statistics of the United States Colonial Times to 1952 (U. S. Government Printing Office) – Data on all major economic and many social areas, with descriptions of series.

U. S. Income and Output – A Supplement to the Survey of Current Business, providing data of all components of gross national product, 1929-1957.

Banking and Monetary Statistics, 1860-1941 (Board of Governors, Federal Reserve System)-More detailed series on money and banking, with descriptions of series.

The Economic Almanac (published annually by the National Industrial Conference Board) – each issue repeats large amount of historical data, some back to 1790. Several of these series go back further than the official government series; as such, they are often less accurate because of the less adequate coverage of the series and larger likely estimating errors involved.

(U. S. Census (U. S. Government Printing Office) – Vast amounts of data on most aspects of the economic life of business and individual, reaching back to 1790. Difficult to use without assistance or experience.

CURRENT DATA – OFFICIAL SOURCES

Survey of Current Business (U. S. Department of Commerce, monthly) – The most complete source of basic economic data, plus objective analyses of various economic developments. An annual survey is published each year in the February issue, and Annual Statistical Supplements have been issued in several recent years, which provide the data in more easily usable form than do most of the monthly issues.*

Federal Reserve Bulletin (Board of Governors, Federal Reserve System, monthly) – The basic source of current official monetary and banking data, plus monthly analyses of monetary developments.

Monthly Labor Review (U. S. Department of Labor) – The basic source of current official data on labor and on price movements, plus monthly analyses of developments in these areas.

Statistical Abstract of the U. S. (U. S. Government Printing Office, annually) – The basic annual compilation of all U. S. Government statistical data; corresponds to the Historical Statistics of the United States, above.

*Business Statistics, 1959 Biennial Edition – The latest major supplement to the Survey. It includes all major series published in the Survey, from 1929 through 1958 in most cases.

CURRENT DATA AND ANALYSES—UNOFFICIAL

There are a vast number of analyses of current economic developments published. Among the more widely recognized as careful and influential are:

Monthly Letter of the National City Bank of New York – General business conditions and financial conditions.

Fortune Magazine (monthly) – Current business analyses and industry studies, written from a relatively “liberal” business slant.

The Conference Board Business Record (National Industrial Conference Board, monthly) – Briefly analyzes current developments; more conservative than Fortune.

CURRENT EVENTS—NEWSPAPERS

Three newspapers are widely thought to provide the most complete coverage of current economic events. They are:

New York Times (daily and Sunday) – Provides the most complete coverage of current economic events.

New York Herald-Tribune (daily and Sunday) – The Times’ closest rival.

Wall Street Journal (daily) – Leading financial and business paper. Complete daily data on most important markets; also includes many speculative news stories and analyses of current and expected developments.

___________________________________________

Spring, 1961
Professor Modigliani

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENTS

I. Due Monday, February 13

“Inflation erodes the purchasing power of the dollar, robs the average man, and lowers the national standard of living. These results are pernicious and disastrous. Inflation must be avoided.” (Excerpt from recent statement by U. S. Senator)

Do you agree with the Senator? Why or why not?

II. Due Friday, September 17

Prepare a brief report (two to three pages) on the current business conditions and the outlook for the next six to twelve months.

___________________________________________

Spring, 1961
Professor Modigliani

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENT

III. Due February 24

Economists as well as politicians are very much concerned with the overall burden of taxes, or share of the nation’s income taxed away by the government.

Using as a framework for National Income Accounts of the Department of Commerce, state and defend what seems to you the most useful and meaningful measure of the “share of the nation’s income taken by the government” (paying attention to the numerator as well as to the denominator). Compute this year for 1948 and 1957.

Is the above concept identical with the “share of the nation’s output of goods and services consumed by the government”? If not, define the second concept and measure this year for the same two years.

Include any comments that may be suggested by your empirical findings.

___________________________________________

Spring, 1961
Professor Modigliani

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENT

IV. Due March 6

In a small, completely isolated economy (i.e., no foreign trade with money-using habits comparable to those of the U. S., there are four identical banks. Each bank’s balance sheet is as follows:

Cash	$3,000,000	Deposits	$8,000,000
Loans	2,000,000
Government Securities	5,000,000	Capital and Surplus	2,000,000
	$10,000,000		$10,000,000

The law prescribes that banks must hold a 20% cash reserve against deposits. There is no central bank.

(a) A customer of bank letter a minds $1 million of gold (considered as cash for reserve purposes) and deposits it in his bank. Trace through any likely expansion of the money supply by Bank Letter a and by the entire banking system. What would be the maximum expansion possible?
Specify clearly any assumptions that you make, and state your reasoning carefully and precisely.

(b) Is the banking system in a more or less sound position after the gold deposit in any consequences you have predicted above? Explain why or why not.

___________________________________________

Spring, 1961
Professor Modigliani

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENT

V. Due March 10

In 196X the Federal Government will collect about 85 billion in taxes, according to present estimates, which also indicate that the money will be used roughly as follows:

Regular government expenses	$77 billion
Repayment of government debt
…..Held by commercial banks	3 billion
…..Held by individuals and businesses other than banks	5 billion

Suppose these estimates are accurate, and assume it Government deposits are carried out with the commercial banks.

a. What will be the effect of these operations on the amount of money (current and deposits) owned by the public (including individuals and businesses other than banks)?

b. What will be the effect on the amount of total liquid assets (money plus government securities) owned by the public?

c. How, if at all, would your answers to (a) and (b) have been different if:

(1) All bonds paid off had been owned by commercial banks.
(2) All months paid off had been owned by the Federal Reserve Banks.

d. What generalization, if any, can you draw from this reasoning as to the most effective means of retiring the government debt, if the main aim is to alleviate inflationary pressure.

Explained concisely the reasoning by which to obtain the answers given.

___________________________________________

14.05-Economic Fluctuations and Growth
TERM PAPER—DUE MAY 15, 1961

Write an essay on the postwar “creeping inflation” in the U.S. – Its nature, causes and possible remedies. The essay should review the major explanations that have been advanced (e.g. cost-push and demand-poll); assess their usefulness in the light of the empirical evidence; and provide a formulation of your own conclusions and the evidence which supports them. It should further examine the implications of your analysis with respect to the outlook for price stability in the years immediately ahead.

The following items have been placed on reserve in Dewey Library to serve as a starting point, you should feel free to trace and use other references.

Books

American Assembly, Wages, Productivity, Prices, and Inflation
American Assembly, Wages, Prices, Profits and Productivity
Bowen, W. G., The Wage–Price Issue

Pamphlets, Monographs, Periodicals, etc.

Bowen, W. G., “Wage Behavior in the Postwar Period”, monograph, Industrial Relations Section, Princeton University, 1960
Eckstein, O., “Inflation, the Wage-Price Spiral, and Economic Growth”, in The Relationship of Prices to Economic Stability and Growth (Joint Economic Committee)
Phelps, E. S., “A Test for the Presence of Cost Inflation in the United States, 1955-1957”, Yale Economic Essays, Spring 1961
Samuelson and Solow, “Analytical Aspects of Anti-Inflation Policy”, AER, May 1960
Schultze, C., “The Recent Inflation in the United States”, Study Paper No. 1, Joint Economic Committee, 1959
Selden, R., “Cost-Push Versus Demand-Pull”, JPE, February 1959

___________________________________________

Prof. Modigliani
May 24, 1961

14.05 – ECONOMIC FLUCTUATIONS AND GROWTH
Final Examination

Answer all Questions.

I. Indicate whether the following statements are true or false and give a brief explanation of your answer. Major weight attaches to the explanation. (5 points per question)

(a) The money supply can always be increased through the Federal Reserve open market purchases.

(b) The relation between the two main demand liabilities of the FRB, namely Federal Reserve notes and member bank deposits is determined primarily by reserve requirements.

(d) Liquidity preference helps to explain why the velocity of circulation tends to vary over the business cycle.

(e) If the rate of investment expenditure declines, the stock of capital goods in the economy declines.

(f) Built-in flexibility in fiscal policy means that the level of government expenditure should vary countercyclically.

(g) A high marginal tax rate has a stabilizing effect on the economy by reducing the marginal propensity to consume.

(h) The most important characteristic of a good leading indicator is that it should always turn ahead of general business conditions.

II. (20 points) Given the following information (in billions of dollars per year):

Full employment income (Y^f)	300
Consumption expenditure	20 plus 80 percent of disposable income
Government purchase of goods and services	50
Government receipts	20 percent of national income (Y)
Transfer payments	10 plus 5 percent of the difference between Y^f and Y
Net investment	22

(a) Calculate the equilibrium level of income implied by this information and explain carefully in what sense it is an “equilibrium” level.

(b) What rate of investment would be required to bring about full utilization of resources? What measures other than an increase in investment could be utilized to reach full employment?

III. (20 points) Define the following concepts:

(a) multiplier

(b) capital coefficient

and explain their use in business cycle analysis.

IV. (20 points) Explain the functioning of monetary policy as a stabilization device, and analyze its strength and weaknesses.

Source: Duke University. Rosenstein Library. Robert Solow Papers. Box 68. Folders “Reading Lists”, “Assignments, home problems”, and “Exams, tests, quizzes”.

Tags Modigliani

Courses Exam Questions Harvard Socialism Syllabus

Harvard. Economics of Socialism. Mason and Sweezy, 1938

Post author By Irwin Collier
Post date 2016-03-11

Between one slice of two weeks of pre-Marxian socialism and a slice of two weeks of the economics of planning, Mason and Sweezy offered their students a full portion of Marxian economics with an added dash of Leninism. This posting provides the enrollment, syllabus and final examination questions for 1938. Future Nobel prize laureate James Tobin was a student in the course and he took excellent notes! Here a link to the Economics of Socialism that Paul Sweezy taught by himself in 1940.

__________________________

[Course Enrollment: Economics of Socialism]

[Economics] 11b ²hf. (formerly 7d). Professor Mason and Dr. P. M. Sweezy.—Economics of Socialism.

1 Graduate; 27 Seniors; 23 Juniors; 1 Sophomore: Total 52.

Source: Harvard University. Report of the President of Harvard and Reports of Departments for 1937-38, p. 85.

__________________________

ECONOMICS 11 b
Outline and Reading
1937 – 38

Week of
Feb. 7-12 Mason	a. Outline of Course b. Utopian and Scientific Socialism c. Nature of Socialism as Utopia
Feb. 14-19 Mason	a. Saint-Simon b. Fourier c. Robert Owen
Reading: Engels, Anti-Dühring, Part III Strachey, Theory and Practice of Socialism, Part III Gide and Rist, History of Economic Doctrines, Book II, Chs. 2 & 3
Feb. 21-26 Mason	a. Life and Works of Marx and Engels b. Dialectical materialism and c. Historical materialism
Reading: Riazanov, Marx and Engels
Feb. 28-Mar. 5 Mason	a. Theory of Classes b. Theory of the State c. The State and Revolution
Reading: Handbook of Marxism [Burns], Ch. I (Communist Manifesto) Ch. IV (Class Struggles in France), Ch. V (18^th Brumaire), Ch. VII (Civil War in France), Ch. XX (Introduction to the Critique of Political Economy)
Mar. 7-12 Mason	a. Theory of Value b. Theory of Value c. General Tendencies of Capitalist Development
Mar. 14-19 Mason	a. Concentration and Centralization of Capital b. Monopoly Problem in Capitalism c. According to Marx and Lenin
Mar. 21-26 Mason	a. Marxian and Modern Views on b. Wages and Technological Unemployment c. Marxian Theory of Crises
Mar. 28-Apr. 2 Sweezy	a. Marxian Theory of Crises b. Imperialism c. Imperialism
Reading: Handbook of Marxism, Ch. XXI (Capital) Capital, Vol. I, Part VII, Ch. XXV, Sections 1, 2, 3, 4 Lenin, Imperialism VACATION
Apr. 11-16 Mason	a. b. The Socialist Movement After Marx c.
Apr. 18-23 Mason	a. b. Marxian Schools of Thought
Reading: Sidney Hook, Towards the Understanding of Karl Marx, Part I Further assignment to be announced.
Apr. 25-May 7 Sweezy	Two weeks to be devoted to the following topics: 1. Marxian and Orthodox Economics [Handwritten note:] Rev of Ec Studies June ‘35 2. The Allocation of Resources in Socialist Society
Reading: Lange, Marxian Economics and Modern Economic Theory [Handwritten note:] Rev of Ec Studies June ‘35 Hayek, Collectivist Economic Planning, Chs. I, III, V Pigou, Socialism versus Capitalism Reading Period: Sidney and Beatrice Webb, Soviet Communism, Vol. II Chs. VIII, IX

	[Handwritten additions:] Ch 6 Lippman Oct. 36 Rev of Ec Studies—Lange—On the Economic Theory of Socialism—Taussig memorial—Sweezy—Economist in Socialist State.

_____________________________

1937-38
HARVARD UNIVERSITY
ECONOMICS 11b/2

I

(About one hour)
Reading Period Question

What features of the Russian economic system do you think could be adopted by a capitalist country? What features seem to you to be peculiarly the product of socialism and hence inapplicable under a capitalist system?

II

Answer four questions

“The most egregious error committed by the Marxist theorists is in misunderstanding and underrating the strength of the middle classes.” Discuss.

What arguments does Mises use to support his claim that socialism is impossible? Do you agree with these arguments? State your reasons.

Summarize the fundamentals of Lenin’s theory of imperialism. What do you regard as the particular merits or weaknesses of this theory?

“To what extent is it true to say that the doctrine of the ‘withering away of the state’ implies anarchism as the ultimate goal of Marxian socialism?

State and criticize the Marxian theory of value.

Do you think that Marxists are justified in regarding crises and depressions as inevitable under capitalism? What grounds are there for believing that they might be eliminated under socialism?

Final. 1938

Source: Yale University Library, Manuscripts and Archives. James Tobin Papers, Box 6.

Image Source: Mason and Sweezy portraits from the Harvard Album 1939.

Tags Mason, Sweezy

Courses Harvard Syllabus

Harvard. International Trade, Finance & Policy. Haberler, 1949-51

Post author By Irwin Collier
Post date 2016-03-09

______________________

Gottfried Haberler’s two term Harvard graduate course sequence in International Economics at mid-century was divided along Theory vs. Policy lines as opposed to the (real) Trade & Commercial Policy vs. (monetary) International Finance & Exchange used in current textbooks.

I have taken the liberty of combining the Fall term in 1949 with the Spring term of 1951 for which I have the reading lists. I could not find the latter at Harvard, but spotted a copy in Milton Friedman’s papers in a folder for other people’s syllabi.

_______________________________

[Economics 243a International Trade. Enrollment, Fall Term 1949]

Total 36: 23 graduates, 1 senior, 12 other (of which 1 MIT, 4 Radcliffe).

Source: Harvard University. Report of the President of Harvard College and reports of departments, 1949-1950, p. 75.

__________________________

Economics 243a
Professor Haberler – Fall Term, 1949

During the first half year, the theory of international trade, including the theory of tariffs and other international trade policies, will be discussed in a systematic fashion. The subject of the spring term will be selected topics in the field of international economic relations.

Outline for First Half-Year

International trade and national income. The importance of trade for various countries. Measures of importance.
International accounts. International transactions of the national economic budgets.
Foreign exchanges. Demand and supply for exports and imports. The market for foreign currency. Purchasing power parity theories.
The balance of payments mechanism. Price effects, income effects, the foreign trade multiplier. The transfer problem.
The international division of labor. The theory of comparative cost. Modern developments of the theory of comparative cost. Ohlin’s general equilibrium theory of interregional and international trade.
The welfare implications of international trade theory. The theory of tariffs and protection in general. Monopoly and monopolistic competition in international trade.
International trade theory and location theory.

Reading Assignments and Suggestions
General

The literature in the subject is so rich that students can acquire the knowledge necessary for the course in many different ways. Students are invited to make their own choice from the suggestions below. Two extensive bibliographies have been prepared in former terms for other courses. One may be obtained from Ms. Buller, Littauer 322; the other from Professor Williams’ secretary, Littauer 231. Each student is expected to have read one or the other of the following general monographs or texts:

Ellsworth: International Economics
Enke and Salera: International Economics
Haberler: Theory of International Trade
Harris (Editor): Foreign Economic Policy for the U.S. (especially Part V)
Harrod: International Economics (3rd edition, 1939)
Marshall: Money, Credit, and Commerce, (Part III and Appendix g)
Meade and Hitch: Introduction to Economic Analysis and Policy (Part III)
An excellent discussion of recent developments will be found in: Metzler: “The Theory of International Trade,” Chapter. 6, Survey of Contemporary Economics (1948)
Readings in the Theory of International Trade contains an excellent collection of articles on all phases of the course
Taussig: International Trade (1927)
Tinbergen: International Economic Cooperation (1945)
Whale: International Trade

Assignments and Suggestions to Subjects Listed Above

(in addition to relevant chapters in general texts)

The Post-War Foreign Economic Policy of the United States. 6th Report of the House Special Committee on Post-War Economic Policy and Planning. House Report No. 541. Washington, 1945. (This report was written by Lloyd Metzler.)
The United States in the World Economy, U. S. Department of Commerce, 1943.
Buchanan and Lutz: Rebuilding the World Economy (1947)
J. Brown: Industrialization and Trade (1943)
A. J. Brown: Applied Economics (1948), Ch. VI
Readings, Chs. 21 and 22, by D. H. Robertson and J. Finder
Balance of Payments Yearbook, 1938-1941-1947 (International Monetary Fund)
Hicks: The Social Framework of the American Economy, Ch. XII, “Foreign and National Income”
The Survey of Current Business (monthly publication of Dep. of Commerce) has frequent articles on trade and balance of payments statistics.
The United States in the World Economy (U.S. Department. of Commerce, 1943)
Nurkse: International Currency Experience (League of Nations, 1944)
J. Robinson: “Foreign Exchanges,” Essays on the Theory of Employment (1st ed., 1938; 2nd ed., 1947), Part III; reprinted in Readings, Chapter 4.
J. Robinson: “Beggar-My-Neighbor Remedies for Unemployment,” Readings, Ch. 17.
Machlup: “The Theory of Foreign Exchanges,” Economica, 1939 (two articles); Readings, Ch. 5.
Pigou: “The Foreign Exchanges,” Quarterly Journal of Economics, November, 1922, Reprinted in Essays in Applied Economics (1927)
Metzler: op. cit.
Harris (Editor): Foreign Economic Policy for the U. S., Part V, Chs. 20, 21, 22.
Keynes and Ohlin on German Reparations in Economic Journal, 1929; and Readings, Chs. 6 and 7.
Iversen: International Capital Movements, 1935.
Machlup: International Trade and the National Income Multiplier (1943)
Harris (Editor): The New Economics, Part V, especially essays by Bloomfield and Nurkse.
Williams: Post-War Monetary Plans and Other Essays (3rd edition, 1947).
In addition to general texts, see:
Edgeworth: Papers Relating to Political Economy, Vol. II, p. 3-60.
Ellsworth: “A Comparison of International Trade Theories,” American Economic Review, June, 1940.
Leontief: “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, May, 1933; Readings, Ch. 10.
Mill: Principles
Ohlin: op. cit. Parts I, II, and possibly III.
Readings, Chs. 12, 13, 15, by J. H. Williams, E. Heckscher, and W. Stolper and P. Samuelson
Ricardo: Principles
Taussig: International Trade
Viner: Studies in the Theory of International Trade (last two chapters)
Samuelson: “The Gains from Trade,” Readings, Ch. 11.
Scitovszky: “A Reconsideration of the Theory of Tariffs,” Readings, Ch. 16.
Henderson: “The Restriction of Foreign Trade,” in The Manchester School of Economic and Social Studies, Volume 14, January, 1949.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1). Box 5, Folder “Economics 1949-1950, 3 of 3”.

_______________________________

1950-51
Economics 243b
Spring Term—Professor Haberler

International Economic Policy

with special emphasis on the theoretical foundations

Introduction
Theory and Policy
Aims of Economic Policy
International Trade, Economic Welfare and National Income
International Trade and Employment
The Quantitative Importance of International Trade
Brief Sketch of the Historical Evolution of Theory of International Trade and International Economic Policy
Pre-Mercantilist Views
Mercantilism
Classical Liberalism
Reaction to Liberalism: Historical School
From the Repeal of the Corn Law to 1914
The Interwar Period
–The 1920’s
–The 1930’s
Recent developments
The Rise of Socialism and Planning and their Impact on Trade Policy
Free Trade and Protection: A Theoretical Analysis
The Case for Free Trade: The Theory of Comparative Cost
Arguments for Protection: “Economic” vs. “Non-economic” Arguments
Infant Industry Argument: Problems of Economic Development
Terms of Trade: Monopoly and Monopolistic Competition in International Trade
Trade Policy and Unemployment
Balance of Payments, the Exchange Rate and International Monetary Policy
The International Accounts
–Balance of Payments and National Economic Budget
Stable Exchanges
–Gold Standard
–Gold Exchange Standard
Currency Depreciation
–Demand and Supply for Exports and Imports
–Market for Foreign Exchange
–Stability Conditions
The Transfer Problem
Dollar Shortage
Quantitative Restrictions
Quotas
Exchange Control
Most-Favored-Nation Principle, Discrimination and the Economics of Regional Blocs
Preferential Tariffs
Customs Unions
Economic Unions
Monetary, Clearing and Payments Unions

Literature

General Treatises and Historical

Descriptive and Historical
Brown: Industrialization and Trade (1943)
Buchanan and Lutz: Rebuilding the World Economy (1947)
Condliffe: The Commerce of Nations (1950)
League of Nations: The Network of World Trade (1942)
Theoretical
Ellsworth: International Economics (1938)
Ellsworth: The International Economy (1950)
Haberler: Theory of International Trade
Harrod: International Economics (1938)
Metzler “Theory of International Trade” in Survey of Contemporary Economics
Ohlin: Interregional and International Trade
Taussig: International Trade
Marshall: Money, Credit, and Commerce
Meade and Hitch: Introduction to Economic Analysis and Policy (Part V)
J. S. Mill: Principles, Book III, Ch. 17, 18, 20, 21; Book V, Ch. 4 (reprinted in Selected Readings)
Enke and Salera: International Economics
Ellis and Metzler: Readings in the Theory of International Trade (quoted as “Readings”)
Taussig (Editor): Selected Readings in International Trade and Tariff Problems (quoted as “Selected Readings”)
Viner: Studies in the Theory of International Trade
Williams: Postwar Monetary Problems and Other Essays

Reading for Individual Sections of Outline

No specific reading.
No specific reading.
Practically all theoretical texts mentioned above. See especially:
Ellsworth
Haberler
Readings: Chs. 10, 11, 15, 16
Selected Readings, Chs. 1, 2, 9
In addition: Haberler: “Some Problems in the Pure Theory of International Trade,” Economic Journal, June, 1950.
A. Henderson: “The Restriction of Foreign Trade,” in The Manchester School of Economic and Social Studies, Vol. 14, January 1949.
J.E. Meade: “A Geometrical Representation of Balance of Payments Policy,” Economica, November 1949.
John Robinson: “The Pure Theory of International trade,” Review of Economic Studies, Vol. XIV, 1946-47.
J.S. Mill, Principles.
Balogh: Dollar Crisis (1949)
Ellis: The Economics of Freedom
Ellis: The Progress and Future of Aid to Euorpe (1950)
Kindleberger: Dollar Shortage (1950)
Harris: Foreign Economic Policy of the U.S., Part V. Essays by Haberler, Samuelson
Harris: (Editor) The New Economics, Part V, especially the essays by Bloomfield and Nurkse
Hicks: The Social Framework, Ch. 12.
Metzler’s article in Survey.
Nurkse: International Currency Experience, League of Nations, 1944.
Readings, Chs. 4, 5, 6, 7, 17.
Williams, op.cit.

Source: The Hoover Institution Archives. Milton Friedman Papers, Box 80, Folder 80.8 “Syllabi by others”.

Tags Haberler

Exam Questions Harvard Suggested Reading Syllabus

Harvard. Business Cycles and Economic Forecasting. Schumpeter, 1948

Post author By Irwin Collier
Post date 2016-02-22

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.

_______________________________________________

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.

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)”.

_______________________________________________

[Final Examination]

HARVARD UNIVERSITY
Economics 245 A

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

Describe the various underconsumption theories of depressions and discuss their explanatory value.
Explain the mechanism of inventory cycles and state your opinion about the importance of the phenomenon.
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.
Examine the validity of harvest theories of business cycles.
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”.

_______________________________________________

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 4^th to 8^th.
Lord Keynes, General Theory of Employment, Interest and Money, Harcourt Brace, 1^st 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, 3^rd 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.

Tags Schumpeter

Exam Questions Harvard Suggested Reading Syllabus

Harvard. Mathematical Economics. Leontief, 1948

Post author By Irwin Collier
Post date 2016-02-21

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.

____________________________

[Course Outline, Leontief]

Economics 4a
Spring Term, 1948

Introduction to the Mathematical Treatment of Economic Theory

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

_________________________________

[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 P_z, P_x and P_y 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”.

_________________________________

[Final Exam]

1947-48
HARVARD UNIVERSITY
ECONOMICS 4a

Please write legibly

Answer four questions including question 6.

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.
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 p_y and p_z 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.)

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 = B – q₂,

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?

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.

Discuss the problem of measurability of utility.
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 x₁and 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.

Tags Leontief

ADVANCED ECONOMIC THEORY 14.123 Fall 1962

R. M. Solow and E. S. Phelps

Part I: INVESTMENT AND ECONOMIC GROWTH

A. Capital and Production

B. Technical Change

C. Models of Investment, Technical Progress and Growth

D. The Quantitative Importance of Investment and Technical Change for Economic Growth

[Insert: Optimal problems in capital theory…beginning ca Dec. 14, 1962]

E. Investment in Knowledge and Skills

[Course Enrollment First Half-year 1906-07]

ECONOMICS 14b METHODS OF SOCIAL REFORM

First Half-Year, 1906 – 07, F. A. Fetter.

BIBLIOGRAPHY

I. Evil’s and Discontent Portrayed.

II. Utopian Romances (chronological order of publication).

III. Communistic Experiments (American books in chronological order).

IV. Religious and Altruistic Socialism

V. History and Exposition of Collectivism (alphabetic by authors).

VI. Collectivist arguments.

VII. Anti-Collectivist Arguments.

VIII. Land Nationalization.

IX. The Extension of State Action

X. Anarchism and Nihilism.

OFFICIAL CLASS LIST SPRING QR. 1952

Instructor: FRIEDMAN MILTON Department: ECON Course number: 432

Economics 432: Monetary Dynamics Spring Quarter, 1952

1. Classical analysis of inflation

A. Original sources

B. Secondary sources

2. Neo-classical

A. Swedish school

B. Austrian school

C. Cambridge school

D. Other

E. Critiques

3. Keynes of General Theory

A. General

B. Wage-Price Spiral

4. Government Policy in Inflationary Periods

5. Empirical Studies

COURSE OUTLINE 14.382 [Economic Statistics, Robert M. Solow]

Spring Semester, 1960

I. AGGREGATION AND INDEX NUMBERS (3 weeks)

A. Aggregation

B. Index Numbers

II. ESTIMATION TECHNIQUES (4 weeks)

A. Small Sample Properties of Simultaneous Equation Estimators

B. Specification

III. MEASUREMENT OF SUPPLY, COST, AND PRODUCTION FUNCTIONS (3 weeks)

IV. MACRO MODELS AND DECISION THEORY (5 weeks)

[Course Announcement]

[Enrollment]

ECONOMICS 11b 1945-46 OUTLINE AND ASSIGNMENTS

[Joseph A. Schumpeter]

I. FIRST TWO WEEKS: The Socialist Issue.

II. THIRD TO FIFTH WEEK: The Theory of Centralist Socialism., 1938

III. SIXTH TO NINTH WEEK: The Economic Interpretation of History. The Class Struggle, and the Marxist Theory of Capitalism.

IV. TENTH TO TWELFTH WEEK: The Socialist Theory of the State and of the Proletarian Revolution, Imperialism, National Socialism.

READING PERIOD ASSIGNMENT

1945 – 46 Harvard University Economics 11b

14.05 Economic Fluctuations and Growth

14.05—Economic Fluctuations and Growth READING LIST

I. Introduction

II. National Income and Other Measures of Economic Activity.

III. The Supply of Money and the Banking System.

IV. The Determinants of the Level of National Income.

A. Monetary Approaches

B. The Theory of Effective Demand

V. Cyclical Fluctuations and Growth.

A. Nature and Causes of Economic Fluctuations

B. Growth and its Interrelation with Cycles

VI. Business Forecasting.

VII. Public Policy and Economic Stabilization.

A. Synthesis of Monetary and Income Analysis

B. Monetary Policy

C. Fiscal and Debt Policy

D. Wages, Productivity, Prices, and Inflation

E. Overall Stabilization Policy and Economic Growth.

VIII. International Aspects.

14.05 – Economic Fluctuations and Growth GUIDE SHEET TO BASIC ECONOMIC DATA SOURCES.

ADVANCED ECONOMIC THEORY
14.123
Fall 1962

ECONOMICS 14b
METHODS OF SOCIAL REFORM

OFFICIAL CLASS LIST
SPRING QR. 1952

Instructor: FRIEDMAN MILTON
Department: ECON
Course number: 432

Economics 432: Monetary Dynamics
Spring Quarter, 1952

COURSE OUTLINE
14.382
[Economic Statistics, Robert M. Solow]

ECONOMICS 11b
1945-46
OUTLINE AND ASSIGNMENTS

1945 – 46
Harvard University
Economics 11b

14.05—Economic Fluctuations and Growth
READING LIST

14.05 – Economic Fluctuations and Growth
GUIDE SHEET TO BASIC ECONOMIC DATA SOURCES.

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENTS

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENT

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENT

14.05-Economic Fluctuations and Growth
WRITTEN ASSIGNMENT

14.05-Economic Fluctuations and Growth
TERM PAPER—DUE MAY 15, 1961

14.05 – ECONOMIC FLUCTUATIONS AND GROWTH
Final Examination

ECONOMICS 11 b
Outline and Reading
1937 – 38

1937-38
HARVARD UNIVERSITY
ECONOMICS 11b/2

(About one hour)
Reading Period Question

Economics 243a
Professor Haberler – Fall Term, 1949

Reading Assignments and Suggestions
General

1950-51
Economics 243b
Spring Term—Professor Haberler

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

HARVARD UNIVERSITY
Economics 245 A

Economics 4a
Spring Term, 1948

Economics 4a
Hour Examination
March 23, 1948

1947-48
HARVARD UNIVERSITY
ECONOMICS 4a