Category: Syllabus

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Harvard Suggested Reading Syllabus

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

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

The mid-year exam is posted here.

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

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

_______________________________

 

[From the Course Catalogue]

Economics 3. Money, Banking, and Cycles

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

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

_______________________________

 

[Course Enrollment: Economics 3, 1933-34]

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

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

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

_______________________________

 

ECONOMICS 3
Outline, 1933-1934

Important Books

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

 

A. BANKING

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

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

Assignment:

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

 

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

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

Assignment:

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

 

III. Banking Abroad (November 21—December 23)

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

Assignment:

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

 

HOUR EXAMINATION: Thursday, November 2

Reading Period:

Read ONE of the following:

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

________________

 

B.  MONEY

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

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

Assignment:

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

 

V. Monetary Policy (March 13—April 21)

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

Assignment:

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

 

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

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

Assignment:

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

HOUR EXAMINATION: Thursday, March 15

Reading Period:

Read ONE of the following:

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

 

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

Image Source: Seymour Harris from the Harvard Album 1935.

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Columbia Exam Questions Syllabus Uncategorized

Columbia. Junior Year Political Economy. Mayo-Smith, 1880

Yesterday while trawling through the Hathitrust digital library, I came across a collection published in 1882, Examination Papers Used During the Years 1877-1882 in Harvard, Yale, Columbia, Cornell, Amherst and Williams Colleges. (The link takes you to the download page at archive.org)

Hoping for some political economic gold, I paged through the collection that appeared mostly focused on entrance examinations for Latin, Greek, mathematics etc., but eventually I stumbled upon a single examination in political economy for a junior year course (1880) at Columbia College.

The last question of that exam explicitly quotes from the course textbook so I went over to Google Books and searched the phrase “to secure a delusive benefit to individuals”. Sure enough, I could identify the textbook in question as the Manual of Political Economy for Schools and Colleges (3rd ed. 1876) by James Edwin Thorold Rogers. 

Now drunk on Google Books power, I text-searched Rogers’ Manual to locate the pages for answers to all the questions on the 1880 exam. You will find the corresponding page numbers in square brackets following the questions transcribed below…You’re welcome.

The course was taught by Richmond Mayo-Smith as seen in the Columbia College Handbook of Information 1880. I have included descriptive information about the junior and senior classes in history and political economy found there.

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[From the Columbia College Handbook of Information 1880]

SCHOOL OF POLITICAL SCIENCE.

PROFESSORS

John W. Burgess, A. M.,
Constitutional and International History and Law		 Richmond M. Smith, A.M.,
Political Economy and Social Science (Adjunct).
Archibald Alexander, A.M., Ph.D.,
Philosophy (Adjunct).

OTHER OFFICERS

E. Munroe Smith, LL.B., J.U.D:,
Lecturer on the Roman Law		 Clifford R. Bateman, LL.B.,
Lecturer on Administrative Law.

[…]

HISTORY, POLITICAL SCIENCE, AND INTERNATIONAL LAW.

SOPHOMORE CLASS.

1ST TERM. —German History.
2D TERM.—French History.

JUNIOR CLASS.

1ST TERM—English History.
2D TERM—Political Economy.

SENIOR CLASS.

1ST TERM—Constitutional History of the United States.
2D TERM—Constitutional Law of the United States.
ELECTIVE BOTH TERMS—Political Economy

 

History.—During Sophomore and the first half of Junior year the course in history occupies two hours per week. Some text-book is used, usually those of Freeman’s Historical course for German and French history, and Green’s Short History of the English People for English history.

The instruction to the Senior Class occupies also two hours per week throughout the year, and embraces the following subjects :

I. Character and Constitution of the Colonial Governments in North America; their relation to the English Crown and Parliament; and their history to the Declaration of Independence;

II. Character and Constitution of the Continental Congress as a Revolutionary Government; its relation to the State governments and to the people of the States as a central government ; and the history of its supersedure by the Confederate form.

III. Character and Constitution of the Confederacy as a central authority ; its relation to State governments and to the individual; the historical consequence of its defects and weaknesses, and its final supersedure by the Federal form.

IV. History of the Formation and Adoption of the Federal Constitution; nature and powers of the government which it established; its relation to the State governments and the individual citizen.

V. Interpretation of the Provisions of the Federal Constitution.

VI. History of the Development of the Federal Constitution from its adoption to the present time.

The text and reference books used in connection with this course are: Hildreth, History of the United States; Bancroft, History of the United States; Curtis, History of the Constitution; The Federalist; Story, Constitutional Law; Pomeroy, Constitutional Law; Von Holst, Constitution and Democracy in the United States; Benton, Thirty Years’ View; Jennings, Eighty Years of Republican Government in the United States; Fisher, Trial of the Constitution; Decisions of the United States Supreme Court upon all constitutional questions.

 

Political Economy—There are two courses in Political Economy. During the second term of Junior year it is required from all students of that class. A systematic outline of the science is given, generally with the use of a text-book, either Fawcett’s or Rogers’s Manual of Political Economy.

[Fawcett, Henry. Manual of Political Economy. 1st ed., 1863; 2nd ed., 1865; 3rd ed., 1869; 4th ed., revised and enlarged 1874; 5th ed., revised and enlarged 1876; 6th ed., 1883;  7th ed., 1888;  8th ed., 1907.

Rogers, James Edwin Thorold. A Manual of Political Economy for Schools and Colleges. First Edition, 1868; Second edition, revised, 1869; Third edition revised, 1876.]

Political Economy may be elected by the students of the Senior Class, two hours per week throughout the year. Instruction is given by lectures on the following topics:

Systems of Land Tenure, past and present, in different countries, and their economic and social effects; Science of Finance, including a consideration of Money, Paper Money, Banking, and Taxation; Financial History and present situation of England, Germany, France, and the United States. All these topics are treated historically as well as critically; and with reference to the economic development in the History of Civilization.

Three or four theses on topics assigned by the professor are required from students of this class, To furnish these students with facilities for such work, besides the books in the college library, a special library of works in the department of Political Economy has been purchased and is for the exclusive use of the students of this class.

 

Source: Columbia College. Handbook of Information as to the Course of Instruction, etc., etc. New York: 1880, pp. x, 41-43.

________________________________

[Examination Questions in Political Economy 1880]

COLUMBIA COLLEGE
POLITICAL ECONOMY

JUNIOR CLASS, 1880.

[Page references to Rogers’ Manual of Political Economy, 3rd ed. 1876]

  1. Give a history of the English Poor Laws. [p. 121 ff.]
  2. What do you mean by Co-operation? What are the supposed advantages to the laborer? Explain the system of the Rochdale Equitable Pioneers [pp. 135-137] and of the Schultze-Delitsch Credit-Banks [p. 106-109].
  3. What determines the rate of wages of labor, and what effect does the customary food of laborers have on their wages? [p. 65]
  4. Explain the following sentence: “It will be clear that the machinery of a Trade’s Union cannot increase wages by depressing the profits of capital.” [p. 90]
  5. Explain and illustrate the following: “Banks of issue find it possible to circulate a far larger amount of paper than the gold on which the paper is based.” What effect does the abstraction of gold have in such a case? [pp. 43 ff.]
  6. What is meant by an income tax; on what part of the income should it be levied and why? [pp. 278-281]
  7. Explain the origin of the Irish cottier system of land tenure, its evils and the proposed remedy. [pp. 175 ff.]
  8. Explain the following sentences from the text book:
    “It (Protection) inflicts actual suffering or inconvenience on the public in order to secure a delusive benefit to individuals.” “It will be clear also that the Protection cannot stimulate general industry.” “In fact, whenever it (the state) protects particular kinds of labor it diminishes capital.” “Every country enjoys a natural protection to its manufactures.” [pp. 234-235]

 

Source: Harry Thurston Peck (ed.), Examination Papers Used During the Years 1877-1882 in Harvard, Yale, Columbia, Cornell, Amherst and Williams Colleges. New York: Gilliss Brothers, 1882, p. 57-58.

Image Source:  University and their Sons. History, Influence and Characteristics of American Universities with Biographical Sketches and Portraits of Alumni and Recipients of Honorary Degrees. Editor-in-chief, General Joshua L. Chamberlain, LL.D.  Boston: R. Herdon Company.  Vol. 2, 1899, pp. 582.

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M.I.T. Suggested Reading Syllabus

MIT. Business Cycles Reading List. Samuelson, 1952

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

 

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[Course Description]

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

 

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

_________________________________________________

[in pencil: 14.481]

Reading Assignments
Business Cycles, Fall, 1952

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

 

I. Some fundamental notions about economic dynamics, 2 weeks.
Frisch: “On the Notion of Equilibrium and Disequilibrium,” Review of Economic Studies, Vol. 3, 1935, pp. 100-105.
Baumol: Economic Dynamics, Chapters 1, 7, 8.
Anyone who would like to learn a little about difference equations might study Chapters 9, 10, 11 of Baumol’s book.
Samuelson: Foundations of Economic Analysis, Ch. 11, pp. 311-344.
Harrod: Towards a Dynamic Economics, Lecture 1.
Samuelson: “Dynamic Process Analysis,” Chapter 10 in a Survey of Contemporary Economics, ed. Ellis, pp. 352-387.

II. Examples of informal theories of the business cycle, 2 weeks.
Pigou: Industrial Fluctuations, Chapters II-XII, pp. 18-138.
Clark: Strategic Factors in Business Cycles, pp. 160-226.
Mitchell: “Business Cycles” in Readings in Business Cycle Theory, pp. 43-60.

III. Examples of formal models of the business cycle, 2 weeks.
Goodwin: Chapter 22 in Hansen: Business Cycles and National Income, pp. 417-468.
Goodwin: Innovations and the Irregularity of Economic Cycles,” Review of Economic Statistics, 1946.
Hicks: A Contribution to the Theory of the Trade Cycle, Chapters 7, 8, pp. 83-107.
Samuelson: “Interaction of the Multiplier and the Acceleration Principle,” Review of Economic Statistics, 1939, pp. 75-78. Reprinted in Readings in Business Cycle Theory.
Kaldor: “A Model of the Trade Cycle,” Economic Journal, 1940, pp. 78-92.
Kalecki: Essays in the Theory of Economic Fluctuations, Chapter 6.
Metzler: “The Nature and Stability of Inventory Cycles,” Review of Economic Statistics, 1941, pp. 113-129.
Metzler: “Factors Affecting the Length of Inventory Cycles,” Review of Economic Statistics, 1947, pp. 1-15.
Abramowitz: Inventories and Business Cycles, pp. 3-34, 90-131, 312-326.

IV. Econometric Models, 2-3 weeks.
Clark: “A System of Equations Explaining the United States Trade Cycle,” Econometrica, 1949, pp. 93-125.
Klein: Economic Fluctuations in the United States, pp. 1-12; 84-122.
Christ: “A Test of an Econometric Model for the United States, 1921-1947,” National Bureau of Economic Research, Conference on Business Cycles, pp. 35-130.

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

VI. Reading Period, 1 week.
Hansen: Business Cycles and National Income, Part III, pp. 211-498.

 

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

Image Source: MIT, Technique 1950.

 

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Suggested Reading Syllabus Yale

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

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

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

_______________________________

Economics 110: 1951-52

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

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

2. The Keynesian and Classical Aggregative Models

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

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

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

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

3. The Consumption Function

a. Asset Holdings and the “Pigou Effect”

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

b. Problems of Aggregation

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

c. The “secular” and “cyclical” functions

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

4. Liquidity Preference and the Theory of Interest

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

5. The Investment Function

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

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

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

 

End of First Term

Abbreviations:

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

_______________________________

 

Economics 110
Reading List for Second Term: Dynamic Aggregative Theory

1. The Meaning of “Dynamics”

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

[Handwritten marginal comment: Baumol? Schelling?]

2. The Mathematics of Dynamics

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

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

3. The Nature and Logic of Dynamic Business Cycle Theory

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

4. The Short-run Stability of Aggregative Models

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

5. Capital Accumulation and Growth

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

6. Capital Accumulation and Cycles

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

7. The Dynamic Theory of Inflation

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

 

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

 

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

 

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Harvard Suggested Reading Syllabus

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

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

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

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[Harvard Catalogue Course Listing]

Economics 1. Economic Theory

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

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

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

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[Course Enrollment]

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

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

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

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ECONOMICS 1

1939-40

First Semester

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

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Economics 1
Second Semester
1939-40

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

 

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

Categories
Chicago Exam Questions Suggested Reading Syllabus

Chicago. Theory of Income and Employment. Domar, 1948

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

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

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ECONOMICS 335
THE THEORY OF INCOME AND EMPLOYMENT

Spring, 1948
E. D. Domar

Required Reading List

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

 

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

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

 

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

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

 

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

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

 

PART IV.   POLICY          May 15- June 10.

(in addition to preceding readings)

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

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Economics 335
Final Examination

June 17, 1948
One hour and fifteen minutes

Answer all questions. They carry equal weights.

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

 

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

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

Categories
Chicago Suggested Reading Syllabus

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

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

______________________________________

[Course Description]

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

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

______________________________________

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

 

ECONOMICS 371
[Spring Quarter – 1950]

Major Topics and Selected Reading

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

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

II. Modern Price Theory and the Gains from Trade.

Alfred Marshall, Money, Credit and Commerce, Appendix J.
Gottfried Haberler, The Theory of International Trade, Chapters 9, 10, 11, 12.
J. Viner, Studies in the Theory of International Trade, Chapters 8, 9.
W. W. Leontief, “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, 1933. [reprinted in Readings in the Theory of International Trade]
P. A. Samuelson, “Welfare Economics and International Trade,” American Economic Review, 1938.
[F. D. Graham, “The Theory of International Values Reexamined,” Quarterly Journal of Economics, 1923, reprinted in Readings in the Theory of International Trade.
F. D. Graham, The Theory of International Values, Princeton, N. J., 1948.
E. F. Heckscher, “The Effect of Foreign Trade on the Distribution of Income,” Ekonmish Tidshrift, 1919, reprinted in Readings in the Theory of International Trade.
P. A. Samuelson, “International Trade and the Equalization of Factor Prices,” Economic Journal, June, 1948.
P. A. Samuelson, “International Factor Price Equalization Once Again,” Economic Journal, June, 1949.]

III. The Theory of Tariffs

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

 

IV. Some Aspects of Commercial Policy

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

 

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

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

 

VI. Cartels and Commodity Agreements.

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

 

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

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

 

VIII. International Relations and the Structure of World Trade.

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

 

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

 

 

 

Categories
Chicago Suggested Reading Syllabus

Chicago. Advanced International Monetary Economics. Metzler, 1950

At the University of Chicago graduate courses numbered in the 200’s were called “Intermediate Courses” and those in the 300’s were “Survey and problem courses in special fields…The main purpose…is to prepare students for research.” The 400’s courses were for “Research, reading, and seminars”.

The Departmental course requirements for an M.A. in economics at the University of Chicago in 1950: “Normally fifteen courses (or their equivalent) in economics, eight of which ordinarily will be at the 300 level.”

The Departmental course requirements for a Doctor’s degree at the University of Chicago in 1950: “Completion of a program of work in economics at the 300-400 level ordinarily embracing at least six quarters of formal training”. Presumably this means in addition to the eight quarters at the 300 level for the M.A.

A few obvious misprints have been corrected and I have attempted to impose a consistent formatting (e.g. book titles underlined, etc.).

 _______________________________

[Course Description]

[Economics] 370. MONETARY ASPECTS OF INTERNATIONAL TRADE. Foreign payments and receipts. Classical and modern theories of adjustment of the balance of payments. Theories of exchange rates. Capital movements in the balance of payments. Postwar monetary plans. Prereq: Econ 330, 335, or equiv. Win: MTuWF 8:30 Metzler.

Source: University of Chicago.Announcements: The Division of the Social Sciences, Sessions of 1950-1951, p. 31.

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ECONOMICS 370
Major Topics and Selected Reading
Winter, 1950

Lloyd A. Metzler

I. Elementary Principles of Foreign Payments and Receipts.

G. Haberler, The Theory of International Trade, Introduction.
P. T. Ellsworth, International Economics, Part I, Chaps. VII and VIII.

 

II. The Balance of Payments and the Measurement of Income.

J. R. Hicks and A. G. Hart, The Social Framework of the American Economy, Chapter 12.
R. F. Bennett, “Significance of International Transactions in National Income,” National Bureau of Economic Research, Studies in Income and Wealth, Vol. VI, 1943.
Dept. of Commerce, National Income Supplement to Survey of Current Business, 1947.

 

III. Classical and Modern Theories of Adjustment of the Balance of Payments.

R. F. Harrod, International Economics, Chapters VI and VII.
F. Machlup, International Trade and the National Income Multiplier. Chaps. I-V.
F. W. Taussig, International Trade, Chaps. XVII-XXI.
J. Viner, Canada’s Balance of International Indebtedness.
League of Nations, International Currency Experience, Chapters I and IV.
G. Haberler, The Theory of International Trade, Chaps. II and III.
J. Viner, Studies in the Theory of International Trade, Chaps. VI and VII.
R. Nurkse, “Conditions of International Monetary Equilibrium”, Princeton University, Essays in International Finance, reprinted in Readings in the Theory of International Trade.
F. W. Paish, “Banking Policy and the Balance of International Payments”, Economica, 1936, reprinted in Readings.
W. A. Salant, “Foreign Trade Policy in the Business Cycle,” Public Policy, reprinted in Readings.

 

IV. Theory of Income Transfers.

J. M. Keynes, “The German Transfer Problem,” Economic Journal, 1929, reprinted in Readings.
B. Ohlin, “Transfer Difficulties, Real and Imagined,” Economic Journal, 1929, also rejoinder by Keynes and reply by Ohlin in subsequent issues, reprinted in Readings.
L. A. Metzler, “The Transfer Problem Reconsidered,” Journal of Political Economy, 1942, reprinted in Readings.
C. Iversen, International Capital Movements, Part II A.

 

V. Fluctuating Exchange Rates

League of Nations, International Currency Experience, Chapter V.
J. Robinson, Essays in the Theory of Employment, Part III, reprinted in Readings.
F. W. Taussig, International Trade, Part III.
G. Cassel, Money and Foreign Exchange after 1914.
S. E. Harris, Exchange Depreciation.
International Monetary Policies, Postwar Economic Studies, No. 7, Board of Governors of the Federal Reserve System.
J. E. Meade, “Financial Policy and the Balance of Payments,” Economica, May, 1948.
“Notes on Foreign Currency Adjustments”, Federal Reserve Bulletin, November, 1949.
T. Balogh, “Exchange Depreciation and Economic Readjustment,” Review of Economics and Statistics, November, 1948.
F. Machlup, “The Theory of Foreign Exchange,” reprinted in Readings.
“Readjustment of Foreign Currency Values”, Federal Reserve Bulletin, October, 1949.

 

VI. Multilateral and Bilateral Monetary Policies.

H.S. Ellis, “Bilateralism and the Future of International Trade,” Essays in International Finance, No. 7, Princeton, N. J. reprinted in Readings.
R. Frisch, “Forecasting a Multilateral Balance of Payments,” American Economic Review, XXXVII (September 1947) 535-551.
R. Frisch, “Outline of a System of Multi-Compensatory Trade,” Review of Economics and Statistics, November, 1948.
R. Hinshaw, Professor Frisch on Discrimination and Multilateral Trade, “Review of Economics and Statistics, November, 1948.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Reading Lists 370”.

Source Image: Posting by Margie Metzler on the Metzler Family Tree at the genealogical website, ancestry.com.

Categories
Chicago Suggested Reading Syllabus

Chicago. Intermediate International Monetary Economics. Lloyd A. Metzler, 1949

 

 

The Departmental course requirements for an M.A. in economics at the University of Chicago in 1949: “Normally fifteen courses (or their equivalent) in economics, eight of which ordinarily will be at the 300 level.” The courses numbered in the 200’s were called “Intermediate Courses” and those in the 300’s were “Survey and problem courses in special fields…The main purpose…is to prepare students for research.” The 400’s courses were for “Research, reading, and seminars”.

The final examination questions for the summer quarters of 1947 and 1948 for this course have been posted as well.

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[Course Description]

[Economics] 270. INTERNATIONAL ECONOMICS. The nature of international payments and receipts; foreign trade and the banking system. The gold standard in the interwar period. The breakdown of the gold standard and the period of fluctuating exchange rates. Exchange controls, clearing agreements and payments agreements. The second world war and the foreign exchange markets. The position of the International Monetary Fund and the International Bank for Reconstruction and Development in the present world economy. Prereq: Econ 209, 230 [Intermediate Economic Theory, Introduction to Money and Banking, respectively], or equiv. Aut: MWF 8:30; Metzler.

 

Source: University of Chicago. Announcements, Volume XLIX, Number 9: The Division of the Social Sciences, Sessions of 1949-1950, July 1, 1949, p. 24.

__________________________________

Economics 270
Major Topics and Selected Reading
Autumn Quarter 1949

I. Foreign Exchange Markets and Equilibrium of the Balance of Payments

Enke and Salera, Chapters 4, 6.
Southard, Chapters 2, 3.
International Monetary Fund, pp. 1-24.
U. S. Department of Commerce, The United States in the World Economy, pp. 1-25, 137-200.
U. S. Department of Commerce, International Transactions of the U. S. During the War.

II. The Pre-War Gold and Gold-Exchange Standards

Enke and Salera, Chapters 8, 9, 12, 28.
League of Nations, Chapters 1, 2, 3, 4.
U. S. Department of Commerce, The United States in the World Economy, Chapters 2-4.

 

III. The Breakdown of the Gold Standard: Fluctuating Exchange Rates

League of Nations, Chapters 5,6
Enke and Salera, Chapter 30.

 

IV. The Development of Exchange Controls

Ellis, Chapters 1, 2, 4.
League of Nations, Chapter 7.
Triffin, “National Central Banking and the International Economy,” International Monetary Policies. Board of Governors of the Federal Reserve System.
Rejoinder by Haberler.

 

V. The International Monetary Fund

Articles of agreement of the International Monetary Fund.
Third Annual Report of the International Monetary Fund.
Enke and Salera, Chapter 32.
Harris, The New Economics, Chapters 24, 25, 26, 27.
L. A. Metzler, “Exchange Rates ad the International Monetary Fund,” International Monetary Policies, Board of Governors of the Federal Reserve System, 1947.
R. F. Mikesell, “The Role of the International Monetary Agreements in a World of Planned Economies,” Journal of Political Economy, December, 1947.
Camille Gutt, “Exchange Rates and the International Monetary Fund,” Chapter 10 of Foreign Economic Policy for the United States.

 

VI. The International Bank For Reconstruction and Development

Articles of agreement of the International Bank.
Enke and Salera, Chapter 33, 34.
Third Annual Report of the International Bank.

 

VII. Post-war Trade and the World Shortage of Dollars

Harris, editor, Foreign Economic Policy for the United States, Chapters 15, 16, 17, 18, 19, 24, 25.
United Nations, A Survey of the Economic Situation and Prospects of Europe.
United Nations, Economic Survey of Europe in 1948.

 

Books Referred to in this Bibliography

Enke and Salera, International Economics, New York, 1947.
H. S. Ellis, Exchange Control in Central Europe, Cambridge, Mass., 1941.
League of Nations, International Currency Experience, 1944.
F. A. Southard, Foreign Exchange Practice and Policy, New York, 1941.
International Monetary Fund, Balance-of-Payments Yearbook, Wash., D.C., 1949.
U. S. Department of Commerce, The United States in the World Economy.
U. S. Department of Commerce, International Transactions of the U. S. During the War.
Board of Governors of the Federal Reserve System, International Monetary Policies,
Wash., D.C., 1947.
S. E. Harris, editor, The New Economics, New York, 1947.
S. E. Harris, editor, Foreign Economic Policy for the United States, Cambridge, Mass., 1948.
United Nations, A Survey of the Economic Situation and Prospects of Europe.
United Nations, Economic Survey of Europe in 1948.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Econ. 270 International Econ. (Chicago)”.

 

Source Image: “From family album, taken while Lloyd Metzler was a student at Harvard.”
“Lloyd A. Metzler” by Margiemetz – Own work. Licensed under CC BY-SA 3.0 via Commons.

Categories
Chicago Suggested Reading Syllabus

Chicago. Theory and Measurement of Demand. Henry Schultz, 1934

The undated reading list and bibliography for Henry Schultz’s advanced course “Theory and Measurement of Demand” transcribed below, included in Milton Friedman’s papers at the Hoover Institution Archives, are almost certainly from the Autumn quarter, 1934. This was the academic year that Friedman worked as Henry Schultz’s research assistant at the University of Chicago and audited the course.

______________________________

Friedman audited the Schultz course, Theory and Measurement of Demand

According to the draft of his Civil Service application Milton Friedman worked as personal assistant to Henry Schultz October 1934-August 1935 at a yearly salary of $1600. In his list of courses on a separate page, Friedman writes that he “visited”, i.e. did not take for credit, a course in the Theory of Demand given by Henry Schultz during the academic year 1934-35.

 

Source: Milton Friedman Papers, Hoover Institution Archives, Box 5, Folder 4 (Employment records, Civil Service Commission).

______________________________

Friedman describes his work for Schultz

From a carbon-copy, presumably an attachment to the same Civil Service application in Box 5, Folder 4, Friedman writes:

“I lived in Chicago, Ill. from September, 1934 to August, 1935 while employed by the University of Chicago.

My educational training and experience gained while working with Professor Schultz this past year are most relevant to the position for which I am applying. I have aided Prof. Schultz on the theoretical questions underlying his forthcoming book on “The Theory and Measurement of Demand”, a subject intimately connected with consumption. In this connection I have had to survey the literature on demand and consumption. In addition to the theoretical work I have been in charge of related statistical studies and was largely responsible for the planning and direction of a statistical study of the demand for meats in the United States, on which study three statistical assistants were employed. In the course of the study I wrote several memoranda analyzing and interpreting the data and results. The results of the analysis are being published by Prof. Schultz in…[next page missing].”

Source: Milton Friedman Papers, Hoover Institution Archives, Box 5, Folder 11(Student years).

______________________________

[Course Description] 

  1. The Theory and Measurement of Demand.—A course covering such topics as the pure theory of demand; demand and utility in the theory of exchange; static and dynamic demand functions; different notions of elasticity of demand; various methods of deriving demand functions from family budget data and from time series of consumption and prices; etc. Prerequisite: Economics 301, a reading knowledge of French, and consent of the instructor. C.—2Cs., Autumn, 9:00, SCHULTZ.

 

Source: University of Chicago. Announcements: The College and The Divisons for the Sessions of 1934-35, pp. 286-7.

______________________________

REFERENCES FOR ECONOMICS 405

Theory and Measurement of Demand
by
Henry Schultz
University of Chicago

____

I. General Equilibrium

Bowley, A. L. Mathematical Groundwork of Economics
Divisia, Francois Économique Rationelle
Evans, G. C. Mathematical Introduction to Economics
Fisher, Irving Mathematical Investigations in the Theory of Value and Price,–in Transactions of the Connecticut Academy of Arts and Sciences (9-10) pp. 1-125.
Marshall, Alfred Principles of Economics
Pareto, Vilfredo +Manuel d’Économie Politique (especially Chap. III and Mathematical Appendix, pp. 539-594.)

+Cours d’Économie Politique (especially first 73 pages)

+Économie Mathématique, in Encyclopédie des sciences Mathématique, Tome I, Vol. 4, Fascicule 4, pp. 591-640.
Pietri-Tonelli, Alfonso Traité d’Économie Politique
Walras, Leon +Éléments d’Économie Politique
Zawadzki, Wl. Les Mathématiques Appliquées à l’Économie Politique

 

 

II. Utility Theory

A. Philosophical and Historical Background

Bentham, Jeremy Principles of Morals and Legislation
Edgeworth, F. Y. Mathematical Psychics
Halevy, Elie La Formation du Radicalisme Philosophique (French or English edition)
Jevons, W. Stanley Theory of Political Economy
Mitchell, Wesley C. “Bentham and the Felicific Calculus”, Political Science Quarterly, Vol. XXXIII, No. 2, June, 1918.
Stephen, Leslie The Utilitarians

 

B. Analytical and Statistical

Allen, R. G. D. “The Foundations of a Mathematical Theory of Exchange”, Economica, May, 1932.

+”The Nature of Indifference Curves”, The Review of Economic Studies, Vol. 1, No. 2, Feb., 1934, pp. 110-121.

+”A Comparison between Different Definitions of Complementary and Competitive Goods”, Economtrica, Vol. II, No. 2, April, 1934, pp. 168-176.
Allen, R.G.D., and Hicks, J.R. “A reconsideration of the Theory of Value”, Economica, Part I, Feb., 1934, pp. 52-76. Part II, May, 1934, pp. 196-219.
Evans, G. C. “The Role of Hypothesis in Economic Theory”, Science, Vol. 75, No. 1943, March 25, 1932, pp. 321-324.
Johnson, W.E. “The Pure Theory of Utility Curves”, Economic Journal, Vol. XXIII, No. 92, Dec., 1913, pp. 483-513.
Lange, Oscar “The Determinateness of the Utility Function”, The Review of Economic Studies, Vol. I, No. 3, pp. 218-226.
Schultz, Henry Review of Evans’ Mathematical Introduction in Journal of the American Statistical Association, Vol. XXVI, No. 176, Dec., 1931, pp. 484-91.

+”Interrelations of Demand”, Journal of Political Economy, XLI, 1933, pp. 468-512.
Thurstone, L. L. “The Indifference Function”, The Journal of Social Psychology, Vol. II, No. 2, May, 1931, pp. 139-67.
Zotoff, A. W. “Notes on the Mathematical Theory of Production”, Economic Journal, Vol. XXXIII, 1923, pp. 115-121.

 

C. Applications

Allen, R. G. D. “On the Marginal Utility of Money and Its Applications”, Economica, May, 1933.
Fisher, Irving “A Statistical Method for Measuring ‘Marginal Utility’ and Testing the Justice of a Progressive Income Tax”, in Economic Essays Contributed in Honor of John Bates Clark.
Frisch, Ragnar “Sur un Problème d’Économie Pure”, Norsk Matamatisk Forenings Skriften, 1926, Series 1, No. 16.

New Methods of Measuring Marginal Utility
Schultz, Henry “Frisch on the Measurement of Utility”, Journal of Political Economy, XLI, Feb., 1933, pp. 95-117.

+ Of special importance

 

________________________________

 

[Handwritten: Milton Friedman]

 

REFERENCES FOR ECONOMICS 405
Bibliography on Demand

__

Henry Schultz
University of Chicago

____

Derivation of Demand Curves
I. From Price [and] Quantity Data

A. The Moore Method

Moore, H.L. Economic Cycles: Their Law and Cause. New York, 1914.

Forecasting Yield and Price of Cotton. New York, 1917.

“Empirical Laws of Demand and Supply and the Flexibility of Prices”, PSQ, XXXIV, 1919.

“Elasticity of Demand and Flexibility of Prices”, JASA, XVIII, 1922.

“A Moving Equilibrium of Demand and Supply”, QJE, XXXIX, 1925.

“Partial Elasticity of Demand”, QJE, XL, 1926.

“A Theory of Economic Oscillations”, QJE, XLI, 1926.

Synthetic Economics, New York, 1929.
Schultz, Henry Statistical Laws of Demand and Supply, with Special Application to Sugar. Chicago, 1928.

Meaning of Statistical Demand Curves. English original of Der Sinn der Statistischen Nachfragekurven, Veroeffentlichungen der Frankfurter Gesellschaft fuer Konjunkturforschung, Heft 10. Bonn, 1930.

“The Shifting Demand for Selected Agricultural Commodities, 1875-1929”, Journal of Farm Economics, XIV, 1932, 201-27.

“A Comparison of Elasticities of Demand Obtained by Different Methods”, Econometrica, I, 1933, 274-308.

“Interrelations of Demand”, JPE, XLI, 1933, 468-512.
Lenoir, Marcel Études sur la Formation et le Mouvement des Prix. Paris, 1913.
Ezekiel, Mordecai “Statistical Analysis of the Laws of Price”, QJE, 1928.

“A Statistical Examination of Lamb Prices”, JPE, April, 1927.

 

B. The Leontief Method

Leontief, Wassily “Ein Versuch zur Statistischen Analyse von Angebot und Nachfrage”, Weltwirtschaftliches Archiv, Band XXX, Heft 1, 1929, pp. 1-53.
Schultz, Henry Meaning of Statistical Demand Curves, Appendix II, 99-118.
Frisch, Ragnar “Pitfalls in the Statistical Construction of Demand and Supply Curves”, Veroeffentlichungen der Frankfurter Gesellschaft fuer Konjunkturforschung, Neue Folge, Heft 5, Leipzig, 1933.
Leontief, Wassily “Pitfalls in the Construction of Demand and Supply Curves: A Reply”, QJE, XLVIII, 1934, 352-63.
Frisch, Ragnar “More Pitfalls in Demand and Supply Analysis: A Reply”, QJE, XLVIII, 1934, 749-55.
Leontief, Wassily “More Pitfalls in Demand and Supply Analysis: A Final Word”, QJE, XLVIII, 1934, 755-59.
Marschak, J. “More Pitfalls in Demand and Supply Analysis: Some Comments”, QJE, XLVIII, 1934, 759-67.

 

C. The (second) Pigou Method

Pigou, A.C. “The Statistical Derivation of Demand Curves”, EJ, XL, 1930, 344-400; reprinted in A.C. Pigou and D.H. Robertson, Economic Essays and Addresses. London, 1931.
Ferger, Wirth F. “Pigou’s Method of Deriving Demand Curves”, EJ, XLII, 1932, 17-26.
Cassels, J.M. “A Critical Consideration of Professor Pigou’s Method for Deriving Demand Curves”, EJ, XLIII, 1933, 574-87.
Allen, R.G.D. “A Critical Examination of Professor Pigou’s Method of Deriving Demand Elasticity”, Econometrica, II, July, 1934, 249-58.

 

D. Miscellaneous

Working, Holbrook “The Statistical Determination of Demand Curves”, QJE, XXXIX, 1925.
Working, E.J. “What do Statistical Demand Curves Show?” QJE, XLI, 1927, 212-35.
Gilboy, Elizabeth W. “Demand Curves in Theory and Practice”, QJE, XLV, 1930.

“The Leontief and Schultz Methods of Deriving ‘Demand’ Curves”, QJE, XLV, 1931, 218-61.
“Studies in Demand: Milk and Butter”, QJE, XLVII, 1932, 671-97.
Ferger, Wirth F. “The Static and Dynamic in Statistical Demand Curves”, QJE, XLVII, 1932, 36-62.

 

II. From Family Budget Data

A. The (first) Pigou Method

Pigou, A.C. “A Method of Determining Numerical Values of Elasticity of Demand”, EJ, XX, 1910, 636-40.

 

B. The Frisch Method

Frisch, Ragnar “Sur un Problème d’Économie Pure”, Norsk Matamatisk Forenings Skriften, 1926, Series 1, No. 16.

New Methods of Measuring Marginal Utility
Schultz, Henry “Frisch on the Measurement of Utility”, JPE, XLI, 1933, 95-117.

 

C. The Marschak Method

Marschak, Jakob Elastizitaet der Nachfrage, Beitraege zur Oekonomischen Theorie, 2, Tuebingen, 1931.
Frisch, Ragnar “Discussion of Marschak’s Method”, Revue d’Économie Politique, XLVI, 1932, 14-28.

 

D. The Roy Method

Roy, René La demande dans ses rapports avec la Répartition des Revenue”, Metron, VIII, 1930, 101-53.

“Les Lois de la Demande”, Revue d’Économie Politique, 1931, 1190-1218.

 

E. Miscellaneous

Gilboy, Elizabeth W. “Demand Curves by Personal Estimate”, QJE, 1932.
Waugh, Albert E. “Elasticity of Demand from Budget Studies”, QJE, 1932.
Bean, L. H. “The Farmer’s Response to Price”, Journal of Farm Economics, 1929.

“Measuring the Effect of Supplies on Prices of Farm Products”, Journal of Farm Economics, April, 1933.

 

N.B.

The references, with but one exception, are confined to works in English or French. For additional references see Schultz, Henry: “A Comparison…”, Econometrica, I, 1933, 274-308.

The abbreviations refer to the following periodicals:

EJ Economic Journal
JASA Journal of the American Statistical Association
JPE Journal of Political Economy
PSQ Political Science Quarterly
QJE Quarterly Journal of Economics

 

Source: The above transcription is based on the copy  in Milton Friedman Papers, Hoover Institution Archives, Box 5, Folder 12 (Student years). Another copy can be found in the George Stigler Papers, University of Chicago Archives, Addenda, Box 33, Folder “1935 University of Chicago Class Notes”. The copy in the Stigler notes is almost identical to the Friedman copy (with some hand-corrected titles and additions for apparent unintended omissions). Stigler’s notes to the course along with class hand-outs are found in the same folder.

Image Source: The only photo of Henry Schultz that I have ever come across is the one found to accompany Harold Hotelling’s paper and Paul Douglas’ paper in Econometrica (1939) honoring Schultz who died November 26, 1938 in a tragic automobile accident that also took the lives of his wife and two daughters.