Category: Syllabus

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Exam Questions Harvard Socialism Suggested Reading Syllabus

Harvard. The Soviet Economy, course outline and final exam. Herbert Levine, 1963

 

Herbert Levine was trained in economics and Russian studies at Harvard before going off to lifetime employment at the University of Pennsylvania. He returned to Harvard in the fall term of 1963 to cover the Soviet economy class for Abram Bergson who was on leave at the Center for Advanced Study of the Behavioral Sciences at Stanford in 1963-64.

 Along with a younger economist from the University of Texas, Ed Hewett, Levine championed my application to the International Research and Exchanges Board (IREX) for a research exchange fellowship in the German Democratic Republic back in the late 1970s. He was a mentor to many other young scholars working on the economies of the Soviet Union and Eastern Europe. I last saw him in November 2003 at an economics workshop at Harvard where drafts of papers were presented that would later be published in a special issue edited by Paul R. Gregory and Marshall Goldman in honor of Abram Bergson (Comparative Economic Studies, 2005).

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Obituary in The Daily Pennsylvanian

Former economics prof. leaves a legacy
47-year teacher is remembered fondly for his compassion and challenging courses

https://www.thedp.com/article/2007/06/former-economics-prof-leaves-a-legacy

By Alissa Eisenberg and Alissa Eisenber 06/14/07

Herbert Levine, Economics professor at Penn from 1960 to 2006, died Sunday, succumbing to complications from leg surgery after battling prostate cancer for the past 15 years.

Levine was 78.

Receiving his B.A. [1950], M.A. [1952] and Ph.D. [1961] degrees from Harvard University, Levine specialized in Soviet economics and his insights were “in demand during the period leading up to the dissolution of the Soviet system,” according to a written statement by fellow Economics professor Lawrence Klein.

Levine published several articles on his area of expertise, yet never failed to acknowledge the importance of the broader study of economics.

Winning several awards for excellent teaching at Penn including the Lindback Foundation Award for Distinguished Teaching and the Kravis Prize for Distinction in Undergraduate teaching, Levine was highly regarded among students.

“Econ 1 is large, but [my dad] would call on people by name, he just taught that way and people cared for his courses,” said daughter and College alumna Jan Levine.

Former student and 1964 College alumnus Ted Kozloff echoed Levine’s revere for her father.

“Herb was a seminal figure in my education,” Kozloff said. “There are maybe one or two teachers in my lifetime that had an effect like Herb. . He enjoyed enormous popularity and there was enormous respect for him.”

And that respect remained prominent over his 47-year career at Penn.

Levine was Elizabeth Goldstein’s dissertation advisor in 1982, and she said he was “the most fabulous adviser anybody could ask for.”

Goldstein added, “He was rigorious but understanding and had an amazing gift for being able to guide people through very difficult and high-level economic theory.”

Many former students also noted his warmth and devotion to his personal life in addition to academics.

“Many people excel in their careers and forget their personal life, but Herb didn’t,” said former student Edward LaPuma.

Levine’s funeral was scheduled for this morning in Trevose, Pa.

He is survived by his wife Helene Levine, daughters Jan and Judith Levine, sister Myra Heller and three grandchildren. His son, Jonathon, predeceased him.

Obituary in the University of Pennsylvania Almanac,
Vol. 54, No. 1. July 17, 2007

https://almanac.upenn.edu/archive/volumes/v54/n01/obit.html

Dr. Herbert S. Levine, professor emeritus of economics and expert on Soviet and post-Soviet Russia, died on June 10, after complications from surgery from a broken leg during the end of a fifteen-year battle with prostate cancer; he was 78.

Dr. Levine completed his postsecondary education at Harvard, earning an undergraduate degree in economics in 1950, followed by a master degree in Russian studies two years later. He also earned a doctorate from Harvard in 1961, writing his dissertation on the economic performance of the USSR, which earned important recognition of his research by winning the prestigious David A. Wells Prize.

Dr. Levine joined Penn’s faculty in 1960 as an assistant professor of economics. He studied the controlled economy of the USSR, in close touch with other members of a research center at Harvard University. He was promoted to professor in 1969. In addition to his teaching duties, Dr. Levine served as chairman of the graduate group in economics and as co-director of the Lauder Institute. After a 47-year career at Penn he retired in 2006.

His unusual abilities in presenting modern political economy to undergraduates resulted in him being awarded faculty prizes for his teaching including the Irving B. Kravis Prize for Distinction in Undergraduate Teaching (1988 and 1991) and the Lindback Award for Distinguished Teaching.

Dr. Levine is survived by his wife, Helene; two daughters, Jan Levine, and Judith Levine and their husbands Michael Zuckerman and Edward Sobel; their grandchildren, Rachel Zuckerman, Joshua Zuckerman and Julia Sobel; and his sister, Myra Heller and brother-in-law Jack Heller.

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Harvard Course Announcement Fall Term, 1963

Economics 133. The Economy of Soviet Russia (Offered jointly with the Committee on Regional Studies).

Half course (fall term). M., W., (F.) at 9. Professor Levine (University of Pennsylvania).

Economic development under the five-year plans: the rate of economic growth: structural changes; conditioning factors. Planning principles and procedures.

Source: Harvard University, Faculty of Arts and Sciences. Courses of Instruction for Harvard and Radcliffe, 1963-1964, p. 103.

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ECONOMICS 133, Fall Term, 1963-1964
The Economy of Soviet Russia
H. S. Levine

Course Outline and Reading List.

Books to be Purchased:

Dobb: M. Dobb, Soviet, Economic Development Since 1917, International Publishers, 1948.

Readings: Readings on the Soviet Economy, F. Holzman (ed.), Rand McNally, 1961.

Part One

I. Historical Overview

A. Pre-Revolution
(General Historical Background: D. Treadgold, Twentieth Century Russia, Rand McNally, 1959, Chapters 1-5, 8.

1. Bowden, Karpovich and Usher, An Economic History of Europe Since 1250, Chapters 14 and 29.

2. G. T. Robinson, Rural Russia Under the Old Regime, Chapters 6, 7, 11.

3. A. Gerschenkron, “The Rate of Industrial Growth In Russia Since 1885,” Part 1, The Journal of Economic History, Supplement VII, 1947, pp. 144-157 (only).

4. Supplementary Readings:

a) J. Blum, Lord and Peasant in Russia, Chapters 24, 26, 27.

b) Robinson, Chapters 5, 12.

c) P. I. Lyashchenko, History of the National Economy of Russia; on agriculture: Chapters 21, 23, 36; on industry: Chapters 25, 26, 32-34.

d) T. Von Laue, Sergei Witte and the Industrialization of Russia

e) A. Gerschenkron, “Russia: Patterns and Problems of Economic Development, 1861-1958, » in his Economic Backwardness in Historical Perspective (postpone Part Ill). This essay also appears in C. Black (ed.), The Transformation of Russian Society.

B. The Revolution, War Communism, and the New Economic Policy (1917-1927)
(General Historical Background: Treadgold, Chapters 9-14.

1. Dobb, Chapters 3-7.

C. The Industrialization Debates, Collectivization and the Beginning of the Plan Era
(General Historical Background: Treadgold, Chapter 17.

1. Dobb, Chapters 8 and 9

2. A. Erlich, “Preobrazhenski and the Economics of Soviet Industrialization,” Quarterly Journal of Economics, Feb. 1950, pp. 57-88

3. Readings: N. Jasny, “Early Kolkhozy and the Big Drive”

4. M. Fainsod, Smolensk Under Soviet Rule, pp. 242-258

5. Supplementary Reading:

a) Readings: A. Erlich, “Stalin’s Views on Soviet Economic Development”.

D. From the First Five Year Plan to the End of the War (1928-1945)
(General Historical Background: Treadgold, Chapter 18

1. Dobb, Chapter 10

2. N. Jasny, Soviet Industrialization 1928-1952, pp. 109-114

3. Dobb, Chapters 11, 12 and pp. 453-454

4 Jasny, Soviet Industrialization, pp. 177-187

E. Post-War to the Present
(General Historical Background: Treadgold, Chapter 25

1. Jasny, Soviet Industrialization, pp. 235-256

2. G. Grossman, “The Soviet Economy,” Problems of Communism, XIl:2, (Mar-Apr. 1963) pp. 32-40

3. Supplementary Readings:

a) O. Hoeffding, “Substance and Shadow in the Soviet Seven Year Plan,” Foreign Affairs, April, 1959

b) H. Levine, “The New Seven Year Plan,” The New Leader, May 25 and June 1, 1959,

II. Soviet Economic Growth

A. Problems of Measuring Growth

1. The Soviet Statistical System

a) G. Grossman, Soviet Statistics of Physical Output of Industrial Commodities, pp. 1-10, 22-46

2. Reliability of Soviet Statistics

a) Readings: A. Bergson, “Reliability and Usability of Soviet Statistics: A Summary Appraisal”

b) L. Turgeon, “On the Reliability of Soviet Statistics,” Review of Economics and Statistics, February 1952, pp. 75-6.

c) Grossman, Soviet Statistics, pp. 123-134.

3. Interpretation of Data

a) Readings: A. Bergson, “The Adjusted Factor Cost Standard of National Income Valuation.”

b) Readings: A. Nove, “1926/27 and All That.”

c) A. Gerschenkron, A Dollar Index of Soviet Machinery Output, pp. 47-58

d) R. Moorsteen, “On Measuring Productive Potential and Relative Efficiency,” Quarterly Journal of Economics, August 1961, pp. 451-467

e) Supplementary Readings

1) J. R. Hicks, “The Valuation of the Social Income,” Economica, May 1940, pp. 105-124

2) P. Samuelson, “Evaluation of Real National Income,” Oxford Economic Papers, January 1950, pp. 1-29.

3) A. Becker, “Comparisons of US and USSR National Output: Some Rules of the Game,”World Politics, October 1960, pp. 99-111.

B. What Has Been Accomplished?

1. National Income

a) A. Bergson, “National Income,” in A. Bergson and S. Kuznets (eds.), Economic Trends in the Soviet Union, pp. 1-16 (only).

b) S. Cohn, “The Gross National Product in the Soviet Union,” in Joint Economic Committee, Dimensions of Soviet Economic Power, pp. 69-77.

c) Supplementary Reading

1) A. Bergson, The Real National Income of Soviet Russia Since 1928, Chapters 13 and 14.

2. Industry

a) Readings: N. Kaplan and R. Moorsteen, “An Index of Soviet Industrial Growth”

b) R. Greenslade and P. Wallace, “Industrial Production in the USSR,” in Dimensions, pp. 119-130

c) Supplementary Reading

1) R. Powell, “Industrial Production,” in Trends, pp. 150-176

3. Agriculture

a) D. G. Johnson, “Agricultural Production”, in Trends, pp. 203-214

b) J. Willet, “The Recent Record in Agricultural Production,” in Dimensions, pp. 95-100.

4.  Consumption

a) J. Chapman, “Consumption,” in Trends, pp. 235-270

b) Supplementary Reading

1) R. Golden, “Recent Trends in Soviet Personal Income and Consumption,” in Dimensions, pp. 347-366.

C. Analysis of Growth

1. H. Schwartz, Russia’s Soviet Economy (2nd and Revised Editions), pp. 1-26

2. W. Eason, “Labor Force,” in Trends, pp. 38-93

3. N. Kaplan, “Capital Formation and Allocation,” in A. Bergson (ed.), Soviet Economic Growth, pp. 37-80

4. A. Bergson, “National Income,” in Trends, pp. 17-35.

5. Supplementary Readings

a) F. Seton, “Production Functions in Soviet Industry,” American Economic Review, May 1959, pp. 1-14

b) R. Campbell, Soviet Economic Power, Chapter 4

c) N. DeWitte, “Education and the Development of Human Resources,” in Dimensions, pp. 233-268

d) Readings: “Forced Labor in the Soviet Union”.

Ill. The Operation of the Soviet Economy

A. General Operating Framework and Principles

1. P. Cook, “The Administration and Distribution of Soviet Industry,” in Dimensions, pp. 183-210.

2. A. Nove, The Soviet Economy, Chapter 1.

3. W. Loucks, Comparative Economic Systems (6th Edition), pp. 444-453.

4. Supplementary Reading

a) G. Grossman, “The Structure and Organization of the Soviet Economy,” Slavic Review, June 1962, pp. 203-222.

B. Planning

1. O. Lange, “On the Economic Theory of Socialism” in B. Lippincott (ed.), O. Lange and F. Taylor, On the Economic Theory of Socialism.

2. Schwartz, Chapter V

3. Readings: H. Levine, “The Centralized Planning of Supply in Soviet Industry.”

4. Readings: G. Grossman, “Scarce Capital and Soviet Doctrine”

5. Readings: “On the Problem of Determining the Economic Effectiveness of Capital Investments.”

6. Supplementary Readings

a) J. Drewnowski, “The Economic Theory of Socialism: A Suggestion for Reconsideration,” Journal of Political Economy, August 1961, pp. 341-354

b) Dobb, Chapter 1

c) H. Hunter, “Optimum Tautness in Developmental Planning,” Economic Development and Cultural Change, July 1961, Part l, pp. 561-572.

d) R. Campbell, Soviet Economic Power, Chapter 5

e) I. Yevenko, Planning in the USSR, (Foreign Languages Publishing House, Moscow), esp. Chapter III.

f) Readings: D. Granick, “An Organizational Model of Soviet Industrial Planning.”

C. The Firm and Problems of Industrial Administration

1. Readings: J. Berliner, “The Informal Organization of the Soviet Firm.”

2. Readings: A. Nove, “The Problem of Success Indicators in Soviet Industry.”

3. “The Liberman Proposals”

a) Current Digest of the Soviet Press, XIV:36 (Oct. 3, 1962), pp. 13-15

b) Harry Schafer, “Ills and Remedies,” Problems of Communism, May-June 1963, pp. 18-26.

4. A. Nove, “The Soviet Industrial Reorganization,” Problems of Communism, Nov.-Dec. 1957, pp 19-25.

5. H. Levine, “Recent Developments in Soviet Planning,” in Dimensions, 1st Section, pp. 167-185.

6. P. Cook, “Party, State and Economic Reorganization in the USSR.” The ASTE Bulletin, V:l (Winter 1963), pp. 2-11

7. Supplementary Readings

a) Readings: J. Berliner, “Managerial Incentives and Decisionmaking.”

b) G. Grossman, “Soviet Growth: Routine, Inertia, and Pressure,” American Economic Review, May 1960, pp. 62-72.

c) Readings: O. Hoeffding, “The Soviet Industrial Reorganization of 1957.”

d) M. Goldman, “Economic Controversy in the Soviet Union,” Foreign Affairs, 1963:3, pp. 498-512.

e) A. Nove, “The Liberman Proposals,” Survey, April 1963, pp. 112-118.

D. Prices

1. M. Bornstein, “The Soviet Price System,” American Economic Review, March 1962, pp. 64-103.

2. V. Nemchinov, “Value and Price Under Socialism,” Problems of Economics, IV:3 (July 1961), pp. 3-17.

3. R. Campbell, “Marx, Kantorovich, and Novozhilov: Stolmost Versus Reality,” Slavic Review, October 1961, pp.402-418.

4. M. Bornstein, “The 1963 Soviet Industrial Price Revision,” Soviet Studies, July 1963, pp. 43-52.

5. Supplementary Readings

a) Readings: G. Grossman, “Industrial Prices In the USSR.”

b) A. Wakar and J. Zielinski, “Socialist Operational Price Systems,” American Economic Review, March 1963, pp. 109-127

c) “The Great Value-Price Controversy in the USSR….” in H. Shaffer (ed.), The Soviet Economy (A Collection of Western and Soviet Views), pp. 340-421.

d) A. Zauberman, “Soviet Planometrics,” Soviet Studies, July 1962, pp. 62-74.

E. Finance

1. A. Nove, The Soviet Economy, Chapter 3

2. Readings: F. Holzman, “Financing Soviet Development”

3. Readings: F. Holman, “Soviet Inflationary Pressures, 1928-1957”

4. Readings: D. Hodgman, “Soviet Monetary Controls Through the Banking System”

5. Supplementary Reading. F. Holzman, Soviet Taxation, Chs. 1-4, 9.

F. Labor

1. Readings: E. Brown, “The Soviet Labor Market”

2. Schwartz, pp. 554-565, 534-548

3. Readings: A. Nove, “Social Welfare in the USSR.”

4. W. Galenson, “The Soviet Wage Reform” Proceedings of the Thirteenth Annual Meeting, Industrial Relations Research Association (1961), pp. 250-265.

5. A. Nove, “Toward a Communist Welfare State?” Problems of Communism, January-February 1960.

6. Supplementary Readings

a) E. Nash, “Trends in Labor Controls In the Soviet Union,” in Dimensions, pp. 393-404.

b) E. Brown, “Labor Relations in Soviet Factories,” Industrial and Labor Relations Review, January 1958

c) E. Brown, “A Note on Employment and Unemployment in the Soviet Union in the Light of Technical Progress,” Soviet Studies, January 1961, pp. 231-240.

G. Agriculture

1. Schwarz, Chapter VIII

2. C. Harris, “Soviet Agricultural Resources Reappraised,” Journal of Farm Economics, May 1956, pp. 258-273

3. Readings: L. Volin, “Agricultural Policy of the Soviet Union.”

4. J. Willet, “The Recent Record in Agricultural Production,” in Dimensions, pp. 100-113.

5. H. Walters, Agriculture in the United States and the Soviet Union, U.S. Dept of Agriculture, 1963).

6. Supplementary Readings

a) J. Newth, “Soviet Agriculture: the Private Sector, 1950-59,” Soviet Studies, October 1961 and April 1962.

b) A. Nove, “Soviet Agriculture Marks Time,” Foreign Affairs, July 1962.

c) D. G. Johnson, “Agricultural Production,” in Trends, pp. 214-234

H. Domestic Trade, Foreign Trade and Foreign Aid

1. M. Goldman, Soviet Marketing, Chapters 2, 3, 8.

2. A. Nove, and D. Donnelly, Trade with Communist Countries, pp. 21-57.

3. P. Thunberg, “The Soviet Union in the World Economy,” in Dimensions, pp. 409-438.

4. G. Carnett and M. Crawford, “The Scope and Distribution of Soviet Economic Aid,” in Dimensions, pp. 457-474.

5. A. Zauberman, “Economic Integration,” Problems of Communism, July-August 1959, pp. 23-29.

6. Supplementary Readings

a) M. Goldman, “Product Differentiation and Advertising: Some Lessons from Soviet Experience,” Journal of Political Economy, August 1960, pp. 346-357.

b) Readings: J. Berliner, “Soviet Foreign Economic Competition”

c) Readings: N. Spulber and F. Gehrels, “The Operations of Trade Within the Soviet Bloc.”

d) Readings: F. Holzman, “Some Financial Aspects of Soviet Foreign Trade.”

e) “Discrimination Within the Bloc: Mendershausen vs. Holzman,” The Review of Economics and Statistics: May 1959, May 1960 and May 1962.

I. Future Prospects and Their Implications

1. A. Bergson, “The Great Economic Race: USSR vs. USA,” Challenge, March 1963.

2. A. Bergson and J. Berliner, “Economic Aspects of the Party Program,” The ASTE Bulletin, IV:2 (Winter 1962) pp. 20-36.

3. Readings: O. Hoeffding, “Soviet State Planning and Forced Industrialization as a Model for Asia.”

4. Supplementary Reading

a) J. Hardt et al, The Cold War Economic Gap. (Praeger 1961).

b) Articles by Peterson, Colm, Rostow and Schwartz in Joint Economic Committee, Comparisons of the United States and Soviet Economies, Parts Il and Ill.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 8, Folder “Economics, 1963-64”.

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HARVARD UNIVERSITY
Department of Economics
Economics 133

Final Examination
January 27, 1964

Part I (One hour)
Answer three of the following four questions.

1. (20 minutes)

Compare the economic policies of Vishnegradsky and Witte with those of Stalin.

2. (20 minutes)

Discuss the problem of “success indicators” in Soviet industry.

3. (20 minutes)

Describe briefly how prices and wages are formed and the role they play in the Soviet economy,

4. (20 minutes)

Describe the operation and role of foreign trade in the Soviet economy.

Part II (One hour)
Answer two of the following three questions,

5. (30 minutes)

“In order to understand why the Russians (at least until very recently) have been so successful in achieving rapid economic growth, one need look no further than the high rate of investment they have been able to attain.”
Discuss.

6. (30 minutes)

You are a high ranking official of the Soviet Communist Party and you have just been appointed chief of agricultural affairs. You are requested to prepare a report in which you are to:

a) describe briefly the major reforms instituted in Soviet agriculture in the last 10 years;
b) discuss the extent of their success and/or failure; and
c) propose some further measures which may be taken to improve the agricultural situation.

How would you respond to this request? (“Flee the country” is not an acceptable response.)

7. (30 minutes)

The U.S. Central Intelligence Agency recently claimed that the rate of growth of Soviet national income in the last two years (1962 and 1963) has been 2.5% per year.
In analyzing this claim, answer the following questions:

a. What is meant by the “index number problem” in measuring economic growth? Why does it arise?

b. To what extent may there be an index number problem in CIA’s calculation?

c. How does this CIA figure differ from the rates of growth of Soviet national income which have been calculated by Bergson and Cohn for earlier periods?

d. What in your opinion might account for the differences?

e. Bonus (If you have time)

What do you think are the prospects for Soviet economic growth in the next 10 to 20 years? Explain.

Part III (One hour)
Answer the following question.

8. (60 minutes)

Suppose the Soviet government were to decide that it were no longer necessary or desirable to maintain a policy of achieving a maximum rate of economic growth. Suppose instead, it were to decide on a policy of achieving moderate growth (say about 4% per year in national income), rising standards of living for its people and full employment (in short, a “civilized” economic policy).

Discuss the possible effects such a decision might have on the various different elements in the organization and operative of the Soviet economy.

Source: Harvard University Archives. Papers Printed for Midyear Examinations [in] History, History of Religions,…, Economics,…,Naval Science, Air Science (January 1964) in bound volume Social Sciences. Final Examinations. January 1964 (HUC 7000.28, vol. 150 of 284).

Image Source: Associate Professor of Economics, Herbert S. Levine. University of Pennsylvania Yearbook, The 1967 Record, p. 108.

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Exam Questions History of Economics Princeton Suggested Reading Syllabus

Princeton. History of Economic Thought. Reading List, General Exam. Baumol, 1987-1988

What I find useful about the syllabus on classical economics from William Baumol’s Princeton course transcribed below is that it provides a lean and precise list of original text reading assignments to work through. Full-blown bibliographies have their use for students when writing term papers, but this butcher’s choice of filet cuts provides a wholesome main course that will last a semester and provide pleasant memories for a lifetime.

Here you will find other postings at Economics in the Rear-view Mirror that offer material from courses in the history of economics.

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Alan B. Krueger’s Interview with William J. Baumol in Journal of Economic Perspectives, Vol. 15, No. 3 (Summer 2001), pp. 211-231.

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Princeton University
Department of Economics

Economics 506
History of Economic Thought

Fall Term 1988

Professor W.J. Baumol

Smith, Adam, Wealth of Nations, 1776, Book I, Chapters 1, 2, 3, 5, 6, 7, 8 (first 20 pages), 10 (first 17 pages); Book II, Chapter 3; Book IV, Chapters 1, 2, 8.

Malthus, T.R., An Essay on the Principle of Population, 1798, Pelican Edition, 1970, Introduction by Anthony Flew, Chapters 1-5, 18, 19.

Ricardo, David, On the Principles of Political Economy and Taxation, London, 1817, Chapters I-X, XIX-XXI, XXX-XXXI.

*Ricardo David, Notes on Malthus, Piero Sraffa, editor, Cambridge: Cambridge University Press, 1951, Editor’s Introduction and pp. 300-382.

Marx, Karl and Friedrich Engels, Manifesto of the Communist Party.

Marx, Karl, Capital (3 volumes), New York: International Publishing Company.

Volume I: Author’s Prefaces; Chapter 1; Chapter 3, Sections II a, b; Chapter 5; Chapter 6; Chapter 7, Section 2; Chapter 8; Chapter 9, Sections 1, 3, 4; skim Chapter 10; Chapter 15, Section 6; Chapter 16; Chapter 24, Sections 2, 3, 5; Chapter 25.

Volume II:Preface; Chapter 9; Chapter 16, Part 3; pp. 390-396 (Chapter 17, last 6 pages on Simple Reproduction); Chapter 20; pp. 576-9 (Chapter 21, I, Accumulation in Department 1 (1) formation of a hoard).

Volume III: Preface; Chapters 1, 2, 8, 9, 10, 13, 14, 15, 22, 27, 37, 38, 48.

*Marx, Karl,  A Critique of the Gotha Program, Moscow, Progress Publishers, 1937.

*On reserve at Firestone Library.

Source: Edward Tower (compiler). Economics Reading Lists, Course Outlines, Exams, Puzzles & Problems, Vol. 24. History of Economic Thought. Durham, NC: Eno River Press, August 1990, page 38.

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PRINCETON UNIVERSITY
Department of Economics

General Examination for the Degree of Doctor of Philosophy

History of Economic Thought
January 1987

Time: 3 hours

  1. Distinguish the roles of the labor command and the labor content discussions of value in Adam Smith. What was Smith’s general model of the determination of long run exchange value under competition?
  2. In terms of the formal Ricardian model, explain the consequences of elimination of a tariff on grain (corn) (a) in the short run; (b) in the long run.
  3. (a) Explain why, in Marx’s view, profits under capitalism can be expected to decline with the passage of time. (b) Why did he reject Ricardo’s model leading to the same conclusion? (c) On what grounds has Marx’s model of the declining profit rate been criticized?
  4. In one sentence each, characterize some of the main work of the following:
    1. Jeremy Bentham
    2. Frederick Bastiat
    3. J.B. Clark
    4. J. R. McCulloch
    5. Enrico Barone
  5. (for Arthur Moretti) Describe the logic of the Hayek business cycle model. What role is played by technological elements? by monetary elements? What is the pertinence of the “Ricardo effect?”
  6. (for Kin Yip Louie) Explain the source of Marshall’s error in using consumers’ surplus to argue that increasing returns industries should be subsidized. Would the Hicksian analysis of the four consumers surpluses have helped ra avoid the error? Why or why not?
  7. (for Susan Skeath [“Susan Skeath van Mulbregt”, Princeton Ph.D., 1989; Professor of Economics at Wellesley College]) Explain the role played by utility in J. S. Mill’s value theory. Does his utility concept lead him to particular policy conclusions? How do Mill’s views on the appropriate role of government differ from those of his classical predecessors?
  8. (for Teow-Hock Koh [“Winston Teow-Hock Koh”, Princeton Ph.D., 1988; Professor at Singapore Management University; died 2013]) (To what extent does Malthus’ contradistinction to his analysis conclusions) structure anticipate the of the Keynesian model? In provide a answering this, summary of the workings of the pertinent parts the Keynesian analysis. What features of Marxian Theory overlap with the Keynesian model?
  9. (for Vicente Morales) a) Describe any of the mathematical solutions to the transformation problem showing how prices and the rate of profit are related to values and the rate of surplus value. b) Explain Samuelson’s criticism of the entire analysis and Morishima’s reply.

Source: Edward Tower (compiler). Economics Reading Lists, Course Outlines, Exams, Puzzles & Problems, Vol. 24. History of Economic Thought. Durham, NC: Eno River Press, August 1990, pp. 266-267.

Image Source:  Cropped from portrait of William J. Baumol in 1981 published in his obituary published in The New York Times, May 10, 2017.

Categories
Chicago Exam Questions Suggested Reading Syllabus

Chicago. Syllabus and Final Exam, International Monetary Economics. Metzler, 1971

The two items below (syllabus and final exam) were incorrectly filed in Lloyd A. Metzler’s papers at Duke. I accidentally stumbled upon both today and thought that rather than trusting my memory of the locations of the syllabus and final exam for Economics 370 in 1971, I’d just transcribe and post the two artifacts today. According to the biographical note below, Lloyd Metzler retired from the University of Chicago in 1971 so this must have indeed been the last time that he taught international monetary economics at Chicago.

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Biographical Note

Lloyd Appleton Metzler was born on April 3, 1913 in Lost Springs, Kansas. He attended the University of Kansas, where he studied economics under John Ise and earned a Bachelor’s degree in 1935 and an MBA in 1938. Metzler then entered Harvard University. He served as an instructor and tutor at Harvard and completed a Ph.D. in economics in 1942. His dissertation, “Interregional Income Generation,” earned him the Wells Prize. That same year, Metzler was the recipient of a Guggenheim fellowship.

From Harvard, Metzler went on to Washington, D.C., where worked for the Office of Strategic Services and several economic policy and planning commissions between 1943 and 1946. Metzler joined the research staff of the Board of Governors of the Federal Reserve System in 1944. In 1946 he returned to academia when he accepted a teaching position at Yale University. He soon left Yale for the University of Chicago in 1947, where he remained for the rest of his career.

Dr. Metzler survived surgery for a brain tumor in 1952, and with the help of his wife Edith, managed to continue teaching and writing for the next twenty years. He served as Editor of the Journal of Political Economy from 1966 until his retirement in 1971. Metzler made numerous contributions to business cycle literature, macro-monetary theory, tariff theory, mathematical economics, and the field of international trade. The Metzler paradox, Laursen-Metzler effect, and Metzler matrix, all bear his name. He died on October 26, 1980.

Source: University of Chicago Library. Guide to the Lloyd A. Metzler Papers 1941-1948.

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For Intertemporal Comparison

Syllabus and readings for Economics 370 in 1950.

Exam for Economics 370 in 1953.

Syllabus, readings and final exam for Economics 370 from Winter Quarter 1967.

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ECONOMICS 370

Monetary Aspects of International Trade
Major Topics and Reading List
Winter, 1971

  1. Mechanism of the Foreign Exchange Market
    1. Alan R. Holmes and Francis Schott, The New York Foreign Exchange Market. New York: The Federal Reserve Bank of New York, 1965, Chapters 1-6.
    2. Frank A. Southard, Jr., Foreign Exchange Practice and Policy. New York: The McGraw-Hill Book Company, 1940.
    3. Norman Crump, The ABC of the Foreign Exchange. London: MacMillan and Company, Ltd., 1951.
    4. James E. Meade, The Theory of International Economic Policy: Vol. I. The Balance of Payments. London: Oxford University Press, 1951, Chapter 1.
  2. The Quantity of Money, the Rate of Interest, and the Price Level
    1. James Tobin, “The Monetary Policy and the Management of the Public Debt: The Patman Inquiry,” Review of Economics and Statistics, Vol. XXXV, No. 2, May 1953, pp. 118-27.
    2. Subcommittee on General Credit Control and Debt Management of the Joint Committee on the Economic Report, Hearings on the Question, What Should our Monetary and Debt Management Policy Be? 82nd Congress of the United States 1952, pp. 688-711, 691-98. (These pages include the testimony of Milton Friedman and Paul Samuelson).
    3. Robert V. Roosa, “Interest Rates and the Central Bank,” In Money, Trade, and Economic Growth, in honor of John Henry Williams, New York: The Macmillan Company, 1951.
    4. Lloyd A. Metzler, “Wealth, Saving, and the Rate of Interest,” Journal of Political Economy, Vol. LIX, No. 2, April 1951, pp. 93-116.
    5. Robert A. Mundell, “The Public Debt, Corporate Income Taxes, and the Rate of Interest,” Journal of Political Economy, Vol. LXVIII, No. 6, December 1960, pp. 622-26.
    6. George Horwich, “Real Assets and the Theory of Interest,” Journal of Political Economy, Vol. LXX, No.2, April 1962, pp. 158-69.
    7. Don Patinkin, Money, Interest, and Prices, 1st edition, Evanston: Row, Peterson and Company, 1956, Part II.
  3. The Role of Money in International Adjustment: Full Employment and Under-Employment
    1. J. M. Keynes, Treatise on Money: Vol. 1. The Pure Theory of Money. London: Macmillan and Company, 1935, Chapter 21.
    2. Lloyd A. Metzler, “The Theory of International Trade,” from A Survey of Contemporary Economics, Howard S. Ellis, Editor, Homewood, Ill.: R.D. Irwin, Inc., 1948.
    3. Lloyd A. Metzler, “The Process of International Adjustment Under Conditions of Full Employment: A Keynesian View,” first delivered before the Econometric Society, 1960, republished in AEA, Readings in International Economics, Vol. XI, Richard Caves and Harry Johnson, editors, Homewood, Ill.: R. D. Irwin, Inc., 1968, Chapter 28.
  4. Free-Market Exchange Rates
    1. A. J. Brown, “The Foreign Exchanges,” in Oxford Studies in the Price Mechanism, T. Wilson and P.W.S. Andrews, editors, Oxford at the Clarendon Press, 1951, Part II.
    2. Sidney Alexander, “Effects of a Devaluation on a Trade Balance,” International Monetary Fund Staff Papers, Vol. Il, No. 2, April 1952.
    3. Milton Friedman, “The Case for Flexible Exchange Rates,” in Essays in Positive Economics, Chicago: The University of Chicago Press, 1953, pp. 157-203.
    4. Joan Robinson, “The Foreign Exchanges,” in Essays in the Theory of Employment. Oxford: Basil Blackwell, 1947, Part III.
    5. Lloyd A. Metzler, “Exchange Rates and the International Monetary Fund,” in International Monetary Policies, Postwar Economic Studies, No. 7, Washington, D.C.: The Board of Governors of the Federal Reserve System, September 1947.
    6. Rudolph R. Rhomberg. “A Model of the Canadian Economy under Fixed and Fluctuating Exchange Rates,” Journal of Political Economy, Vol. LXXII, No. 1, February 1964, pp. 1-31.
  5. Forward Exchange Rates
    1. Paul Einzig, The Theory of Forward Exchange. London: Macmillan and Company, Ltd., 1937.
    2. Paul Einzig, A Dynamic Theory of Forward Exchang. London: Macmillan and Company, New York: St. Martin’s Press, 1961.
    3. Alan R. Holmes and Francis Schott, The New York Foreign Exchange Market. New York: The Federal Reserve Bank of New York, 1965, Chapters 7-8.
    4. Paul Einzig, “Some Recent Development in Official Forward Exchange Operations,” Economic Journal, Vol. LXXIII, No. 290, June 1963, pp. 241-53.
    5. Paul Einzig, “Some Recent Changes in Forward Exchange Practices,” Economic Journal, Vol. LXX, No. 279, September 1960, pp. 485-95.
  6. The Balance of Payments and the Concepts of Income
    1. R. F. Bennett, “Significance of International Transactions in National Income,” in Studies in Income and Wealth, Vol. VI. New York: The National Bureau of Economic Research, 1943.
    2. U. S. Department of Commerce, Income and Output, 1958 Supplement to the Survey of Current Business.
  7. The Theory of Income Transfers
    1. J. M. Keynes, “The Transfer Problem,” Economic Journal, Vol. XXXIX, No. 153, March 1929, pp. 1-7.
    2. B. Ohlin, “The Reparation Problem: A Discussion. I. Transfer Difficulties, Real and Imagined,” Economic Journal, Vol. XXXIX, No. 154, June 1929, pp. 172-78.
    3. J. M. Keynes. “The Reparation Problem: A Discussion. II. A Rejoinder,” Economic Journal, Vol. XXXIX, No. 154, June 1929, 179-82.
    4. J. Rueff, “Mr. Keynes’ Views on the Transfer Problem,” Economic Journal, Vol. XXXIX, No. 155, September 1929, pp. 388-99.
    5. B. Ohlin, “Rejoinder to J. Rueff,” Economic Journal, Vol. XXXIX, No. 155, September 1929, pp. 400-04.
    6. J. M. Keynes, “Reply to J. Rueff,” Economic Journal, Vol. XXXIX, No. 155, September 1929, pp. 404-08.
    7. L. A. Metzler, “The Transfer Problem Reconsidered,” Journal of Political Economy, Vol. L, No. 3, June 1942, pp. 397-414.
    8. H. G. Johnson, “The Transfer Problem and Exchange Stability,” Journal of Political Economy, LXIV, No. 3, June 1956, pp. 212-25, Republished in International Trade and Economic Growth. London: George Allen and Unwin, Ltd., 1958, Chapter VII.
    9. L. A. Metzler, “Flexible Exchange Rates, The Transfer Problem, and the Balanced-Budget Theorem,” Rivista Internazionale di Scienze Economiche e Commerciale, Anno XIII, No. 4, April 1966, pp. 301-18. Republished in Essays in Honor of Marco Fanno, Vol. II, Tullio Bagiotti, editor, edizioni cedam, Padova, 1966, pp. 449-76.
  8. Evolution of the International Monetary System
    1. Randall Hinshaw. Toward Currency Convertibility. Princeton University, Essays in International Finance, No. 31, 1958.
    2. Robert Triffin, Europe and the Money Muddle, New Haven: Yale University Press, 1957.
    3. Charles P. Kindleberger. The Dollar Shortage, Cambridge, Mass.: The Technology Press, New York: John Wiley and Sons, Inc., 1950.
    4. Robert Triffin, “The International Monetary Position of the United States,” in The Dollar in Crisis, Seymour E. Harris, editor, New York: Harcourt, Brace and World, Inc., 1961.
    5. Hal B. Lary, Problems of the United States as World Trader and Banker, Princeton: Princeton University Press for the National Bureau of Economic Research, 1963.
    6. Robert Triffin, The Evolution of the International Monetary System: Historical Reappraisal and Future Perspectives. Princeton Studies in International Finance Section. Princeton University, 1964.

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Lloyd Appleton Metzler Papers, Box 9, Folder “The Dust Proof File”.

__________________________

L. A. Metzler

ECONOMICS 370
FINAL EXAMINATION
WINTER, 1971

Answer all questions

  1. It is frequently said that forward purchases and sales have a two-fold effect upon the assets and liabilities of the bank making the forward transactions. When a bank makes a forward purchase, for example, it is entitled to receive a given amount of foreign currency some time in the future and this right to receive foreign currency constitutes an asset. On the other hand, when the bank receives the foreign currency, it is obligated to pay a given amount of its own currency, and exchange, and this obligation constitutes a liability. Conversely, when the bank makes a forward sale, it is obligated to deliver a given amount of foreign currency some time in the future and such an obligation constitutes a liability. But when the bank delivers the foreign currency, it is entitled to receive a given quantity of domestic currency to complete the transaction, and this receipt constitutes an asset.
    1. In view of the two-fold effect of both forward sales and purchases, how can you justify the inclusion of forward sales as liabilities and the inclusion of forward purchases as assets in an account of the bank’s foreign currency position?
    2. If it is actually true that both sales and purchases increase assets and liabilities by the same amount, what does this imply with respect to the bank’s ability to put itself in a closed position by means of operations on the forward exchange market?
  2. The table, below, presents the yield on 90-day Canadian treasury bills (rc), the yield on 90-day U.S. treasury bills (rus), the 90-day forward exchange rate (FR), and the spot exchange rate (SR) for Canadian currency. The yields for both Canadian and United States bills are stated on an annual basis and the exchange rates represent the price, in United States dollars, of one unit of Canadian dollars. The table covers various periods of time, from A to I.
Period of time Yield on
90-day Canadian treasury bills (rc)		 Yield on
90-day
U.S.
treasury bills (rus)		 90-day forward exchange rate (FR) Spot exchange rate (SR)
A .05 .06 1.0100 1.000
B .06 .05 1.0050 1.000
C .06 .04 1.0025 1.000
D .07 .03 0.9975 1.000
E .05 .04 0.9900 1.000
F .04 .05 0.9950 1.000
G .02 .04 0.9975 1.000
H .02 .06 1.0025 1.000
I .01 .05 2.0050 2.000

On the basis of the information given in the table above, you are asked to:

    1. Indicate which periods are periods of short-term potential capital outflow (O), and which periods are periods of short-term capital inflow (I) from the point of view of U.S. banks.
    2. Prepare a table showing the profits or losses on security transactions, the profits or losses on currency transactions, and the net outflow or inflow margin for all time intervals from A to I.
    3. Show what transactions a U.S. bank would make in carrying out a short term covered capital outflow and what transactions the bank would make in carrying out a short term capital inflow. From this information, show that arbitrage activities of the U.S. bank always influence rc, rus, FR, and SR in such a way as to put the market values back on the interest parity line.
    4. Comment on the stabilizing effects of interest arbitrage.
  1. Professor Alexander maintains that devaluation will be ineffective unless fiscal measures are taken to control spending.
    1. Discuss Alexander’s argument.
    2. Is it also applicable against a system of flexible exchange rates? Explain.
  2. Country A and Country B are trading with each other under a system of flexible exchange rates. Country A makes a unilateral transfer of t currency units, payable in the currency of B. On the assumption that both countries balance their budgets, prove that factor income remains unchanged in both countries while net output rises in A and falls in B. Give both an algebraic and a commonsense explanation of these results. What bearing do these results have on the controversy between Keynes and Ohlin concerning German reparations?
  3. The success of the Canadian experiment with flexible exchange rates is frequently given as an argument for the introduction of flexible exchange rates as a means of eliminating the deficit in the U.S. Balance of Payments.
    1. Would Alexander’s absorption principle apply to this situation?
    2. Can you see any reason why the comparison between Canada and the United States might be inappropriate?

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Lloyd Appleton Metzler Papers, Box 9, Folder “Econ 371 [sic] Reading List.”

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

Categories
Exam Questions Harvard M.I.T. Suggested Reading Syllabus

Harvard. Basic graduate microeconomic theory. Chamberlin and Samuelson, 1956-1957

 

For some reason, Paul Samuelson was asked to help out with the teaching of Edward H. Chamberlin’s graduate theory course during the 1956-57 academic year. In Paul Samuelson’s papers at Duke I was able to find a letter from the Harvard economics chair, Seymour Harris, confirming his appointment as “Visiting Professor” for co-teaching Economics 201. The actual “allocation of subject matter” between Chamberlin and Samuelson is not clear from Samuelson’s papers, nor from the course outlines. Since the second semester reading list only has Chamberlin’s name on it, it seems likely that Samuelson’s participation was limited to the first semester of the course. Because Robert Bishop’s manuscript on Economic Theory (taught to generations of M.I.T. graduate students) was included in the first section of the fall semester reading list and we find questions for a one hour mid-term exam in Samuelson’s folder for the course, I am led to conjecture that Samuelson taught most or all of the first half of the fall semester of the course. As we can see from the internal M.I.T. department teaching records included below, Paul Samuelson continued teaching his courses at “Tech” that year.

Perhaps a future trip to Duke University’s David M. Rubenstein Rare Book Manuscript Library  to consult the Edward H. Chamberlin papers that were donated in 2019 will help to establish why Samuelson was needed at Harvard that year.

_________________________

Letter from Chairman Seymour Harris to Paul Samuelson
May 25, 1956

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS

Office of the Chairman

M-8 Littauer Center
Cambridge 38, Massachusetts

May 25, 1956

Professor Paul A. Samuelson
Department of Economics and Social Science
Massachusetts Institute of Technology
Cambridge 39, Massachusetts

Dear Paul:

Economics 201 meets Tuesday, Thursday, and at the pleasure of the instructor Saturday at 10. It would be hard to change that hour because of the arrangement of other courses, and also because we must have the same hour for the second semester.

I hope that you would get together with Ed and discuss the allocation of subject matter. You can have [Richard] Gill as an assistant, and he would, I am sure, be willing to meet the class once a week when you think it necessary. You will find him a most adequate assistant.

I may add that the Dean has agreed to recommend your appointment as a Visiting Professor, which is an unusual appointment, for most appointments of this kind, inclusive of Tech, are Visiting Lecturers. This suggests the high regard in which we hold you.

Sincerely yours,

[signed] Sey
Seymour E. Harris
Chairman

SEH/c
cc: Professor Chamberlin

P.S. I hope you will remember to bring my article on Saturday and any comments.

 

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Paul Samuelson, Box 33, Folder “Ec201 Harvard Course, 1955-1956 [sic]”.

_________________________

From the M.I.T. economics department records for 1955-56

Paul Samuelson was teaching full time 1956-57. He taught Economics and Industrial Management (14.117) and Mathematical Approach to Economics (14.151) in the fall semester and Economic Analysis (14.122) and Economics Seminar (14.192) in the Spring semester.

Source:  M.I.T. Archives. M.I.T. Department of Economics Records, 1947—. Box 3, Folder “Teaching Responsibility”.

_________________________

Enrollment figures from Harvard President’s Report

[Economics] 201. Economic Theory. Professor Chamberlin and Professor Samuelson (Massachusetts Institute of Technology). Full course.

(F) Total 38: 26 Graduates, 2 Seniors, 1 Junior, 4 Radcliffe, 5 Others.
(S) Total 39: 27 Graduates, 2 Seniors, 1 Junior, 3 Radcliffe, 6 Others.

Source: Harvard University. Report of the President of Harvard College, 1956-1957, p. 70.

_________________________

Economics 201
Economic Theory
Fall 1956
READING LIST

I. Supply, Demand, Revenue and Cost

Marshall, Principles (4th edition or later), Book III, Ch. 3, 4, 6

Mill, Principles, Book III, Ch. 1-6

Chamberlin, Theory of Monopolistic Competition, Ch. 2

Schultz, H., Theory and Measurement of Demand, pp. 5-12

Bishop, Economic Theory Ms., Book II, Ch. 1, 2, 3

Viner, Cost Curves and Supply Curves (1930), AFA or Clemence Readings

Robinson, Economics of Imperfect Competition, Ch. 2

Suggested:

Ricardo, Political Economy (Gonner Edition or Sraffa Edition), Chapter I

Mills’ Autobiography or the Introduction to the Ashley edition of the Principles

Jevons, Theory of Political Economy, Chapters 3, 4

Keynes, “Alfred Marshall,” Economic Journal, September 1924 (Also in Keynes, Essays in Biography)

II. Production and Consumption Analysis

A. Production and Cost

Chamberlin, Theory of Monopolistic Competition, Ch. 8, Appendix B

Knight, Risk, Uncertainty and Profit, pp. 94-109.

Stigler, Production and Distribution Theories, Introduction

Stigler, Theory of Price, Chs. 7, 8

Suggested:

Douglas, P. Theory of Wages

Hicks, Value and Capital, Chs. 6, 7

Carlson, Sune, Theory of Production

Cassels, J. H, “On the Law of Variable Proportions,” in Explorations in Economics, essays in honor of Taussig

Schneider, E., Pricing and Equilibrium

B. Utility and Consumption Theory

Hicks, Value and Capital, Chs. 1, 2, 3

Stigler, Theory of Price, Chs. 5, 6

III. Welfare Economics

Boulding, K., “Welfare Economics,” Survey of Contemporary Economics, Vol. II

Hicks, J.R., “Foundations of Welfare Economics,” Economic Journal, 1939

Pigou, A.C., Economics of Welfare, Preface, Part I., Chs. 3, 7, 8; Part II, Introductory, Ch. 9

Lerner, A. P., Economics of Control, Chs. 3, 5, 6, 7, 9

Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003”, Box 6, Folder “Economics, 1956-1957 (2 of 2)”.

_________________________

Economics 201
Hour Exam
November 3, 1956

  1. Define “external” and “internal” economies. What do we mean when we say these economies are (a) “pecuniary,” (b) technological”? (10 min.)
  2. What are the conditions of stable equilibrium of supply and demand as analyzed by (a) Walras and (b) Marshall? Explain the “apparent contradiction” between the Walrasian and Marshallian stability conditions. (20 min.)
  3. In the “Ricardian increasing cost” case, as described by Viner, what would be the effect on price, output, and rent to the fixed factor, of a tax of “x” cents per unit of output? Illustrate graphically. (20 min.)

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Paul Samuelson, Box 33, Folder “Ec201 Harvard Course, 1955-1956 [sic]”.

_________________________

1956-57
HARVARD UNIVERSITY
Economics 201
Midyear examination. January, 1957.

Answer the first two (2) questions and any three (3) of the others. Be sure to allocate your time approximately as indicated.

  1. (Forty-five minutes). Assume two individuals (who act as pure competitors) and two commodities. Given the “production-possibility” or “transformation” curve for each individual and also his indifference map, indicate graphically: a) the equilibrium price; b) the equilibrium quantities of each good produced by each individual; and c) the quantity of each good exchanged.
  2. (Forty-five minutes). Discuss the scope and limitations of “Welfare Economics.” Illustrate your discussion with reference to one or two specific theoretical problems (e.g., the box-diagram).
  3. (One-half hour). A production function relates product (Q) to two factors, labor (L) and capital (C). Distinguish the “three stages” for each factor, and give an interrelations among them in a) the case of constant returns to scale (homogeneous production function) and b) the general case.
  4. (One-half hour). Distinguish “internal” and “external” economies and analyze the possibility of equilibrium under pure competition in each case.
  5. (One-half hour). A monopolistic firm can buy labor and land at fixed prices but sells its output in an impurely-competitive market. Now let it be subject to a tax of $X per unit of its output. On the oversimplified assumption that the tax leaves its factor prices, the consumer demand for its product, and its production function unchanged, compare the new equilibrium of output, price, and factor hirings with the old.
  6. (One-half hour). Define the “income” effect and “substitution” effect of a price change. Indicate, in terms of these effects, the likelihood of a) a backward-bending supply curve, and b) a positively-sloping demand curve.

Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001. Box 25. Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Naval Science, Air Science. January, 1957.

_________________________

A twitter prayer.

_________________________

Economics 201
Spring Term, 1956-57
Economic Theory—Professor Chamberlin

I. Monopoly and Monopolistic Competition

Chamberlin, Monopolistic Competition, Chapters 1, 4,5, 9.

_________, “Monopolistic Competition Revisited,” Economica, November 1951.

Robinson, J., Imperfect Competition, Foreword, Introduction, Chapter 1.

Monopolistic Competition, Chapter 3, Appendix A.

Triffin, Monopolistic Competition and General Equilibrium T-heory, pp. 78-108.

Hall and Hitch, “Price Theory and Business Behavior,” Oxford Economic Papers, No. 2 (1939). (Also in Oxford Studies in the Price Mechanism, T. Wilson, Editor).

Chamberlin, “‘Full Cost’ and Monopolistic Competition,” Economic Journal, May 1952.

_________, “The Product as an Economic Variable,” Quarterly Journal of Economics, February 1953.

Monopolistic Competition, Appendix C, Chapters 6, 7.

Chamberlin, “Product Heterogeneity and Public Policy,” American Economic Review, May 1950.

Suggested:

Robinson, J., Imperfect Competition, Chapters 3-7.

Fellner, Competition Among the Few, Chapters 1-7.

Holton, Richard H., “Marketing Structure and Economic Development,” Q.J.E., August 1953.

Alsberg, C. L., “The Economic Aspects of Adulteration and Imitation,” Q.J.E., 46:1 (1931)

Brems, “The Interdependence of Quality Variations, Selling Effort, and Price,” Q.J.E., May 1948.

II. Income Distribution—General; Wages.

Readings in the Theory of Income Distribution, 3.

Marshall, Principles, Book VI, Chapters 1-2.

Hicks, Theory of Wages, Chapters 1-4.

Readings, 12.

Monopolistic Competition, Review Chapter 8 and pp. 215-18, 249-52, (5th or later edition).

Hicks, Chapters 5, 6.

Marshall, Book VI, Chapters 3-5.

Taussig, Principles, 4th edition, Chapter 52 (or 3rd revised edition, Chapter 47).

E.H.C., “The Monopoly Power of Labor,” in The Impact of the Union.

Readings, 19.

Hicks, pp. 170-185.

Suggested:

1. Douglas, Theory of Wages, Chapter 2.

2. J.B. Clark, Distribution of Wealth, Chapters 7, 8, 12, 13.

III. Interest

Böhm-Bawerk, Positive Theory, Book I, Chapter 2; Book II; Book V.

Marshall, Principles, Book IV, Chapter 7; Book VI, Chapter 6.

Wicksell, Lectures, Vol. I, pp. 144-171, 185-195, 207-218.

Clark, J.B., Distribution of Wealth, Chapters 9, 20.

Suggested:

Fisher, I., Theory of Interest, Chapters 5, 6.

Readings, Chapters 20, 21.

IV. Rent

Ricardo, Chapter 2.

Marshall, Book V, Chapters 8-11.

Robinson, Imperfect Competition, Chapter 8.

V. Profits

Marshall, Book VI, Chapter 5, Section 7; Chapters 7,8.

Taussig, Principles  (4th edition), Vol. II, Chapter 49, Section 1 (3rd revised edition, Chapter 50, Section 1)

Veblen, Theory of Business Enterprise, Chapter 3.

Henderson, Supply and Demand Chapter 7.

Bernstein, P., “Profit Theory—Where Do We Go From Here?” Q.J.E., August 1953

Monopolistic Competition, Chapter 5, Section 6; Chapter 7, Section 6; Appendices D, E.

Schumpeter, Theory of Economic Development, Chapters 1-4.

Suggested:

1. Readings, 27, 29.

Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003”, Box 6, Folder “Economics, 1956-1957 (2 of 2)”.

_________________________

HARVARD UNIVERSITY
Department of Economics
Economics 201
Final Examination
May, 1957

A. Choose two of the following questions, allowing one-half hour for each.

  1. Write a brief article on the subject of “oligopoly” designed for an encyclopedia of the social sciences, and therefore to be consulted and used mainly by non-specialists in the subject. (Consider well your objective before you begin.)
  2. Discuss excess capacity in the economy, its meaning and its compatibility with “equilibrium.” What are the chief forces tending (a) to bring about, and (b) to eliminate, excess capacity?
  3. (a) Discuss the issues involved in distinguishing between production costs and selling costs, and defend your own conclusions. (b) Are selling outlays, like production outlays, subject to the law of diminishing returns? Discuss, and illustrate your conclusion graphically.

B. Choose four of the following questions, allowing one-half hour for each.

  1. “It is inappropriate to say that the marginal productivity of a certain type of labor determines its wage; wages, like the prices of all economic goods, are determined by both supply and demand.” Discuss with particular reference to the role of supply factors in an adequate theory of wages.
  2. Develop the role which you would give to either (a) monopoly, or (b) rent, in your own theory of wages.
  3. “Waiting is certainly not an element of the economic process in a static state, because the circular flow, once established, leaves no gaps between outlay or productive effort and the satisfaction of wants. Both are, following Professor Clark’s conclusive expression, automatically synchronized.” Discuss the several aspects of this quotation.
  4. Outline your own theory of land rent, with some critical discussion of writers with whom you are familiar. (Restrict your discussion to the problem of land income, without extending the analysis to other factors.)
  5. Write on risk as an element in the theory of profits, choosing such subdivisions or aspects of the problem as seem to you most significant. In what respects, if at all, would you regard a risk theory of profits as inadequate?

Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001. Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Naval Science, Air Science. June, 1957. In bound volume Final Exams—Social Sciences—June 1957 (HUL 7000.28, 113 of 284).

Image Sources:

John Simon Guggenheim Memorial Foundation, Edward H. Chamberlin, Fellow 1958.

M.I.T., Paul Samuelson Memorial Information Page/Photos from Memorial Service.  Accessed via the Internet Archive Wayback Machine.

 

Categories
George Mason Methodology Suggested Reading Syllabus

George Mason. Course readings for Economic Philosophy. Buchanan and Vanberg, 1990

 

This post is an experiment in transcription. The HOPE Center at Duke University has started recently to provide pdf scans of syllabi from Ed Tower’s Eno River Press collection and I wondered how easy it would be to use the text-recognition software in Adobe Acrobat Pro to extract digital versions of the syllabi. It turns out that at least for this initial attempt, tweaking and correction of the OCR text required considerably less blood, sweat and tears than a standard typed transcription would have. 

Like other members of the greater community of historians of economics, I eagerly await further scans from the Tower volumes by the HOPE Center. From time to time, I’ll convert a scanned syllabus to add to the collection of digital material posted at Economics in the Rear-view Mirror. Links to the original scans will be provided whenever available. 

_________________________

George Mason University
SPRING 1990

Economics 827: ECONOMIC PHILOSOPHY
James M. Buchanan, Viktor J. Vanberg

Purpose and theme:

The purpose of this course is to discuss some of the issues at the foundations of economics as a social science. It will cover topics like the following (the numbers behind the titles refer to the reading list):

— Economics as moral philosophy (1, 13, 15, 20).

— Welfare economics and political economy (2, 3, 4).

— Methodological and normative individualism (14, 22).

— Subjectivism and opportunity costs (9, 12, 30).

— Utilitarianism and contractarianism (5, 16, 18, 19, 24).

— Agreement in exchange, in politics and in science (10, 29).

— Liberty, voluntariness and efficiency (7, 26).

— Justice as fairness and distributive justice (6, 11, 21, 23, 24).

— Homo economicus, rational choice and rule-following (8, 25, 27).

— Economics and morality (17, 19, 28).

Organization:

The constituting meeting for this course will be held on January 23, 7:20 p.m., in room R 2600. The core part of this course will be taught during the two-weeks period February 19 through March 2 in the library of the center for Study of Public Choice, George’s Hall, from 8:30 a.m. to 11:00 a.m. (daily Mon. through Fri.).

Grading:

Grades will be determined on daily (one page) protocols during the ‘core-period’ and a longer (15-20 pages) paper on a subject to be chosen between student and instructor.

Reading List:

(A set of xerox-copies of the following titles will be available from Kinko’s Copies, University Mall).

  1. Albert, Hans “Knowledge and Decision” chpt. 3 in H. Albert Treatise in Critical Reason Princeton University Press 1985, 71-101.
  2. Buchanan, James M. “Social Choice, Democracy, and Free Markets” in Fiscal Theory and Political Economy Chapel Hill 1960, 75-89.
  3. — , — “Positive Economics, Welfare Economics, and Political Economy” in Fiscal Theory and Political Economy Chapel Hill 1960, 105-124.
  4. — , — “The Relevance of Pareto Optimality” in The Journal of Conflict Resolution 6, 1962, 341-354.
  5. — , — “Marginal Notes on Reading Political Philosophy” in J. M. Buchanan and G. Tullock The Calculus of Consent Ann Arbor 1965, 307-322.
  6. — , -— “Notes on Justice in Contract” in Freedom in Constitutional Contract Texas A&M University Press 1977, 123-134.
  7. — , — “Criteria for a Free Society: Definition, Diagnosis, and Prescription” in Freedom in Constitutional Contract Texas A&M University Press 1977, 287-299.
  8. — , — “ls Economics the Science of Choice?” in What Should Economists Do? Liberty Press 1979, 39-63.
  9. — , — “General Implications of Subjectivism in Economics” in What Should Economists Do?” Liberty Press 1979, 81-91.
  10. — , — “The Potential for Tyranny in Politics as Science” in Liberty, Market and State New York University Press 1985, 40-54.
  11. — , — “Rules for a Fair Game: Contractarian Notes on Distributive Justice” in Liberty, Market and State New York University Press 1985, 123-139.
  12. — , — “L.S.E. Cost Theory in Retrospect” in Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987, 141-151.
  13. — , — “Political Economy and Social Philosophy” in P. Koslowski, ed., Economics and Philosophy, Tuebingen 1985.
  14. — , — “The Foundations for Normative Individualism” mimeographed, Center for Study of Public Choice.
  15. Buchanan, James and Gordon Tullock “The Politics of the Good Society,” Chpt. 20 in The Calculus of Consent Ann Arbor 1965, 297-306.
  16. Gauthier, David “On the Refutation of Utilitarianism” in H B. Miller and W. H. Williams (eds.) The Limits of Utilitarianism University of Minnesota Press 1982, 144-163.
  17. — , — “Maximization Constrained: The Rationality of Cooperation” in R. Campbell and L. Sowden (eds.) Paradoxes of Rationality and Cooperation Vancouver 1985, 75-93.
  18. Hahn, Frank “On Some Difficulties of the Utilitarian Economist” in A. Sen and B. Williams (eds.) Utilitarianism and Beyond Cambridge University Press 1982, 187-198.
  19. Harsanyi John C. ”Morality and Social Welfare” chpt. 4 in J. C. Harsanyi Rational Behavior and Bargaining Equilibrium in Games and Social Situations Cambridge University Press 1977, 48-64.
  20. Hayek, Friedrich A. “Kinds of Rationalism” in F. A. Hayek Studies in Philosophy, Politics and Economics The University of Chicago Press 1967, 82-95.
  21. — , — “The Atavism of Social Justice” in F. A. Hayek New Studies in Philosophy, Politics, Economics and the History of Ideas The University of Chicago Press 1978, 57-68.
  22. Lachmann, Ludwig M. “Methodological Individualism and the Market Economy” in L. M. Lachmann Capital, Expectations, and the Market Process Kansas City 1977, 149-165.
  23. Nozick, Robert “Distributive Justice” chpt. 7 in R. Nozick Anarchy, State, and Utopia New York 1974, 149-164 + 183-189.
  24. Rawls, John “Justice as Fairness” chpt. 1 in J. Rawls A Theory of Justice Harvard University Press 1971, 3-27.
  25. Sen, Amartya “Behaviour and the Concept of Preference” in J. Elster (ed.) Rational Choice Basil Blackwell 1986, 60-81.
  26. Vanberg, Viktor “Individual Choice and Institutional Constraints – TheNormative Element in Classical and Contractarian Liberalism” in Analyse & Kritik Vol. 8, 1986, 113-149.
  27. — , — “Rational Choice, Rule-Following and Institutions” mimeographed, Center for Study of Public Choice, 1989, 49pp.
  28. Vanberg, Viktor and James M. Buchanan “Rational Choice and Moral Order” in Analyse & Kritik 10, 1988, 138-160.
  29. Vanberg, Viktor and James M. Buchanan “Interests and Theories in Constitutional Choice” in Journal of Theoretical Politics 1, 1989, 49-62.
  30. Wiseman, Jack “General Equilibrium or Market Process: An Evaluation” in J. Wiseman Cost, Choice and Political Economy Edward Elgar 1989, 213-233.

Readings suggested for further study:

Buchanan, James M. Cost and Choice — An Inquiry in Economic Theory Chicago 1969.

— , — Freedom in Constitutional Contract Texas A&M University Press 1977.

— , — Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987.

Gauthier, David Morals By Agreement Oxford: Clarendon Press 1986.

Gray, John Liberalism Open University Press 1986.

Hayek, Friedrich A. Law, Legislation and Liberty University of Chicago Press 1974, 1976, 1979 (three volumes).

— , — The Fatal Conceit — The Errors of Socialism London: Routledge 1988 (Vol. 1 of The Collected Works of Friedrich August Hayek).

Nozick, Robert Anarchy, State, and Utopia New York: Basic Books 1974.

Rawls, John A Theory of Justice Harvard University Press 1971.

Vanberg, Viktor Morality and Economics — De Moribus Est Disputandum, New Brunswick: Transaction Books 1988 (Social Philosophy and Policy Center, Original Papers No. 7).

Source: Transcribed from the images scanned from the Eno River Press volumes of syllabuses of economics coursescompiled and published by Ed Tower that he donated to the History of Political Economy (HOPE) Center at Duke University.

Image Sources: Buchanan portrait from the Nobel prize website. Vanberg portrait from the Walter Eucken Institut website.

Categories
M.I.T. Syllabus Undergraduate

M.I.T. Course outline and readings for undergraduate applied microeconomics. McFadden, 1978

I don’t remember how this particular course outline came into my possession during my graduate student days. I presume my sticky fingers together with an early manifestation of a propensity to hoard papers resulted in these four-pages finding their way into my files of teaching material. Now decades later, this applied microeconomics outline from Daniel McFadden’s first semester on the M.I.T. faculty is digitised. Only wish I had the eight problem sets too…

_________________________

14.03
APPLIED MICROECONOMICS

Daniel McFadden
Fall 1978

MWF 11-12
16-134

General Information:

14.03 is organized around a set of applied microeconomic problems. It is not a course in economic theory, but theoretical topics will be treated as they arise in the applications. Students are expected to know basic microeconomics as taught in 14.01 or another course at the level of R. Leftwich’s The Price System and Resource Allocation. Students are also expected to be able to use calculus with ease. The textbook for 14.03 is Microeconomic Theory: Basic Principles and Extensions, 2nd ed., by Walter Nicholson (Dryden Press, 1978). Various other readings will be assigned.

Problem sets will be handed out on Wednesday and will be due the following Wednesday in class. They will be graded and returned on Friday. Generally, Monday and Wednesday will be devoted to lectures, and Friday to discussion and review, including discussion of the answers to the problems. Every student is expected to complete every problem set within the allocated time. There will be three quizzes in class. Problem sets will account for 40% of the course grade, the quizzes for 30%, and the final for 30%.

I will be available in E52-274B on Wednesday afternoons, and by appointment at other times; my phone is 253-3378. Generally, you should take questions about problem sets and grading to the teaching assistant (his name will be announced later) and questions about the lectures to me.

The problems to be covered are:

    1. the demand for energy,
    2. the demand for air conditioners,
    3. the supply of electricity,
    4. the market for natural gas,
    5. the market for automobiles,
    6. pricing of tugboat services and the anti-trust law,
    7. costs and risks of nuclear and non-nuclear energy development,
    8. public investment in transportation.

The schedule of quizzes is:

Quiz 1—October 11, covering problems 1 & 2.

Quiz 2—November 1, covering problems 3 & 4 plus preceding material.

Quiz 3—November 29, covering problems 5, 6, 7 plus preceding material.

 

READINGS AND SCHEDULE

  1. The demand for energy.

Lectures: Sept. 13, 15, 18, 20.

Discussion: Sept. 22, 29.

Problem Set 1: out Sept. 20; due Sept. 27.

Read: Nicholson 3, 4, 5 (skim 6).

L. Taylor, “The demand for electricity: A survey,” BELL JOURNAL OF ECONOMICS 6 (Spring 1975), 74-110.

D. McFadden et al., “Determinants of the long-run demand for electricity,” PROCEEDINGS OF THE AMERICAN STATISTICAL ASSOCIATION,

A TIME TO CHOOSE, Energy Policy Project of the Ford Foundation (Ballinger, 1974), Chap. 5 and Appendices A, B.

  1. The demand for air conditioners.

Lectures: Sept. 25, 27.

Discussion: Oct. 6.

Problem Set 2: out Sept. 27; due Oct. 4

Read:

J. Hausman, “Consumer choice of durables and energy demand,” MIT, mimeo., 1978.

A. Goett, “Appliance fuel choice: An application of discrete multivariate analysis,” manuscript, 1978.

  1. The supply of electricity.

Lectures: Oct. 2, 4, 13, 16.

Discussion: Oct. 20.

Problem Set 3: out Oct. 11; due Oct. 18.

Read: Nicholson 7, 8, 9.

D. Pearl and J. Enos, “Engineering production functions and technological progress,” JOURNAL OF INDUSTRIAL ECONOICS 24 (1), (Sept. 1975), 55-72.

L. Wipf and D. Bowden, “Reliability of supply equations derived from production functions,” AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS 51 (February 1969), 170-78.

M. Nerlove, “Returns to scale in electricity supply,” in MEASUREMENT IN ECONOMICS, C. Christ (ed.), (Stanford Univ. Press, 1963), pp. 167-98.

T. Cowling, “Technical change and scale economies in an engineering production function: The case of steam electric power,” JOURNAL OF INDUSTRIAL ECONOMICS 23 (1974-75), 135-52.

  1. The market for natural gas.

Lectures: Oct. 18, 23, 25.

Discussion: Oct. 27.

Problem Set 4: out Oct. 18; due Oct. 25.

Read: Nicholson, Part IV, Chap. 10, 11, 12, 13 (skim 14, 15, 16).

P. MacAvoy and R. Pindyck, “Alternative regulatory policies for dealing with the natural gas shortage,” BELL JOURNAL OF ECONOMICS 4 (Autumn 1973), 454-98.

R. Hall and R. Pindyck, “The conflicting goals of national energy policy,” PUBLIC INTEREST 47 (Spring 1977), 3-15.

  1. The market for automobiles.

Lectures: Oct. 30, Nov. 3.

Discussion: Nov. 10.

Problem Set 5: out Nov. 1; due Nov. 8.

Read: Nicholson 17.

G. Akerlof, “The market for ‘lemons’: Qualitative uncertainty and the market mechanism,” QUARTERLY JOURNAL OF ECONOMICS 84 (1970), 488-500.

Z. Griliches, PRICE INDICES AND QUALITY CHANGE (Harvard, 1971), Introduction and Chap. 3.

R. P. Smith, CONSUMER DEMAND FOR CARS IN THE USA (Cambridge, 1975), pp. 1-88.

  1. Pricing of tugboat services and the anti-trust law.

Lectures: Nov. 6, 8.

Discussion: Nov. 17.

Problem Set 6: out Nov. 8; due Nov. 15.

Read: Nicholson 18, 19, 20.

P. Areeda and D. Turner, “Predatory pricing and related practices…,” HARVARD LAW REVIEW 88 (1975), 697-733.

F. Scherer et al., “Predatory pricing and the Sherman Act, “ HARVARD LAW REVIEW 89 (1976), 868-902.

D. McFadden and R. Palmer, “The economic foundation for liability and damages from predatory pricing,” manuscript, 1978.

S. Goldman, “Industrial concentration and economic welfare: Some theoretical observations,” Working Paper IP-251 in Economic Theory and Econometrics, Berkeley, October 1977.

  1. Benefits and risks of nuclear and non-nuclear energy development.

Lectures: Nov. 15, 20, 22.

Discussion: Nov. 27.

Problem Set 7: out Nov. 15; due Nov. 22.

Read: Nicholson 6, 18, 19, 20.

S. Rosen and Thaylor, reference to be supplied.

A. Tversky, SCIENCE 185 (Sept. 27, 1974), 1124-31.

Joel Yellen, “The nuclear regulatory commission’s reactor safety study,” BELL JOURNAL OF ECONOMICS 7 (1) (Spring 1976), 317-39.

  1. Public investment in transportation.

Lectures: Dec. 1, 4, 6, 11.

Discussion: Dec. 8.

Problem Set 8: out Nov. 29; due Dec. 6.

Read: Nicholson 21, 22, 23.

D. McFadden, “Revealed preferences of a government bureaucracy: Theory,” BELL JOURNAL OF ECONOMICS 6 (Autumn 1975), 401-16.

D. McFadden, “Criteria for public investment,” JOURNAL OF POLITICAL ECONOMY 80 (1972), 1295-1305.

T. Keeler et al., THE FULL COSTS OF URBAN TRANSPORT,

M. Webber, “The BART experience—What have we learned,” PUBLIC INTEREST 45 (Fall 1976), 79-108.

Final review: December 13.

Source: Personal copy of Irwin Collier.

Image Source: Gonçalo L. Fonseca’s  “Daniel McFadden profile page” at The History of Economic Thought Website.

 

 

 

Categories
Columbia Suggested Reading Syllabus

Columbia. Reading list for Economic Analysis (less advanced level). Hart and Wonnacott, 1959

 

Judging by the following syllabus, the entry level graduate course for economic theory at Columbia sixty years ago seems to have been pitched no higher than the level of an undergraduate intermediate economic theory of today.

The syllabus transcribed for this post comes from William Vickrey’s papers in the Columbia University Archives. We can see there was a deviation from the originally announced announcement with the addition of Paul Wonnacott (a recent Princeton PhD) to co-teach with the department chairman Albert G. Hart. It is not clear what is meant below that Vickrey teaches “a reverse section” to start in January 1960, though I suspect it meant that the sequence could either be taken with Hart [first semester (101) then second semester (102)] or the sequence could be taked lagged one semester with Vickrey [second semester (101) then first semester of the following year (102)].

I will be going back into my files to see if I can find Hart’s 102 syllabus for 1960.

_________________________

From Course Announcements 1959-60

Economics 101-102. Economic Analysis

Sec 1: Professor [Albert G.] Hart. (3) ThTh 11.
Sec 2: Professor [William] Vickrey. (3) TuTh 4:10.

May be taken only for E credit [“examination credit” where course requirements include a final examination or paper with a recorded letter grade (A,B,C,D or Pass).]. Students who have not completed Economics 101 are admitted to 102 only with the instructor’s permission.

Detailed analysis of the reactions of producing units (firms) and consuming units (households); determination through the market of resource allocation, outputs, prices, and incomes; capital and interest; theories of general equilibrium (Walrasian and Kenesian); introduction to “dynamics.”

Economics 105-106. Economic Analysis

Professor [Gary] Becker. (3) Tu Thu 11.

Prerequisite: the instructor’s permission. The course may be taken only for E credit.

Topics noted under Economics 101-102, treated at a more advanced level.

Source: The Graduate Faculties 1959-1960 in the Columbia University Bulletin, Series 59, Number 19 (May 9, 1959), p. 40.

_________________________

Reading list for Hart and Wonnacott

ECONOMICS 101
AUTUMN 1959

Meetings:

Regular: M.W., 11 AM: 710 Business
Third hour (Rooms to be arranged):

(1) Th. 10 AM
(2) Th. 1 PM

Instructors:

A.G. Hart, 503 Fayerweather
P. [Paul] Wonnacott, 513 Fayerweather

For “reverse section” starting January 1960: W. Vickrey

Textbooks:

  1. Each member of the course should own one of the following texts, and arrange loans back and forth with other students:

A. W. Stonier & D.C. Hague, Textbook of Economic Theory (2d ed., London, Longmans Green, 1957)
Chapters 1-8 are first-semester material.

G.J. Stigler, Theory of Price (Revised ed., New York, Macmillan, 1952)
Chapters 1-10 and 12 are first-semester material.

K.E. Boulding, Economic Analysis (3rd ed., New York, Harper, 1955)
Chapters 26-29 and 36 are first-semester material.

  1. An optional item is the mimeographed BASIC MATHEMATICS OF ECONOMIC QUANTITIES (Economics Department office, $1.00).
  2. In addition, each student’s working library should come to include some of the following:

J.M. Henderson and R.E. Quandt, Microeconomic Theory (New York: McGraw-Hill, 1958): mathematical.

J.R. Hicks, Value and Capital (Oxford: Clarendon Press; 2nd ed. 1946)

A. Marshall, Principles of Economics (8th ed., London: Macmillan, 1920)

G.J. Stigler & K.E. Boulding, Readings in Price Theory (Chicago: Irwin, 1952)

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

AGH/PW/8/27/59
[Economics] 101
Autumn 1959

INTRODUCTION

Sept. 28, 30. LOGIC OF SUPPLY-AND-DEMAND MODELS

Stonier & Hague, ch. 1-2 (pp. 9-33).

Stigler, ch. 1-2 (pp. 1-19).

E.J. Working, “What Do Statistical ‘Demand Curves’ Show?” in Readings in Price Theory, pp. 97-115.

ad lib. Henderson & Quandt, ch. 1 (pp. 1-5).

Oct. 2. Math short course: Quantitative concepts and their dimensions.

THE FIRM AND THE MARSHALLIAN INDUSTRY

Oct. 5, 7. SHORT-RUN AND LONG-RUN COST CURVES AND THE FIRM’S SUPPLY SCHEDULE

l           Stonier & Hague, ch. 5 (pp. 87-122).

Stigler, ch. 7-8 (pp. 111-146); note that discussion is intermingled with that of the next topic.

Boulding, ch. 27 (note references to preceding chapters which have not been discussed in this course).

*  *  *  *  *  *  *  *  *  *

J. Viner, “Cost Curves and Supply Curves” in Readings in Price Theory, pp. 198-232.

H. Staehle, “Measurement of Statistical Cost Functions” in Readings in Price Theory, pp. 264-79.

Oct. 9. Math short course: Charts, tables and functions.

Oct. 12, 14. THEORY OF PRODUCTION.

l           Stonier & Hague, ch. 10 (pp. 210-31).

Stigler, ch. 6 (pp. 96-110: completes production-cost-and-supply discussion).

Boulding, ch. 28 (pp. 585-604).

*  *  *  *  *  *  *  *  *  *

Marshall, Book IV, ch. 13 (pp. 314-22).

H.S. Ellis & W. Fellner, “External Economies and Diseconomies” in Readings in Price Theory, pp. 242-63.

ad lib. Henderson & Quandt, ch. 3 (pp. 42-84).

Oct. 16. Math short course: Simple analytical networks.

Oct. 19, 21. COMPETITIVE EQUILIBRIUM.

l           Stonier & Hague, ch. 6-7 (pp. 123-61).

Stigler, ch. 9-10 (pp. 148-86).

Oct. 23. Math short course: Maxima and derivatives.

Oct. 26, 28. COMPETITIVE EQUILIBRIUM, continued.

Marshall, Book V, ch. 1-5 (pp. 323-80).

ad lib. Henderson & Quandt, ch. 4 (pp. 85-125).

Oct. 30. Math short course: Maxima and derivatives, continued.

Nov. 2,4. MONOPOLY.

l           Stonier & Hague, ch. 8 (pp. 162-81).

Stigler, ch. 12 (pp. 204-21).

Boulding, ch. 29 (pp. 605-27).

*  *  *  *  *  *  *  *  *  *

Marshall, bk. V, ch. 14 (pp. 477-95).

Chamberlin, ch. 1-2 (pp. 3-29).

Robinson, ch. 3 (pp. 47-59: note references to preceding chapter on “the geometry”).

Robinson, ch. 15-16 (pp. 179-208).

ad lib. J.R. Hicks, “Theory of Monopoly” in Readings in Price Theory, pp. 361-83.

Nov. 6. Math short course: compound analytical networks.

Nov. 9, 11. HORIZONTAL AND VERTICAL LINKAGES OF MARKETS.

Marshall, Book V, ch. 6 (pp. 381-93).

Nov. 16. “MARGINALISM” AND THE FIRM.

R.L. Halland & C.J. Hitch, “Price Theory & Business Behavior” in T. Wilson (ed.) Oxford Studies in the Price Mechanism, pp. 107-38.

F. Machlup, “Marginal Analysis and Empirical Research”, American Economic Review, Sept. 1946 (pp. 521-54).

Nov. 18. Midterm hour exam.

THE HOUSEHOLD, AND MARKETS INVOLVING CONSUMERS.

Nov. 23, 25, 30. PREFERENCE AND UTILITY.

Stonier & Hague, ch. 2-4 (pp. 34-86).

Stigler, ch. 5 (pp. 68-93).

Boulding, ch. 32 (pp. 680-701), 36 (pp. 787-809).

Hicks, Value & Capital, ch. 1-2 (pp. 11-37).

Marshall, Book 3, ch. 1-5 (pp. 83-123).

ad lib. Henderson & Quandt, ch. 2 (pp. 6-41).

ad lib. S.W. Rousseas and A.G. Hart, “Experimental Verification of a Composite Indifference Map”, Journal of Political Economy, Aug. 1951 (pp. 288-318).

Dec. 2, 7, 9. INDIVIDUAL AND MARKET DEMAND FUNCTIONS.

Stigler, ch. 4 (pp. 42-66).

Hicks, Value & Capital, ch. 3 (pp. 42-52).

J.S. Duesenberry, Income, Saving and the Theory of Consumer Behavior, ch. 5 (pp. 69-92); ad lib. ch. 2 (pp. 6-16), 6 (pp. 93-110).

Dec. 16, 18. CONSUMER SURPLUS & INDEX NUMBERS.

Marshall, Book III, ch. 6 (pp. 124-37).

Hicks, Value & Capital, pp. 38-41.

Hicks, Revision of Demand Theory, pp. 95-106.

A.P. Lerner, “Note on the Theory of Price Index Numbers” in Essays in Economic Analysis (pp. 152-63).

Source: Columbia University Rare Book & Manuscript Library. William Vickrey Papers, Box 35. Folder 630, “Columbia/Economics 101 Course 1954-1959, n.d.”

Image Source: Alma Mater, Columbia University. Columbia College Today, Winter 2017-18.

 

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. International Trade Theory and Policy. Haberler, 1952-1953

 

Gottfried Haberler was a teaching triple threat in the Harvard economics department in his heyday: he covered courses in theory, business cycles, and international trade. Here’s a list of posts at Economics in the Rear-view Mirror using the “haberler” tag.

This post provides the course outlines and final exams for Haberler’s two term graduate sequence in international trade (& finance) and policy from 1952-53.

_____________________

Course Announcement

Economics 243a. International Trade

Half-course (fall term). Mon., Wed., and (at the pleasure of the instructor) Fri., at 12. Professor Haberler.

Economics 243b. International Economic Policy

Half-course (spring term). Mon., Wed., and (at the pleasure of the instructor) Fri., at 12. Professor Haberler.

 Properly qualified undergraduates will be admitted to this course.

Source: Harvard University Archives. Courses of Instruction, Box 6,  Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences for the Academic Year 1952-53, p. 104.

_____________________

Course Enrollment

 Note: the 1952-1953 Report of the President of Harvard College does not provide course enrollment statistics.

_____________________

Syllabus, Fall 1952-53

Economics 243a
Professor Haberler, Fall Term, 1952-53
International Trade — Theory

The first semester of the course will be devoted to the Theory of International Trade. The first topic will be the balance of payments mechanism, the determinants of foreign exchange rates. Later the so-called “pure theory” of international trade will be discussed, including the welfare aspects (theory of international economic policy.)

The subject of the second term will be a brief historical sketch of the evolution of commercial policy from the late eighteenth century to the present time and selected topics in the field of international economic policy with greater emphasis than in the first term on historical, institutional, political, and administrative aspects of the various problems.

Outline for First Half-Year

  1. International Trade and National Income
    Various relations between the two
    The importance of trade for various countries and its measures
  2. International Trade in the National Accounts
    International transactions of the national economic budget
    The balance of payments, various forms of presentation and interpretation
    Balance of international indebtedness
  3. Foreign Exchanges and the Balance of Payments Mechanism
    The foreign exchange market
    Demand and supply for exports and imports and for foreign means of payments
    Changes in the exchange rate, the balance of payments and the terms of trade
    Price effects and income effects
    The foreign trade multiplier
    The transfer problem
  4. Theory of International Division of Labor
    The theory of comparative cost
    Modern developments of the theory of comparative cost
    Marshallian theory of reciprocal demand and supply curves
    Ohlin’s general equilibrium theory
  5. Welfare Implications of International Trade
    Factor prices and international trade
    Income distribution and international trade
    Theory of protection and tariffs
    Monopoly and monopolistic competition in international trade

Reading Assignments and Suggestions

  1. General

Every student should have worked through one of the existing general texts or monographs:

Brown, A. C., Industrialization and Trade, 1943.
Ellsworth, International Economics, 1938.
Ellsworth, The International Economy, 1950.
(The first book of Ellsworth is shorter and theoretical; the second much longer and historical.)
Enke and Salera, International Economics.
Haberler, Theory of International Trade.
Harrod, International Economics (3rd edition, 1939).
Meade and Hitch, Introduction to Economic Analysis and Policy, (Part V).
Marsh, World Trade and Investment.
Taussig, International Trade.
Whale, International Trade.

A short discussion of recent developments will be found in Metzler, “The Theory of International Trade,” Chapter 6 in Survey of Contemporary Economics.

There are two very useful Reading Volumes:

Readings in the Theory of International Trade (edited by H. S. Ellis and Lloyd Metzler), 1949, and
Selected Readings in International Trade and Tariff Problems (ed. Taussig), 1921.

  1. Assignments and Suggestions to Subjects Listed Above (in addition to relevant chapters in general texts).
    1. There is hardly any specific reading on this subject. But every student should have some idea of basic facts and orders of magnitude.
      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.
      A. J. Brown, Applied Economics, 1948; Chapter VI:
      Readings, Chapters 21 and 22, by D. H. Robertson and J. Viner.
    2. Every student should study the U.S. balance of payments and that of one or two other countries in order to get a feeling of the magnitudes involved and to familiarize himself with the methods of presentation which vary not only from country to country but often also from one year to the other for the same country.
      Balance of Payments Yearbook (I.M.F.)
      The United States in the World Economy, 1943.
      The Balance of International Payments of the U.S., 1946-48 (1950).
      Hicks, The Social Framework of the American Economy, Chapter XII, “Foreign Payments and the National Income” (a theoretical discussion).
      Marsh, World Trade and Investment, Chapters 9, 10, 11, 12.
    3. In addition to relevant chapters in general texts, see the following:
      Haberler, “The Market for Foreign Exchange and the Stability of the Balance of Payments”, Kyklos, Vol. III, 1949.
      Harris (ed.), Foreign Economic Policy for the U.S., Part V, Chs. 20, 21 22.
      Harris (ed.), The New Economics, Part V, especially essays by Bloomfield and Nurkse.
      Iversen, International Capital Movements, 1935.
      Keynes and Ohlin on German Reparations in Economic Journal, 1929; and Readings, Chapters 6 and 7.
      Machlup, International Trade and the National Income Multiplier, 1943.
      Machlup, “The Theory of Foreign Exchanges,” Economica, 1939 (two articles), Readings, Chapter 5.
      Meade, J. E., The Balance of Payments, 1951.
      Metzler, op. cit.
      Nurkse, R., International Currency Experience (League of Nations, 1944).
      Pigou, “The Foreign Exchanges,” Quarterly Journal of Economics, November, 1922, reprinted in Essays in Applied Economics (1927).
      Robinson, J., “Beggar-My-Neighbor Remedies for Unemployment”, Readings, Chapter 17.
      Robinson, J., “Foreign Exchanges,” Essays on the Theory of Employment(1st ed., 1938; 2nd ed., 1947), Part III; reprinted in Readings, Ch. 4.
      Williams, Post-War Monetary Plans and Other Essays (3rd, 1947).
    4. and 5. 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.
      Haberler, “Some Problems in the Pure Theory of International Trade”, Economic Journal, June, 1950.
      Leontief, “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, May, 1933; Readings, Ch. 10.
      Mill, Principles (relevant chapters reprinted in Selected Readings).
      Ohlin,  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, (relevant chapters reprinted in Selected Readings).
      Robinson, J., “The Pure Theory of International Trade”, Review of Economic Studies, Vol. XIV, 1946-47.
      Taussig, International Trade.
      Viner, Studies in the Theory of International Trade (last two chapters).

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 5, Folder “Economics, 1952-1953 (2 of 2)”.

_____________________

1952-1953
HARVARD UNIVERSITY
ECONOMICS 243a
[Final exam. January 1953]

Answer 5 questions. Write legibly.

  1. Suppose the international transactions of a country are as follows (in hundred million dollars):
Commodity exports 18
Commodity imports 20
Net tourist receipts 1
Other services exported 1
Gold exports 1
Debt to IMF repaid 1
New long-term securities sold abroad 1
Long-term securities redeemed ½
Short-term balances accumulated abroad 1
Marshall aid received 1

Write down the balance of payments, inserting if necessary an “errors and omissions” item.

Discuss whether the balance of payments shows a deficit or surplus, giving reasons for your answer. If you like, state alternative criteria.

  1. How does depreciation influence the balance of payments and the terms of trade? Discuss question in terms of relevant elasticities.
  2. Balance of payments adjustments in the pre-World War I era were often so rapid that they surprised the classical theorists. Show how “income effects” may help to explain these phenomena.
  3. List some arguments for protection and examine one of these in some detail. (Append a graphical analysis if possible).
  4. Compare the classical theory of comparative cost and Ohlin’s general equilibrium theory that is based on the relative scarcity of factors of production.
  5. Discuss J. H. Williams’ strictures against the classical theory and compare them with those of Ohlin.
  6. Is it possible, and if so under what conditions, that international trade changes the income distribution against a major factor of production, say, labor? Discuss policy implications.
  7. Show graphically how reciprocal demand curves can be used to analyze changes in the terms of trade that result from the imposition of tariffs on imports or exports.

Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. (HUC 7000.28, vol. 96 [Social Sciences]). Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics,…” January 1953.

_____________________

Syllabus, Spring Term, 1952-53

Harvard University
Department of Economics
Economics 243b
International Economic Policy

  1. Historical Introduction
    Commercial Policy of the major countries from the beginning of the 19th century until 1914.

Great Britain
France
Germany
United States
Other Countries

The Inter-war period and postwar developments.

Modern methods of trade control
Quantitative controls

Quotas
Exchange control

Other methods and controls.

  1. Free Trade and Protection: Theoretical Economics and Practical Social Policies

The case for free trade and the free trade movement

Arguments for protection

“Non-economic” arguments
Unemployment
Balance of Payments

“Dollar shortage”

Infant industry argument and development of underdeveloped countries
Terms of Trade
International trade under planning

  1. Current Issues in Trade Policy
    Liberalization of trade

Universal vs. regional approach
Most-favored-nation principle and discrimination
Currency convertibility
Customs Union

READING SUGGESTIONS

  1. General

Most treatises on International Trade discuss policy questions.

Ellsworth: The International Economy
D. March: World Trade and Investment
Haberler: Theory of International Trade
J. Viner: International Economics
J. Viner: International Trade and Economic Development
Readings in the Theory of International Trade (Blakiston)
S. E. Harris (editor): Foreign Economic Policy of the U.S. (Harvard, 1946)
N. Buchanan and F. Lutz: Rebuilding the World Economy
H. S. Ellis: The Economics of Freedom. The Progress and Future of Aid to Europe (Harper 1950)
Selected Readings in International Trade and Tariff Problems, (ed. Taussig)
J. H. Williams: Economic Stability in a Changing World. 1953.
J. H. Williams: Stamp Lecture (Harvard University Press)

  1. Special Subjects
    1. History of Commercial Policy
      Condliffe: The Commerce of Nations
      Ellsworth: The International Economy [stresses the historical approach]
      F. W. Taussig: U.S. Tariff History
      F. W. Taussig: Some Aspects of the Tariff Question
      P. Ashley: Modern Tariff History. 1904
      R. F. Mikesell: United States Economic Policy and International Relations (Economic Handbook Series, 1952)
      Dictionary of Tariff Information (U. S. Tariff Commission, 1924)
      H. Heuser: Control of International Trade. 1939
      Margaret Gordon: Barriers to World Trade. 1941
    2. Free Trade and Protection
      [See General Treatises mentioned above]
      R. Triffin: “National Central Banking and the International Economy,” Review of Economic Studies, 1946-47. Also, in same issue, three comments by Balogh, Henderson, and Harrod
      J. R. Hicks: Free Trade and Modern Economics (Manchester Statistical Society, 1951)
      Selected Readings in International Trade and Tariff Problems (ed. Taussig, 1921) (contains useful excerpts from A. Smith, J. S. Mill, F. List, etc.)
      A. Henderson, “The Restriction of Foreign Trade,” in The Manchester School January 1949
    3. Reading will be announced later.

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 5, Folder “Economics, 1952-1953 (2 of 2)”.

_____________________

1952-1953
HARVARD UNIVERSITY
ECONOMICS 243b
[Final Exam. May 1953]

Answer five questions. Write legibly!

  1. Discuss the customs union issue and evaluate the chances of this approach to furthering the international division of labor.
  2. List at least four concepts of “terms of trade” and discuss whether or not these concepts are “operational” (statistically observable). Also discuss the concept of “terms of trade” implied in the Marshallian reciprocal demand curve analysis.
  3. Cite some methods of discrimination and examine the argument that discriminatory controls are less destructive of trade and therefore more desirable than non-discriminatory controls.
  4. Is the phrase “dollar shortage” absurd? Discuss possible causes and cures of “dollar shortage” consistent with your evaluation of why a “dollar shortage “may exist.
  5. How do payments unions or clearing unions operate? What are the main problems and difficulties? State arguments for and against such arrangements.
  6. What is meant by “convertibility” and why is it often held to be of paramount importance?
  7. Tariffs, Quotas, and Exchange Control are alternative methods of controlling imports. Compare their modes of operation and discuss their comparative advantages and disadvantages.

Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. (HUC 7000.28, vol. 99 [Social Sciences]). Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics,…” June 1953.

Image: Radcliffe Archives. Portrait of Gottfried Haberler. (1965).

Categories
Suggested Reading Syllabus Yale

Yale. Course Outline for Industrial Organization, Behavior, and Public Policy. Nelson, 1973

 

Richard R. Nelson was an Oberlin College undergraduate (B.A. 1952) and received his Ph.D. from Yale University (1956). He was a senior staff economist at the Council of Economic Advisers in the Kennedy Administration (1961-63) and Professor of Economics at Yale from 1968-1986 before accepting a professorship at Columbia University.

On Richard Nelson’s life and career:

Entry for Richard R. Nelson written by Johann Peter Murmann for the Encyclopedia of Strategic Management.

Sidney G. Winter’s speech at the “Nelson Fest” held in New York City, October 13, 2000.

Warning: the original mimeographed course outline was plagued with misspellings that I have tried to correct. There are certainly others that have slipped through my editorial filter. For this transcription I need to be explicit: Caveat lector!

_______________________________

ECONOMICS 140A
Industrial Organization, Behavior, and Public Policy
Richard R. Nelson

Reading List
Fall Term 1973

* Assigned
** Material I assume you are familiar with, for review

Sept. 11, 18

  1. Perspectives on the Economic Organization Problem.
    1. The Problem Writ Large.
      1. R. Dahl*, A Preface to Democratic Theory, Chapt. 4.
      2. A. Sen**, Collective Choice and Social Welfare, Chap. 2, 3, 6.
      3. H. Simon*, Administrative Behavior, Chapters 1 & 3.
      4. H. A. Simon “The Changing Theory & The Changing Practice of Public Administration” in I. Pool (ed.) Contemporary Political Science.
      5. A. Etzioni, Modern Organizations, Chaps. 1 & 2.
      6. F. Knight, The Economic Organization, Chap. 1.
      7. R. Dahl and C. E. Lindblom, Politics, Economics, and Welfare, Chapt. 1.
      8. L. Hurwicz, “The Design of Mechanisms for Resource Allocation” AER May 1973.
      9. J. Marschak & R. Radner, Economic Theory of Teams.
      10. B. Ward, The Socialist Alternative.

Sept. 18

    1. Industrial Organization
      1. F. M. Scherer*, Industrial Market Structure and Economic Performance, Chapt. 1.
      2. R. Caves, Industrial Organization.
      3. R. Coase*, “Industrial Organization: A Proposal for Research” in V. Fuchs ed. Policy Issues & Research Opportunities in Industrial Organization.

Sept. 25

  1. Private Purchase and Market Supply as an Organizational Solution.
    1. The Role of Prices, For-Profit Suppliers, Competition.
      1. F. Knight*, The Economic Organization, Chapt. 2.
      2. O. Lange**, “On the Economic Theory of Socialism,” in Lange and Taylor, On the Economic Theory of Socialism, pp. 72-86.
        Also reprinted in M. Bornstein (ed.) Comparative Economic Systems.
      3. F. Bator**, “The Simple Economics of Welfare Maximization”, American Economic Review, March, 1957.
      4. T. C. Koopmans, Three Essays on the State of Economic Science, Essay I.
      5. F. Hayek*, “The Use of Knowledge in a Society,” American Economic Review, Sept. 1945.
      6. J. Schumpeter, “The Process of Creative Destruction”, Chapt. 7 in Capitalism, Socialism, and Democracy.
      7. J. K. Galbraith*, “The Economics of Technical Development”, Chapt. 7 in American Capitalism.
      8. J. M. Clark*, Competition as a Dynamic Process, Chapt. 4.
      9. F. M. Scherer*, Industrial Market Structure and Economic Performance, Chapt. 2.

Oct. 2,9

    1. Sources and Consequences of Monopoly Power.
      1. Scherer*, Industrial Market Structure and Economic Performance, Chapts. 3, 4, & 17.
      2. A. Harberger*, “Monopoly and Resource allocation,” AER, May 1954.
      3. O. Williamson*, “Economies as an Antitrust Defense,” AER, March 1968.
      4. H. Liebenstein*, “Allocative Efficiency vs. X-Efficiency,” AER, June, 1966.
      5. J. Bain, “Economies of Scale, Concentration and Conditions of Entry in Twenty Manufacturing Industries,” AER 1954.
      6. F. Modgliani, “New Developments on the Oligopoly Front,” JPE June 1958.
      7. G. Stigler*, “A Theory of Oligopoly,” JPE, Feb. 1964.
      8. J. K. Galbraith, The New Industrial State, Chapts. 1-3.
      9. Mason and Kaysen essays*, in E. Mason (ed.) The Corporation and Modern Society.
      10. J. Markham*, “An Alternative Approach to the Concept of Workable Competition,” in AEA Readings in Industrial Organization and Public Policy, (Heflebower and Stocking, eds.).
      11. Scherer*, Chapts. 18-22.

Note—a most detailed examination of Anti-trust and Regulation will be undertaken in Econ 140-b.

Oct. 9
and an
evening
discussion

    1. Externalities and Public Goods, Public Choice.
      1. F. Bator**, “The Anatomy of Market Failure,” QPE, August 1958.
      2. R. Coase*, “The Problem of Social Cost,” Jour. of Law and Economics, October, 1960.
      3. H. Demsetz*, “The Exchange and Enforcement of Property Rights” Jour. of Law and Econ., 1964.
      4. E. Mishan, “The Postwar Literature on Externalities” JEL, March 1971.
      5. C. Tiebout, “A Pure Theory of Local Public Expenditure” JPE, Oct. 1956.
      6. J. Buchanan*, “An Economic Theory of Clubs,” Economica, Feb. 1965.
      7. M. Olsen**, The Logic of Collective Action.
      8. A. Downs, An Economic Theory of Democracy, Part 1.
      9. Buchanan & Tullock*, The Calculus of Consent, Chapt. 6.
      10. Prest and Turvey*, “Cost-Benefit Analysis: A Survey,” Jour., Dec., 1955, –also in Survey of Economic Theory III.
      11. P. Steiner, “The Public Sector and The Public Interest” in Haveman & Margolis (eds.) Public Expenditures and Policy Analysis.
  1. More Complex Models of Organizational Behavior.

Oct. 16

    1. Organizational Goals.
      1. W. Baumol**, Business Behavior, Value and Growth, Ch. 1, 2, 4-8.
      2. O. Williamson*, “Managerial Discretion and Business Behavior”, AER, December, 1963.
      3. R. Marris*, “A Model of Managerial Enterprise,” QJE, May, 1963.
      4. J. Williamson, “Profits, Growth and Sales Maximization”, Economica, Feb. 1966.
      5. Kamerschen, “Ownership and Control and Profit Rates,” AER, June 1968.
      6. Marris and Wood (eds.) The Corporate Economy.

Oct. 23

    1. The Firm as an Organization: Behavioral Theory.
      1. R. Coase*, “The Nature of the Firm,” reprinted in Stigler and Boulding (eds.), Readings in Price Theory.
      2. Alchian and Demsetz, “Production, Information Costs and Economic Organization” AER, Dec. 1972.
      3. H. A. Simon, “A Comparison of Organization Theories,” in Models of Man.
      4. O. E. Williamson, “Hierarchical Control and Optimum Firm Size,” JPE, April 1967.
      5. H. A. Simon*, “Theories of Decision Making in Economics and Behavioral Science, AER June 1959.
      6. H. A. Simon, “A Behavioral Model of Rational Choice,” in Models of Man.
      7. J. March and H. Simon, Organizations.
      8. R. Cyert and J. March*, A Behavioral Theory of the Firm, Chaps. 1-8 (browse, 10.
      9. J. P. Crecine, Governmental Problem Solving (browse).
      10. F. Machlup*, “Theories of the Firm, Marginalist, Behavioral Management”, AER, March 1967.
      11. M. Schubik, “A Curmudgeon’s Guide to Microeconomics”, Journal of Economic Literature, June 1970.

Oct. 30

    1. Sector Models Compatible With Behavioral Organization Theories
      1. A. Alchian*, “Uncertainty, Evolution, and Economic Theory,” JPE, June 1950.
      2. G. Becker, “Irrational Behavior and Economic Theory,” JPE, Feb. 1962.
      3. S. Winter*, “Natural Selection and the Theory of the Firm”, Yale Economic Essays, Spring, 1964.
      4. H. Simon and C. Bonini, “The Size Distribution of Business Firm,”, AER Sept. 1958.
      5. Davis, Demster, Wildavsky*, “A Theory of the Budgetary Process,” American Political Science Review, Sept. 1967.
  1. Micro Economic Organization in a Dynamic World.

Nov. 6

    1. Schumpeterian Competition.
      1. J. Schumpeter*, The Theory of Economic Development, Chapts. 1 and 2.
      2. H. Simon*, “The Science of Design,” Chapt. 3 in The Sciences of the Artificial.
      3. H. Simon and J. March Organizations, Chapt 3.
      4. S. Winter*, “Satisficing, Selection, and the Innovating Remnant,” QJE, 1971, May.
      5. E. Mansfield, “Entry, Gibrat’s Law, Innovation, and the Growth of Firms,” AER, December, 1962.
      6. R. Nelson*, “Issues and Suggestions for the Study of Industrial Organization in a Regime of Rapid Technical Change,” in V. Fuchs (ed.) Policy Issues and Research Suggestions in Industrial Organization.
      7. A. Phillip*, Technical Change and Market Structure, Chapts. 1 and 8.
      8. W. Baumol, “Entrpreneurship and Economic Theory”, AER May 1968

Nov. 13
and an evening
session

    1. R&D and Technical Change.
      1. R. Nelson, M. J. Peck, and E. M. Kalachek*, Technology, Economic Growth and Public Policy, Chapters 2-5.
      2. F. Scherer, Chap. 15.
      3. R. Nelson (ed.)*, The Rate and Direction of Inventive Activity, Part D.
      4. Jacob Schmookler, Invention and Economic Growth, Harvard, 1966, Chapter 11.
      5. E. Mansfield, Industrial Research and Technological Innovation, Chapters 2, 5, 7, 8, 9.
      6. J. Jewkes, P. Sawers, and R. Stillerman, The Sources of Invention, St. Martin’s Press, 1958. Part I.
      7. Zvi Griliches*, “Hybrid Corn: An Exploration in the Economics of Technological Change,“ Econometrica, Oct. 1957.
      8. J. Coleman, E. Katz, and H. Menzel*, “The Diffusion of an Innovation Among Physicians,” Sociometry, December, 1959.
      9. Werner Hirsch*, “Manufacturing Progress Functions,” Review of Economics and Statistics May 1952.
      10. R. Vernon*, “International Investment and International Trade in Product Cycles”. QJE, May 1966.
      11. L. B. Mohr, “Determinants of Innovation in Organizations” American Political Science Review 1969.
  1. The Policy Issues Revisited.

Nov. 20

    1. Value Articulation, Demand Generation, Monitoring of Supply.
      1. C. E. Lindblom, The Policy Making Process (Browse).
      2. A. Wildavsky*, The Budgetary Process (Browse).
      3. T. J. Lowi, The End of Liberalism, (particularly Chap. 5).
      4. C. Schultze*, Politics and Economics of Public Spending.
      5. A. Rivlin, Systematic Thinking for Social Action.
      6. A. Wildavsky*, “The Political Economy of Efficiency”, Public Administration Review, Dec. 1966.
      7. A. Hirschman, Exit, Voice and Loyalty.

Nov. 27

    1. Command and Control of Non Market Supply.
      1. G. Allison*, “Models and the Cuba Missile Crisis,” Am. Polit. Sci. Review, Summer, 1969.
      2. A. Downs, Inside Bureaucracy.
      3. W. Niskanen*, Bureaucracy and Representative Government.
      4. H. Kaufman, The Forest Ranger, Chapts. 1, 2, 7.
      5. A. Downs*, “Competition and Community Schools,” in his Urban Problems and Prospects.
      6. J. Newhouse, “Towards a Theory of Non-Profit Institutions: An Economic Model of a Hospital,” AER, March 1970.
      7. Nelson & Krashensky*, “Some Questions Regarding Economic Organization: The Case of Day Care for Children” Mimeo.

Dec. 4
and an evening
session

    1. The Dynamics of Change.
      1. L. Davis and D. North*, Institutional Change and American Economic Growth, Part I.
      2. C. E. Lindblom, The Intelligence of Democracy. Chaps. 1, 2, 9.
      3. T. Schelling*, The Strategy of Conflict, Chap. 2 & 3.
      4. A. Kahn*, “The Tyranny of Small Decisions,” Kyklos, 1966.
      5. V. Goldberg*, “Institutional Change and the Quasi-Invisible Hand”, Mimeo.
      6. Edwards, Reich, and Weisskopf, The Capitalist System.
      7. E. Dunn, Economic and Social Development.

 

Source: From the personal papers of Irwin Collier.

Image Source: From the Nelson Fest, October 2000.

 

Categories
Harvard Statistics Suggested Reading Syllabus

Harvard. Graduate Econometrics. Chipman 1953

 

John S. Chipman was born in Montreal, Canada, in 1926. He received his Ph.D. from the Johns Hopkins University in 1951, and taught at the University of Minnesota from 1955 to his retirement as Regents’ Professor in 2007. Before going to Minnesota, Chipman was assistant professor of economics at Harvard from 1951-55.

John Chipman’s graduate course in econometrics (Note: apparently the first time “econometrics” had ever been listed as the course name at Harvard) followed his graduate course on “General Interdependence Systems”  that was taught in the spring term 1952 (a.k.a. “Mathematical Economics” according to the enrollment data for that year). 

____________

Course Enrollment

[Economics] 215 Econometrics. Assistant Professor Chipman. Half course.

(Fall) Total 6: 5 Graduates, 1 Other.

Source: Harvard University. Report of the President of Harvard College 1953-1954, p. 100.

____________

Course Syllabus
Economics 215

HARVARD UNIVERSITY
Department of Economics
Fall Term, 1953-54

Text: Klein, A Textbook of Econometrics; Supplementary text: Hood and Koopmans, Studies in Econometric Method.

(N.B. Numbers in brackets refer to References following the Outline).

OUTLINE

1. SPECIFICATION

The construction of models, choice of variables; collinearity; concepts of structure and reduced form; aims and purposes of econometrics.

Jacob Marschak, “Economic Measurements for Policy and Prediction,” [3, Ch. I].

Haavelmo [2].

Stone [8].

Tinbergen [10, 9].

Marschak, “Statistical Inference in Economics: An Introduction,“ [6, Ch. I].

Tintner [12, Ch. I].

Arthur F. Burns and Jacob Marschak, “Mitchell on What Happens During Business Cycles,” [7, pp. 3-33].

Tinbergen and Koopmans, “Reformulation of Current Business Cycle Theories as Refutable Hypotheses,” [7, pp. 131-145].

Frisch [1].

Koopmans [5].

Tinbergen [11].

Koopmans, “Measurement Without Theory,” Review of Economic Statistics, Vol. 29, 1947.

Koopmans and Vining, “Methodological Issues in Quantitative Economics”, Review of Economics and Statistics, Vol. 31, 1949.

G.H. Orcutt and Others, “Toward Partial Redirection of Econometrics,” Review of Economics and Statistics, August 1952.

G.H. Orcutt, “Actions, Consequences, and Causal Relations,” Review of Economics and Statistics, November 1952.

Klein [4, Ch. I].

 

2. IDENTIFICATION

The problem of determining parameters of a system of structural equations given the parameters of the reduced form equations.

Koopmans, “Identification Problems in Economic Model Construction” [3, Ch. II].

Klein, [4, Ch. III, Sec. 3].

Simon, “Causal Ordering and Identifiability” Klein, [3, Ch. III].

Koopmans and Reiersøl, “The Identification of Structural Characteristics,” [C.C.P. no. 39]

Koopmans, Rubin, and Leipnik, “Measuring the Equation Systems of Dynamic Economics,” [6, Ch. II, Sec. 3].

Hurwicz, “Generalization of the Concept of Identification” [6, Ch. IV].

 

3. ESTIMATION

Point estimation of reduced-form parameters and structural parameters; statistical independence of observations in time series and cross-section data; assumptions of normality in joint distribution of disturbances; principles of estimation; maximum likelihood, limited information, least squares.

Klein [4, Ch. III].

Koopmans and Hood, “The Estimation of Simultaneous Linear Economic Relationships,” [3, Ch. VI].

Koopmans, Rubin, and Leipnik, “Measuring the Equation Systems of Dynamic Economics,” [6, Ch. II, Sec. 3].

Haavelmo, “Methods of Measuring the Marginal Propensity to Consume,” [3, Ch. IV].

Girshick and Haavelmo, “Statistical Analysis of the Demand for Food,” [3, Ch. V].

Anderson and Rubin [C.C.P., No. 36].

D. Cochrane and G.H. Orcutt, “Application of Least Squares Regression to Relationships Containing Auto-Correlated Error Terms,” Journal of the American Statistical Association, March 1949.

G.H. Orcutt and D. Cochrane, “A Sampling Study of the Merits of Autoregressive and Reduced Form Transformations in Regression Analysis,” Journal of the American Statistical Association, September 1949.

Anderson and Anderson [C.C.P. No. 42].

Klein [4, Ch. V].

F.N. David and J. Neyman, “Extension of the Markoff Theorem on Least Squares,” Statistical Research Memoirs, Volume II, December 1938.

T.W. Anderson, “Estimation of the Parameters of a Single Equation by the Limited-Information Maximum-Likelihood Method” [6, Ch. IX].

Chernoff and Rubin, Asymptotic Properties of Limited-Information Estimates Under Generalized Conditions,” [3, Ch. VII].

Jean Bronfenbrenner, “Sources and Size of Least-Squares Bias in a Two-Equation Model,” [3, Ch. IX].

 

4. VERIFICATION

Interval estimation and testing of hypotheses.

Klein [4, Ch. 3, Sec. 6].

Haavelmo [2, Ch. IV].

Carl Christ, “A Test of an Econometric Model for the United States, 1921-1947,” [7, pp. 35-129].

Anderson [C.C.P. No. 50].

Tinbergen [10].

 

5. PREDICTION

Conditional and unconditional prediction; relationship between prediction and policy.

Klein [4, Ch. VI].

Haavelmo [2, Ch. VI].

Hurwicz, “Prediction and Least Squares,” [6, Ch. VI].

Tinbergen [11].

REFERENCES

1. PRINCIPLES

Books and Monographs:

[1] Frisch, Ragnar: Statistical Confluence Analysis by Means of Complete Regression Systems, Oslo, Universitets Økonomiske Institut, 1934.

[2] Haavelmo, Trygve: “The Probability Approach in Econometrics,” Econometrica, Vol. 12 (Supplement), July 1944.

*[3] Hood, Wm.C., and Koopmans, T.C., (ed.): Studies in Econometric Method, Cowles Commission Monograph No. 14, New York, Wiley, 1953.

*[4] Klein, L.R.: A Textbook of Econometrics, Evanston, Illinois, Row, Peterson and Co., 1953.

[5] Koopmans, T.C.: Linear Regression Analysis of Economic Time Series, Haarlem, De Erven F. Bohn N.V., 1937.

[6] Koopmans, T.C. (ed.): Statistical Inference in Dynamic Economic Models, Cowles Commission Monograph No. 10, New York, Wiley, 1950.

[7] National Bureau of Economic Research: Conference on Business Cycles, New York, 1951.

[8] Stone, Richard: The Role of Measurement in Economics, Cambridge University Press, 1951.

[9] Tinbergen, Jan: Econometrics, Philadelphia, Blakiston, 1951.

[10] Tinbergen, Jan: Statistical Testing of Business Cycle Theories, Geneva, League of Nations, 1939.

[11] Tinbergen, Jan: On the Theory of Economic Policy, Amsterdam, North-Holland Publishing Co., 1952.

[12] Tintner, Gerhard: Econometrics, New York, Wiley, 1952.

Cowles Commission Papers (New Series):

No. 36. T.W. Anderson and Herman Rubin, Two Papers on the Estimation of the Parameters of a Single Equation in a Complete System of Stochastic Equations, Annals of Mathematical Statistics, Volume 20, 1949 and Volume 21, 1950.

No. 39. Olav Reiersøl and Tjalling C. Koopmans, Three Papers on Identification Problems, Psychometrica, Volume 15, 1950; Annals of Mathematical Statistics, Vol. 21, 1950; and Econometrica, Vol. 18, 1950.

No. 42. R.L. Anderson and T.W. Anderson, “Distribution of the Circular Serial Correlation Coefficient for Residuals from a Fitted Fourier Series,” Annals of Mathematical Statistics, Volume 21, 1950.

No. 50. T.W. Anderson, “Estimating Linear Restrictions on Regression Coefficients for Multivariate Normal Distributions,” Annals of Mathematical Statistics, Volume 22, 1951.

 

2. APPLICATIONS

Klein, L.R.: Economic Fluctuations in the United States, 1921-1941, Cowles Commission Monograph No. 11, New York, Wiley, 1950.

Schultz, Henry: The Theory and Measurement of Demand, Chicago, University of Chicago Press, 1938.

Wold, Herman: Demand Analysis; A Study in Econometrics, New York, Wiley, 1953.

 

3. SUGGESTED STATISTICAL REFERENCES

Mood, A.M., Introduction to the Theory of Statistics, New York, McGraw Hill, 1950.

Kendall, M.G.: The Advanced Theory of Statistics, 2 vols., London, Charles Griffin and Co., 1943, 1946.

Wilks, S.S.: Mathematical Statistics, Princeton, Princeton University Press, 1947.

 

Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 6, Folder “Economics 1953-1954, (2 of 2)”.

Image Source: September 1961 entry card for John Somerset Chipman (b. 28 June 1926 in Montreal).  Rio de Janeiro, Brazil, immigration Cards, 1900-1965 at ancestry.com.