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.
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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]”.
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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”.
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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.
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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)”.
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Economics 201
Hour Exam
November 3, 1956
- Define “external” and “internal” economies. What do we mean when we say these economies are (a) “pecuniary,” (b) technological”? (10 min.)
- 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.)
- 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]”.
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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.
- (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.
- (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).
- (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.
- (One-half hour). Distinguish “internal” and “external” economies and analyze the possibility of equilibrium under pure competition in each case.
- (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.
- (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.
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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)”.
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HARVARD UNIVERSITY
Department of Economics
Economics 201
Final Examination
May, 1957
A. Choose two of the following questions, allowing one-half hour for each.
- 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.)
- 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?
- (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.
- “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.
- Develop the role which you would give to either (a) monopoly, or (b) rent, in your own theory of wages.
- “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.
- 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.)
- 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.