While unable to find the syllabus for Otto Eckstein’s public finance course, I was able to transcribe the mid-year and year-end exams for this year long graduate course taught at Harvard in 1961-1962. Generally the Harvard collection of course outlines and syllabi is fairly complete by that point in time. Perhaps the library copy was misfiled or taken home. In the end there are always missing observations.
_____________________________
Course Announcement
Economics 251. Public Finance.
Full course. M., W., (F.), at 10. Associate Professor [Otto] Eckstein
Source: Harvard University, Faculty of Arts and Sciences, Courses of Instruction 1961-1962 in Official Register of Harvard University, Vol. LVIII, No. 19 (August 28, 1961), p. 107.
_____________________________
Mid-year Examination
January 1962
HARVARD UNIVERSITY
Department of Economics
Economics 251
Answer All Questions.
(45 minutes each)
- What are the postulates of the “pure theory of public expenditures” of Samuelson? How does the theory differ from the voluntary exchange theory?
- Suppose you are asked to evaluate the scheme to build a tunnel from England to France for the British government, to aid the government in its decision. How would you do it? What data would you want? What criteria would you apply? What would be the limitations your analysis?
- How would you choose between consumption and income as the proper base for personal taxation? Contrast the actual Federal income tax base with your ideal.
- Suppose the U. S. Treasury were in a position to reduce tax revenues by, say, two billion dollars, either by reducing the personal income tax rates or the corporation income tax rates. If growth is the main objective, which tax change would you propose? How would you defend your proposal with economic knowledge and logic?
Source: Harvard University Archives. Papers Printed for Final Examinations [in] History, History of Religions,…, Economics, …, Naval Science, Air Science (January 1962) in Social Sciences, Final Examinations January 1962 (HUC 7000.28, vol. 137).
_____________________________
Year-End Final Examination
May 1962
HARVARD UNIVERSITY
Department of Economics
Economics 251
Answer 4 out 5 questions
(45 minutes each)
- Suppose the government had to choose between a general reduction in the personal income tax and an increase in expenditures to counteract a recession. What economic considerations would enter into the choice? What conclusions would you as an individual reach under the conditions of the early 1960’s?
- Neutrality is a criterion frequently applied in tax policy.
- What is the theoretical rationale of this criterion?
- Does the criterion apply to choices between excise and income taxes?
- How does it apply to the taxation of business income from foreign subsidiaries?
- How does it apply to the taxation of property?
- American grant-in-aid programs from the federal to state and local governments have followed few theoretical principles. Why have these programs grown in recent decades? Is there a case for instituting a system of unconditional grants in the U.S.? What are the arguments against it?
- What are the pros and cons of establishing unified governments for metropolitan areas?
- Variable depreciation allowances have frequently been advocated as an instrument of short-run policy. For example, the fraction of investment that is permitted to be written off in the first year could be varied by the Treasury. How would you evaluate such a proposal?
Source: Harvard University Archives. Papers Printed for Final Examinations [in] History, History of Religions,…, Economics, …, Naval Science, Air Science (June 1962) in Social Sciences, Final Examinations June 1962 (HUC 7000.28, vol. 140).
Image Source: Otto Eckstein, 1959 Fellow. John Simon Guggenehim Memorial Foundation.