Reading assignments in the first year core economic theory course taught by Edward Chamberlin at Harvard University in 1941-42 included some of the golden ‘oldies of David Ricardo, John Stuart Mill, John Elliott Cairnes, John Bates Clark, and Alfred Marshall. Works by Joan Robinson, John Hicks and, of course, Chamberlin himself provided modern accents to the economic theory taught in the course.
Edward Chamberlin’s syllabus and final year-end exam for his 1938-39 version of core economic theory were posted earlier as have been the syllabus and both semester final exams for 1946-47.
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Economic Theory.
Edward Hastings Chamberlin
Course Enrollment
[Economics] 101. Professor Chamberlin. – Economic Theory.
Total 53: 9 Graduates, 7 Radcliffe, 8 School of Public Administration.
Source: Harvard University. Report of the President of Harvard College, 1941-42, p. 63.
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Course Description
[Economics] 101. – Economic Theory.
This course aims to provide a general background in economic theory. Leading problems in value and distribution will be discussed with some reference to particular writers and schools of thought, but with the main objective of training the student in economic analysis. Active participation in the class discussions is expected.
Source: Identical descriptions in the Division of History, Government, and Economics announcements for 1940-41 and 1942-43.
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Economics 101
1941-42
First Semester
I. Mill – Principles, Book II, chapter 4; Book III, chapters 1, 2.
Chamberlin – Monopolistic Competition, chapters 1, 2.
Mill – Principles, Book III, chapters 3, 5, 6.
Marshall – Principles, pp. 348-50; p. 806 note.
Mill – Principles, Book III, chapter 4.
Suggested Reading:
Introduction to the Ashley ed. of Mill, or
Ricardo – Political Economy (Gonner edition), chapter 1.
II. Boehm-Bawerk – Positive Theory of Capital, Books III, IV.
Marshall – Principles, Appendix I.
Wicksell – Lectures on Political Economy, chapter 1.
Suggested Reading:
Jevons – Theory of Political Economy, chapters 3, 4.
Phelps-Brown– The Framework of the Pricing System, chapter 2.
III. Hicks – Value and Capital, chapters 1, 2.
IV. Marshall – Principles, Book V, chapters 1-5; Book IV, chapter 13; Book V, chapters 8, 9, 10, 12; Appendix H.
Knight, F. H. – “Cost of Production and Price over Long and Short Periods”, Journal of Political Economy, Vol. 29, p. 304 (1921). (Reprinted in Knight, The Ethics of Competition and Other Essays, Chapter 8).
Viner – “Cost Curves and Supply Curves,” Zeitschrift für Nationalökonomie, 1931.
Chamberlin – Monopolistic Competition, Appendix B.
Suggested Reading:
Additional reading in Marshall.
Keynes – “Alfred Marshall” – Economic Journal, September 1924. (Also in Keynes, Essays in Biography.)
Sraffa – “The Laws of Returns under Competitive Conditions,” Economic Journal, Vol. 36, p. 535 (1926).
Taussig, F. W. – “Price Fixing as Seen by a Price Fixer,” Quarterly Journal of Economics, Vol. 33, p. 205.
V. Chamberlin – Monopolistic Competition, chapter 3.
Abramovitz – “Monopolistic Selling in a Changing Economy”, Quarterly Journal of Economics, Vol. 52, p. 191 (1938).
Suggested Reading:
Zeuthen – Problems of Monopoly, chapter 2.
Monopolistic Competition, Appendix A.Problems of Monopoly and Economic Warfare
VI. Robinson – Imperfect Competition, Introduction, and chapters 1,2,3.
Chamberlin – Monopolistic Competition, chapters 4, 5; Appendices D, E.
Chamberlin – “Monopolistic or Imperfect Competition?”, Quarterly Journal of Economics, August, 1937.
Sweezy, P. M. – “On the Definition of Monopoly”, Quarterly Journal of Economics, Vol. 51, p. 362 (1937)
Cassels, J. M. – “Excess Capacity and Monopolistic Competition”, Quarterly Journal of Economics, Vol. 51, p. 426. (1937)
Suggested Reading:
Kaldor – “Professor Chamberlin on Monopolistic and Imperfect Competition”, Quarterly Journal of Economics, May, 1938: and Reply.
Robinson – Imperfect Competition, chapters 4, 5, 6, 7.
VII. Chamberlin – Monopolistic Competition, Appendix C.
Alsberg, C. L. – “Economic Aspects of Adulteration and Imitation”, Quarterly Journal of Economics, Vol. 46, p. 1 (1931).
Suggested Reading:
Hotelling, H. “Stability in Competition”, Economic Journal, Vol. 39, p. 41 (1929)
Lerner, A. P. and Singer, H.W. – “Some Notes on Duopoly and Spatial Competition”, Journal of Political Economy, Vol. 45, p. 145 (1937)
Burns, A.R. – The Decline of Competition, chapter VIII, “Non-Price Competition”.
Source: Harvard University Archives. Syllabi, Course Outlines and ReadingLists in Economics, 1895-2003. Box 2, Folder, “Syllabi, course outlines and reading lists in Economics, 1941-42.”
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1941-42
HARVARD UNIVERSITY
ECONOMICS 101
Mid-year examination, 1942.
Answer question 2 and any five of the others (six in all).
- What parts of Mill’s theory of value would be acceptable and what parts not acceptable to economic theory today?
- Answer either (a) or (b).
- What does utility theory contribute to our understanding of the economic process, and how useful do you think it is to the economist of 1942? Answer the same question for the indifference curve analysis.
- Discuss the following proposition: “An individual will maximize his total satisfaction or utility, if the marginal utilities of all commodities are equalized.”
- Distinguish between a supply curve and a cost curve. Under what conditions is it possible for either or both to fall from left to right? What are the consequences of such a phenomenon?
- Write a critical appraisal of Professor Viner’s article “Cost Curves and Supply Curves,” confining yourself to the subjects which seem to you most important. Compare his views where possible with those of other writers and with your own.
- What types of industries, if any, would you expect to find operating under conditions of increasing cost? Constant cost? Decreasing cost? Compare your own views with those of other writers with whom you are familiar.
- Discuss the difficulties involved in constructing a demand curve for the product of an individual firm where oligopolistic influences are important.
- What has monopolistic competition in common with pure competition? With monopoly? Discuss fully.
- Answer either (a) or (b).
- Discuss any aspect of the experimental market problem worked out in class which you think interesting or important.
- “With respect to quality there appears to be a sort of ‘Gresham’s Law’ for commodities: the inferior products tend to drive the better ones from the market.” Discuss.
Source: Harvard University Archives. Harvard University, Mid-year examinations 1852-1943. Box 15, Papers Printed for Mid-Year Examinations: History, History of Religions,…, Economics, …, Military Science, Naval Science. January-February, 1942.
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Economics 101
1941-42
Second Semester
I. Selling Costs:
Monopolistic Competition, Chapters 6, 7.
Braithwaite, Dorothea, “The Economic Effects of Advertisement,” Economic Journal, Vol. 38, p. 16 (1928). Reprinted as Chapter VII in Braithwaite and Dobbs, the Distribution of Consumable Goods.
II. Distribution – General:
Marshall, Principles, Book VI, Chapters 1-5.
Clark, J. B., Distribution of Wealth, Chapter 8.
Knight, Risk, Uncertainty and Profit, Chapter 4.
Chamberlin, Monopolistic Competition, Chapter 8.
Suggested Reading:
Garver & Hansen, Principles, Chapter 5.
Kahn, “Some Notes on Ideal Output” (last half) Economic Journal.
III. Wages:
Hicks, Theory of Wages, Chapters 1-7; 9; 10, section 1; 11, section 5.
Taussig, Principles, 3rd revised edition Chapter 47.
Robertson, Economic Fragments, Chapter on “Wage Grumbles.”
Suggested Reading:
Machlup, “The Common Sense of Elasticity of Substitution,” Review of Economic Studies, Vol. II, Page 202.
Cairnes, Leading Principles, Chapter 3.
IV. Interest:
Böhm-Bawerk, Positive Theory, Book I, chapter 2; Book II; Book V; Book VI, chapters 5, 6, 7; Book VII, chapters 1, 2, 3.
Fisher, Theory of Interest, pp. 473-85.
Marshall, Principles, Book IV, chapter 7; Book VI, chapter 1, sections 8, 9, 10, chapter 2, section 4, chapter 6.
Wicksell, Lectures, Vol. I, pages 144-171, 185-195, 207-218.
Clark, J. B., Distribution of Wealth, chapters 9, 20.
Schumpeter, Theory of Economic Development, chapters 1-5.
V. Rent:
Ricardo, Chapter 2.
Marshall, Book V, chapters 8, 9, 10, 11.
Robinson, Imperfect Competition, chapters 8, 9.
VI. Profits:
Marshall, Book VI, chapter 5, section 7; chapters 7, 8.
Taussig, Principles, 3rd revised edition, Vol. II, chapter 50, section 1.
Henderson, Supply & Demand, chapter 7.
Chamberlin, Monopolistic Competition, chapter 5, section 6; chapter 7, section 6; Appendices D, E.
Schumpeter, (see under Interest)
Berle and Means, The Modern Corporation, Book IV.
Gordon, R.A., “Enterprise, Profits and the Modern Corporation,” in “Explorations in Economics,” p. 306.
Suggested Reading:
Knight, Risk, Uncertainty and Profit.
VII. General:
Knight, The Ethics of Competition, Essay No. 11: “Economic Theory and Nationalism.”
Source: Harvard University Archives. Syllabi, Course Outlines and Reading Lists in Economics, 1895-2003. Box 2, Folder, “Syllabi, course outlines and reading lists in Economics, 1941-42.”
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1941-42
HARVARD UNIVERSITY
ECONOMICS 101
Final examination, 1942.
Write on FIVE questions altogether, four from Part A and one from Part B. Be careful to divide your time about evenly between the questions.
A
Write on FOUR questions from this group.
- What conflicts and harmonies of interest do you find between labor and the rest of society in the matter of wages, technical progress and efficiency? Discuss the issues involved with some reference to the economic theory of the subject.
- Describe and contrast the several most important types of interest theory which you have found in your reading, identifying them where possible with particular writers. State and defend your own theory of interest.
- The rent of land has been variously described as a scarcity return, a differential return, a surplus and a monopoly income. Discuss the issues presented by each of these terms and give your own conclusions.
- To what extent, if at all, do you believe it possible to explain profits in terms of the marginal productivity of the entrepreneurial factor? Discuss with some reference to issues raised in your reading on the subject of profits.
- What various meanings have been or may be given to the concept of “marginal productivity,” and under what conditions would each meaning be relevant? Discuss the circumstances under which all factors may be remunerated according to their marginal products without deficit or surplus.
B
Write on FOUR questions from this group.
- “Both prices and monopoly profits are necessarily increased by the presence of advertising.” Do you agree? Discuss critically.
- “From this it will appear that the law of increasing or decreasing economy of large-scale production, while sufficiently distinct from that of increasing or diminishing returns to warrant a difference of name, is yet very much like it.” (From Carver’s Distribution of Wealth) Discuss, giving your own conclusions on this set of issues.
- Discuss critically Knight’s essay on “Economic Theory and Nationalism” or any part or phase of it which interested you in particular.
Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. Box 6, Papers Printed for Final Examinations: History, History of Religions,…, Economics, …, Military Science, Naval Science. June, 1942.
Image Source: Edward Chamberlin in Harvard Class Album, 1939.