Harvard. Syllabus and final exam for National Income and its Distribution. Conrad, 1958

 

 

For this post I have transcribed the syllabus with reading assignments together with the final exam questions for Alfred H. Conrad’s undergraduate semester course, “National Income and its Distribution,” taught at Harvard during the 1958-59 academic year. As utterly important as the national income accounts have proven themselves to be, the data from these accounts are generally just taken for granted by the overwhelming majority of economists and woe be the instructor who tries to introduce such material in more than one or two sessions in their macroeconomics course. But I have always liked the stuff and so this course enters the Economics in the Rear-view Mirror collection.

While I can recall having heard of his pioneering econometric work on American slavery with John R. Meyer in an American economic history course I took many decades ago at Yale, I really knew nothing about Conrad’s career, other work, or his personal life. The biographical data from the members’ survey of the American Economic Association are undoubtedly the truth, but not the whole truth, which is why I have provided the link to his New York Times obituary and a story about his wife, the poet Adrienne Rich. Suicide sadly cut his career short but I am happy to enter these few artifacts into the historical record in his memory.

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On Alfred H. Conrad and his wife, poet, Adrienne Rich

New York Times obituary for Alfred H. Conrad: October 20, 1970.

The Guardian article “Poet and Pioneer” by John O’Mahoney (15 June 2002) that provides a review of the work of Conrad’s wife, the poet Adrienne Rich, with a dozen paragraphs about their lives together.

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American Economic Association
Member Biographic Entry, 1969

CONRAD, Alfred Haskell, academic; b. New York City, 1924; A.B., Harvard, 1947, M.A., 1949, Ph,D., 1954.

DOC. DIS. The Redistribution of Income and the Matrix Multiplier, 1953.

FIELDS 2ab, 3ab, Ic.

PUB. The Economics of Slavery and other studies in econometric history (with John R. Meyer), 1964; The Impact of Education and Research on Efficiency in CES Production Relations (with Murray Brown), 1967; Econometric Models and Development Planning, 1968.

RES. The Diffusion of Technological Innovations.

Asst. prof., Northwestern, 1955-56; asst. prof. econ., Harvard, high, 1956-59, mem. sr. research staff, Econ. Research Project, 1952-59, lectr. bus. adm., 1959-61, asso. prof. bus. adm., Grad. Sch., 1962-66; vis. prof., Netherlands Sch. Econ., 1961-62; prof. econs., City Coll., City U. of New York since 1966, exec. officer of Grad. Program since 1969.

Source: American Economic Association. Biographical Listings of Members. The American Economic Review, Vol. 59, No. 6, 1969. Handbook of the American Economic Association (Jan., 1970), p. 84.

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Course Description

Economics 124. National Income and its Distribution

Half course (fall term). M., W., F., at 10. Assistant Professor Conrad.

Measurement of national income and income inequality; theories of distribution among factors and individuals; factor-shares and inequality in a general equilibrium explanation; inequality and growth in mature and in underdeveloped economies; government redistribution; testing the hypotheses.

Source: Official Register of Harvard University, Vol. LV, No. 24 (November 28, 1958), General Catalogue Issue, 1958-1959, p. 123.

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Course Enrollment

[Economics] 124. National Income and its Distribution. Assistant Professor Conrad. Half course (Fall).

Total, 12: 3 Seniors, 7 Juniors, 1 Sophomores, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1958-59. Page 71.

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Economics 124
NATIONAL INCOME AND ITS DISTRIBUTION
Fall, 1958

1. National Income and Social Accounting.
   1. Introduction; conceptual framework for income accounting.

The definition and measurement of national income. Income inequality, growth, and ethical norms. The production accounts of the firm and the income accounts of the economy.

Readings:

Readings in the Theory of Income Distribution, Kuznets, “National Income,” pp. 3-33.
Ruggles and Ruggles, National Income Accounts and Income Analysis, Chs. 1-4, pp. 3-68.
Hicks, Hart, and Ford, Social Framework of the American Economy, Chs. 16, 17, pp. 209-234.

1. 2. The construction of the national income accounts.

The problems of valuation and aggregation.

Readings:

Ruggles and Ruggles, Chs. 5-8, pp. 69-186.
U.S. Dept. of Commerce, National Income, 1954 Edition, pp. 30-60, 160-165.
Hicks, Hart, and Ford, Ch. 15, pp. 198-208.

1. 3. Two special problems.

Maintaining capital intact.
The product of government.

Readings:

Hicks, Hart, and Ford, Ch. 10 and Appendix Note C, pp. 117-130, 296-300, and Ch. 13, pp. 173-185.

Reference:

Income and Wealth, Series I, ed. E. Lundberg, “Government Product and National Income” (Kuznets), pp. 178-245.

1. 4. A review of aggregate income trends and analysis.

Readings:

Ruggles and Ruggles, Chs. 10-12, pp. 213-303.
Income and Wealth, Series II, ed. S. Kuznets, “Long-Term Changes in the National Income of the United States Since 1870” (Kuznets), pp. 29-241. This study should be read by the time we reach section 8, below—not later than November 14.

2. The Theory of Income Distribution.
   5. Introduction; income distribution in economic analysis.

Readings:

Readings, J. M. Clark, “Distribution,” pp. 58-71.
M. A. Copeland, “Social and Economic Determinants of the Distribution of Income,” AER, March 1947, pp. 56-75.

1. 6. The distribution of the product among the factors of production.

The classical descriptions and Marx.
The marginalists.
Market position and monopoly; the effectiveness of unions.
General equilibrium and employment theories.

Readings:

Ricardo, Principles of Political Economy, Chs. 4, 5, 6, pp. 88-127 (Sraffa edition).
Sweezy, Theory of Capitalist Development, Chs. 4, 5, pp. 56-95.
Hicks, Theory of Wages, Chs. 1-5, pp. 1-111.
The Impact of the Union (ed. Wright), Samuelson, Ch. 15, pp. 312-342, and Friedman, Ch. 10, pp. 204-234.
Readings, R.A. Gordon, “Enterprise, Profits, and the Modern Corporation,” pp. 558-570.
L. C. Reynolds, “Impact of Collective Bargaining on Wage Structure,” Theory of Wage Determination, ed. J. T. Dunlop, pp. 194-221.

Reference:

Dalton, The Inequality of Incomes, esp. Parts II and III.
Douglas, Theory of Wages, esp. Part I and Ch. 8.
Wootton, The Social Foundations of Wage Policy.
Readings in the Theory of Income Distribution.

1. 7. The distribution of income among individuals.

The possession of skills and property.
Normal curves, Pareto’s Law, and chance.

Readings:

Studies in Income and Wealth, Volume XV, Garvy, “Inequality of Income; Causes and Measurement,” pp. 25-47.
A. D. Roy, “The Distribution of Earnings and of Individual Output,” Econ Journal, Sept. 1950, pp. 489-505.
A. D. Roy, “Some Thoughts on the Distribution of Earnings,” Oxford Econ Papers, 1951, pp. 135-

Reference:

Dalton, Part IV.

1. 8. The data on functional and personal distribution of income in the U.S.

Readings:

D. G. Johnson, “Functional Distribution of Income in the U.S.,” RES, May 1954, pp. 175-183.
G. H. Moore, “Secular Changes in the Distribution of Income,” AER, Papers and Proceedings, May 1952, pp. 527-544.
E. F. Denison, “Income Types and the Size Distribution,” AER, Papers and Proceedings, May 1954, pp. 254-269.
S. Goldsmith, et al, “Size Distribution of Income since the Mid-Thirties,” RES, February 1954, pp. 1-32.
H. Miller, Income of the American People, Chs. 3, 8, 9, pp. 16-33, 97-123.

References:

U. S. Dept. of Commerce, Income Distribution in the United States, Washington, 1953.
Kuznets, Shares of Upper Income Groups in Income and Savings.
M. J. Bowman, “A Graphical Analysis of Personal Income Distribution in the United States,” Readings, pp. 72-99.

III. [No section title]

1. 9. Income Inequality and Growth

Income, consumption and investment.
Technical change, capital formation, and income shares.
Income shares and industrial structure.

Readings:

Baumol, Economic Dynamics, Chs. 2, 3, pp. 11-35.
Duesenberry, “Income-Consumption Relations and their Implications,” in Income, Employment, and Public Policy, pp. 54-81.
Kurihara, “Distribution, Employment, and Secular Growth,” in Post-Keynesian Economics, Ch. 10, pp 251-273.
Kuznets, “Economic Growth and Income Inequality,” AER, March 1955, pp. 1-28.
Hicks, Theory of Wages, Ch. 6, pp. 112-135.
E. H. Phelps-Brown, “The Long-Term Movement of Real Wages,” in Theory of Wage Determination, ed. J. T. Dunlop, pp. 48-65.

Reference:

F. A. Hanna, “Contribution of Manufacturing Wages to Regional Differences in Per-Capita Income,” RES, February 1951.

1. 10. Inflation and Income Inequality.

Readings:

Keynes, “Social Consequences of Changes in the Value of Money,” Essays in Persuasion, pp. 80-104.
Bach and Ando, “Redistributional Effects of Inflation,” RES, February 1957, pp. 1-13.

Reference:

D. Seers, Changes in the Cost of Living and the Distribution of Income, Oxford, 1949.
Joint Committee on the Economic Report, Low-Income Families and Economic Stability, 1949.

1. 11. The State and the Distribution.

Who pays the taxes?
Redistribution through public expenditures.

Readings:

Conrad, “Redistribution through Government Budgets in the U.S.,” in Income Redistribution and Public Policy, pp. 178-267.
Conrad, “On the Calculation of Tax Burdens,” Economica, November 1955, pp. 342-348.

1. 12. Conclusion.

Readings:

Kuznets, in Studies in Income and Wealth, Volume XV, pp. 203-213.
Tinbergen, “Welfare Economics and Income Distribution,” AER, Papers and Proceedings, May 1957, pp. 490-503.

Reference:

Lampman, “Recent Thoughts on Egalitarianism,” QJE, May 1957, pp. 234-266.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 7. Folder “Economics, 1958-1959 (1 of 2)”.

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HARVARD UNIVERSITY
ECONOMICS 124
FINAL EXAMINATION
January 16, 1959

Answer Question 1 and any four others.

1. (a) or (b):

(a) The Council of Economic Advisers, in their report to the President in January, 1953, stated:

“…the preferable general formula—once wages, prices and profits are in a workable relationship—is for money wages to increase with productivity trends in the whole economy.”

Discuss this suggestion in the light of your reading period assignment, bringing in relevant recent data on the effect of inflation upon factor shares to illustrate your argument.

(b) Describe briefly the law of proportional effect and discuss its application to the income generating process. Be careful to consider the economic relevance of the conditions and results of the statistical model.

2. Describe the tendencies toward a falling rate of profit in (1) the “classical”, (2) the Marxian, and (3) neo-classical description of capital accumulation. How would the possibility of technological change affect this tendency?
3. Who are the poor in the post-World War II United States?
4. You are hired as a technical expert on national income accounts to advise a country in which economists, among other basic resources, are in short supply. In detail, discuss the statistics you will need to answer the following questions: (1) who saves? (2) what has been the trend the savings/income ratio?
5. “One might thus assume a long swing in the inequality characterizing the secular income structure: widening in the early phases of economic growth when the transition from the pre-industrial to the industrial civilization was most rapid; becoming stabilized for awhile; and then narrowing in the later phases.” Write a concise explanation, in outline form if you like, for the declining inequality suggested here.
6. How would you reconcile the marginal productivity theory of wages (as presented, say, by Hicks) with the collective bargaining explanation of Lloyd Reynolds or the inertia-displacement theory of Phelps Brown? You may include in your argument any other readings that seem to be relevant.

 

Source: Harvard University Archives. Social Sciences. Final Examinations, January 1959. (HUC7000.28, 122 of 284). Papers Printed for Final Examinations. History, Government, Economics, …, Naval Science, Air Science. January, 1959.

Image Source: Simon Guggenheim Memorial Foundation. Fellows page for Alfred Haskell Conrad.