The first theory course for economics graduate students around mid-20th century, Economics 201 (earlier 101), was taught most of the time by Edward Chamberlin. But in 1950-51 Chamberlin was on leave in France as a Fulbright Scholar and Gottfried Haberler taught the first year of theory instead.
New addition: Here is the link to the two semester final exams.
Somewhat peculiar is Haberler’s written intention to include Keynesian Economics together with Marxian Economics as the last item of his Fall semester course. However one can see that by the time the second semester rolled around, Haberler had decided to throw Marxian economics under the bus and Keynesian Economics then became the sole final theory to be discussed in his course. Also worthy of note are references to the recommended textbook treatments in German and French.
I’ll note here that the second year of theory, Economics 202, was usually taught by Wassily Leontief who, like Chamberlin, was also not listed in the course announcements for 1950-51 (he had been award a John Simon Guggenheim Memorial Foundation Fellowship for the year). Instead the second year course was taught by William Fellner from Berkeley (the syllabus for his undergraduate History of Economics course has been posted earlier). I’ll post the Fellner reading list for Economics 202 soon. Thus we see that Austro-Hungarian hands were rocking the cradle of baby economists at Harvard at the exact midpoint of the twentieth century.
The last time I saw my undergraduate mentor William Fellner was when he took me to lunch at the Mayflower Hotel in Washington, DC. in 1976 or 1977. He was accompanied by his American Enterprise Institute colleague Gottfried Haberler, who was William Fellner’s regular AEI lunch buddy. Only with this posting did I realize that the two of them overlapped 1950-51 at Harvard.
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If you find this posting interesting, here is the complete list of “artifacts” from the history of economics I have assembled. You can subscribe to Economics in the Rear-View Mirror below. There is also an opportunity for comment following each posting….
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[Course Description]
Economics 201 (formerly Economics 101a and 101b). Economic Theory
Full course. Tu., Th., and (at the pleasure of the instructor) Sat. at 10. Professor Haberler.
This course is normally taken by graduate students in their first year of residence.
Source: Harvard University. Official Register of Harvard University, Vol. XLVII, No. 23 (September 1950). Final Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences During 1950-51, p. 83.
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Fall Term, 1950
Economics 201 – Economic Theory
I. Introduction
“Scope and Method”
Types of Economic Theory
Historical Sketch
II. General Survey of The Economic Process
The Institutional Setting
Income Flows
System of Markets
III. Demand and Supply Analysis
Cost vs. Utility Theory of Value
Stability of Equilibrium
Some Formal Relationships
Demand and Supply Curves
Elasticity of Demand and Supply
Marginal, Average, Total Revenue
Marginal, Average, Total Cost
IV. Theory of the Household and Consumption
Utility Theory
Indifference Line Analysis
Complementarity and Substitution
Income Effects, Substitution Effects, Price Effects
Application of Indifference Line Analysis to Theory of Exchange
Measurability of Utility
Interpersonal Comparisons
Joint Demand
V. Theory of the Firm and Production
Cost Curves
Production Function
Marginal Productivity
Joint Supply
VI. Theory of Distribution
A. General
B. Theory of Wages
C. Theory of Rent
D. Theory of Interest and Capital: The Time Factor
E. Theory of Profits: Uncertainty
VII. Theory of Market Structures
Competition
Monopoly
Discriminating Monopoly
Monopolistic Competition and Imperfect Competition
Duopoly and Oligopoly
Bilateral Monopoly
Theory of Games
VIII. Welfare Economics
IX. Keynesian Economics, Marxian Economics
Bibliography and Reading Assignments
The literature on the subjects covered by this course is enormous and is growing rapidly, textbook literature as well as monographs and articles on special topics. No hard and fast assignment will be made but rather suggestions from which students should choose according to their individual needs and preparation.
General
The general texts coming nearest to covering the topics which are treated in the present course are:
Boulding, Economic Analysis (1st or 2nd edition)
Stigler, Theory of Price
In German:
Erich Schneider: Einführung in die Wirtschaftstheorie (Vol. I and II, Vol. III to appear later)
H. v. Stackelberg: Grundlagen der theoretischen Volkswirtschaftslehre
In French:
Jean Marchal: Cours d’Économie Politique (Vol. I) or (shorter and better) Le Mécanisme des Prix [et la Structure de l’Économie] (2nd ed.)
A. Marshall’s Principles is still indispensable
See also:
Survey of Contemporary Economics (Especially Ch. 1)
Readings in Economic Analysis (Ed., R. V. Clemence, 2 vols.)
Readings in the Theory of Income Distribution (Blakiston)
I. Introduction
Literature on “Scope and Method” is on the whole arid. Many texts have introductory chapters on those subjects (e.g., Stigler’s Theory of Price). Some reading on that subject along with, rather than prior to, the study of substantive problems is advisable.
Suggestions:
Readings Volume I, by Clemence, First two chapters
L. Robbins: Nature and Significance of Economic Science
J. N. (not M) Keynes: Scope and Method of Political Economy
O. Lange: “The Scope and Method of Economics,” in Review of Economic Studies, Vol. XIII(1), 1945-46
L. Robbins: “Live and Dead Issues in the Methodology of Economics,” Economica, New Series, Vol. V, 1938
L. Robbins: “The Economist in the 20th Century,” Economica, New Series, Vol. XVI, 1949.
F. Machlup: “Why Bother With Methodology?” Economica, New Series, Vol. III, 1936.
M. Friedman, “Lange on Price Flexibility and Employment: A Methodological Criticism,” A.E.R., Vol. 36, 1946.
T. C. Koopmans: “Measurement Without Theory,” R.E.Statistics, Volume 29, 1947.
(Review of Economic Statistics, Vol. 31, 1949, Criticism by Vining and reply by Koopmans)
Numerous writings by F. H. Knight deal with methodological questions. Most of them are collected in The Ethics of Competition and Freedom and Reform
T. W. Hutchison: Significance and Basic Postulates of Economic Theory (Positivistic)
Of older writers, Cairnes (Logical Method of Political Economy), N. W. Senior (Outline), and W. Bagehot (Postulates of English Political Economy) may be mentioned.
II. General Survey of Economic Process
Modern literature on National Income frequently presents graphic pictures of economic process as a whole. See Schneider, op.cit., Vol. I.
III. Demand and Supply Analysis
Henderson: Supply and Demand, Ch. 2
Marshall, Principles, Book V, Chs. 1, 2, 3, 4, 5, 8, 9, Appendix I
Mill, Principles, Book III, Chs. 1-4
Stigler, Chapter 4
Boulding, Parti I (See especially Appendix on Elasticity, p. 137)
J. Robinson: The Economics of Imperfect Competition, Ch. 2
IV. Theory of Household and Consumption
Hicks: Value and Capital, Part I
Boulding: 2nd ed., Chs. 29, 33
Stigler: Chapters 5 and 6
Relevant chapters in Marshall
Relevant chapters in Stackelberg and Schneider
Leontief, “The Pure Theory of the Guaranteed Annual Wage Contract,” J.P.E., February, 1946
V. Theory of the Firm and of Production
Hicks: Value and Capital, Chs. 6 and 7
Viner: “Cost Curves and Supply Curves,” reprinted in Readings in Economic Analysis, Vol. II
Boulding: Economic Analysis, new edition, Chs. 20, 21, 22, 23, 24, 31
Readings in the Theory of Income Distribution, Chs. 6, 5
Knight, Risk Uncertainty, and Profits, Ch. 4
Marshall, Principles, Book V, Ch. VI, “Joint and Composite Demand and Supply”
Lerner: The Economics of Control, Chs. 10-18
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Economics 201
Economic Theory — G. Haberler
Spring Term, 1951
I. Theory of Distribution
A. General
B. Wages
C. Rent
D. Interest
E. Profits
II. Welfare Economics
III. Theory of Market Structures
Perfect, pure, workable competition
Monopoly
Duopoly and Oligopoly
Bilateral Monopoly
IV. Keynesian Economics
Literature
I. Theory of Distribution
1. General
Boulding, Economic Analysis, Ch. 11
J. M. Clark, Distribution in Encyclopedia of The Social Sciences and Readings in Income Distribution.
Douglas, Theory of Wages, Part I
Marshall, Principoles, Book V., Ch. VI, “Joint Demand”
Further Suggested Reading:
Stigler, Production and Distribution Theories
J. B. Clark, The Distribution of Wealth
Douglas, “Are There Laws of Production?” A.E.R., Vol. 38, 1948
2. Wages
Hicks, Theory of Wages, Chs. 1-4
Readings in the Theory of Income Distribution, Ch. 12 (Robertson)
Lester-Machlup, Discussion on Marginal Analysis (A.E.R., 1946-47 and Readings in Economic Analysis, Vol. 2
Stigler, “The Economics of Minimum Wage Legislation,” A.E.R., 1949 and in Readings in Labor Economics
Keynes, General Theory, Chs. 1,2
Further Suggested Reading:
Douglas, Theory of Wages
Readings in Income Distribution, Chs. 14, 16, 17, 18, 19
Readings in Labor Economics
3. Rent
Robinson, Economics of Imperfect Competition, Ch. 8
Readings in Income Distribution, Chs. 31, 32.
4. Capital and Interest
Böhm-Bawerk, Positive Theory of Capital, Book I, Ch. II; Book II; Book V.
Wicksell, Lectures, Vol. I, pp. 144-218
Fisher, Part I, II, III, Chs. X, XI
Schumpeter, Theory of Economic Development, Chs. IV, VI
Readings in Income Distribution, Chs. 20, 21
Further Suggested Reading:
Metzler, “The Rate of Interest and the Marginal Product of Capital,” J.P.E., August 1950
Knight, “Interest,” in The Ethics of Competition and Encycloopaedia of the Social Sciences
Readings, Chs. 22, 23, 26
Hayek, The Pure Theory of Capital
5. Profits
Beddy James, Profits, Ch. X
Readings in Income Distribution, Chs. 27, 29.
Schumpeter, Theory of Economic Development
Further Suggested Reading:
Readings, Ch. 30
Knight, Risk, Uncertainty and Profits, Part III.
II. Welfare Economics
Hicks, “The Foundations of Welfare Economics,” Economic Journal, Vol. 49, 1939
Samuelson, Foundations of Economic Analysis, Ch. VIII
Further Suggested Reading:
A. Burk (Bergson), “A Reformulation of Certain aspects of Welfare Economics”, Q.J.E., February 1938, and Readings in Economic Analysis, Vol. I
Pigou, Economics of Welfare, Parts I and II
Lerner, Economics of Control
Reder, Studies in the Theory of Welfare Economics
Myint, Theories of Welfare Economics
Little, Critique of Welfare Economics
Samuelson, Evaluation of Real National Income
Ruggles, Nancy, “Marginal Cost Pricing,” two articles, Review of Economic Studies, Vol. 17, 1949-50.
III. Market Structures
Chamberlin, Monopolistic Competition
Fellner, Competition Among the Few
Hayek, “The Meaning of Competition,” in Individualism and Economic Order
J. M. Clark, “Workable Competition,” A.E.R., and Readings in the Control of Industry, 1940
F. Machlup, “Competition, Pliopoly and Profit,” Economica, February, May, 1942
Rothschild, “Price Theory and Oligopoly,” Economic Journal, Sept., 1947
Further Suggested Reading:
Cost Behavior and Price Policy, National Bureau of Economic Research, 1943
Hall and Hitch, Price Theory and Business Behavior
Harrod, “Price and Cost in Entrepreneurs’ Policy,” Oxford Economic Papers, No. 2, May 1939
Pigou, Economics of Welfare, Chs. on “Discriminating Monopoly,” and “The Special Problem of Railway Rates”
Joan Robinson, Economics of Imperfect Competition, Book V
IV. Keynesian Economics
Hicks, “Keynes and the Classics,” in Readings in Income Distribution, Ch. 23
J. H. Williams, An Appraisal of Keynesian Economics
Tarshis, An Exposition of Keynesian Economics
Lawrence Klein, “Theories of Effective Demand,” in Readings in Economic Analysis, Vol. I.
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1), Box 5, Folder “Economics 1950-1951 (2 of 2)”.
Copy also found in Hoover Institution Archives. Milton Friedman Papers, Box 80, Folder 8 “University of Chicago [sic] Syllabi by others”.
Image Source: Harvard Album, 1950.