Author: Irwin Collier

Marxian economics. Letter exchange of Konüs and Bronfenbrenner, 1966

Post author By Irwin Collier
Post date 2018-03-06

Today’s post is a touching reunion after some thirty years of the minds of the American economist, Martin Bronfenbrenner (Chicago Ph.D., 1939) and the Russian mathematical economist Alexander A. Konüs. As far as I know these two scholars never actually met. The first time Bronfenbrenner encountered work of Konüs was in helping to prepare a translation of a 1924 paper by Konüs written in Russian that Henry Schultz was interested in. That paper, but especially its translation that was published in Econometrica in 1939 after Schultz’s death, has become one of the classics in the theory of cost of living indexes. The winding path of the paper from the Moscow Economic Bulletin of the Institute of Economic Conjuncture to Econometrica is described in Schultz’s introduction:

Konüs paper was published in Russian in 1924, and thus far our only knowledge of it has been the incidental, though appreciative, observations regarding it in Bortkiewicz‘s review of Haberler‘s book on index numbers published in 1928. It is this inadequate summary of Bortkiewicz which Staehle used in 1934 in his important work on international comparisons of cost of living and which constitute a point of departure for his own researches.

From my first reading of Dr. Staehle’s manuscript I got the feeling that there was more to the Konüs condition than was evident from the Staehle-Bortkiewicz statement of it, but could not afford the time to look into the matter. In 1934-35, however, I was called upon to prepare a few lectures on the bearing of the modern theory of utility and exchange on the problem of index numbers, and I decided to look into the original paper by Konüs. Not being able to read Russian, I had a translation prepared of it which has been used in my classes since then.*

*I am grateful to the following graduate students for their reports on various aspects of index-number theory: Miss Fredlyn Ramsey, Mr. Orvis Schmidt, Mr. Martin Bronfenbrenner, Mr. Jacob L. Mosak, and Mr. H. Gregg Lewis.

Source: Henry Schultz, A Misunderstanding in Index-Number Theory: The True Konüs Condition on Cost-of-Living Index Numbers and Its Limitations, Econometrica, Vol. 7, No. 1 (Jan., 1939), pp. 1-9.

Some three decades later, Bronfenbrenner and Konüs exchanged letters on the subject of modern adaptations of Marxian economic theory and Martin Bronfenbrenner reveals some of his family history.

_____________

Letter from Alexander Konüs to Martin Bronfenbrenner
7 July 1966

Dear Professor Bronfenbrenner,

It was a pleasure for me to know that the author of the pro-marxist article in the “American economic review” with the significant subtitle “Cuius regio eius religio” (translation: the religion of the ruler of the realm is the religion of the realm) [“Notes on Marxian Economics in the United States” AER Dec. 1964 ] is the praticipator [sic] of the excellent translation into English of my paper of 1924. I am greatly indebted for this translation to you and to Dr. Jacques Bronfenbrenner.

Your article “A macroeconomic translation of capital”, the reprint of which I received with gratitude, and the article “The Marxian macroeconomic model” in “KYKLOS”, vol. XIX-1966-Fasc. 2, are very interesting and important. I have delayed to communicate you my comments because I thought that my attitude to some points of your paper is obvious from the “Notes to articles by L. Johansen “Labour theory of value and marginal utilities” the reprint of which I sent you (“Economic of planning”, vol. 4, N 3, 1964).

As you could see in my “Notes” the problem is not the “translation” of the “Capital” but rather the “revision” of the 3-d volume to some degree from the point of view of modern economics.

The first key stone of this “revision” was laid by L.v.-Bortkiewicz in his “Zur Berichtigung der grundlegenden theoretischen Konstruction von Marx im dritten Band des “Kapital” (“Jahrbücher für Nationalökonomie und Statistik”, III Folge, B. 34, H. 3, 1907). [English Translation] The main assertion of Marxist labour theory of value is: “the sum of the profits in all spheres of production must equal the sum of the surplus values and the sum of the social product equals the sum of its value” (“Capital”, vol. 3, ch. X). So Bortkiewicz has proved that this assertion is valid only in the case when organic composition of advanced capital is the same in all departments and when consequently the prices coincide with values.

Bortkiewicz’s conclusion is considered, for example by Hans Peter (“grundprobleme der theoretischen Nationalökonomie”, 1933), as the failure of the labour theory of value. As to me I should like to attract the attention to the fact that Marx himself did not publish the theory of prices of production (although he assumed it more than twenty years) because he did not think this theory sufficiently perfect.

The new approach developed in my “Notes to the article by L. Johansen “ is cleared up if we will take into consideration the supposition in one of the models of professor Michio Morishima: “…capital goods are not subject to purchase and sale, only their services being traded on the market” (Equilibrium Stability and Growth”, 1964, p. vii).

Then instead of “depreciation of fixed capital instruments involved in producing W´´ the constant part of advanced capital C in your equations must include the rents paid for the use of durable capital goods as the prices of these goods compared with their values.

Consequently the source of the profit of the owners of buildings and machinery is in the surplus labour spent during their production (the conditions of reproduction are implied).

The main thing is that the exchange value of a commodity is realized not in its sale but in the process of realization of its use value, i.e. in its consumption.

Another basic conception is that the organic composition of advanced capital is not dependent on its technical composition but it is affected by economic considerations.

The equality of values and prices follows immediately from your equations based on Marx’s transformation:

(1) ${{w}_{1}}={{c}_{1}}+{{v}_{1}}+{{s}_{1}}\text{ ;}$ (2) ${{w}_{2}}={{c}_{2}}+{{v}_{2}}+{{s}_{2}}\text{ ;}$

(3) ${S}'=\frac{{{s}_{1}}}{{{v}_{1}}}=\frac{{{s}_{2}}}{{{v}_{2}}}\text{ ;}$ (4) ${P}'=\frac{{{s}_{1}}{{p}_{1}}}{{{c}_{1}}+{{v}_{1}}}=\frac{{{s}_{2}}{{p}_{2}}}{{{c}_{2}}+{{v}_{2}}}\text{ ;}$

— if we add to them the well-known equations which tie together the rate of profit (P´) with your expressions of return of capital (s₁p₁, s₂p₂) and of the price of production (w₁p₁, w₂p₂):

${{s}_{1}}{{p}_{1}}=\frac{{{w}_{1}}{{p}_{1}}}{\left( 1+P \right)}{P}'\text{ ;}$ ${{s}_{2}}{{p}_{2}}=\frac{{{w}_{2}}{{p}_{2}}}{\left( 1+P \right)}{P}'\text{ .}$

Therefore Hans Peter and Paul Sweezy, following Bortkiewicz, reject Marx’s reasoning. For example Sweezy writes:

“The source of Marx’s error is not difficult to discover. In his price scheme the capitalist’s outlays on constant and variable capital are left exactly as they were in value scheme, in other words, the constant capital and the variable capital used in production are still expressed in value terms. Outputs, on the other hand, are expressed in price terms. Now it is obvious that in a system in which price calculation is universal both the capital used in production and the product itself must be expressed in price terms. The trouble is that Marx went only half way in transforming values into prices”. (The theory of capitalist development, 1942, p. 115).

The right transformation of values into prices according to Bortkiewicz will be as follows.

The equations (1), (2), (3) and, instead of (4),

(4´) $1+{P}'=\frac{{{w}_{1}}{{p}_{1}}}{{{c}_{1}}{{p}_{1}}+{{v}_{1}}{{p}_{2}}}=\frac{{{w}_{2}}{{p}_{2}}}{{{c}_{2}}{{p}_{1}}+{{v}_{2}}{{p}_{2}}}\text{ ;}$

besides that:

(5) ${{w}_{1}}{{p}_{1}}+{{w}_{2}}{{p}_{2}}={{w}_{1}}+{{w}_{2}}\text{ ,}$ and

(6) ${{w}_{1}}={{c}_{1}}+{{c}_{2}},\text{ }\left( {{w}_{2}}={{v}_{1}}+{{v}_{2}}+{{s}_{1}}+{{s}_{2}} \right)\text{ .}$

But in this case also the prices will be equal to values if we add the above mentioned fundamental equality of Marx’s labour theory of value :

(7) $\left( {{c}_{1}}{{p}_{1}}+{{v}_{1}}{{p}_{2}} \right)\cdot {P}'+\left( {{c}_{2}}{{p}_{1}}+{{v}_{2}}{{p}_{2}} \right)\cdot {P}'={{s}_{1}}+{{s}_{2}}\text{ .}$

Indeed, it follows from (4´), (7) and (3):

$\frac{{{w}_{1}}{{p}_{1}}}{{{c}_{1}}{{p}_{1}}+{{v}_{1}}{{p}_{2}}}=\frac{{{w}_{2}}{{p}_{2}}}{{{c}_{2}}{{p}_{1}}+{{v}_{2}}{{p}_{2}}}=\frac{{{v}_{1}}{s}'+{{v}_{2}}{s}'}{{{c}_{1}}{{p}_{1}}+{{v}_{1}}{{p}_{2}}+{{c}_{2}}{{p}_{1}}+{{v}_{2}}{{p}_{2}}}+1\text{ ,}$

${{w}_{1}}{{p}_{1}}+{{w}_{2}}{{p}_{2}}=\left( {{v}_{1}}+{{v}_{2}} \right){s}'+\left( {{c}_{1}}+{{c}_{2}} \right){{p}_{1}}+\left( {{v}_{1}}+{{v}_{2}} \right){{p}_{2}}\text{ ,}$

taking into account (6) and (3) we get

${{w}_{2}}{{p}_{2}}=\frac{{{w}_{2}}}{{s}'+1}\left( {s}'+{{P}_{2}} \right)\text{.}$

Hence p₂ = 1, and from (5) we get p₁ = 1.

The observed variation in organic composition of the advanced capital (c/v; c + v + s = w) is engendered by the various periods of its circulation and by the presence of the differential rent, in accordance with the labour theory of value.

In the econometric literature there are many assertions that an optimal state of economy requires the proportionality of prices of consumer goods to their values, i.e. to the amounts of labour necessary to produce them. The first author to state this idea was the Russian mathematician N. Stolarof. He published in 1902 the pamphlet: “Démonstration analytique de la formule économique: Les degrés finals de l’utilité (des products librément crées) son proportionnel à la valeur du travail” (Kiev, in Russian). Other references are in Eberkard Fells’s article “Some Soviet statistical books of 1957” (Journal of the American statistical association, v. 54, N 285, March, 1959”).

It is to be noted that there are two limitations arising from the assumption accepted in that demonstration.

First, it is impossible to determine the amounts of labour in the commodities the production of which is tied together, for example—the grain and the straw. Only the sum of their prices can be compared with the total amount of labour necessary to produce them. That is the case of the famous example of Böhm-Bawerk about the prices of new and matured wine. The labour on the vineyard is spent to produce the new and the matured wine together. The prices of these kinds of wine are proportional to their marginal utilities.

Secondly, the prices of the commodities satisfying the same needs, for example—coal and petroleum, are not mutually independent. Only the sum of the prices of the petroleum and the coal must be compared with the total amount of labour spent on the production of fuel. Here arises the phenomenon of the differential rent in oil-extracting industry.

The theory I have developed since 1929 (first publication in 1949) does not find any supporters. I think it is essentially in accordance with your ideas. Any comments and criticism will be very valuable for me.

With best wishes,

Sincerely yours [signed, A. A. Konüs] /Konüs A.A./

VII.1966

_____________

Carbon copy of letter from Bronfenbrenner to Konüs
18 August, 1966

August 18, 1966

Dr. A. A. Konüs
Box 1587, Moscow Central P.O.
Moscow, USSR

Dear Dr. Konüs:

It has indeed been a pleasure to hear from you, and to learn the extent to which our respective “modernizations” of the Marxian system overlap. I hesitate even to consider our remaining differences, since you know the Marxian literature so much better than I. On the issue of “what Marx really meant” I tend to assume, in the difficult cases, that he meant different things at different stages of his thinking, and that the important issue is what he should have meant, i.e., how can one make sense most readily from his incomplete literary remains, and how might a younger Marx have made use of modern economics.

I am likewise overwhelmed by your ability to keep up with “bourgeois” economic literature at the “Morishima” level of difficulty, in a foreign language into the bargain. You must be over 70 years of age, a time when 99.9 percent of scholars feel exempted from the labor of learning anything new. (I long for such an exemption already, and I am 20 years younger!)

Since my late father (a bacteriologist) [Jacques Jacob Bronfenbrenner] and I collaborated in translating your seminal index-number article for Econometrica [The Problem of the True Index of the Cost of Living (January 1939)] nearly 30 years ago, perhaps you would enjoy hearing some our family legends:

My father was born in Odessa; my grandfather was a chemist at one of the waterfront flour mills. During the 1905 Revolution, my father and two of his brothers engaged in liaison activity between student revolutionary groups and the Potemkin sailors. During the subsequent reaction, my grandfather was shot. My father managed to escape to Paris after two years in hiding, and one uncle escaped from a ship en route to Siberia. My father became an American citizen shortly before the first World War; my uncle became a French citizen and lives near Paris. My late grandmother, a nurse, remained in Russia. She was head of a Red Army hospital during the doctor shortage of the Civil War. My late aunt, who also remained in Russia, died during the German siege of Leningrad in 1941. A second uncle emigrated to America during the famine years of 1920-21, and died last year.

An unusually wide range of political and economic views were represented by my Russian relatives. My grandmother was a good Stalinist. My uncles, repelled by the Terror, were a-political, but generally hostile to the Soviet Government. My father was a Social Revolutionary (SR) in his youth; later, he became a follower of Kerensky; in this country, he was a Roosevelt Democrat. His economics was “maximalist.” He believed there would be no economic problem in a well-run peaceful society. (All goods people “really” wanted could be free, and produced with relatively few years of compulsory labor service.) I should describe myself as a confused and imperfectly-consistent eclectic—considerably more “bourgeois” than Marxist, in my own view.

My mother was not of Russian descent. The family’s only common language was English. I had no opportunity to study Russian, and speak no Russian whatever. My cousin [Urie Bronfenbrenner, 2005 obituary in the New York Times], on the other hand, grew up in a Russian-speaking household. He speaks the language fluently, and does liaison work between Soviet and American workers in his specialty (psychology). I have often felt some jealousy at this superior opportunities.

Sincerely yours,

Martin Bronfenbrenner
Visiting Fellow

MB:has

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Project. Martin Bronfenbrenner Papers, Box 7, Folder “Marxian Distribution Theory, n.d.”.

Tags Bronfenbrenner, Konüs

Funny Business M.I.T.

M.I.T. Economics skit from about 1971

Post author By Irwin Collier
Post date 2018-03-04

The following M.I.T. economics skit from ca. 1971 attains biblical proportions or at least displays biblical pretensions. The script comes from Robert Solow’s file of many such skits that Roger Backhouse has copied during his archival research. Alas this script displays some half-dozen gaps, but there is always some hope that the missing parts (mainly lyrics for songs noted below) will be found eventually in some other economist’s archived papers.

While there is no explicit date on the manuscript, the references to President Nixon, a mention of the eighth edition of Samuelson’s Economics (published in 1970) and the reference to Bishop and Domar who last taught the first graduate microeconomic and macroeconomic courses in 1970-71 are sufficient to give us a reasonably tight point estimate of early 1971 for this skit.

I have taken the liberty of correcting the many spelling errors and obvious typos. To improve readability I have also added boldface, alignment formatting etc. Comments are found within square brackets in italics.

Nerd humor, crude double entendre, puns coexist along side of flashes of wit and emotion. But it is mostly nerd humor.

_________________________

Opening Song [Lyrics missing]

Announcer [Text missing]

Narrator:

In the beginning God created the endowments and utility.
And God looked on the utility and saw that they were goods.
And there was darkness upon the face of the utility and the utility was without form.
And God said let there be light and there was light and the preferences were revealed.
And God said let there be a social welfare function and so it was that the preferences were ordered.
And God said let there be liberation of consciousness and there was consciousness of liberation.
And created economic man in his own image.
And on the seventh day God rested because the Robnett was closed.

[Robnett was name of the room in the Sloan Building that served as a graduate student lounge.]

[Enter Adam]

Adam: Like man, what am I gonna do with this endowment of two nuts I got stuck with. There ain’t no one to exchange ‘em with. I can’t get no satisfaction.

[Enter Eve tossing apple]

Eve: Hey man wanna bite of my apple

Adam: Now we’re getting down to the core of the problem.

Eve: Can I have one of your nuts if I give you a bite of my apple.

Adam: Well you see, I suffer from a certain lumpiness in my endowments. One nut ain’t no good to you on its own but I’ll exchange both of my nuts for 2 bites of your apple.

Eve: Hold it: I got a better idea. Why don’t we put your nuts and my apples together and reproduce them. Perhaps we can make a date.

[Gong and Lights]

God: Stop! In creating this perfect static world for you, I forbade you to break the budget constraint. Now you have reproduced your endowments and broken the budget constraint. Henceforth I condemn all economic men to conduct their intercourse only through the medium of money, and each and every man shall maximize his profits.

[Exit God]

Narrator: ….and so it came to pass that a whole stream of prophets came into existence. And the first and greatest of these was Paul, son of Samuel, who led his tribe out of the gates of Harvard. And whilst resting at Tech. Square Paul saw a flash of burning light from behind the NASA building. And God spoke unto Paul and Paul wrote down these words on a tabernacle later to be called the Ten Foundations.

[Enter Paul]

Paul: Adam Smith who begat Malthus who had a surplus so he begat Ricardo who begat Marx, who By God was a bigoted begat. But Böhm-Bawerk begat Jevons who then begat Marshall who then get begat John Keynes. But Schumpeter came from the Austrian school and finally begat me.

While we’re waiting for Joan to print up the tabernacles for us why don’t we have a sing-song to make sure you know the begetting chain.

SONG – WHEN ECON.
[For the melody: Paul Robeson’s rendition of the original hymn]

LET MY PEOPLE KNOW

When Econs were in Adams land (solo)
Let my people know (chorus)
Everything worked by the invisible hand (solo)
Let my people know (chorus)
Go down Paul way down in (Adams) land
Tell old (Adam) let my people know
When econs were in Ricardo’s land
The topic was the rent on land
When econs were in Marx’s land
Come now brothers and join the band
When econs were in Marshall’s land
All was solved with a maximand
When econs were in Keynesian Land
Savings equaled investment planned

[Joan enters gives notes to Paul]

Paul: During the five minutes left to me I’ll read to you from the Ten Foundations.

TEN FOUNDATIONS
[Text missing]

[Gong, lights]

God: Paul! the promised land lies before the tribe of econs and thou must lead them unto this land of math and money. Thou shalt find it on a piece of old wasteland between the factories down on the river.

[Exit God]

Narrator: …and so the tribe of economists came to rest but Paul was not to become head of the tribe but instead the church grew and a Bishop was made head.

[Enter Bishop]

Bishop… Reads from manuscript in Pious voice

Everybody: Get off that’s last year’s skit.

[Exit Bishop]

Narrator: But the economists were not to live in peace for long for the mighty hosts of the Philistines fell upon them and besieged them.

[Enter 2 economists]

1^st Econ: They say that these Philistines have a great warrior called Goliath who has issued a challenge to all economists to face him as champion of the Philistines.

2^nd Econ: This character sounds Frankly Fishy to me

[Enter Frank]

Frank: No one calls Frank a Philistine. Take that and that.

[kills two economists.]

Narrator: And now a word from my sponsor: [Aitken Ad:]

Announcer: When you wake up in the morning, do your residuals seem to be going round and round?

If they do, you may be suffering from serial correlation. For severe bouts of serial correlation, especially if accompanied by lagged endogenous variables, see your local econometrician. But for the ordinary, everyday serial correlation, try Aitken’s, generalized least squares.
Don’t confuse Aitken’s with any ordinary least squares.

Scientific tests have proved that ordinary least squares is inefficient when it comes to serial correlation. Ordinary least squares merely covers up the problem, making you feel better by giving you optimistically high R²’s, low standard errors. Aitken’s heals while it conceals.

So for all of you who suffer from low Durbin-Watson statistics, the swing is to Aitkens’s. Aitken’s generalized least squares, brewed in Edinburgh, and other fine cities. But you know that.

[Others sing Amazing Frank]
[For the melody: Paul Robeson’s rendition of the original hymn]

Amazing Frank how sweet the sound
To save a wretch like me
I once was lost but now I’m found
Was blind but now I see.

That precious day that Frank appeared
The hour I first believed
Twas Frank that taught my heart to fear
And Frank my fears relieved.

Through many dangers toils & snares
I have already come
‘Tis Frank that’s brought me safe this far
And Frank will lead me home.

Narrator: ….and there was among the economists one called David.

David: All of my people are being killed—I must rescue them.

[hands cigarette to Frank who dies]

All Econs: How did you do it?

David: It’s easy—he got stoned!

All: Oh!

Narrator:…and so David became King of the tribe of Economists.

…and David begat a wise son called Solomon who inherited the ability to always know the question when given the answer

[QUESTION AND ANSWER: Text Missing]

Narrator:…But the economists lost their respect for the elders of the tribe and the world became more and more evil. This threw the economists into an economic and moral problem. The reproduction rate became higher, a labour saving device had to be introduced.

[LET’S CONTRACEPT: Lyrics or Text Missing]

[Bishop enters]

Bishop: I’m not surprised the world’s becoming more evil that Nixon just sits and fiddles while Arthur Burns. I must read the economic word to the econs

[23^rd Psalm: Lyrics or Text Missing]

My lesson isn’t working, just listen to the people

[ain’t gonna deflate]

AIN’T GONNA DEFLATE

[Sung to the tune Blood on the Risers (Gory Gory What a Helluva Way to Die)]

VERSE

They increased supply of money till the central bank was bust
Commercial banks gave credit till restrictions were a must
Investment broker ran amuck with their investment trusts
AND we ain’t gonna deflate no more

CHORUS:
Glory Glory what a hell of a way to go (3 times)
And we ain’t gonna deflate no more

They equaled up the tax receipts to gov’ment expenditure
They raised the defense budget- so to help along the war
And Dicky’s own account became more and more and more
AND we ain’t gonna deflate no more

CHORUS:

They lowered the rate of interest to keep Euro-dollars out
The Germans out exchange rates messed everyone about
The French exported gold to all as if there were a draught
AND we ain’t gonna deflate no more

CHORUS

They printed paper money and handed it around
Sent money to Cape Kennedy got rockets off the ground
But all the money printed went straight to Herr von Braun
AND we ain’t gonna deflate no more

CHORUS

Speculators bulled and beared till buffaloed they got
Stability was never heard become a laughing spot
The widows and the orphans cried keep down that old p dot
NO WE AIN’T GONNA DEFLATE NO MORE.

Narrator: ….one man alone was good in all this world.

[Franco Sawing]

[Gong, lights]

[The following Noah’s ark piece borrows heavily from the 1963 comedy album “Bill Cosby is a Very Funny Man….Right!” ]

God: Franco! (3 times) crescendo

Franco: No answer.

God: This is the Lord, Franco (Thunderously)

Franco: I’ll be with you in about 5 minutes.

God: Franco I want you to build me a model. I want it to be 60 equations long and 30 variables wide.

Franco: But I don’t know any econometrics.

God: So! Franco I want you to take two of every kind of variable into your model. Your model alone can save mankind for I shall flood the world with money.

Narrator: ….and so Franco worked feverishly not to say Frank-tically gathering variables from all his students until eventually he had two of every kind.

[Gong, lights]

God: Franco

Franco: What!

God: The time has come Franco

Franco: Do you know what I’ve been through. I’ve got all these variables and stuck them all in my model. They all look the same to me. How am I supposed to identify them?
Besides you didn’t tell me those variables were homoskedastic.
Now the investment’s got galloping consumptions, that infant industry’s riding his business cycle everywhere, income’s got a growth.
The whole model’s exploding.

[Gong, lights]

Franco: My God it’s shorting

Narrator:…and so money rained for forty days and forty nights.

[Franco looks out from model]

Franco: It’s stopped.

[Lights, gong]

God: Franco

Franco: Here we go again

God: You must tell all the variables to leave the model and multiply.

[Exit God]

Franco: Easier said than done. All right, come on out all you variables. Go away and multiply…go away and multiply.

[Enter 2 adders kissing]

1^st Adder: We can’t multiply

Franco: Why not?

2^nd Adder: We’re adders

Franco: There must be some way. God’s always right. Look, look, they’ve multiplied. How did you manage it.

1^st adder: It’s marvelous what you can do with Logs isn’t it.

[Exeunt]

Narrator:…and so a population explosion occurred over night. And new preachers of the true economic world arose.

Announcer: And they begat three economists, Diamond, Modigliani, and Bhagwati.

[SONG: JAG, PETER, AND FRANCO]
[Still need to establish the original song used to parody]

THREE ECONOMISTS

(soft shoe routine)

Together: I’m Peter, I’m Franco, I’m Jagdish Bhagwati
We are the finest teachers in the world

Peter: I teach public finance though it’s sometimes hard to tell

Franco: I teach monetary and I give my students hell

Jagdish: I just sit and listen to the questions of Steve Zell

Together: Oh we are the finest teachers in the world.

[Peter does his thing, commentator describing. Text/Lyrics missing]

Together: I’m Peter, I’m Franco, I’m Jagdish Bhagwati
We all have our own teaching techniques.

Peter: I like mathematics—it’s a discipline sublime

Franco: I think talking slowly is a really awful crime

Jagdish: I draw Johnson diagrams—a dozen for a dime.

Together: Oh we all have our own teaching techniques

[Franco does his ad for the MITFRB model. Text/Lyrics missing]

[Jagdish does his offer curves spiel. Text/Lyrics missing]

Together: I’m Peter, I’m Franco, and I am Jagdish B.
We are the hardest workers in the world

Peter: I worked through Thanksgiving but I didn’t get much done

Franco: I run back and forwards from Cambridge to Washington

Jagdish: My output of articles is measured by the ton

Together: Oh we are the hardest workers
No we couldn’t be called shirkers
Yes we are the hardest workers in the world, oh yeah.

[STUDENTS LAMENT]

THE GRADUATE STUDENTS’ SONG

[To the tune of “My God how the money rolls in”]
[swaying from side to side, arms linked, on choruses]

ALL:

Oh we are all graduate students
We study with vigor and vim
‘Cos once we have got our Ph.D’s
My God how the money rolls in.

Rolls in, rolls in, my God how the money rolls in, rolls in
Rolls in, rolls in, my God how the money rolls in.

Our first year it was quite traumatic
Just like being torn limb from limb
We made it through Bishop and Domar
Although at times it was quite grim
But now as we’re facing the generals
Our chances of passing seem slim
We’re trying to alter the format
The faculty will not give in

(pleading)

Give in, give in, oh faculty won’t you give in, give in
Give in, give in, oh faculty won’t you give in.

And then we’ll start writing our theses
We’ll make a great contribution
We’ll go to the AEA meetings
To get in the job market swim
We’ll write up some erudite papers
With lots of equations therein
Then next comes a best-selling textbook
To give Paul some competition

Competition, competition, to give Paul some competition, ‘tition
Competition, competition, to give Paul some competition.

Paul Samuelson’s text is on top now
It’s up to its eighth edition
But we’ll supersede it entirely
And start off a new tradition
The they’ll give the Nobel Prize to us
Our pride will be full to the brim
And after we’ve published we’ll perish
My God how the money rolls in

Rolls in, rolls in, my God how the money rolls in, rolls in
Rolls in, rolls in, my God how the money rolls in.

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archives, Papers of Robert M. Solow, Box 83.

Image Source: Sir John Betjeman—an English poet, writer, and broadcaster. From “Myrth Study” at the National Geographic Website (23 Dec 2013). He has nothing to do with the history of economics, but I love this picture of laughter!

Tags Bhagwati, Bishop, Diamond, Domar, FisherFM, Modigliani, Samuelson

Economists Oxford

Oxford. “Another Shot at Welfare Economics,” Two lectures by Hicks, ca. 1954

Post author By Irwin Collier
Post date 2018-03-04

In Harold Hotelling’s papers I came across a typed manuscript for two lectures held by John Hicks on Welfare Economics that can be dated to ca. 1954. That manuscript is located at Duke University, David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archives. Papers of Harold Hotelling, Box 46, Folder “Lectures (2)”.

It turns out the same manuscript was found by Tatsuro Kanai in the Hicks Papers maintained by the Library and Academic Information Centre, Kobe Gakuentoshi Campus at the University of Hyogo. Kanai published transcriptions in the journal History of Economic Thought of the Japanese Society for the History of Economic Thought. But for all of us, it can’t hurt to link to the lectures here.

____________________

Tatsuro Kanai [Nagano National College of Technology], J. R. Hicks’ Unpublished Lecture Notes: Another Shot at Welfare Economics, Lecture I, The History of Economic Thought, Vol. 48, Issue 2 (2006) pp. 84-97.

Tatsuro Kanai, J. R. Hicks’ Unpublished Lecture Notes: Another Shot at Welfare Economics, Lecture II, The History of Economic Thought, Vol. 49, Issue 2 (2007), pp. 63-78.

Image Source: From Portrait of John Richard Hicks (1953). National Portrait Gallery.

Chicago Columbia Economists Yale

Yale. James Tobin on Freedom to Friedman in 1964

Post author By Irwin Collier
Post date 2018-03-03

The last paragraph of this letter from James Tobin to Milton Friedman could have been written yesterday (by someone with a good memory for history). While it is fair to say that Friedman’s team has managed to control the ball longer on the clock over the past half-century, Tobin’s team is better at keeping points on the scoreboard.

___________________

Yale University
New Haven, Connecticut

DEPARTMENT OF ECONOMICS
Cowles Foundation for Research in Economics
Box 2125, Yale Station

December 7, 1964

Professor Milton Friedman
Department of Economics
Columbia University
Fayerweather Hall
New York 27, New York

Dear Milton:

As you urged in your letter of November 11, I shall read Federal Bulldozer [Sample review of Martin Anderson’s book]. The only redevelopment I am at all familiar with is the one here in New Haven. I think it has, in some net balance, enlarged freedom. Eminent domain no doubt infringes on one dimension of freedom and is subject to abuse. But there are surely aspects of freedom other than freedom from government coercion.

The discussion would be advanced if you would recognize that some government actions might enlarge the scope for individual choice and action for some individuals by diminishing the environmental constraints upon them.

I think also it is useful to distinguish between expansion of the public sector as a purchaser and user of resources and increases in specific and direct governmental controls and regulations. I don’t think that “modern liberals” who favor the former favor the latter. Certainly I don’t. I would not have a minimum wage law, or a Davis-Bacon Act, or the agricultural mess. And, when I want more money for education, I don’t like to be accused of wanting an NRA [National Recovery Administration]. But this confusion is what happens by the indiscriminate use of the term “Big Government.”

It is on the question of freedom of expression that I find the most difficulty understanding you. My reading of history and of the contemporary scene would be that the main threats to freedom of dissent have almost nothing to do with the economic size of government in our kind of society. The main threats have come from the know-nothings, Mitchell Palmers, McCarthys [cf. a review of the Anderson book on Joseph McCarthy by Alonzo L. Hamby], Klu Kluxers, and the like. It is not the big Federal government that intimidates librarians, textbook writers, broadcasters, civil rights advocates in the South, etc. I do not know of cases where a democracy has crept into totalitarianism by gradually increasing the size and scope of government activity. But I do know of cases, like the Weimar republic, where the failure of conservative governments to use their powers for social and economic ends has delivered the whole country to a totalitarian dictator.

Sincerely,

[signed: “Jim”]

James Tobin

JT:lah

Source: Hoover Institution Archives. Milton Friedman Papers. Box 34, Folder 13 “Tobin, James”.

Images Sources: 1962 photo of James Tobin ; 1968 file photo of Milton Friedman.

Tags Friedman, Tobin

Curriculum M.I.T.

M.I.T. Course Descriptions for Economics and Statistics, 1930-31

Post author By Irwin Collier
Post date 2018-03-02

Before the dawn of the Samuelson era at M.I.T., the department had definitely a different look and feel. Davis R. Dewey was a reasonably known scholar of public finance in his day. But the mixture of business and economics is the most striking impression one takes away from the course offerings. Look at the program 30 years later! The group portrait of the M.I.T. economics department in 1976 reveals the addition of one woman!

Back row: Foster, Fiske, Thresher, Underwood, Elder
Middle row: Ingraham, Raymond, Fernstrom, Doten, Silverman
Front row: Schell, Dewey, Tucker, Porter

Source: The M.I.T. Yeaarbook, Technique 1930, p.

________________________

Faculty of Economics, Statistics [and Business]

Davis Rich Dewey, A.B., University of Vermont’79, Ph.D., Johns Hopkins ’86, L.L.D., University of Vermont ’10.
Professor of Political Economy and Statistics; in charge of the Department of Economics and Statistics: in charge of the course in Engineering Administrations.

Floyd Elmer Armstrong, B.A., ’14, M.A., ’15 University of Michigan.
Professor of Political Economy

Carroll Warren Doten, Ph.B., ’95, A.M. ’99, University of Vermont; A.M., Harvard University ’02.
Professor of Political Economy.

Erwin Haskell Schell, S.B. ’12, M.I.T.
Professor of Business Management.

Donald S. Tucker, A.B., Colorado College ’06; A.M., Williams College ’12; Ph.D., Columbia University ’23.
Professor of Political Economy.

Charles H. Porter, A.B., Brown University ’00; S.B. ’03.
Associate Professor of Accounting.

Karl Dickson Fernstrom, S.B. ’10.
Associate Professor of Business Management.

Fairfield Eager Raymond, A.B., Harvard University ’18; S.B. ’21.
Assistant Professor of Industrial Research.

Wyman Parkhurst Fiske, A.B. ’20, M.A.B. ’23, Harvard University; LL.B., Suffolk Law School ’27.
Assistant Professor of Accounting.

Robert Fairchild Elder, A.B., Harvard University ’22.
Non-Member of the Faculty, Instructor.

F. Leroy Foster, S.B. ’25.
Non-Member of the Faculty, Instructor.

Olin Ingraham, Ph.B., A.M.
Instructor.

Abraham George Silverman, S.B., Harvard University ’21; M.A., Stanford University ’23; A.M., Harvard University ’24.
Non-Member of the Faculty, Instructor.

Brainerd Alden Thresher, S.B. ’20; A.M., Harvard University ’28.
Non-Member of the Faculty, Instructor.

Raymond Underwood, S.B. ’29
Non-Member of the Faculty, Assistant.

Oscar W. Hausserman, A.B. ’12, LL.B., ’16, Harvard University.
Special Lecturer for Business Law

Joseph Chrisman MacKinnon, S.B. [?]
Registrar of Business Administration, M.I.T.

________________________

DESCRIPTION OF SUBJECTS
ECONOMICS AND STATISTICS
M.I.T., 1930-31

In this Department is grouped the instruction given in general economics to students all courses, and also the more specialized subjects provided for the course in Business and Engineering Administration (XV).

Subjects Ec1 to Ec99

Ec21. Political Economy. [Prerequisite: E12] Less extensive in its scope than Political Economy Ec31, Ec32. More emphasis is placed upon fundamental principles, and less time devoted to such subjects as money, banking, trusts, labor problems, etc., which are covered by special subjects in Course XV. [Doten]

Ec31, Ec32. Political Economy. [Prerequisite: E12] Elementary but comprehensive. Consists of an analysis and description of the existing economic structure of society, a brief study of economic theory and the application of that theory to some of the more important economic questions. Special attention is given in Ec32 to fundamental business processes including principles of accounting, corporate organization and finance, credit and banking, labor problems and business management. [Dewey and D. S. Tucker]

Ec35. Political Economy. [Prerequisite: E31] Given for students in Course XIII-A. Covers Ec31 and part of Ec32. [Armstrong]

Ec37. Banking. [Prerequisite: E21, Ec65] Credit instruments, credit documents, national banks, state banks, trust companies, savings banks, different kinds of loans, securities for loans, credit statements, the bank statement, the money market, relation of the treasury and crop movement to money market, clearing house, domestic and foreign exchange. [Dewey]

Ec45. Industrial Relations. Covers in general the same field as G21, though in somewhat abbreviated form. Special consideration is given to the history of the railroad brotherhoods and to the federal laws applicable to disputes in that industry as well as to its personnel problems. [Doten]

Ec46. Industrial Relations. [Prerequisite: E21 or Ec31] Intended to familiarize the student with the more important problems which arise out of the relation of employer and employee under present conditions of industry. In addition to a consideration of the organizations and policies of the parties to the contract of employment, it deals with the principles and to some extent the technique of employment management or personnel work. [Doten]

Ec471, Ec472. [Prerequisite: E21 or Ec31, G21] Personnel Management (A). Principles and technique of personnel work, sometimes called human engineering. Problems that arise in practice in recruiting, training and maintaining a labor force. Comparative studies of the methods and practices in selection, including mental and trade tests; placement, promotion and transfer; education and training; job analysis and specifications; the measurement and control of turnover; regularization of employment; absenteeism and tardiness, and other specific problems. Other topics for investigation will include methods of wage payment; benefit plans, including pensions and insurance; health and welfare work; housing; labor legislation, including safety supervision and workmen’s compensation. [Doten]

Ec50. Accounting. [Prerequisite: E12] Systematic recording of financial data is a requisite of business; its basis double entry bookkeeping. But more important for management, stockholders and the general public is analysis directed toward useful conclusions. Instruction therefore, deals with balance sheets, profit and loss statements, surplus, depreciation reserves, methods of report analyses, etc. Actual corporation reports and records are studied. [C. H. Porter, W.P. Fiske]

Ec51. Cost Accounting (B). [Prerequisite: E50, Ec70] Methods of determining costs of materials, processes of labor and machines; the distribution of direct costs and overhead expenses; cost data to test management and to show the particular sources of profits or losses; shipping orders; inventories; recording and payment of wages. The development of standard costs as a basis for management and industrial control is emphasized. [C. H. Porter, W.P. Fiske]

Ec521. Analysis of Business Statements (A). [Prerequisite: E51] Aims to develop analytical ability in the interpretation of business statements and reports. Will include analysis of actual statements, study of type and information needed for complete analysis, adequacy of accounting methods used, structure and content of statements. Points of view of the creditor, the investor and the manager will be considered. Will include study of statements of financial condition, statements of earnings, operating and cost reports, both published statements and internal reports. Methods will include ratios, trends, standards of comparison, and absolute change. [Fiske]

Ec522. Control Through Business Records (A). [Prerequisite: E51] Control of any but the smallest business depends upon an adequate system for the gathering of information needed by executives. Will examine the fundamental principles behind records systems and the extent to which various actual systems meet the requirements for which they were set up. Periodic reports, budgets, costs, cash control, internal check, inter-company and branch office control, voucher procedure, inventory records, payroll procedure, expense control, sales records, machine accounting and special problems of control in various industries will be considered. A general study of some complete record system or a detailed study of some special problem of control will be required of each student. [Fiske]

Ec53. Building Finance (B). [Prerequisite: E21] Describes the financing of new building projects as well as the financing of the building constructor. The topics studied include the valuation of real estate, method appraisal, depreciation, financing by first and second mortgages, mortgage companies, building and loan associations, construction loans, bank credit and the administration of finance. Special attention will be devoted to those aspects of building finance which are connected with the problem of securing new business for the building constructor. [D. S. Tucker]

Ec542. Public Utility Accounting and Analysis (A). [Prerequisite: E21, E50, E57] The special accounting problems of gas and electric companies; a study of the figures needed by the operating management of the companies; the reaction of cost and sales analysis on rates and rate forms; both problems and discussion will be based very largely on actual cases. [C. H. Porter]

Ec551. Public Utility Finance (A). [Prerequisite: E21, E50, E57] Lectures, readings and reports on the financial organization and operation of public utilities, with an analysis of their security issues. Attention is given to government control of financing, the analysis of public utility reports, and the market position of utility stocks and bonds. The operations of holding companies and finance companies and their relation to operating companies constitute an important part of the work. [Armstrong]

Ec552. Public Utility Regulation and Rates (A). [Prerequisite: Ec551] The development and evolution of public utility regulation; the various methods of regulation contrasted and compared; the legal foundations of regulation, the legal duties imposed upon pubic utilities and their legal rights; rates, rate structures and rate control, with much attention to important rate cases; valuation of utility properties and a comparisons of the different methods proposed for determining the rate base. Students will devote some time to actual attendance at hearings before the Public Utility Commission. [Armstrong]

Ec56. Corporate Organization. [Prerequisite: E21, E50] The organization and control of corporations with some attention to other forms of business. Consideration is given to procedure and problems of incorporation, relationships of the parties in the corporation, and combinations of corporations in our large industrials. Public utility corporations are studied briefly with the purpose of presenting the relations of public service corporations and the public. [Armstrong]

Ec57. Corporate Finance and Investments. [Prerequisite: E56] Covers fundamental principles of financial organization and management. The various types of corporate securities are examined, the financial problems of the promoter, the incorporators and the later financial management are studied and illustrations are drawn from concrete cases. The latter part of this subject considers more specifically the different kinds of investment securities with exercises in investment analysis, and a discussion of the methods of the exchanges, brokerage and speculation. Lecturers from investment houses assist in this branch of the subject. [Armstrong]

Ec591. Public Utility Management and Finance (A). [Prerequisite: E21 or Ec31] Deals with the theoretical and practical phases of public utility management. The subject matter will include a brief study of corporate organization and management in general, followed by the application of the general principles of finance and management to public utility enterprises. Emphasis will be placed upon problems of capitalization, holding company organization and certain phases of accounting which bear upon the financial policies of these companies. [Armstrong]

Ec592. Public Utility Management and Finance (A). [Prerequisite: E591] A continuation of Ec591 including public relations, rate making, valuation and regulation by commissions. Some attention will be given to analysis of territory served. In addition to instruction by members of the Institute Faculty, a broad range of topics of direct concern to pubic utilities and to users and refiners of fuels will be covered by lectures by men of special achievement in their several fields. [Armstrong]

Ec61, Ec62. Business Law. [Prerequisite: E37, Ec57] (1) General principles of contract law; and (2) special kinds of contracts, such as contracts for sale of real estate, contracts for sale of personal property, contracts of employment, and bills and notes; (3) agency; (4) forms of business enterprise from standpoint of legal structure, i.e., corporations, partnerships, business trusts, etc. [Hausserman]

Ec63. Business Law and Organization (A). [Prerequisite: E31] A graduate study of business organization from both a legal standpoint and a management standpoint. The subject of contracts and the personal relations of individuals within the organization are emphasized. The advantages and disadvantages of various types of organization are discussed. [Hausserman]

Ec65. Statistics. [Prerequisite: E12] Elementary instruction is given in the construction of statistical tables and charts, official sources of commercial and financial statistics of the United States, and the interpretation of such material. Some attention is given to the statistical methods of forecasting. [Dewey]

Ec661, 662. Statistical Methods (A). [Prerequisite: E65, M21] Study of the principles and methods used in more advanced statistical analysis. Some of the topics included are correlation of two variables, multiple and partial correlation, simple sampling and the basic theory of probability with special reference to business problems. Determination of historical trends and periodic fluctuations of economic time series will receive attention preparatory to the major problem of business forecasting. [MacKinnon]

Ec681, Ec682. Business Cycles (A). [Prerequisite: E37, Ec57, Ec65] A study of the fluctuations in the different phases of business. In this is involved statistical interpretation, theories of the business cycle, studies of the intercausation of the different types of business changes, the interpretation and experimental tests of forecasting methods. [Ingraham]

Ec70, Ec71, Ec72. Business Management Ec71, Ec72 (B). [Prerequisite: E56] Deals with problems of the production and distribution of manufactured goods. Among the more important topics considered are: Organization; plant location, layout and equipment; purchasing; intra-factory transportation; traffic; inspection; stores; design; time, motion and fatigue study; production control; office organization, layout and equipment; commercial research; marketing methods, sales promotion and advertising. As far as possible the practices of production and marketing are studied in parallel, thus emphasizing the development of similar principles of scientific management in both fields. [Schell]

Ec74. Contracting Management. Deals with the business aspects of the building industry. The following topics are considered from an administrative viewpoint: organization, estimating, purchasing, contracts, insurance, sales promotion, control of equipment, control of materials, office control, regularization of work, research coordination of sales, finance and construction programs, organization and management of small construction enterprises, cost accounting and the law of contracts. [Schell]

Ec751, Ec752. Manufacturing Analysis (A). [Prerequisite: E72] Deals with the conduct of professional engineering analyses of management methods in a manufacturing establishment. Schedules are prepared for the critical investigation of such functions as organization, arrangement and maintenance of buildings and equipment, product research and design, purchasing traffic control, storage of materials and product, intra-factory transportation, quality control, salvage, time study and production control. Library research, field interviews and inspections, and a brief thesis are requirements of the course which is conducted as a seminar. [Schell]

Ec761, Ec762. Marketing of Manufactured Products. [Prerequisite: E72 or equiv.] Advanced practice in the organization of the various marketing functions, such as market research, sales forecasting, quota setting, budgets, and sales incentives. Familiarity with current practice is a prerequisite. Trends in development of marketing functions are studied, with the aim of preparing a technique for analyzing the efficiency of any marketing organization. Special emphasis is given to the coordination of selling methods, and to the fundamentals underlying sales policies. The marketing of goods sold to the manufacturers and the marketing of goods sold to the ultimate consumer are handled separately. Readings in current sources, field investigations of specific problems, and a brief thesis are required. [Elder]

Ec781, Ec782. Standards of Measurement in Industrial Management (A). [Prerequisite: Ec70, Ec71, Ec72] Measurement in management is a new conception of the relation of executive responsibilities to the success of any industrial enterprise through the recognition of the principle that a qualitative unit of measure is essential to the scientific regulation of any activity. Weekly classroom discussions based on original investigations will be devoted to a study of practical standards employed in industry and the derivation of methods of measuring and evaluating accomplishment as typified by financial and management ratios, the kilo man-hour, productivity index, economic production and purchase quantities, economic processes, wages, time and motion study, office efficiency ratios, economic sales volume, etc. [Raymond]

Ec80. Ocean Shipping Administrations. [Prerequisite: E31] Deals with the types of ocean services and traffic agencies and their organizations; rate and traffic agreements; ocean shipping documents; ocean rates and regulation; marine insurance; and admiralty law. Its purpose is to acquaint the student with the more important aspects of the business administration of ocean shipping activities. [Fernstrom]

Ec90, Ec91. Investment Analysis (A). [Prerequisite: Ec50, Ec57, Ec65] Various methods of analyzing financial reports of companies whose securities are placed upon the market. Testing of ratios for appraising the value of the security. Risks versus yield of junior and senior obligations; yields and risk of common stock; problems raised by convertible securities; measurements of risks and yield of the securities of new industries; of the securities of stationary and dwindling industries; relation of price to earnings; risk and yield of securities of holding companies and investment trusts; railroad records and derivative ratios; tests of investment bank statements, of business ratios; tests of investment bank statements, of business ratios applicable to investments, and of systems of rating. [Ingraham]

Ec95. Industrial Traffic Management. [Prerequisite: Ec72] A detailed study of the organization and operation of a traffic management department of an industrial plant. The course deals with industry’s conception, interpretation and use of such matters as freight classifications, rate structures, routes, carrier-shipper relations, common carrier liabilities, general and special services, national and state common carrier regulations and protective insurance. Due consideration is given to the types of transportation agencies such as rail, water, air, motor truck, mail, parcel post and express. [Fernstrom]

The following subjects are offered as general studies. For description of G25 see Division of General Studies, page 231.

Ec46. Industrial Relations. G25. Investment Finance.

Source: Course Catalogue of the Massachusetts Institute of Technology 1930 – 1931, pp. 222-225; 281-282

Image Source: Davis R. Dewey in the M.I.T. Yearbook, Technique 1931, p. 47.

Tags Armstrong, Dewey, Doten, Fernstrom, Fiske, PorterCH, Raymond, Schell, TuckerDS

Exam Questions M.I.T.

M.I.T. General Exams in Economic Fluctuations: 1950, -52, -54, -56

Post author By Irwin Collier
Post date 2018-03-01

There does appear to be a pattern at M.I.T. of having every second year a general examination for the subject of business fluctuations in this collection of exams for the period 1950-56. It is also possible that Paul Samuelson only served on the examination committee every-other year. Still we can be happy to have a series of four general exams on this topic for MIT covering the first half of the 1950s. In a previous post, Economics in the Rear-view Mirror transcribed Domar’s stash of general exams in macro that covers the 1960s.

_________________

James Hanson

GENERAL EXAMINATION
in
ECONOMIC FLUCTUATIONS AND POLICY
October 6, 1950

Answer question 1, and three of the remaining questions.

(1 hour) What areas in the analysis of the determination of the level of real income are least satisfactory at the present time? Criticize in detail the shortcomings of one of these areas.
What are some of the statistical and conceptual difficulties met in distinguishing between gross and net national product? For what purposes is this distinction important?
Outline a positive role for the Federal Reserve authorities in shaping the aggregate level of economic activity. Discuss and appraise the difficulties the authorities will face.
What contributions to the theory of the business cycle and economic growth are suggested by the study of the relationships between the level of income and the stock of capital?
Governmental expenditures on national defense are going to rise to a new level, $20 billion per year higher than the existing one. This level will be maintained for three years and then will fall back to the present one. What fiscal policies would you recommend to cope with this situation? Appraise the feasibility of your program and compare it with alternative economic policies.
What do you conceive to be the role of forecasting in stabilization policy?

_________________

GENERAL EXAMINATION IN
BUSINESS FLUCTUATIONS

9:00-12:00 n.
Friday
May 9, 1952

ANSWER ALL QUESTIONS
(1 hour)

(1 hour) Discuss the use and limitations of national-income data in planning alternative mobilization policies.
(½ hour) Discuss and appraise the effectiveness, both theoretic and practical, of automatic fiscal-monetary devices. In your answer give examples from the economic literature.
(½ hour) “We solemnly explain that excise taxes are deflationary because they raise prices, that is, because they are inflationary.” Comment critically on the above quotation.
(½ hour) Appraise the effect of the Wage Stabilization Board’s Steel-wage recommendations on the level of real and money national income.
(½ hour) Indicate the contribution of two of the following to the understanding of economic fluctuations.
Wicksell; Kuznets; Mitchell; Metzler; Klein; Lange

_________________

GENERAL EXAMINATION IN ECONOMIC FLUCTUATIONS
May 19, 1954

Answer any four questions.

It has been said that the Keynesian system of income analysis contains no explicit supply considerations. Appraise this criticism, with particular reference to Keynes as well as later writers.
How would you go about testing the empirical validity of the Colin Clark hypothesis that inflation results whenever the level of taxation and expenditure exceed 25 percent of “national income”?
“Obviously, under-employment equilibrium with flexible wages is impossible.” Discuss.
What are the relevant economic considerations in choosing between tighter money, higher personal-income taxes, or lower government expenditures as a means of closing an inflationary gap.
Some writers claim that the business cycle of the interwar and earlier periods has disappeared as an economic phenomenon. What structural changes in the U.S. economy of the last 15 years would account for their attitude? Do you agree or disagree with the conclusion of these writers?
“There is a cyclical fluctuation in business-cycle theories. Earlier theories embodied a theory of cumulative movement and a theory of turning points. Later work showed that a single set of relationships could explain both and now there is a trend back toward the earlier explanations.” Discuss, citing specific authors.
Will an increase in the desire of households to save change the rate of interest? Explain.
“For both political and economic reasons fiscal policy is more successful in a depression, whereas monetary policy is superior in a boom.” In discussing this statement draw on your knowledge of the operation of monetary and fiscal policy in the United States over the past three decades.

_________________

GENERAL EXAMINATION IN BUSINESS FLUCTUATIONS
September 12, 1956

Answer any five questions.

“There is a cyclical fluctuation in business-cycle theories. Earlier theories embodied a theory of cumulative movement and a theory of turning points. Later work showed that a single set of relationships could explain both; and now there is a trend back toward the earlier explanations.” Discuss, citing specific authors.
Discuss briefly the issues for national income accounting raised by two or more of the following:
1. gross and net national product
2. government activities
3. desire for welfare interpretations
Summarize briefly our knowledge of capitalism’s historical business cycles. What views does this experience lead you to?
“Economic forecasting is both an art and a science.” “Economic forecasting is neither an art nor a science.” Appraise the current status of economic forecasting.
What are the important policy problems of economic stabilization? Be comprehensive and specific.
What contributions to the theory of the business cycle and economic growth are suggested by the study of the relationships between the level of income and the stock of capital?
“We solemnly explain that excise taxes are deflationary because they raise prices, that is, because they are inflationary.” Comment critically on the above quotation.

Source: Duke University. David M. Rubenstein Rare Book & Manuscripts Library. Economists’ Papers Archive. Paul Samuelson Papers, Box 33, Folder “Teaching Exams 1952, 1956”

Image Source: M.I.T., Technique 1950.

Tags Samuelson

Chicago Exam Questions Suggested Reading

Chicago. Price Theory Exams. Albert Rees (Chicago PhD Alum 1950), 1962

Post author By Irwin Collier
Post date 2018-02-28

Albert Rees (1921-1992) received his B.A. from Oberlin College (1943), M.A. (1947) and Ph.D. (1950) from the University of Chicago. He worked himself up the ranks at the University of Chicago (Assistant Professor, 1948-54; Associate Professor, 1954-61; Professor, 1961-66), serving as chair from 1962-1966. He moved on to chairing the economics at Princeton where he was professor (1966-79). He also served as a staff economist at the President’s Council of Economic Advisers and headed President Gerald Ford’s Council on Wage and Price Stability, 1974-75. Besides once serving as Provost of Princeton University, Albert Rees also served as the President of the Sloan Foundation.

See The Elgar Companion to the Chicago School of Economics, Ross B. Emmett (ed.), Chapter 12 “Albert Rees” by Orley Ashenfelter and John Pencavel. [Downloadable as working paper.]

___________________________

PRICE THEORY
Economics 300
Autumn, 1962
Mr. Rees

Chapter assignments will be given in class.

American Economic Association, Readings in Price Theory. Irwin, 1952.

Friedman, Milton, Essays in Positive Economics. University of Chicago Press, 1953.

Leftwich, Richard H., The Price System and Resource Allocation, revised edition. Holt, Rinehart and Winston, 1961.

Marshall, Alfred, Principles of Economics, 8^th edition, Macmillan, 1922.

Stigler, George, The Theory of Price, revised edition. Macmillan, 1952.

___________________________

Economics 300
Midterm Examination

November 7, 1962
A. Rees

(50 points) Answer the following True, False, or Uncertain and explain your answer briefly. Your score depends on your explanation.
1. In a free market economy, all consumers participate equally in determining what will be produced.
2. A free market economy gives ample incentives to conserve natural resources provided that it is clear who owns each unit of the resources.
3. The cross-elasticity of demand between substitutes is positive.
4. If two linear demand curves each intersect the price axis, (q =0) the one that has the higher intercept is more elastic at this quantity.
5. An increase in the price of beef will increase the demand for pork and decrease the demand for beef.
6. If the market for eggs is in equilibrium an increase in supply will cause only a small change in price.
7. The elasticity of demand for oranges is greater in absolute value than the elasticity of demand for fruit.
(25 points)
1. Show by means of an indifference map (axes: oranges and grapefruit) the effect on the consumption of oranges of an increase in their price, the price of grapefruit remaining unchanged. Distinguish the income and the substitution effects. State whether you have used the Hicks or the Slutsky method.
2. How would your map have differed if the axes had been bread and meat? If they had been bread and butter?
(25 points) Increased costs cause manufacturers to reduce the size of 5 cent chocolate bars from 2-1/2 ounces to 2 ounces. Because the bars are smaller, people eat more of them and consumption rises from 10,000 bars a week to 11,000.
1. Can these events be shown on an ordinary supply and demand diagram? If so, show them. If not, explain why.
2. Can the elasticity of demand for chocolate be computed? If so, compute it. If not, explain.

___________________________

FINAL EXAMINATION

Economics 300
December 12, 1962
A. Rees

(50 points) Answer each of the following “true,” “false,” or “uncertain” and explain your answer briefly. Your score will depend heavily on your explanation.
1. If two linear demand curves have the same slope at the same price, then at that price the one for which quantity is largest is least elastic.
2. An important difference between an indifference map and an isoquant map is that indifference curves never cross.
3. An important difference between the utility functions depicted by usual indifference maps and production functions is that distances in utility space can be ordered but not measured.
4. The following conditions are necessary and sufficient for the short-run maximization of monopoly profits: (a) Marginal revenue is equal to marginal cost; (b) price is greater than average variable cost.
5. An increase in fixed cost caused by an increase in the rate of interest on long run term debt will increase long-run marginal cost but not short-run marginal cost.
6. An effective legal minimum wage above the prevailing wage will increase the employment of a firm that is a monopsonist in the labor market.
7. The costs of owner-operated businesses are generally understated because the owners do not pay themselves wages. If they did, the accounting costs would be equal to the economic costs.
8. The way to produce a given output in the long run at lowest cost is to construct the plant whose short-run average costs are at a minimum at that output.
9. If a monopolist maximizes profit in the short-run and operates where total revenue is at a maximum, he has no variable costs.
10. A production function shows constant returns to scale if an increase of 10 per cent in the input of one factor will increase output by 10 per cent.
(20 points) The New York, Ridgewood, and Exurban Railroad operates a commuter passenger service. Two kinds of reduced fares are offered: (1) children under 12 years of age ride at half-fare at all times. (b) on Wednesdays there are special half-fare tickets for adults good on trains leaving after 10:00 a.m. and returning before 4:30 p.m. The railroad has been accused by the New Jersey Commerce Commission of being a discriminating monopolist. Can you defend it against this charge with respect to either or both of its half-fare arrangements? If it is in fact a discriminating monopolist with respect to either arrangement, is it promoting an inefficient use of resources by its pricing practices?
(15 points) (a) Draw the short-run cost curves, demand curve, and marginal revenue curve of a monopolist who is suffering a short-run loss and is minimizing this loss. Indicate the amount of the loss on your diagram. (b) Show the same situation by means of short-run total cost and total revenue curves.
(15 points) A farmer has two plots of land on which he grows corn, plot A and plot B. The following table shows the amount of corn he can produce on each plot with varying applications of fertilizer of a given quality.

Fertilizer Used	Plot A	Plot B
(pounds)	(output in bushels)
0	10	8
1	14	13
2	16	17
3	17	20
4	18	21
5	17	20

If the price of fertilizer is $1.50 per pound and the price of corn is $1.00 per bushel, how much fertilizer will he use on each plot? (The figures are not intended to be realistic.) Under what circumstances would he use four pounds on each plot?

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archive. Albert Rees Papers, Box 1, Folder “Economics 300”.

Image Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archive. Albert Rees Papers, Box 1, Folder “Rees Personal”.

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Harvard M.I.T. Suggested Reading Syllabus

Harvard. Undergraduate reading list for Industrial Organization and Public Policy. Bishop, 1955-56

Post author By Irwin Collier
Post date 2018-02-27

Robert L. Bishop was called by his alma mater to render service to cover the undergraduate course on industrial organization and public policy in 1955-56. He still taught that year at M.I.T. according to the course staffing records, so the cross-Cambridge commute was a convenient (for all parties) gig. The previous year the same course was co-taught by Carl Kaysen and Merton Peck. Comparing the Spring term syllabus, items I, III, and V were the taken over “as is” by Bishop. The only question is now how much of the Fall term reading list was in common.

_____________________________

Course Enrollment

[Economics] 161. Industrial Organization and Public Policy. Associate Professor Bishop. (M.I.T.). Full course.

(Fall) Total 130: 2 Freshmen, 15 Sophomores, 74 Juniors 36 Seniors, 3 Radcliffe.
(Spring) Total 123: 2 Freshmen, 8 Sophomores, 73 Juniors 37 Seniors, 3 Radcliffe.

Source: Harvard University. Report of the President of Harvard College 1955-56, pp. 77-78.

_____________________________

HARVARD UNIVERSITY
Department of Economics

Economics 161
Fall Term 1955-56
Professor Bishop

The Modern Business Unit (Sept. 26 – Oct. 7; 4 lectures, 2 sections)

N. S. Buchanan: The Economics of Corporate Enterprise, Ch. 3
H.G. Guthman and H.E. Dougall, Corporate Financial Policy, Ch. 2
A.A. Berle and G.C. Means: The Modern Corporation and Private Property, Bk. II, Ch. 1
R.A. Gordon: Business Leadership in the Large Corporation, Ch. 1-3, 12-14
National Bur. of Ec. Research: Cost Behavior and Price Policy, Ch. X
H.L. Purdy, M.L. Lindahl and W.A. Carter: Corporate Concentration and Public Policy, (2^nd ed.) Ch. 7
J.K. Butters and J.V. Lintner: The Effects of Taxation on Corporate Mergers, Chs. IX, X

The Functioning of Markets and the Economic Norms of Public Policy (Oct. 10-Nov. 4; 7 lectures, 4 sections)

J. S. Bain: Price Theory (or Pricing, Distribution, and Employment, Rev. Ed.) Ch. 1-7 (Ch. 3 is useful chiefly as review)

Monopolistic and Oligopolistic Markets (Nov. 7 – Nov. 30; 8 lectures, 2 sections, hour exam)

Donaldson Brown, “Pricing Policy in Relation to Financial Control” (reprints)
TNEC Monograph No. 21; Monopoly and Competition in American Industry, Ch. IV
W. Nutter: “The Extent and Growth of Enterprise Monopoly” (pp. 141-153) in Gramp and Weiler, eds., Economic Policy: Readings in Political Economy
W.A. Adams, ed.: The Structure of American Industry (rev. ed.) Ch. V-XI
F. Machlup: The Basing-Point System, Ch. 1, 3, 6, 7
“Big Business in a Competitive Society,” Fortune, Supplement, Feb. 1953

Anti-Trust Policy (Dec. 5- Dec. 21; 6 lectures, 2 sections)

S. C. Oppenheim: Cases on Federal Anti-Trust Laws, pp. 57-69; App. A, B, C (pp. 963-85) pp. 106-127, 164-182, 250-265, (monopoly cases); pp. 281-286, 291-301, 310-330 (combination cases)
S.C. Oppenheim: 1951 Supplement, pp. 203-289 (Alcoa remedy)
U.S. v. United Shoe Machinery Corp., Fed. Supp.
E.S. Mason: “The Current Status of the Monopoly Problems in U.S.,” Harvard Law Review, June 1949
C.E. Griffin: An Economic Approach to Anti-Trust Problems
J.B. Dirlam and A.E.Kahn: Fair Competition: The Law and Economics of Anti-Trust Policy, Ch. 1, 2, 5, 9

Reading Period Assignment

Markham: Competition in the Rayon Industry

_____________________________

HARVARD UNIVERSITY
Department of Economics

Economics 161
Spring Term 1956
Professor Bishop

Markets of Large Numbers (Feb. 1 – Mar. 2; 8 lectures, 5 sections)

Agriculture
Cotton Textiles
Women’s clothing
Crude Oil

R. Schickele, Agricultural Policy, Ch. 9-11, 13-17.
K. Brandt, Farm Price Supports, Rigid or Flexible?
J.K. Galbraith, “Farm Policy: The Current Position,” Journal of Farm Economics, May, 1955, pp. 292-304.
A.M. McIsaac, “The Cotton Textile Industry,” in Adams, The Structure of American Industry, 2^nd ed.
“Adam Smith on 7^th Avenue,” Fortune [handwritten note: Jan. 1949?]
N. Ely, “The Conservation of Oil,” Ch. 11 in Readings in the Social Control of Industry.
E.V. Rostow, A National Policy for the Oil Industry, Part II.

The Plane of Competition—The Securities Markets (Mar. 5-Mar. 9; 2 lectures, 1 section)

Merrill, Lynch, Pierce, Fenner and Beane, How to Read a Balance Sheet.
W. E. Atkins, G.W. Edwards, and H.G. Moulton, The Regulation of the Securities Markets, Chs. 2-6.

The Regulated Industries (Mar. 12 – Apr. 13; 8 lectures, 3 sections; hour exam, Apr. 13)

Electric Power
Transportation

Twentieth Century Fund: Electric Power and Government Policy, Ch. I-IV, X.
M. L. Fair and E.W. Williams, Jr., Economics of Transportation, Ch. 18-23, 25, 30, 32.

The Patent System (Apr. 16 – Apr. 20; 2 lectures, 1 section)

Symposium, Law and Contemporary Problems, Vols. 12 and 13 (1947-48)—articles by:

Hamilton and Till, Vol. 13, pp. 245-59,
Abramson, Vol. 13, pp. 339-53,
Stedman, Vol. 12, pp. 649-79,
Davis, Vol. 12, pp. 796-806.

R. L. Bishop, “The Glass Container Industry,” in Adams, The Structure of American Industry, 1^st ed.

Nationalization and Planning (Apr. 23 – Apr. 30; 3 lectures, 1 section)

J. E. Meade, Planning and the Price Mechanism, pp. 1-104.
B.W. Lewis, British Planning and Nationalization, Ch. 1-3.
H.A. Clegg and F.E. Chester, The Future of Nationalization, Ch. 1, 3.

Reading Period Assignment

To be announced.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. (HUC 8522.2.1) Box 6, Folder “Economics, 1955, 1956, (2 of 2)”.

Image Source: Robert Lyle Bishop. MIT Museum.

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Cambridge Curriculum Suggested Reading

Cambridge. Guide to the Moral Sciences Tripos. James Ward, editor, 1891

Post author By Irwin Collier
Post date 2018-02-26

Just learned today that the plural of Tripos is Triposes. But needn’t worry, I will stick to the singular form as in “Moral Sciences Tripos”. For those curious about all the Triposes offered at Cambridge University at the end of the 19th century, much valuable information is to be found in The Student’s Guide to the University of Cambridge (Fifth edition, rewritten. Cambridge: Deighton, Bell and Co. 1893). Until Alfred Marshall was able to introduce a new Tripos in Economics and Political Science at Cambridge (see Alfred Marshall: The New Cambridge Curriculum in Economics and Associated Branches of Political Science: Its Purpose and Plan, 1903), the Moral Sciences Tripos of Psychology, Philosophy and Political Economy had served as an important breeding ground for Britain’s future economists.

Each of the individual guides for a particular Tripos could be purchased by the students. Below we have the guide written by the psychologist/philosopher, James Ward, for the Moral Sciences. He notes that John Neville Keynes provided suggestions with respect to Political Economy. I have provided links to just over thirty items in the readings lists.

________________

MORAL SCIENCES TRIPOS.
[revised edition, 1891]

Edited by
James Ward, Sc.D.
Examiner for the Moral Sciences Tripos and Lecturer
and Assistant Tutor of Trinity College

________________

NOTE. For the special recommendations relating to Political Economy the Editor is indebted to Dr [John Neville] Keynes, University Lecturer and formerly Fellow of Pembroke College; and for those relating to Politics and Ethics he is indebted to Mr J.S. Mackenzie, Fellow of Trinity College.

________________

The examination for the Moral Sciences Tripos consists of two parts; and begins, as a rule, upon the Monday after the last Sunday but one in May. No student may present himself for both parts in the same year.

The first part consists of two papers on each of the following subjects: Psychology including Ethical Psychology; Logic and Methodology; Political Economy; together with a paper of Essays.

A candidate for honours in this part must be in his fifth term at least, having previously kept four terms; but nine complete terms must not have passed after the first of these four, unless the candidate has obtained honours in some other Tripos, in which case eleven complete terms may have passed.

The names of the candidates who obtain honours are placed in three classes, each class consisting of. one or more divisions arranged in alphabetical order.

The subjects of the second part of the examination fall into two groups:—(A) Metaphysics, Political Philosophy, Ethics—on each of which there is one paper—and (B) the following special subjects, History of Philosophy, Advanced Logic and Methodology, Advanced Psychology and Psychophysics, Advanced Political Economy. There are two papers on each of these special subjects besides an Essay paper containing questions on all the above subjects. Every student must take one, and may not take more than two, of the special subjects; also every student must take the papers on Metaphysics and Ethics except those who select Advanced Political Economy as a special subject: for such students the paper on Political Philosophy is provided as an alternative for Metaphysics.

A candidate for honours in this part must have already obtained honours in Part I. or in some other Tripos: he must also be in his eighth term at least, having previously kept seven terms; but twelve complete terms must not have passed after the first of these seven.

The names of the candidates who pass are placed in three classes arranged in alphabetical order. No candidate will be refused a first class on the ground that he has taken up only one special subject provided that his work reaches the first class standard in the compulsory subjects and his special subject taken together. In the case of every student who is placed in the first class, the class list will shew by some convenient mark (1) the subject or subjects for which he is placed in that class, and (2) in which of those subjects, if in any, he passed with special distinction.

The following schedules of the different subjects, with lists of books recommended for study, was issued by the Special Board for Moral Science on June 17, 1889.

Schedule of the Subjects of Examination in
Part I. of the Moral Sciences Tripos.

I. Psychology.

Standpoint, data, and methods of Psychology. Its fundamental conceptions and hypotheses. Relations of Psychology to Physics, Physiology, and Metaphysics.
General analysis and classification of states of mind. Attention, consciousness, self- consciousness. Elementary psychical facts: impressions, feelings, and movements; retentiveness, arrest, association; appetite and aversion; reflex action, instinct, expression of feeling.
Sensation and perception. Intensity, quality, and complexity of sensations. Physiology of the senses. Activity and passivity of mind. Localisation of sensations. Psychological theories of time and space. Intuition of things.
Images. Imagination, dreaming, hallucination. Flow of ideas. Interaction of impressions and images. Memory, expectation, obliviscence.
Thought. Comparison, abstraction, generalisation: formation of conceptions. Psychology of language. Influence of society upon the individual mind. Judgment. Psychological theories of the categories.
Emotions: their analysis and classification. Higher sources of feeling: aesthetic, intellectual, social and moral. Theories of emotional expression.
Voluntary action; its different determining causes or occasions, and their operation: Pleasure, pain, desire, aversion, and their varieties: will and practical reason: conscience, moral sentiments, moral perception or judgment, moral reasoning. Conflict of motives, deliberation, self- control. The origin of the moral faculty.

List of books recommended on this subject:

Sully, Outlines of Psychology.
Bernstein, The Five Senses of Man.
Bain, The Emotions and the Will.
Ward, Psychology, Article in the Encyclopedia Britannica, ninth edition.

The following books should also be consulted:

Bain, The Senses and the Intellect.
Dewey, Psychology.
Höffding, Psychologie in Umrissen.
Ladd, Elements of Physiological Psychology.
Lotze, Microcosmus, Vol. I.
Spencer, Principles of Psychology [Volume I; Volume II].

II. Logic and Methodology.

Province of Logic, formal and material.
Logical functions of language: names, and their kinds: formation of general notions: definition, division, and classification: predicables and categories: scientific nomenclature and terminology.
The fundamental laws of thought, and their application to logical processes.
Propositions and their import: opposition and conversion of propositions.
Analysis and laws of syllogism.
The nature of the inductive process: ground of induction: connexion between induction and deduction: analogy.
Uniformities of nature, and their combinations: their analysis, and the methods of discovering and proving them: observation and experiment: scientific explanation: the nature and uses of hypothesis: doctrine of chance.
Error, its nature and causes, and the safeguards against it: classification of fallacies.

List of books recommended on this subject:

Whately, Logic.
Keynes, Formal Logic.
Mill, Logic [Volume I; Volume II]
Jevons, Principles of Science.

The following books should also be consulted:

Bacon, Novum Organon.
Drobisch, Neue Darstellung der Logik.
Mill, Examination of Hamilton, Chapters 17 to 24.
Whewell, Novum Organon Renovatum.
Ueberweg, System of Logic.

III. Political Economy.

The fundamental assumptions of Economic Science, the methods employed in it, and the qualifications required in applying its conclusions to practice; its relation to other branches of Social Science.
Production of Wealth.
Causes which affect or determine
1. The efficiency of capital and of labour.
2. The difficulty of obtaining natural agents and raw materials.
3. The rate of increase of capital and population.
Exchange and Distribution of Wealth.
Causes which affect or determine
1. The value of commodities produced at home.
2. The rent of land.
3. Profits and wages.
4. The value of currency.
5. The value of imported commodities. Monopolies. Gluts and crises. Banking, and the foreign Exchanges.
Governmental Interference in its economic aspects. Communism and Socialism.
The principles of taxation: the incidence of various taxes: public loans and their results.

List of books recommended on this subject:

Marshall, Economics of Industry.
Walker, The Wages Question, and Land and its Rent.
Mill, Principles of Political Economy, Books III. and V.
Jevons, Money and the Mechanism of Exchange.
Sidgwick, Principles of Political Economy, Introduction and Book III.
Fawcett, Free Trade and Protection.

The following books should also be consulted:

Bagehot, Lombard Street.
Bastable, Foreign Trade [sic, The Theory of International Trade (1887)].
Farrer, Free Trade and Fair Trade.
Giffen, Essays in Finance, Second Series.
Nicholson, Money and Monetary Problems, Part I.
Rae, Contemporary Socialism.
Sidgwick, Principles of Political Economy, Books I. and II.

Schedule of the Subjects of Examination in
Part II. of the Moral Sciences Tripos.

I. (a) Metaphysics.

Knowledge, its analysis and general characteristics: material and formal elements of knowledge; self-consciousness as unifying principle; uniformity and continuity of experience.
Fundamental forms of the object of knowledge: difference, identity; quantity, quality, relation; space and time; unity, number; substance, change, cause, activity and passivity; &c.
Certainty, its nature and grounds : sensitive, intuitive and demonstrative certainty; necessities of thought;’1 inconceivability of the opposite “; verification by experience.
Criteria applicable to special kinds of knowledge: matters of fact and relations of ideas; logical and mathematical axioms; fundamental assumptions of physical science: causality, continuity, conservation of matter and of energy.
Sources and limits of knowledge: Empiricism, Rationalism, Transcendentalism; relativity of knowledge, its various meanings and implications; distinction of phenomena and things per se; the conditioned and the unconditioned, the finite and the infinite.
Coordination of knowledge: mechanical and dynamical theories of matter; evolution; physical and psychical aspects of life; province of teleology; relation of mind and matter; relation of the individual mind to the universe; problem of the external world; Materialism, Idealism, Dualism; relation of theoretical and practical philosophy.

I. (b) Politics.

Definition of State: general relation of the individual to the State and to Society : connexion of Law with Government in modern states : general view of functions of government : grounds and limits of the duty of obedience to government.
Principles of Legislation in the modern state: right of personal security : rights of property: contract and status: family rights : bequest and inheritance : prevention and reparation of wrongs : theory of punishment : governmental rights : grounds and limits of governmental interference beyond the making and enforcement of laws : principles of taxation.
External relations of states : principles of international law and international morality : war, and its justifications : expansion of states, conquest and colonization : relation of more civilized societies to less civilized.
Distribution of the different functions of government in the modern state : legislative, executive, and judicial organs, their mutual relations, and their modes of appointment : relation of the state to other associations of its members : sovereignty: constitutional law and constitutional morality: constitutional rights of private persons : central and local government: federal states; government of dependencies.
A general historical survey of (a) the development of Law and Government, (b) the chief variations in the form and functions of government in European communities, (c) the relations of these variations to other social differences and changes.

II. Ethics.

Analysis of the moral consciousness; moral sentiment, moral perception, moral judgment, moral intuition, moral reasoning: object of moral faculty; voluntary action, motives, intentions, dispositions, habits, character: freedom of will and determination by motives.
The end or ends of rational action, ultimate good: the standard of right and wrong action: moral law: moral obligation: evil, moral and physical: interest and duty: virtue and vice: moral beauty and deformity: happiness and welfare, private and universal: pleasure and pain, qualitative and quantitative comparison of pleasures and pains: perfection, moral and physical, as rational end.
Exposition and classification of particular duties and transgressions, virtues and vices: different types of moral character: principles of social and political justice.
Relation of Ethics to Metaphysics, Psychology, Sociology and Politics.

Special Subjects.

III. History of Philosophy.

A special subject in the History of Philosophy will be announced in the Easter Term next but one preceding that in which the examination is to be held. Students will also be required to have a general knowledge of the History of Philosophy.

IV. Advanced Psychology and Psychophysics.

A fuller knowledge will be expected of the subjects included in the schedule for Part I., and of current controversies in connexion with them. Further, a special knowledge will be required (i) of the physiology of the senses and of the central nervous system, (ii) of experimental investigations into the intensity and duration of psychical states, and (iii) of such facts of mental pathology as are of psychological interest. Questions will also be set relating to the philosophic treatment of the relation of Body and Mind as regards both the method and the general theory of psychology.

V. Advanced Logic and Methodology.

Students will be expected to shew a fuller knowledge of the subjects included in the schedule for Part I., and of current controversies in connexion with them, and the examination will also include the following subjects:—Symbolic Logic, Theory of Probabilities, Theory of Scientific Method, Theory of Statistics.

VI. Advanced Political Economy.

Students will be expected to shew a fuller and more critical knowledge of the subjects included in the schedule for Part I. The examination will also include the following subjects; the diagrammatic expression of problems in pure theory with the general principles of the mathematical treatment applicable to such problems: the statistical verification and suggestion of economic uniformities: and a general historical knowledge (a) of the gradual development of the existing forms of property, contract, competition and credit; (b) of the different modes of industrial organization; and (c) of the course and aims of economic legislation at different periods, together with the principles determining the same.

Remarks on the above Schedules.

Students will probably find it best to begin with Political Economy and Logic. The undisputed evidence which a large portion of Logic possesses peculiarly adapts it for beginners: and the principles of Political Economy, while they can be grasped with less effort of abstraction than those of Philosophy, also afford greater opportunity of testing the clearness of the student’s apprehension by their application to particular cases.

Accordingly, in the particular suggestions which follow as to the method of study to be adopted in the different departments respectively, we may conveniently take the subjects in the following order: Logic and Methodology, Political Economy, Psychology¹, Metaphysics, Politics, Ethics, and History of Philosophy¹. Care has been taken to distinguish the recommendations addressed to students who only aim at the more elementary or more general knowledge which will suffice for Part I., from those which relate to the more full and detailed knowledge—either of the subjects themselves or of the history of doctrine relating to them—which is required in Part II.

¹To avoid repetition the reading in these subjects for both parts is included under one head.

1. Logic and Methodology.

There are important differences in the range of meaning with which the term Logic is used. In its widest signification, it includes two departments of inquiry which may be to some extent studied independently of each other. The first of these,—to which alone the name Logic was formerly applied, and which still, according to some writers, should be regarded as constituting the whole of Logic,—is concerned with reasonings only in so far as their validity can be determined a priori by the aid of laws of thought alone.

This study is often called, for distinction’s sake, ‘Formal Logic;’ on the ground that it is concerned with the form and not with the matter of thought; i.e. not with the characteristics of the particular objects about which the mind thinks and reasons, but with the manner in which, from its very nature, its normal thoughts and reasonings about them are constructed. It is with this branch that the student should commence, familiarising himself with it by the aid of some elementary hand-book, e.g. Jevons’s Elementary Lessons in Logic, or Fowler’s Deductive Logic.

He should then take Keynes’s Formal Logic as his text-book, consulting other works on the subject when he finds them there referred to, and, in particular, working out a good number of the examples and problems that are set.

The latter portion of Jevons’s Lessons or Fowler’s Inductive Logic may serve as an introduction to Mill’s Logic for those who shrink from facing Mill’s two volumes at once. This work has a much wider scope than that of Formal Logic, as above explained; and in fact deals at length with topics that do not so properly belong to Logic— even according to Mill’s own definition of Logic—as to Methodology, or the theory of the intellectual processes by which the truths of the different sciences have been reached in the past, and may be expected to be reached in the future. It should be observed also that even when Mill is apparently discussing the same topics as those discussed by the formal logicians, he will often be found to treat them in quite a different spirit, and from a different point of view.’ A clear apprehension of this difference can only be attained in the course of the study itself: but it is well that the student should be prepared for it at the outset. The greater portion of Jevons’s Principles of Science is devoted to the description and analysis of the methods of the physical sciences, and contains an almost unique collection of interesting and valuable scientific illustrations. Dr Venn’s Empirical Logic, published since the schedule was issued, should be read carefully either along with or after these works by Mill and Jevons. Whewell’s Novum Organon Renovatum should be consulted in connexion with Mill’s Logic. It deals more distinctly and explicitly with the methodological topics treated of in Mill’s book: and the student’s grasp of the subject will be materially aided by a careful comparison of the doctrines of the two writers.

The majority of the more advanced works fall into two sections: those which are read mainly for their own historic interest or the historic information which they contain; and those which require some knowledge of mathematics or physical science, as analysing the methods, or appealing to the notation of, those sciences. In the former class Bacon’s Novum Organon claims attention from its importance in the development of English scientific speculation. The best brief introduction to it is still to be found in the essay by R. L. Ellis, in the first volume of the collected works of Bacon by him and Mr Spedding. Much valuable information and criticism is also given in Professor Fowler’s very complete edition of the Novum Organon. Ueberweg’s System of Logic is valuable to the English reader for its abundant historic references, and because it presents him with a general view of the science familiar on the continent but not readily to be gained from the ordinary English hand-books.

The student is recommended to read the logical parts of Mill’s Examination of Hamilton, less for their destructive side, in the way of criticism of Hamilton, than for the many points on which they serve to supplement Mill’s own system of Logic, and to explain the philosophic scheme which underlies that system.

Many of the advanced books on Logic which it is usual to study for the second part of the Tripos deal largely with questions pertaining to Metaphysics as described in the schedule. Among books of this class probably the Logics of Lotze and of Sigwart will furnish the best basis of study: the former is already translated and a translation of the latter is in progress. To the same class— Higher Logic it is sometimes called—belong Bradley’s Principles of Logic and Bosanquet’s Logic or Morphology of Knowledge, both of which deserve perusal.

Dr Venn’s Symbolic Logic may be taken as the best introduction to that subject and the corresponding parts of Boole’s Laws of Thought and Jevons’s Principles of Science may be studied in connexion with it. A great deal has been written on this form of Logic within the last few years and the student will find a full bibliography in Schroder’s Vorlesungen über die Algebra der Logik, Band i. 1890.

Dr Venn’s Logic of Chance may serve in like manner as an introduction to the Theory of Probabilities and the Theory of Statistics. It aims at being within the comprehension of those who have only an elementary knowledge of mathematics. Two of the best books dealing specially with statistics are Maurice Block, Traité théorique et pratique de statisque 1878, and Georg Mayr, Die Gesetzmässigheit im Gesellschaftsleben 1877.

In addition to the books already mentioned on the subject of Higher Logic and Method the two large volumes by Wundt—Logik: Erkenntnisslehre; Logik, Methodenlehre—may be consulted and will serve to introduce many other books dealing with special questions to the notice of the student.

2. Political Economy.

Of the books included in the syllabus drawn up by the Board, Mill’s Principles of Political Economy and Sidgwick’s Principles of Political Economy alone cover the whole ground as defined by the schedule for Part I. of the Moral Sciences Tripos. It will be observed, however, that only Books III. and V. of the former are recommended, and that only a portion of the latter is included in the list of works which all candidates are expected to study in detail. The reason for this, so far as Mill is concerned, is the recognition that substantial corrections are required in his general theory of Distribution. The need of such corrections was, indeed, admitted by Mill himself some time before his death; but he never faced the task of rewriting his treatise from the new point of view which he had gained. Nevertheless if the student will remember that many of the positions taken up require important modifications, he will do well to begin with a perusal of Mill’s work in order to obtain a first general survey of the subject. Professor Sidgwick’s treatise is more difficult, and should therefore be taken at a somewhat later stage. Assuming that Mill has been read so as to gain a general idea of the ground to be covered, but without any considerable amount of attention having been paid to points of detail, the student should seek thoroughly to master Marshall’s Economics of Industry. This work should be supplemented by Walker on the Wages Question and on Land and its Rent. Here and elsewhere the differences of view between the authors read should be carefully noted and thought over. The student will find it specially useful to make a critical comparison of the theories of wages and profits laid down by Mill, Marshall, and Walker, observing both their points of resemblance and their points of difference.

The study of the general theory of Distribution and Exchange may later on be completed, so far as Part I. of the Tripos is concerned, by a careful study of Marshall’s Principles of Economics, Vol. I., and of the corresponding portions of Sidgwick’s Principles of Political Economy. Attention may be specially called to the part played by the principle of Continuity in the former work, and to the recognition by both writers of the complicated interactions between economic phenomena, which render it impossible to sum up in cut-and-dried formulas the conclusions ultimately reached.

Passing to the subject of currency and banking, the student should read Jevons’s Money and the Mechanism of Exchange and Nicholson’s Money and Monetary Problems, Part I., which usefully supplement one another. The former is mainly of a descriptive character, while the latter deals with the more difficult problems relating to the principles that regulate the value of money. Bagehot’s Lombard Street treats of the English banking system with special reference to the position of the Bank of England in the London Money Market. The above may be supplemented by Walker’s Money, Trade, and Industry, and by the corresponding chapters of Sidgwick.

The subject of international values and allied topics may be studied in Bastable’s Theory of International Trade. Goschen’s Foreign Exchanges is in some respects difficult, but it should on no account be omitted; it will give the student a fuller grasp of facts, the apprehension of which is of fundamental importance both for the theory of foreign trade and for the theory of money. Giffen’s Essays in Finance, Second Series, may be read with advantage at about this point.

Passing from economic science in the stricter sense to its applications, and considering Government interference in its economic aspects and the principles of taxation and State finance, Mill, Book V. should be supplemented by Sidgwick, Book III A study of Professor Sidgwick’s method will afford the student a most valuable training in the philosophic treatment of practical questions.

Some of Macmillan’s English Citizen Series may here be consulted; e.g., Wilson’s National Budget, Fowle’s Poor Law, and Jevons’s State in relation to Labour. The subject of Free Trade and Protection is treated in detail, from the Free Trade standpoint, in Fawcett’s Free Trade and Protection and in Farrer’s Free Trade versus Fair Trade. Current socialistic doctrines will be found fully described and criticized in Rae’s Contemporary Socialism. The student will learn much from following the economic movements of his own time; but he must be cautioned against giving undue attention to controversial questions of the day, such as bimetallism, socialism, &c. Time may thus be occupied, which should be given to systematic study of the foundations of the science. The scope of Political Economy, the methods employed in it, and its relations to other sciences, are treated of in Marshall’s Principles of Economics, Book I., and in Sidgwick’s Introduction. Cossa’s Guide to the Study of Political Economy and Keynes’s Scope and Method of Political Economy may also be consulted. It would be out of place here to attempt to give detailed advice to students taking Advanced Political Economy in Part II. of the Tripos. They may be warned, however, of the importance of not neglecting to go over again more than once the ground they have already covered. They will thus familiarise themselves with the general principles of economic reasoning, and will know how to set about the solution of any new and complex problem that may be placed before them. In particular they should return again and again to the more difficult parts of Marshall and Sidgwick, and—in connexion with the former—should study the application of symbolic and diagrammatic methods to Economics. From this point of view Cournot’s Principes Mathématiques de la Théorie des Richesses and Jevons’s Theory of Political Economy should be read. Some of Jevons’s doctrines are expounded with great lucidity in Wick- steed’s Alphabet of Economic Science, and this book may be specially recommended to those students whose mathematical reading is not so far advanced as to render needless an elementary exposition of the conceptions upon which the Differential Calculus is based. A critical study of Ricardo’s Principles of Political Economy and of his Tracts on Money must not be omitted; while in order to obtain some knowledge of recent developments of theory by his latest critics—the economists of the Austrian school—reference may be made to Böhm-Bawerk’s Capital and Interest and Positive Theory of Capital, the former of which is however open to the charge of doing less than justice to the writer’s predecessors.

Every student of Economics ought to read at least some portions of the Wealth of Nations, Professor Nicholson’s edition of which, with Introduction and notes, may be recommended. Many real and fundamental divergences from modern theory will be observed, especially in Books I. and II.; but Adam Smith is generally stimulating and instructive even when the doctrines which he lays down need correction. As regards the course of economic history, especially the course and aims of economic legislation at different periods, Books III., IV., and V. are specially important. For further historical study choice may be made from the following: Ashley, Economic History; Cunningham, Growth of English Industry and Commerce; Maine, Village Communities; Seebohm, The English Village Community; Brentano, On the History and Development of Gilds; Gross, The Gild Merchant; Rogers, Six Centuries of Work and Wages; Toynbee, The Industrial Revolution; Levi, History of British Commerce. Blanqui’s History of Political Economy in Europe and Ingram’s History of Political Economy may also be read ; but it must be remembered that the latter is written from the point of view of the Comtist critic and is strongly partisan. The use of statistics in Economics may be studied in Jevons’s Investigations in Currency and Finance (edited by Professor Foxwell) and in both series of Giffen’s Essays in Finance.

A long list of useful books on various departments of Political Economy might here be added, but it must suffice specially to mention the collected Essays of J. S. Mill, Bagehot, Cairnes, and Cliffe Leslie. Portions of the following may be consulted in libraries on particular points: Eden, State of the Poor; Porter, Progress of the Nation; Tooke and Newmarch, History of Prices; Schönberg, Handbuch der politischen Oekonomie.

3. Psychology.

The Science of Psychology has made considerable advances in recent times; so that the work of earlier English writers on this subject—including even Locke—has now chiefly a historic interest. Still the student must not expect to find a perfectly clear consensus among its expositors as to its method and principles. Modern Psychology though rich in facts, is poor in definitions; and the greater part of its laws are merely empirical generalisations still awaiting further explanation.

The great difficulty in attempting to prescribe a course of reading in Psychology is to avoid repetition and what is worse—a bewildering divergence of opinion at least as regards details. There is now an English translation of Hoffding’s Outlines and with this or with Dewey’s Psychology the student had better begin. He may then read Sully’s Outlines and Bain’s works as supplementary to his first text-book. The article Psychology in the ninth edition of the Encyclopaedia Britannica is most likely to be of service to him when he feels the need of getting his psychological knowledge into more scientific form.

Psychophysics, which treats of the phenomena of mind in relation to the changes in the organism which accompany them, is a branch of Psychology to which every one who studies this subject at all, must give some attention. Here, however, we have to distinguish between the philosophical discussion of the general relation of mind and body, and a knowledge of the particular connexions between mental and corporeal phenomena. The former subject belongs rather to Metaphysics; an elementary knowledge of the latter may be gained from Prof. Ladd’s Outlines of Physiological Psychology which has just appeared and may be taken to supersede his larger Elements: it will also probably enable the student to dispense with Bernstein’s Five Senses of Man.

The advanced student of Psychology will find it a great advantage if he is able to read German. In this case Volkmann’s Lehrbuch der Psychologie will be most useful to him as a repertory of facts and opinions, besides giving the ablest exposition of the Herbartian Psychology—the Psychology which has been the most fruitful of results, at any rate in Germany. Closely related to this school is the teaching of Lotze, which should on no account be passed over: one section of his Metaphysik² is devoted to psychological questions. His Medicinische Psychologie, long out of print and very scarce, is still worth attention: a portion of it has recently appeared in French. Drobisch’s Empirische Psychologie and Waitz’s Grundlegung, and Lehrbuch der Psychologie are works to which the student who is not pressed for time should also pay some attention. Morell’s Introduction to Mental Philosophy on the Inductive Method, is avowedly largely indebted to Waitz, Drobisch and Volkmann. It may be recommended especially to the English student who is unacquainted with German; also Ribot’s La Psychologie allemande contemporaine, which contains fair summaries of the leading doctrines of Herbart, Fechner, Lotze, Wundt and others.

²There is an English translation of this published by the Clarendon Press.

In the two large volumes of Prof. William James, Principles of Psychology, the advanced student has the means of forming an ample acquaintance with existing doctrine and current controversies. From Wundt’s Grundzüge der physiologischen Psychologie (3rd ed. 1887: French translation of the 2nd ed. 1880) the same help may be obtained as regards Experimental Psychology³. But the special knowledge required concerning the central nervous system will be got better from Dr Foster’s Text-book of Physiology, 5th ed. Parts III. and IV. There is no single book giving such facts of mental pathology as are of psychological interest. This is a department to which the French have especially devoted themselves. The following works may be mentioned :—Janet (Pierre), L’automatisme psychologique; Ribot, Les Maladies de la Mémoire; Les Maladies de la Volonté; Les Maladies de la Personnalité. Several of Ribot’s books are to be had in English.

³There is now (1891) some prospect of a Psychophysical laboratory in Cambridge. Prof. Foster has already set apart a room for the purpose and the University has made a small grant towards the purchase of apparatus. Some instruments too have been given by private donors.

Many works have recently appeared on what might be called Comparative Psychology. The subject is one that it is difficult to lift above the level of anecdote, but none the less it deserves attention. Romanes’ Mental Evolution (2 vols.) and Prof. Lloyd Morgan’s Animal Life and Intelligence will be found interesting in this department of psychology.

The origin of language and the connexion of thought and language form an important chapter of psychology and are dealt with in special works, in most of which, however, either the psychology or the philology leaves much to be desired. A general oversight of theories will be found in Marty, Ueber den Ursprung der Sprache. Max Müller’s Science of Thought, Egger’s La Parole intérieure, and Steinthal’s Einleitung in die Psychologie und Sprachwissenschaft are noteworthy.

4. Metaphysics.

The student who has already gone through a course of reading—accompanied, it is to be hoped, by oral instruction—in Psychology, will already have had his attention directed to some extent to the topics included in the schedule of Metaphysics. That this must be the case will appear, indeed, from a comparison of the two schedules of Psychology and Metaphysics respectively, independently of the books recommended. Thus it would be impossible to treat of the “data and fundamental conceptions” of Psychology, of “perception,” “intuition of things,” or “thought and abstraction,” without at the same time discussing to a certain extent the “nature and origin of knowledge” and the “relation of the individual mind to the universe,” &c.

But the principle of the separation adopted in the Cambridge scheme may perhaps be made partially clear without entering on matters of controversy; and it will probably assist the student to keep it in view from the outset. He must understand then, that Psychology deals with cognitive acts or states primarily as one class (among others) of mental phenomena; as forming part of the stream of consciousness of certain particular minds, whose processes the student is able to observe directly or indirectly. Whereas in the investigation of knowledge and its conditions that constitutes one department of Metaphysics, the same acts or states are primarily considered as representative of or related to the objects known. Or—to present substantially the same difference in another form—in investigating perceptions or thoughts from the point of view of Psychology we are no more occupied with those that are real or valid, than with those that are illusory or invalid—in fact, the latter may often be more interesting as throwing more light on the general laws of human minds: whilst as metaphysicians we are primarily concerned with real knowledge or truth as such, and treat of merely apparent knowledge or error only in order to expose and avoid it.

Under the head of Metaphysics it is intended to require a general knowledge (1) of what is coming to be called Epistemology and (2) of the speculative treatment of the fundamental questions concerning Nature and Mind prevalent at the present time, without direct reference to the History of Philosophy. Still it can scarcely be denied that the student who purposes to take up the History of Philosophy as a special subject will find some acquaintance with this history a help to the understanding of Philosophy in its most recent phases. If for no other reason this will be found true from the simple fact that nearly every writer on philosophical problems assumes some familiarity on the part of his readers with the writings of his predecessors. In particular those who are taking up both subjects and have to begin their work in private—during the Long Vacation, for instance— will find it advantageous to take up certain parts of the general history before attempting to do much at Metaphysics as outlined in the schedule, and especially to take up those parts of it that relate to the Theory of Knowledge. For these at least a general acquaintance with Hume and Kant will be helpful. Still those who are meaning to specialise in other directions can begin without this preliminary study of the history, and may reasonably count on getting what they need in this respect from lectures. Such may read some brief exposition of the Kantian philosophy, the three constructive chapters in Mill’s Examination of Hamilton (entitled Psychological Theory of Matter, Mind &c.), Mr Herbert Spencer’s First Principles and Lotze’s Metaphysics, as a preparation for lectures. Those familiar with German will find Riehl’s Philosophische Kriticismus, Kroman’s Unsere Naturerkenntniss and Wundt’s System der Philosophie useful books.

5. Politics.

The student will find all the aspects of this subject most fully dealt with in Dr Sidgwick’s Elements of Politics. This work is written from the Utilitarian point of view: the following books written from the same general standpoint may be read along with it:—Mill’s Utilitarianism, Chap, V., and Representative Government, Bentham’s Principles of Morals and Legislation, Principles of the Civil Code and Fragments on Government, and Austin’s Jurisprudence. For a treatment of the subject from a different point of view, the student may be recommended to read Green’s Lectures on Political Obligation (in the 2nd volume of his Collected Works); also Ritchie’s Principles of State Interference. Mr Herbert Spencer’s writings may also be profitably consulted, especially his Sociology, Part II. and Part V., and his volume on Justice.

The following works will be found useful for occasional reference—Bluntschli, Lehre vom modernen Staat, Vol. I. (authorised English translation published by the Clarendon Press), Maine’s Ancient Law, Early History of Institutions, and Popular Government, Stephen’s English Thought in the Eighteenth Century, Spencer’s Man versus the State, Dicey’s Law of the Constitution, Bryce’s American Commonwealth, Stirling’s Philosophy of Law, Hume’s Essays, II.—IX., and XII., Locke’s Essay on Civil Government, &c.

To those who have time and inclination to go beyond the limits of the schedule and study the history of the subject Janet’s Histoire de la Science Politique may be recommended. But some acquaintance with the original works of the more important writers is desirable—e.g., the Republic and Laws of Plato, the Ethics and Politics of Aristotle, Hobbes’s Leviathan, Montesquieu’s Esprit des Lois, Rousseau’s Contrat Social, Burke’s Thoughts on the Present Discontents and Reflections on the Revolution in France, Hegel’s Rechtsphilosophie and Philosophy of History, Comte’s Philosophie Positive, Part VI. Physique Sociale, (Vol. II. of Miss Martineau’s Translation), and Politique Positive (translated by various writers). Students ought not, however, to attempt to master the details of any of these works. On Comte, Caird’s Social Philosophy of Comte will be found useful.

6. Ethics.

Every student will naturally desire to have from the first a clear idea of the scope of the science. Unhappily there is no book from which such an idea can be gained in a quite satisfactory manner: for the degree of emphasis which is laid on different questions, and even to some extent the nature of the questions themselves, vary considerably in the different schools of ethical thought. A general sketch of the topics discussed by modern ethical writers may be found in such a book as Dewey’s Outlines of Ethics. But the significance of the various questions can hardly be fully appreciated without some reference to the history of the subject. It would be well therefore to read ch. IV. of Dr Sidgwick’s short History of Ethics at an early stage. This book is almost entirely limited, in the modern parts, to the history of English thought; but this deficiency may easily be corrected as the student proceeds with his work.

After having in this way acquired a general idea of the subject, the student may proceed to consider, more in detail, the various points of view from which the subject has been approached. He will soon find that the main schools of ethical thought group themselves naturally under the following heads:—(1) Intuitional, (2) Utilitarian, (3) Evolutionist, (4) Idealistic. As the student advances, he may be led to see that the distinction between these schools is not an absolute one, and that to a considerable extent their views overlap. But at first it may be convenient to study them separately. As representative of the Intuitional theory, the student may read the part of Martineau’s Types of Ethical Theory which contains the statement of the writer’s own doctrine— i.e. especially Part II., Book I., and perhaps the chapters on Intuitionism in Calderwood’s Handbook of Moral Philosophy; while, as representative of the Utilitarian point of view he may take Mill’s Utilitarianism, together with the criticism and further development of Mill’s ideas in Dr Sidgwick’s Methods of Ethics. The criticisms of Intuitionism in Dr Sidgwick’s Methods of Ethics and of Utilitarianism in Green’s Prolegomena to Ethics and in Sorley’s Ethics of Naturalism ought also to be studied in this connexion. With reference to Evolutionist Ethics, Mr Herbert Spencer’s Data of Ethics ought to be carefully studied, while those who have time may consult in addition such books as Mr Leslie Stephen’s Science of Ethics, Mr Alexander’s Moral Order and Progress, and Höffding’s Ethik. For criticism of the Evolutionist Ethics, reference may be made to Green’s Prolegomena to Ethics, Sidgwick’s Methods of Ethics, and Sorley’s Ethics of Naturalism. The Idealistic Ethics rests primarily on the teaching of Kant, and the best introduction to it may be found in his Metaphysic of Morals (of which Abbott’s translation is the most accurate). Dewey’s Outlines of Ethics are also written from this point of view. So are Bradley’s Ethical Studies and Green’s Prolegomena to Ethics; but only certain portions of these books can be studied with advantage by those who are not at the same time studying Metaphysics. The most complete exposition and criticism of Kant’s ethical position is to be found in the 2nd volume of Caird’s Critical Philosophy of Immanuel Kant. Among recent books Paulsen’s System der Ethik is singularly rich and suggestive.

Students who are reading Metaphysics in conjunction with Ethics will naturally bestow more attention on the fundamental difficulties of the subject than other students can be expected to give. On this, as on other aspects of Philosophy, the works of Kant will necessarily be studied with care. Green’s Prolegomena to Ethics may be strongly recommended as the most important English book dealing with the relation of Metaphysics to Ethics. Few students will find time to acquire more than a general knowledge of such speculations as those of Plato, Spinoza, and Hegel.

Students of Politics, on the other hand, may be expected to be especially interested in the relations of Ethics to the Philosophy of society and of the state. Among modern writers, the Germans have devoted most attention to this aspect of the subject, from Hegel’s Rechtsphilosophie onwards. Paulsen’s System der Ethik may be recommended; also Hoffding’s Ethik, translated from the Danish. In English, Green’s Prolegomena to Ethics and Lectures on Political Obligation (in the 2nd volume of his Collected Works) may be consulted. Several writers of the Utilitarian school have also dealt with this subject. Bentham’s Principles of Morals and Legislation and Principles of the Civil Code will be found interesting; and highly instructive discussions of various aspects of the subject are to be found in Dr Sidgwick’s Methods of Ethics, Principles of Political Economy, and Elements of Politics.

7. History of Philosophy.

A particular portion⁴ of the whole subject will be selected from time to time, which the student will be required to know thoroughly: and he should endeavour to avail himself of this special knowledge so as to make his general survey of the course of metaphysical speculation, in ancient or modern times, less superficial than it would otherwise be; by keeping prominently in view the connexion of the doctrines specially studied with antecedent and subsequent thought.

⁴The special subject selected for the examination in 1892 is, The Philosophy of Kant; and for 1893:—European Philosophy from 1600 to 1660 with special reference to Descartes, Bacon and Hobbes.

There are no good general histories of Philosophy by English writers, but there are translations of several standard histories by Germans. Of these Schwegler’s, though very brief, is good for a general survey. Erdmann is fairly full and would be excellent if not obscured in parts by careless translation. Ueberweg attempts—in the style of Prof. Bain’s Ethical Systems—to summarize in the writers’ own words but not always with Prof. Bain’s success.

The student should try, if possible, to read something of the philosophical classics at first hand. Such short works, for example, as Descartes’ Discourse on Method or his Meditations, Berkeley’s Hylas and Philonous, Hume’s Treatise of Human Nature, Vol. I., and Kant’s Prolegomena to every future metaphysic, might be read.

Prof. Sidgwick’s History of Ethics will be found the most useful text-book; and may be supplemented by Jodl’s Geschichte der Ethik. Help will also be obtained from Mr Leslie Stephen’s History of English Thought in the Eighteenth Century; Martineau’s Types of Ethical Theory; the Introduction to the second volume of Hume’s Works in the edition of Green and Grose (reprinted in the first volume of Green’s Collected Works); and Wundt’s Ethik, Abschnitt II.

General Remarks on Method and Time of Study.

1. Method of reading.

Perhaps the best plan upon commencing a new work is to read it rapidly through first, in order to form a general notion of its bearing and to catch its principal points. The first reading may be too careful. The student may find himself face to face with difficulties, which, although really only of an incidental character, may cause him to misconceive the proportions of the whole, if he have formed a determination—in itself praiseworthy —to master every part upon first acquaintance. Upon the second reading, an analysis should be made of the more important works, but care should be taken that it do not become long and wearisome: it should be distinctly of the nature of a summary, and not a mere series of extracts. Such analyses are almost indispensable, to enable the student to perform, in the concluding period of his course, an effective and systematic revision of the whole results of his study. Further, at the second time of reading, the student should take careful note of any difficulties that he may find in understanding the doctrines or criticisms propounded, or any doubts that may occur to him as to their correctness. He need not be afraid of losing time by writing down in his note-book as precise a statement as possible of his doubt or difficulty; since no exercise of his mind is likely to be more conducive to his attaining a real grasp of his subject. He will sometimes find that the mere effort to state a difficulty clearly has the effect of dispelling it; or, if not at the time, at any rate when he recurs to the point on a subsequent day he will often find the problem quite easy of solution: while in the cases where his perplexity or objection persists, a clear statement of it will generally bring his mind into the most favourable condition for receiving explanations from his teacher.

In subjects so full of unsettled controversy as the Moral Sciences generally are, a student must be prepared to find himself not unfrequently in legitimate disagreement with the authors studied; (though he should not hastily conclude that this is the case, especially during the earlier stages of his course). In all except quite recent books, he is likely to find some statements of fact or doctrine which all competent thinkers at the present day would regard as needing correction; while in other cases he will find, on comparing different works, important discrepancies and mutual contradictions on points still debated between existing schools of thought. He should carefully note the results of such comparisons; but he should not content himself with merely committing them to memory; rather, he should always set himself to consider from what source each controversy arises, what its relation is to the rest of the doctrine taught in the works compared, and by what method the point at issue is to be settled.

It will generally be found convenient to put in tabular form any divisions or classifications which , are met with in the books read. Such lists are not indeed necessarily of great importance in themselves, but they furnish a convenient framework for criticisms and comparisons of the methods and results of various writers.

The constant practice of writing answers to papers of questions and longer compositions on special points arising out of the subjects studied, cannot be too strongly urged. Many minds are hardly able to bring their grasp of subtle or complicated reasonings to the due degree of exactness and completeness, until their deficiencies in these respects have been brought home to them by exercises in written exposition.

2. Time of study.

A student who is in a position to begin effective work in his first term may hope to be prepared for Part I. of the Tripos in his second year, and may take Part II. at the end of his third, assuming, of course, in both cases that he does a reasonable amount of private study during Long Vacations. But it is desirable, when circumstances admit of it and especially if two of the special subjects are taken up, to devote not less than two years to the work of the Second Part.

Those who have taken honours in other Triposes at the end of their second year, will be able afterwards to prepare fully for either part of the Moral Sciences Tripos at the end of their fourth year, without being inconveniently pressed for time—supposing them to read steadily in their second, as well as in their third Long Vacation. If, however, the period entirely devoted to this preparation is only one year—as must be the case with students who take some other Tripos at the end of their third year—it is very desirable that some part of the subjects should have been read at an earlier stage of the course.

The Special Board for Moral Science publishes annually, towards the end of the Easter Term, a list of lectures for the coming academical year in different departments of the Moral Sciences. These lectures are, generally speaking, so arranged as to provide all the oral instruction required by students at different stages of their course.

Source: Dr. J. Ward, Trinity College, editor: Part VIII. The Moral Sciences Tripos in The Student’s Guide to the University of Cambridge (5^th edition, rewritten). Cambridge (U.K.): Deighton, Bell and Co., 1891.

Image Source: Illustration by Edward Hull “The New Court, Trinity College Cambridge” from page 81 of Alfred J. Church, The Laureate’s Country. London: Seeley, 1891.

Tags KeynesJN

Barnard Exam Questions

Barnard. Exam for one-semester outlines of economics course. Moore and Johnson, 1903

Post author By Irwin Collier
Post date 2018-02-24

The following introductory economics exam from Barnard College in 1903 comes from a student’s college scrapbook that had been donated to the archives of her alma mater. The scrapbook belonged to Gertrude Helen Clark, who, according to the Register of the Associate Alumnae of Barnard College (1925), married Frederick M. Hitchcock in 1917. Because such random singletons are quickly forgotten, I prefer to post them immediately. Similar to Radcliffe, Barnard could count on faculty from the patriarchal side of campus to provide instructors. Professor Henry L. Moore and the up and coming Alvin S. Johnson were definitely prime offerings for Barnard.

Incidentally, there is a nice website set up to celebrate the 125th anniversary of the founding of Barnard where one finds a list of the names of all Barnard College economics faculty starting with John Bates Clark up to most recent times.

______________________

Course Announcement

Economics and Social Science

Economics A—Outlines of Economics. Study of the characteristics of modern industrial society and of the fundamental economic principles. Professor [Henry L.] Moore and Mr. [Alvin Saunders] Johnson [Tutor in Political Economy and Sociology]. One and one-half points, first half-year.

Section I, Tu., Th., S., 9.30; Section II, Tu., Th., 11.30, S. 9.30; Section III (if needed), Tu., Th., 1.30, S., 9.30.

Prescribed for Juniors. Open to qualified Sophomores who take Course I.
This course is given in two or, if necessary, in three sections. Students are assigned to the sections in alphabetical order, but for reasons of weight, with the consent of the Dean, a student may be transferred to a section other than that to which she properly belongs.

Source: Columbia University, Barnard College Catalogue, 1901-02. Announcement 1902-1903, p. 59.

______________________

BARNARD COLLEGE
Economics A
Mid-year Examination, [Jan. 27,] 1903

Define wealth, capital, land; rent, demand, utility, marginal utility, value, price.
What determines market value? normal value?
State the law of diminishing returns.
What are the economic reasons for the concentration of industry?
Is there an economic limit to concentration?
State the law of monopoly value.
What determines the value of money?
Assuming that the United States has a monetary circulation of 500,000,000 in gold, what will be the effect of an issue of 100,000,000 in legal tender paper money
1. On prices within the United States
2. On the foreign trade of the United States
3. On the value of gold throughout the world.
If a day’s labor in America will produce more yards of cotton cloth than a day’s labor in England, will the cotton industry need protection? Should it receive protection?
How does a high standard of living affect wages?
Discuss the “scope” of Economics.

Source: Barnard College Archives. Gertrude C. Clark Hitchcock Scrapbook, 1898-1906, p. 48.

Image Source: Art and Picture Collection, The New York Public Library. “Barnard College, western boulevard” New York Public Library Digital Collections. Accessed February 24, 2018.

Tags JohnsonA, Moore

Letter from Alexander Konüs to Martin Bronfenbrenner 7 July 1966

Carbon copy of letter from Bronfenbrenner to Konüs 18 August, 1966

Yale University New Haven, Connecticut

DEPARTMENT OF ECONOMICS Cowles Foundation for Research in Economics Box 2125, Yale Station

Faculty of Economics, Statistics [and Business]

DESCRIPTION OF SUBJECTS ECONOMICS AND STATISTICS M.I.T., 1930-31

GENERAL EXAMINATION in ECONOMIC FLUCTUATIONS AND POLICY October 6, 1950

Answer question 1, and three of the remaining questions.

GENERAL EXAMINATION IN BUSINESS FLUCTUATIONS

9:00-12:00 n. Friday May 9, 1952

ANSWER ALL QUESTIONS (1 hour)

GENERAL EXAMINATION IN ECONOMIC FLUCTUATIONS May 19, 1954

Answer any four questions.

GENERAL EXAMINATION IN BUSINESS FLUCTUATIONS September 12, 1956

Answer any five questions.

PRICE THEORY Economics 300 Autumn, 1962 Mr. Rees

Economics 300 Midterm Examination

November 7, 1962 A. Rees

FINAL EXAMINATION

Economics 300 December 12, 1962 A. Rees

Course Enrollment

HARVARD UNIVERSITY Department of Economics

Economics 161 Fall Term 1955-56 Professor Bishop

HARVARD UNIVERSITY Department of Economics

Economics 161 Spring Term 1956 Professor Bishop

MORAL SCIENCES TRIPOS. [revised edition, 1891]

Edited by James Ward, Sc.D. Examiner for the Moral Sciences Tripos and Lecturer and Assistant Tutor of Trinity College

Schedule of the Subjects of Examination in Part I. of the Moral Sciences Tripos.

I. Psychology.

II. Logic and Methodology.

III. Political Economy.

Schedule of the Subjects of Examination in Part II. of the Moral Sciences Tripos.

I. (a) Metaphysics.

I. (b) Politics.

II. Ethics.

Special Subjects.

III. History of Philosophy.

IV. Advanced Psychology and Psychophysics.

V. Advanced Logic and Methodology.

VI. Advanced Political Economy.

Remarks on the above Schedules.

1. Logic and Methodology.

2. Political Economy.

3. Psychology.

4. Metaphysics.

5. Politics.

6. Ethics.

7. History of Philosophy.

General Remarks on Method and Time of Study.

1. Method of reading.

2. Time of study.

Course Announcement

Economics and Social Science

BARNARD COLLEGE Economics A Mid-year Examination, [Jan. 27,] 1903

Letter from Alexander Konüs to Martin Bronfenbrenner
7 July 1966

Carbon copy of letter from Bronfenbrenner to Konüs
18 August, 1966

Yale University
New Haven, Connecticut

DEPARTMENT OF ECONOMICS
Cowles Foundation for Research in Economics
Box 2125, Yale Station

DESCRIPTION OF SUBJECTS
ECONOMICS AND STATISTICS
M.I.T., 1930-31

GENERAL EXAMINATION
in
ECONOMIC FLUCTUATIONS AND POLICY
October 6, 1950

GENERAL EXAMINATION IN
BUSINESS FLUCTUATIONS

9:00-12:00 n.
Friday
May 9, 1952

ANSWER ALL QUESTIONS
(1 hour)

GENERAL EXAMINATION IN ECONOMIC FLUCTUATIONS
May 19, 1954

GENERAL EXAMINATION IN BUSINESS FLUCTUATIONS
September 12, 1956

PRICE THEORY
Economics 300
Autumn, 1962
Mr. Rees

Economics 300
Midterm Examination

November 7, 1962
A. Rees

Economics 300
December 12, 1962
A. Rees

HARVARD UNIVERSITY
Department of Economics

Economics 161
Fall Term 1955-56
Professor Bishop

HARVARD UNIVERSITY
Department of Economics

Economics 161
Spring Term 1956
Professor Bishop

MORAL SCIENCES TRIPOS.
[revised edition, 1891]

Edited by
James Ward, Sc.D.
Examiner for the Moral Sciences Tripos and Lecturer
and Assistant Tutor of Trinity College

Schedule of the Subjects of Examination in
Part I. of the Moral Sciences Tripos.

Schedule of the Subjects of Examination in
Part II. of the Moral Sciences Tripos.

BARNARD COLLEGE
Economics A
Mid-year Examination, [Jan. 27,] 1903