Category: Fields

Categories
Exam Questions Fields International Economics M.I.T.

M.I.T. General Exam for International Economics. May 1974

Charles P. Kindleberger

This general exam from the Spring of 1974 was fished from Charles Kindleberger’s papers in the M.I.T. Archives. Probably the questions in the first part were of Jagdish Bhagwati’s doing and those in the second part were chosen by Kindleberger.

_________________________

Previously transcribed and posted
General Exams
for International Economics

1959
February and May 1966

_________________________

Previously transcribed and posted
Kindleberger’s Course Exams
for International Economics

1950-51
1954-55
1961-67

_________________________

[Handwritten note: “Wednesday May 22, 1974”]

GENERAL EXAMINATION IN INTERNATIONAL ECONOMICS

Three hours.

Part I answer two questions;
Part II answer two questions.

All questions have equal weight (45 minutes each).
Write your answers to Parts I and II in separate books.

Part I

  1. Murray Kemp believes that, with regard to factor price equalization,

“…the conditions never have been nor will be satisfied in practice… Nevertheless, the “factor price equalization theorem is important if only because it focuses attention on the obstacles to equalization.”

What is your opinion about the importance and relevance of the factor price equalization theorem?

  1. What Is the case for free trade?
  2. Assume that the price of oil relative to other goods will continue at its present level for at least the next half decade. What does international trade (and not balance of payments) theory predict about the effects of the price increase on importing countries?

Part II

  1. Describe and evaluate the monetarist explanation of the balance of payments of a single country. If you choose, you may include a discussion of the reasons why this explanation has made progress at the expense of others.
  2. With liberal policies in trade and capital movements and national responsibility for employment and inflation, is the international economic system overdetermined? Discuss in relation to international monetary arrangements on the one hand, and the possibility of giving up policy instrument on the other.
  3. Discuss the balance-of-payments problem, its origin and possible cure of one of the following: Germany, Italy, the United States, any Latin American country you choose, Saudi Arabia, India.

Source: Institute Archives and Special Collections, MIT Libraries. Charles Kindleberger Papers, Box 22, Folder “Examinations International Economics 1959-75”.

Source: Portrait of Charles Poor Kindleberger at the MIT Museum website. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Fields Money and Banking UCLA

UCLA. PhD Money Qualifying Examinations. Klein, Thompson, Clower, Darby. 1973

While material for the Harvard economics department has and will dominate the flow of content at Economics in the Rear-view Mirror, I will try to post items from other colleges and economics, if for no other reason than to get a change of scenery. So in this post we head out to UCLA to see what Ph.D. candidates who selected Money as a subject for a comprehensive examination were asked. The exam is transcribed from a personal copy of Robert Clower found in this papers. So from UCLA to Duke to you via Berlin.

Note the examination committee for May 1973 has been identified, one might presume that most if not all members also were involved in the October 1973 examination transcribed below.

Previously posted:

May 1971 Field Exam 

______________________________

Meet the members of the Ph.D. Comprehensive Field Exam for Money
(UCLA, Spring, 1973)

Chairman, Benjamin Klein (b. 1943. Ph.D. University of Chicago)

Earl Thompson (b. 1938; d. 2010. Ph.D. Harvard University, 1961)

Michael Darby (b. 1945. Ph.D. University of Chicago, 1970)

Robert W. Clower (b. 1926; d. 2011.  D.Litt. Oxford University 1978)

For much, much more:  The Essential UCLA School of Economics by David R. Henderson and Steven Globerman.

______________________________

Memo on Comprehensive Field Exams
in the UCLA Economics Department

April 5, 1973

TO: Economics Department Faculty
FROM: The Graduate Committee and the Acting Chairman
SUBJECT: Comprehensive Field Examinations

Some faculty members have indicated to members of the Graduate Committee uncertainty about their roles and responsibilities in the examination process. The following notes may serve to lessen those uncertainties.

Each of the eleven areas designated as “fields” by the Department has a committee charged with the responsibility for composing the examination and measuring the accomplishments of our students. While the duties involved with conducting these examinations are onerous, the exams have played a central part in the graduate curriculum and are, therefore, worthy of considerable effort.

Typically, the person named chairman of the field solicits questions for the examination from all the other members of the committee. In some cases, his solicitation may go beyond the committee to other department members as well. Usually, he then composes the examination and, before submitting it to the graduate secretary to be typed, circulates a draft copy among the committee members to seek their consensus about balance and format. In particular, it is not intended that the chairman have unilateral authority with respect to the exam’s content.

After the examination has been administered to the students, the results are evaluated. All committees, to our knowledge, have at least two members read every answer. In fields in which the number of students is small, all members read all the answers.

Finally, in order to grade the examination, most committees schedule a meeting at which some consensus about grades is forged. At such meetings, a member who has strong feelings about the qualities (or lack thereof) of any given question or examination may convince the other members. For most committees this procedure has proven more useful than that of simply handing the chairman a score sheet before any dialogue about the results has occurred.

Clearly, modes of behavior with respect to the conduct of the examinations will vary among the field committees. However, to the extent that committees can standardize their actions along the lines indicated above, student and faculty uncertainty about the examinations will diminish, with an accordingly greater emphasis on more substantive matters.

______________________________

Comprehensive Field Examinations for the M.A. and Ph.D. degrees — May 1973

Field Committees:

Economic Theory. Hirshleifer (chairman), Thompson, Clower, Demetz, Leijonhufvud

Urban and Regional Economics. Hirsch (chairman), Ellickson, Chen

Public Finance. Somers (chairman), Chen, Lindsay, Vandermeulen

Government and Industry (industrial organization). Demetz (chairman), Peltzman, Hilton, Klein

Mathematical Economics. Thompson (chairman), Britto, Clower

Econometrics. Dhrymes (chairman), Ellickson, McCall

Money. Klein (chairman), Thompson, Clower, Darby

International Economics. Baird (chairman), Chu, Rugg

Economic Development. Herrick (chairman), Britto, Wolf

Labor Economics. Herrick (chairman), Lindsay, Hilton

Economic Institutions (economic history). Murphy (chairman), Shetler, Leijonhufvud

______________________________

Ph.D. Money Qualifying Examination
October 15, 1973

Four Hours

Answer six of the following seven questions. Be as specific and rigorous as possible.

There is plenty of writing time to answer all of the questions satisfactorily so try to spend a sufficient amount of time thinking before beginning to write. Irrelevant material presented, however correct, will be penalized.

1. In his 1942 article on “Say’s Law: A Restatement and Criticism,” O. Lange defines “Walras’ Law” by the identity

\sum_{i=1}^{i=N} p_{i}X_{i}\equiv 0,

where Xi denotes the sum of all individual excess demands for the ith conmodity (“collective excess demand”), and Pi denotes the price (expressed in units of the Nth commodity) of the ith commodity. In the same article, Lange defines “Say’s Law” by the identity

\sum_{i=1}^{i=N-1} p_{i}X_{i}\equiv 0,

where pi and Xi are defined precisely as before. Calling the Nth commodity “money,” Lange then asserts that if collective excess demands in an economic system A simultaneously satisfy both Walras’ Law and Say’s Law, then:

    1. Money prices are indeterminate;
    2. Individuals will never desire to change their money balances;
    3. Money is merely a worthless medium of exchange and standard of value in economy A.
    4. The economic system A is “equivalent to a barter economy.”

Critically evaluate each of the assertions a) through d).

2. a) The rapid rise in short-term interest rates during the first half of 1973 produced what is commonly called commercial bank “disintermediation” and thereby differential movements in the rates of growth of M1 compared to M2.

Clearly describe this process and how it affects the two definitions

of the money supply. In such circumstances, is the rate of growth of M1 or of M2 a better indicator of monetary policy? Can you suggest a superior monetary aggregate to use as an indicator?

b) During the past year the rate of growth of money has deviated at times substantially from the rate of growth of the base or high-powered money (i.e., there has been a change in the money multiplier) due to large changes by the Treasury in the amount of demand deposits they hold at commercial banks. This led one observer to ask whether it was the Treasury or the Federal Reserve who was making monetary policy.

Clearly describe how changes in government demand deposits affect the money supply. How can the Federal Reserve offset such changes? If the Treasury decided to become a “monetary authority” and tried to control the money supply in this way, how would they fare in competition with the Fed if the two authorities adopted different money supply goals?

3. An Englishman holidaying on a small Mediterranean island paid all his expenses with checks on his English bank. The inhabitants were so impressed by his gentlemanly bearing that instead of cashing his checks, they used them thereafter as money. Who paid for the Englishman’s holiday?

Answer this question in terms of (a) fixed exchange rates and (b) floating exchange rates. Explain how different macroeconomic views of the world affect the answers.

4. There has been much discussion about the exogeneity or endogeneity of the money supply. Explain the different meanings of these terms for policy analysis and for statistical estimation and how these differences have been a source of confusion.

5. Discuss the following proposition: The rate of unemployment is affected primarily by deviations of the actual rate of change of money or government spending from their expected rates of change, and not by the rate of change or level of money or government spending.

Does this proposition have any implications about the relative and absolute possibilities of the persistent use of fiscal or monetary policy to achieve a low rate of unemployment?

Cite any empirical evidence with which you are familiar for or against the proposition (e.g., consider the Andersen & Jordan weights on the effects of changes in government spending on changes in nominal income).

6. The Federal Reserve recently adopted a rule change where required reserves instead of being calculated on the basis of current deposits is now based on commercial bank deposits two weeks earlier (which are obviously given at the time of the calculation).

This rule change has produced a situation where the Fed can no longer affect, in any given week, the total reserves of the banking system and where the major short-run effective policy tool of the Fed is how much it “forces” commercial banks to borrow from them each week — a very crude instrument by which to control the money supply.

Do you agree or disagree? Explain carefully.

Source: Economists’ Papers Archive, David M. Rubenstein Rare Book & Manuscript Library, Duke University. Robert W. Clower Papers, Box 4, Folder “Monetary Economics, PhD exams, Reading list, exams UCLA 1971-1988”.

Image Sources: Benjamin Klein, Earl Thompson, Robert Clower, Michael Darby.

Categories
Fields Harvard

Harvard. Report on Long-range Plans for the Department of Economics. 1948

The following transcribed report of a special committee regarding the future of the Harvard economics department looking forward from 1948 is fascinating. Eight senior professors would be retiring over the coming decade and there was a serious discussion of the economists needed to replace them. For my money the most interesting comparison is the one made between Arthur Smithies and Paul Samuelson. I’ll let you or your AI of choice fish that out of the report. But there is much more to be found.

_____________________________

The Provost is not amused
[No letterhead, unsigned.
Apparently a copy.]

December 22, 1947

Dear Mr. Burbank:

I am not at all happy with the recommendation sent me by the Department of Economics and the School of Public Administration for the appointment at professorial rank of a man to serve jointly in the Department and in the School. As you realize, the five votes taken by the group reveal a confused picture in which no clear preference is indicated. Nor have I been successful in clarifying the situation by requesting from each member of the group a letter addressed to me in which he explained fully his vote. Hence I believe it necessary to suggest a different procedure from that which has been followed.

One source of the difficulty, it occurs to me, is that the recommendation for the joint appointment has not been studied sufficiently in relation to the other vacancies which are to be filled within the next year or two. As you know, the Department has, in addition to the joint professorship, a vacancy in the rank of full professorship created by the resignation of Professor Crum, and one in the rank of associate professorship. It also has due it in 1950-51 a second vacancy as associate professor. Hence it appears that within a short span, the Department has four major appointments to make. It goes without saying that those appointments will influence in great measure the future of economics at Harvard for many years to come. The importance of making wise selections cannot be lost sight of.

It seems to me that we must consider all these appointments as a related problem. Consequently I shall take no action on the recommendation for the joint appointment until the Department has thought through its entire slate. No evidence has been given me yet which suggests that the Department has worked out a consistent plan or program into which all these appointments can be fitted and which meets, within the resources available, the demands which the Faculty as a whole may properly make upon the Department of Economics.

I have no desire to lecture the Department as to its obligations, but I do have certain responsibilities to discharge as Dean of the Faculty. Hence I venture to suggest that there are certain questions which may reasonably and properly be directed to the Department for an answer. Among those questions are the following:

  1. What is your concept of teaching and research within the Faculty of Arts and Sciences?
  2. What fields will you cover, within the resources at your command, in carrying out the answer to the first question?
  3. Are you properly discharging your obligations to your sister departments of the Faculty and to the programs which the Faculty has legislated as common ventures?
  4. Do your specific recommendations harmonize with a general plan and program?

I understand fully that these are no easy questions to answer and that the difficulty of finding an answer is a prime factor in creating the present state of confusion. But I suspect that more preliminary efforts to answer the questions might have reduced the degree of confusion. Certainly so long as the basic issues are not clarified, the discussion of individuals to be appointed breaks down into fragmentary views.

I am also distressed by the fact that many of the professors in the Department have informed me that they do not consider themselves either willing or competent to serve as Chairman of the Department when your term expires in June. One conclusion which might be drawn from this situation is that the Department as now constituted needs some recruitment from men competent and willing to think of economics in general, and of the relation of economics to the faculty at large and to the world outside the university.

I must also report a sense of uneasiness among members of the Faculty in other Departments, that the Department of Economics is showing a tendency not to give due weight in the filling of its vacancies to common programs. If there is cause for this apprehension, I should be quite dismayed. At a time when the Faculty as a whole gives indication of the need in teaching and research for ever greater cooperation between disciplines of learning, it would be regrettable if the Department of Economics adhered to narrow and vertical procedures. To make the point quite specific, I might inquire what the Department of Economics plans to do in regard to Economic History and to the Area Program in Russian.

I also wonder whether in your immediate desire to fill the vacancies with men now available, you have given proper consideration to the range of younger men coming to maturity in your field. I have, for example, observed two young economists now in the Society of Fellows who seem to me to have ultimate promise of achievement greater than that of at least some of the men now available. There must be many other such men in the University and elsewhere. It would seen wise in any general approach to the problem to give assurance that proper consideration had been made in our appointment schedule for the generation of economists now coming to maturity.

These are some of the matters I have in mind, both general and particular, which incline me to the decision that we should follow an approach in handling these appointments different from the one followed to date. I fear that the approach followed so far is leading into an impasse from which the only escape will be the making of something less than the wisest appointments. Hence I suggest a change of procedure and ask first that the Department present me, in advance of any specific recommendation, with a statement which deals with the questions raised earlier in this letter. Recommendations may accompany this document, but they will not be accepted without it and unless they are shown to have meaning in relation to it.

Finally, the time has come, I believe, when I must personally associate myself with the development of this program. I am therefore arranging a dinner and evening meeting in the rooms of the Society of Fellows on January 21 at 6:30 p.m. to which I shall invite each member of the Executive Committee (all Professors and Associate Professors) of the Department. I shall preside at this meeting, and we shall begin then discussion of the issues outlined in this letter. Needless to say that because of the urgency of the matter, I shall expect a full attendance of the Executive Committee at the dinner.

I am sending a copy of this letter to each Professor and Associate Professor of the Department.

Sincerely yours,
[Unsigned by Paul H. Buck]
Provost

Professor H. H. Burbank
Littauer Center

_____________________________

C O N F I D E N T I A L

REPORT ON LONG-RANGE PLANS
FOR THE
DEPARTMENT OF ECONOMICS
(REVISED EDITION)

February 25, 1948
  1. The Task of the Committee

In his letter of December 22, 1947, to the Chairman of the Department of Economics [Professor Harold H. Burbank], the Provost [Professor Paul H. Buck] raised a series of questions concerning the long-run plans for the growth and development of the Department. Any future appointments clearly ought to be related to a comprehensive study of the needs and objectives of the Department.

The questions posed by the Provost were as follows:

    1. What is your concept of teaching and research within the Faculty of Arts and Sciences?
    2. What fields will you cover, within the resources at your command, in carrying out the answer to the first question?
    3. Are you properly discharging your obligations to sister departments of the Faculty and to the programs which the Faculty has legislated as common ventures?
    4. Do your specific recommendations harmonize with a general plan and program?

Following an evening meeting on January 21, 1948, with the Executive Committee of the Department, the Provost appointed a committee of five to consider the above questions and to prepare a report on long-run plans for the Department. The Committee was also directed to recommend appointments for existing vacancies in the light of such a comprehensive survey of long-range problems. Four appointments are under consideration at this time: (1) a full professor replacement for Professor Crum, (2) a full professor to be appointed jointly in the Department and in the Littauer School of Public Administration, (3) an associate professor available July 1, 1948, and (4) an associate professor normally not available until July 1, 1951, but who might be appointed at an earlier date.

  1. The Prospective Situation in the Department

The growth of the Department in recent years is indicated in the following tabulation of the number of permanent positions and the number of undergraduate and graduate students for selected years since 1925.

Year

 Permanent Positions Undergraduate Concentrators

Graduate Students*

1925-26

10

 324

75

1930-31

14

 397

82

1935-36

13

 376

47

1940-41

 16 321

102

1947-48

 17 726

264

* Prior to 1940, graduate students with Corporation appointments were not required to register in the Graduate School. The graduate figures for 1940-41 and 1947-48 include Joint Degree and Littauer School candidates who take most of their work in Economics.
Radcliffe students are included in the figures only for 1947-48.

The Department of Economics may reasonably anticipate the retirement of one-half of its present permanent members by June 30, 1958. On the normal assumption that retirement takes place at age sixty-six, eight of the sixteen present permanent members may be expected to become emeritus during the next ten years. The members of the Department who are, and are not, expected to retire before 1958 are indicated in the following lists. (The dates of birth are given after each name.)

Expected Retirement by 1958

 Active Status Expected, Fall 1958
A.P. Usher January 13, 1883 E. Frickey

August 20, 1893

J.A. Schumpeter

 February 8, 1883 S.E. Harris September 8, 1897
J.D. Black June 6, 1883 O.H. Taylor

December 11, 1897

A.E. Monroe

 August 2, 1885 E.S. Mason February 22, 1899
J.H. Williams June 21, 1887 E.H. Chamberlin

May 18, 1899

H.H. Burbank

 July 3, 1887 G. Haberler July 20, 1900
A.H. Hansen August 23, 1887 W.W. Leontief

August 5, 1905

S.H. Slichter

 January 8, 1892 J.T. Dunlop

July 5, 1914

The Department can look forward, under the existing rules of the University, to a total of six new permanent appointments, including the four now under consideration during this ten-year period. The Department can also expect the appointment of an economist to the Lamont University Professorship upon the retirement of Professor Slichter. Accordingly, the Department can expect to retain a total of fifteen permanent appointments in the academic year 1958-59 in comparison with the seventeen permanent members during the current academic year (the above list plus Professor Crum). (The number of permanent members of the staff may at any given time be larger than retirement dates would indicate by reason of extension of normal term of service.)

These expected changes in the personnel of the Department over the next ten-year period indicate clearly the decisive nature of the appointments now under deliberation. Four of the six expected appointments are under study. The distinction and reputation of the Department for many years to come is at stake. It is imperative that every effort be made to appraise the needs and opportunities of the Department during the next decade and to canvass with insight all possible candidates.

  1. The Place of the Department in the Faculty

The first question posed by the Provost in his letter of December 22, 1947, was: “What is your concept of teaching and research within the Faculty of Arts and Sciences?” The Committee makes the following points in a re-examination of the role of the Department.

(a) The Faculty of Arts and Sciences has embarked on programs of General Education and Area Studies [e.g., Russian Studies]. The Department of Economics has a substantial and distinctive contribution to make to each of these experiments: the development of a common core of a liberal education and the integration of different disciplines around the problems of a significant geographical area.

 (b) The past twenty years have witnessed an unprecedented expansion in the need for economists in a variety of positions outside the academic world — government service, business concerns, research organizations, labor and farm groups, consulting practice and economic reporting. The Department of Economics needs to develop a more flexible graduate program to meet this more diversified demand in cooperation with other Departments in the Faculty of Arts and Sciences and with various Graduate Schools in the University. The recognition of these broader objectives will supplement rather than detract from the training of economists for academic posts.

(c) The balance between graduate and undergraduate instruction in Economics is always a delicate adjustment. Indeed, the Provost has recently indicated that the strength and prestige of Harvard College lies in the fact that we are truly a “University College.” The Committee has analyzed the relative proportion of the time of its permanent members devoted to graduate and undergraduate course instruction for selected years since 1925. The permanent staff of the Department gave more courses for undergraduates in 1947-48 than in 1925-26. The proportion of all course time devoted to undergraduate instruction, however, has been reduced in this same period from a half to little more than a third. In other words, the increased permanent manpower of the Department over this period (permanent positions increased from ten to seventeen) has been devoted largely to graduate instruction.

The following table compares the number of courses “taught” or “supervised” by permanent members of the Department for undergraduates with the offering of courses for graduate students for selected dates. Comparative figures are also presented for the History and Government Departments.

Courses of Instruction by Permanent Staff
Economics History

Government
Dates Undergrad. Grad. Undergrad. Grad. Undergrad. Grad.

1925-26

8 ½

 8 ½ 14 12 6 ½

8

1930-31

 9 11 ¾ 14 22 ¾ 5

9 ½

1935-36

 8 ¾ 12 15 ¼ 31 5 ¼

10 ¼
1940-41 9 ¾ 19 ½ 14 13 ½ 7 ¼

19 ¾

1947-48

 12 ½ 22 15 10 ½ 9

9

These figures would appear to indicate that graduate course instruction has expanded in Economics relatively to undergraduate course instruction and also relative to the experience of graduate instruction in other departments. It should be noted, however, that the large increase in graduate courses after 1935/36 was associated with the establishment of the Graduate School of Public Administration which affected both the Department of Economics and the Department of Government.

These data on course offering need to be interpreted in terms of graduate enrollment and undergraduate concentration. The following table presents this information. The figures indicate the incidence of the postwar expansion in University enrolment upon the burden of instruction in Economics and allied departments.

Undergraduate Concentrators and Graduate Students

Economics History Government
Dates Undergrad. Grad. Undergrad. Grad. Undergrad.

Grad.

1925-26

 324 75 190 — 113 45
1930-31 397 82 254 138 130

56

1935-36

 376 47 283 104 292 38
1940-41 321 102 272 146 314

76

1947-48

 726 264 321 207 763

129

The Committee believes that undergraduate instruction in Economics in the past two years has suffered materially by the suspension of the tutorial system. The assistant professor rank in which there is normally considerable contact with undergraduates has not been fully manned in recent years. The Committee believes that undergraduate instruction needs to receive more attention in the Department, not so much by more courses given by permanent members but by rebuilding a strong group of younger teachers in the assistant professor and annual instructor rank.

Assuming the number of the permanent staff at present contemplated to be fixed, the size of the graduate student body in Economics must be reduced from its present size of more than 260 if members of the Department are to fulfill their total obligations to the University and if a more diversified graduate student body is to receive adequate instruction and supervision. The Committee suggests a figure of 200 graduate students — twice the pre-war level — as a normal standard for the period under review. The rate of admission planned for the Fall term, 1948, will eventually yield a student body close to this figure. It is impossible at this time to foresee whether the numbers of qualified graduate students seeking economic instruction at Harvard will substantially exceed 200 after the special circumstances accounting for the present large numbers have been eliminated. If, as may well happen, the demand on the part of first-rate men and women for graduate instruction in economics exceeds the capacity of the staff as at present planned, it may indicate a need for revision of plans of instruction in economics.

(d) There is imperative need for more systematic development of research plans in Economics and for financial arrangements whereby permanent members may be relieved of all duties for periods of a term to pursue research on a full-time basis. Research grants should be used in part to secure substitute instruction. Several research projects which provide a practicable model for the expansion of research have recently been undertaken by members of the Department. Individual members of the Department should be encouraged to organize specific research projects and solicit support, in cooperation with the University administration. These projects should make provision for full-time leave for a term whenever possible. Such projects, moreover, may well become a training center for the most advanced students.

(e) The Department of Economics should expect a continuation of the distinguished tradition of participation by many of its members in wider forms of service to the community — government service, consultation to business and industry, private arbitration, private research organizations, etc. A danger exists, however, that these activities may consume too large a proportion of the time and energy of members of the staff. A devotion to productive scholarship should be an indispensable requirement of every appointee.

In making appointments the Department must be concerned to choose men with the energy and capacity for developing these outside interests and contacts. The Department has not only an obligation to the world of scholarship but also a unique responsibility for leadership at the many points where Economics has a contribution to make to the world of affairs.

  1. The Urgent Needs of the Department

The second question posed by the Provost in his letter of December 22, 1947, asked: “What fields will you cover, within the resources at your command, in carrying out the answer to the first question?” When the objectives for the Department outlined in the preceding section are considered in conjunction with the present personnel and the retirement pattern outlined in Section 2 above, the following needs of the Department appear to be the most urgent. (The listing of these requirements at this point does not imply any particular hierarchy of urgency.)

(a) Economic History. This field has been a required part of the graduate program in Economics for many years. Moreover, for over half a century instruction in this area has been located in the Economics Department. The retirement of Professor Usher requires that provision be made for this field in any comprehensive plan for the Department.

(b) Agriculture and Marketing. Professor Black has developed work in two fields: (1) The Economics of Agriculture and Land Use Planning, and (2) Marketing and Distribution. Ideally two men would be required to carry on this work.

(1) Agriculture. The Committee is of the opinion that work in the Economics of Agriculture and Land Use Planning is indispensable. Research and training in this field have constituted a major contribution of the Department. Moreover, the agricultural field is of particular concern in the School of Public Administration.

(2) Marketing. The Committee reluctantly concludes that, under present prospects and despite the importance of work in marketing and distribution, it is unlikely that one of the few appointments available can be allocated in this field. It may be that the field of Business Organization can be reorganized to permit the inclusion of some portion of the work in the present field of Marketing and Distribution.

(c) General Education and the Area Program. It is imperative that the Department take an active part in the formulation and development of these new programs. The availability of half-time appointments from the General Education and Area budgets would permit the Department of Economics to make two appointments (of half-time each) for one budget vacancy. That is, the appointment of two men, a half time of one in an Area and of the other in General Education, might fill one of the vacancies in the Economics Department.

(d) Business Organization. The resignation of Professor Crum and the administrative responsibilities of Professor Mason make an appointment in this area urgent. Moreover, the field constitutes one of the largest areas of undergraduate and graduate concentration.

(e) Public Policy. The systematic development of the field of the Economic Aspects of Public Policy is essential to the growth of the Graduate School of Public Administration. One of the appointments available at this time has been explicitly earmarked for this purpose.

(f) Public Finance. The retirement of Professor Burbank in the period indicates the necessity for providing for work in this area. The field is indispensable both to the Economics Department and the Graduate School of Public Administration.

(g) Statistics. The burden of instruction in the field of Statistics is heavier than one man should be asked to assume. In addition to undergraduate and graduate courses, this required field involves participation in virtually all general examinations. Ideally instruction should be provided in the field of national income and mathematical statistics. If an additional appointment is not devoted exclusively to this field, consideration should be given to the recruitment of men able to develop such statistical instruction as a part of their program.

(h) Department Chairman. The Department is required to give serious weight in making appointments to qualities which make for a successful Chairman. The Department is so large as to place very heavy administrative responsibilities on its Chairman. The Department should have in its ranks a number of persons qualified to perform the duties of Chairman so that the burden on one individual over the years is not unreasonable.

The Committee believes that the Department should examine its internal operations to determine whether an administrative reorganization might not facilitate the effectiveness of the work of the Department. A systematic survey could be made of such duties as: counselling graduate students, placement, recruitment of superior students, and the supervision of Economics A and the junior teaching staff. Careful study should be given to the possibility of delegating more responsibility to standing committees of the Department.

While the Committee has emphasized, and it believes properly, certain specific needs of the Department, the overriding need, which should take precedence in all appointments, is for able men. If a first-rate man cannot be found in a specific field, it is better either to neglect the field or to divert the attention of existing personnel to this field than to fill the vacancy with second-rate material.

The Committee believes that the answer to the Provost’s third question, “Are you properly discharging your obligations to sister departments of the Faculty and to the programs which the Faculty has legislated as common ventures?”, must, at present, be “no.” It considers, however, that the addition of the personnel suggested below will, together with some reallocation of the time of present officers, enable the Department to meet these obligations.

A consideration of the Provost’s fourth question, “Do your specific recommendations harmonize with a general plan and program?” leads directly to a discussion of the proposed appointments.

  1. Recommendations

(a) The Committee recommends that one appointment at the associate professorship level be utilized in the following manner: that Alexander Gerschenkron be invited on the understanding that the Department assume the responsibility for half his salary, the Russian area assuming responsibility for the other half; that John Sawyer, now a Junior Fellow, be appointed to an assistant professorship at the end of 1948-49, on the understanding that the responsibility for half his salary be assumed either by General Education or the Department of History.

Gerschenkron is one of the two best economists in the country now working on Russian problems, the other being Abram Bergson of Columbia University. Gerschenkron has the advantage of being an economic historian. Consequently, his appointment would enable the Department to take care not only of instruction and research in Russian economics but also to replace Professor Usher’s work in European economic history on his retirement.

Sawyer is an historian of an intellectual ability fully equal to that of our own Junior Fellows, Tobin and Kaysen. He has evinced an interest in cultivating the field of American economic history and also of working in General Education. Since Sawyer’s prospects in the History Department are extremely good, it would be necessary to assure him, on appointment as an assistant professor, that a clear road to advancement exists in the Department, if he shows the competence the Department expects of him.

These two appointments, which would fill one vacancy, would go far towards meeting the Department’s obligations toward the Russian area and toward General Education as well as taking care of economic history.

(b) The Committee feels that the vacancy left by the resignation of Professor Crum must be filled and that the best candidate available is Sidney Alexander, now an assistant professor. Although Alexander’s publication to date does not justify promotion, he has an impressive series of contributions due for publication during the next year which will make him an eminently qualified candidate for promotion by the end of the academic year 1948-49. The Committee therefore believes that one of the vacancies at the associate professorship level should be reserved for the advancement of Professor Alexander.

(c) In many ways the most serious and difficult problem confronting the Committee concerns the replacement of the work now carried on by Professor Black. The research and training program in agricultural economics and land use is an asset of great worth both to the Department of Economics and to the Graduate School of Public Administration.

The Committee understands that before the date set for Professor Black’s retirement the Administration will request him to continue his services to the University for a number of years. It therefore believes that some four to five years are available in which to select a man fully capable of carrying on Professor Black’s work. The Committee believes that there are a number of able young men in the field of agricultural economics who might be secured at the assistant professorship level. The Committee therefore recommends that one or more of these candidates be brought to Harvard and that the next two or three years be utilized to survey the field, including such men as are brought here at lower than permanent rank, to assure the selection of the best possible man.

(d) If one position is filled by Gerschenkron and Sawyer, and another is reserved for Alexander, there remain two positions at the professorial level. These positions might be treated in any one of the following ways:

(1) Both positions could be filled at once;

(2) One position could be filled now and the other held vacant for Professor Black’s successor;

(3)  One position could be filled, the other held vacant pending the appearance of a suitable candidate not necessarily in the field of agricultural economics. In this case it must be assumed that the vacancy caused by Professor Black’s retirement would be filled from the appointment accruing to the Department in 1954, which appointment might be advanced in time. It should also be recognized that this appointment might have to be at the professorial level which would involve a departure from present University policy.

In considering the possibility of filling both vacancies now, the Committee was heavily influenced by the desirability of maintaining balance in the Department not only as among various fields of interest but as among types of mind and of methodological approaches to economic problems. In this connection the Committee considered carefully the qualifications of both Smithies and Samuelson. While of the opinion that each of these men might individually be considered intellectually superior to the rest of the field, the Committee feels strongly that the addition of both would give a particular stamp to the Department that should, if possible, be avoided. Both of these men are, in a sense, system builders, concerned with the logical and mathematical interrelations of the elements of their systems. Neither has done much empirical work. Smithies has shown recently a concern for, and an interest in, institutional developments and public policy. Moreover, he has had extensive experience in government service. The Committee believes that while each of these men is pre-eminent in his type of work the two together do not make a satisfactory combination.

The problem then narrows down to the question of Samuelson or Smithies and someone else. The Committee considers that the interests and type of mind represented either by Richard Bissel or Colin Clark would effectively supplement the Smithies-Samuelson characteristics. No effective way of communicating with Clark suggested itself to the Committee, and there is certain evidence to support the view that he would not be available. It appears that Bissel may not be available at this time. If his views change in the near future, the Committee considers him its first choice.

Of other possibilities the Committee discussed at length the qualifications of Galbraith, Yntema, David Wright, Albert Hart, Donald Wallace, and others. For various reasons, too lengthy here to enumerate, none of these candidates seemed first-rate possibilities.

The Committee therefore recommends that one of the professorial positions be held vacant for the time being pending the appearance of a satisfactory candidate. As to the relative merits of Smithies and Samuelson, the Committee, after deliberating at length, favors Smithies. While recognizing that Samuelson has in his field of activity a better record than anyone near his age in any field, the Committee was heavily influenced by the probability that Smithies’ contribution to the needs of the Department would be substantially greater. He appears to be an ideal man to develop the work in the School of Public Administration on Economic Analysis and Public Policy; he appears to be an eminently satisfactory man to take over the work in Public Finance on Professor Burbank’s retirement; he is clearly a man who would make an able Departmental Chairman. In addition he is competent to develop work in advanced statistics should the Department consider this desirable. For these reasons, and others, the Committee recommends the appointment of Smithies.

Paul H. Buck, Chairman
John T. Dunlop
Wassily Leontief
Edward S. Mason
John H. Williams

Source: Duke University, Economists’ Papers Archive, David M. Rubenstein Rare Book & Manuscript Library. Edward H. Chamberlin Papers. Box 17, Folder “Economics Department Faculty, 1944-47.”

Image Source:  Harvard Seal detail from the cover of the Harvard Law School Yearbook 1949.

Categories
Faculty Regulations Fields Harvard

Harvard. Rules for Economics PhD Exams. 1941 or 1942

 

Starting in 1942 the administrative task of tracking the progress of Harvard economics Ph.D. candidates was delegated to the departmental level from the Division of History, Government and Economics*. A typewritten memo was prepared that described in detail the procedures in use by the Division up to that time, along with an explicit list of examiners’ names by field used for putting together committees for the general and special examinations.

The graduate records for Paul Samuelson and Gardiner C. Means have been transcribed earlier and are typical cases of the procedures described here.

The internal memo transcribed below appears to be a draft with some hand-marked deletions, substitutions, and additions. But it might be the case that the changes were noted on the memo over the course of time. I include the original text that has been marked for deletion (crossing out that text) and use italics to designate revisions/additions.

Fun facts: Joseph Schumpeter and John D. Black were not to be put on the same examination committee. The sociologist Sorokin was not to be named as an examiner for the field of sociology, but instead Talcott Parsons was much preferred. Also of interest is the fact that Harvard professors were paid a modest honorarium for examining Radcliffe Ph.D. candidates. 

* The records up through 1942 are found in Harvard University Archives, Division of History, Government and Economics: Ph.D. Material [1873-1942], 20 Boxes (UAV. 453.270).

Degree Rulings (October 25, 1930) have been transcribed and were posted already in May 2015! The fourth artifact of Economics in the Rear-view Mirror.

__________________________________

[Handwritten comment at top of page:
Notes taken by CCTDik[?] when Division office closed and each Dept took over responsibility for PhD. Examinations 1941 or 1942.]

When someone wants a general examination, get Plan of Study. Approval of Plan of Study: Follow the rules as set up in Economics. Be sure Economic Theory, History, and Statistics are in the plan. Ask for a month’s notice for scheduling an examination. First, send for transcript of record at Graduate School Office. Write to members of committee asking if they can serve on that date two and one-half weeks in advance. Mimeographed sheet giving details. Also send postcard I can or I cannot serve. Be sure to put name of Professor on card so that you will know who returns it.

Send reminder so that they will receive it about four days in advance.

Look through Plan and pick a preliminary Committee.

Theory: Schumpeter, Chamberlin, Haberler, Triffin, Monroe (use on an examination where everyone else is directly in his own field), Sweezy, Leontief (interchangeable),

Mason, Taylor (particularly for Economic Policy)

Economic History: Usher and Cole if have to.

Statistics: Frickey, Staehle, Crum

Money and Banking: Hansen, Williams, Harris, Schumpeter, Goodwin, Bennion, Haberler

Economic Fluctuations and Forecasting: Schumpeter, Haberler, Hansen, Harris, Laursen

Transportation: Cunningham, Chamberlin

Industrial Organization: Dunlop, Sweezy, Mason if here.

Public Finance: Burbank, Butters. (If chiefly Fiscal Policy Seminar, Hansen)

International Trade: Laursen, Harris, Haberler, Leontief. Schumpeter for specials.

Agriculture: Black, Usher, Hansen. (Consult Black in advance for schedule)

Labor: Slichter, Dunlop, Healy, Staehle, Harris,

Socialism and Social Reform: Sweezy, Leontief, Taylor

Economic History before 1750: Usher

Commodity Distribution and Prices: Staehle, Black, Sweezy

Public Utilities: Chamberlin, Mason, or Business School people.

Land Utilization: Black

(Do not use Black and Schumpeter together on a board if possible)

Get schedules from Hansen, and others, who are away a great deal from secretary before scheduling examinations.

Sociology: Do not use Sorokin. Anyone else. Parsons good because was in Economics.

Economic Policy: O.H. Taylor, Sweezy, Chamberlin used chiefly.

For Chairman of the Committee if at all possible pick the men with whom he is to write the thesis. In Theory pick the man with whom candidate has had course work. If do not know about thesis, pick senior member or Theory man.

Check with Miss Loftus for fields in Government.

Check on languages. Be sure that they have passed one before the generals.

Check the fields with the candidate. Write-off does not need to be completed until time of special examination. Check grade to be sure it is sufficiently good.

Schedule examinations all the time, concentrated in Reading Periods if possible. Ordinarily at 4 o’clock; sometimes at 11; and once in a while to suit the committee.

Write candidate about four or five days before examination.

“Dear Mr. ——

The arrangements have been completed for your general examination for the degree of Ph.D. in Economics. It is to be held on Tuesday, May 5, at 4 o’clock in Littauer M-10.

Sincerely yours,
Secretary

Material for examination: Send to chairman the Plan of Study, back side filled in by this office. Mimeographed form. Transcript of course record. The examination report if already taken general. On mimeographed sheet write everything in full, —Full name, Tuesday, May 5, 1942, at 4 o’clock. Department of Economics. Fields examined: 1, 2, 3, 4, following order on Plan of Study. The committee certifies that the general (cross out special).

Committee: Professor ——, chairman, and list rest in order of fields as far as possible. Be careful about titles (Professor, and Dr.). This must be signed by every member of the examining board.

For special: Full name, etc. Special field: —— Follow the fields for titles as listed in the pamphlet. Thesis: —— (Give full title as on bound thesis) Three people on special examination board.

Pro-seminar: Follow Department rules.

Check on write-off field. Bracket in red pencil.

After the examination: Chairman returns the papers, then write letter to Miss Gifford Priest in the Graduate School of Arta and Sciences.

Dear Miss Gifford Priest: I wish to report the following examinations for the degree of Ph.D. in Economies:

Robert Brown General for Economics May 26 Passed

(In case of failure — Failed, no bar to reexamination)

If Public Administration, write same letter to Miss Bourneuf Mrs. Bright Miss Hunter.

On back of Plan of Study put date of general examination, passed, and initials of Chairman of the committee.

Keep a check-list of examinations for the degree of Ph.D. in Economies 1941-42. Candidate’s name, date, board, grade, in red pencil, when reported to Miss Gifford Priest. If special comment say, “See comment” after grade.

[No longer since the new arrangement between Harvard and Radcliffe]

Radcliffe — report examination to Miss Davenport — same letter.

In account with Radcliffe College, Cambridge, Massachusetts]

And also send a bill to the Business Office.

For serving on the general examination for the degree of Ph.D. in Economics of Miss Penelope C. Hartland, May 19, 1942,

Edward H. Chamberlin

$6.25

Arthur H. Cole

$6.25

Alvin H. Hansen

$6.25

Edwin Frickey

$6.25

$25.00

(On special the chairman gets $8.34; the others $8.33)

For a room call Miss Gilpatrick for a room in Longfellow.

Excuses from final examinations in courses. After December 1 (9½ wks out of 13 weeks of lectures) Jan. 5 and after April 1 May 11. (Will send copy of rule later)

If take general examination during your first year as graduate student here (1G) cannot be excused unless have a grade of good or better on the generals. Second year graduate students (2G) may be if pass the general with any grade in particular courses excused from usually pretty clear, — Courses in the fields in which examined. Ec. 117 Karl Marx  — excused for Theory.

If a man passes the general for Ph.D. with a vote of 3 to 1 (if passed but did very poorly in one field) it is up to the committee to decide whether he must take the final examination in that course. Check with the committee.

Division rule for Committee of Seven (Chamberlin and Monroe from Economics). Recommendations for Ph.D. degrees sent by Committee of Seven probably. [Sent by Dept. to Dean Jones, 24 Univ. Hall and a carbon to Secretary of the Faculty, 5 Univ [?] Hall.]] If a man fails two examinations, either general or special, in order to have a third examination he has to have special permission from the Academic Board of the Graduate School and the Division Committee of Seven. The candidate petitions the Committee of Seven asking permission to come up for a third examination.

Make clear to candidate that he must check with this office to find out whether he is excused from final course examinations.

If a man fails once and comes up again, ask whether he wants the same board as far as possible. Most of time they request the same.

Special examinations: much the same. Due date on thesis December 1 Jan. 10 and April 1 May 8 and July 15 Sept. 8. Will accept on due date unbound. This year accepted unbound and sent to the Harvard Bindery and bill sent to the student care of the Department and then sent on. Harvard Bindery will call for it. If student has thesis in on due date, but has not corrected for typographical errors, or if chart is left out, or something, it has to go to reader as it was handed in, and then afterwards, before going to the Library, the candidate will be expected to fix it up. (Professor Taylor’s ruling.) Get theses out to readers as fast as they come in.

Readers: Every student expected to work with a particular man on a thesis. Ask student with whom he wrote the thesis. That person chairman of the examination. Second reader usually pretty obvious from material. In that case, where second reader not obvious, then consult the man with whom thesis was written. Then check with chairman of the Department.

Do not have to report on thesis until five days before the scheduled date of examination. Ask candidate when he wants the examination. Consult readers over the telephone are they willing,  — The examination will be about May 29,  — and then make arrangements for the examination as if it will be held, but tentative until have approval on the thesis. Check a week before to see if they will accept. Theses approval slip in front of thesis. Have both signatures on one slip. Paste in front of A copy before sending to Dean Mayo’s  [Jones’] office.

Third reader: In the case where disagreement, pick a third reader — a person of some authority. If not passed, ask the men with whom the thesis was written to write candidate giving the reasons. If thesis is rejected keep one copy forever. Return B copy to the student.

Card file for every thesis that comes in. Author’s name, title, Note two copies of thesis, two copies of summary. Date thesis handed in. Date approved. A copy, reader. B copy, reader. Grade in special examination.

When get report on thesis write to student:

Dear Mr. ——

I am happy to inform you that your thesis for the Ph.D. degree in Economics has been approved by Professor —– and Professor —– and that the arrangements have been completed for your special examination. It is to be held on Monday, May 26, at 4 o’clock in Littauer M-10.

(Can tell student the readers. Do not tell him the third member of the board.)

Keep mimeographed list of examination committees for this year for reference.

Card for those who receive Ph.D. degrees for Division office.

Name
Degrees: Where, when
Economics — Special field
Thesis title:                                           Readers:
Languages: Date passed
Generals Passed: (date)
Special Passed: (date)
Fields on general  — committee  — grade
Special field  — committee  — grade

Keep separate cards of those who have handed in theses and are yet to come up for special. Hold on to both copies of thesis.

Report results of special to Miss Gifford Priest. Do not let them accumulate.

On special fields of specials

On Plan of Study it will be noted. Let him know that it is approved for general fields only, and will be rechecked for special later.

By December 1 for degree at mid-years and January 15 for Commencement should file application for degree. Check special field with Plan of Study if special field disagrees it must be approved by Chairman.

For own protection:

Keep a sheet when they come in  — name, address, special field (check with chairman), to Graduate School, and date signed when sent.

Applications for doctorate mid-year 1942

Name, address, Department, special field to Graduate School. If do not take it then, Miss Gifford Priest transfers forward to next list. When offer same field as on the general   — Sometimes take an extra half hour on another field if decided by the Department,  — special field and then other field too.

When do you have four on the special examination committee?

Recommendations for degrees through the Committee of Seven Department.

Check on residence at time of application. Two years (four terms)  — 8 courses  —

with at least one full year two full terms here. Check languages. Check write-off.

Check pro-seminar if used B+. Passed generals. Thesis approved. Special passed. Then send recommendations to Graduate School (they will notify of the date) and a carbon to Secretary of the Faculty.

[Now done by the Departments]

For Committee of Seven make up list of those who have completed all requirements or about to, and they will vote to recommend these men for the Ph.D. On list star those provided he passed the special examination. You will check, before sending to Dean Mayo.

Dear Dean Mayo:

The Division of History, Government and Economics, at its meeting of May 23, 1942 recommended the following students for the degree of Ph.D. in Economics at Commencement 1942:

List and star (provided that he satisfies his language requirements).

Sincerely yours,
E. H. Chamberlin

Send copy to Miss B. Woodward, University 5.

On theses handed in late Committee of Seven to decide whether they will accept it or not even if late. In any case can send it out for reading and give examination, but would not receive degree until next time.

A.E.A. thesis list. Send duplicated form to each of the men to find out who are writing theses. Faculty members for those who are working on theses under them. Get a copy of the August issue, pick out the titles of Harvard, and then write to Professor  —— I find the following student writing his thesis under you. (Give title and name) Is this correct?

Send A + B copies of thesis to Graduate School just before voted the degree.

The B copy to Archives. Fill in on Plan of Study the date when degree was awarded — get from Gazette.

Source: Harvard University Archives. Department of Economics, Correspondence and Papers 1930-1961. Robertson —Schumpeter. Box 21, Folder “Rules for arranging Ph.D., Examinations 1941-42.”

Image Source: From the cover of Harvard Class Album 1946.

Categories
Chicago Courses Curriculum Fields Graduate Student Support

Chicago. Program of advanced instruction and research training in economics. 1956-57.

To gauge the scale and scope of economics departments it is useful to have copies of the annual announcements/brochures. In this post we add a transcription of the announcement for advanced instruction and research in economics at the University of Chicago for 1956-57.

Some previous posts:

Chicago, 1892

Wisconsin, 1893-94

Chicago, 1900-01

Chicago, 1904-05

Wisconsin, 1904-05

M.I.T., 1961

Harvard, 1967

___________________________

THE UNIVERSITY OF CHICAGO
DEPARTMENT OF ECONOMICS
announces
Advanced Instruction
and Research Training
in
ECONOMICS:

Price Theory
Money and Banking
Economic History
Statistics
Econometrics and Mathematical Economics
Agricultural Economics
Government Finance
International Economic Relations and Economic Development
Economics of Consumption
Labor Economics and Industrial Relations

SESSIONS OF 1956-1957

___________________________

DEPARTMENT OF ECONOMICS
Officers of Instruction

Theodore William Schultz, Ph.D., Chairman of the Department of Economics and Charles L. Hutchinson Distinguished Service Professor of Economics.

Frank Hyneman Knight, Ph.D., Morton D. Hull Distinguished Service Professor Emeritus of the Social Sciences.

John Ulric Nef, Ph.D., Professor of Economic History.

Earl J. Hamilton, Ph.D., Professor of Economics.

Milton Friedman, Ph.D., Professor of Economics.

Lloyd A. Metzler, Ph.D., Professor of Economics.

Margaret G. Reid, Ph.D., Professor of Economics.

W. Allen Wallis, A.B., Professor of Economics and Statistics.

D. Gale Johnson, Ph.D., Professor of Economics.

Bert F. Hoselitz, A.M., Dr. Jur., Professor of the Social Sciences.

Hans Theil, Ph.D., Visiting Professor of Economics.

Harold Gregg Lewis, Ph.D., Associate Professor of Economics.

Arnold C. Harberger, Ph.D., Associate Professor of Economics.

Albert E. Rees, Ph.D., Associate Professor of Economics.

Carl Christ, Ph.D., Associate Professor of Economics.

Simon Rottenberg, Ph.D., Associate Professor of Economics.

George S. Tolley, Ph.D., Assistant Professor of Economics.

Robert Lloyd Gustafson, A.M., Assistant Professor of Economics.

Phillip David Cagan, Ph.D., Assistant Professor of Economics.

Martin Jean Bailey, Ph.D., Assistant Professor of Economics.

Chester Whitney Wright, Ph.D., Professor Emeritus of Economics.

Hazel Kyrk, Ph.D., Professor Emeritus of Economics and Home Economics.

Lloyd W. Mints, A.M., Professor Emeritus of Economics.

Mary Barnett Gilson, A.M., Assistant Professor Emeritus of Economics in the College.

Fellows, 1955-56

Richard King, Ph.D., Postdoctoral Fellow in Political Economy.

Yossef Attiyeh, A.M., Falk Foundation Fellow,

Milton Frank Bauer, A.M., Canadian Social Science Research Council Fellow.

John Allan Edwards, A.M., Sears, Roebuck Fellow in Agricultural Economics.

Lawrence Fisher, A.B., Earhart Foundation Fellow.

B. Delworth Gardner, S.M., Sears, Roebuck Fellow in Agricultural Economics.

Hirsh Zvi Griliches, S.M., Social Science Research Council Fellow.

Marc Leon Nerlove, A.M., Earhart Foundation Fellow.

Hugh Oliver Nourse, A.B., Woodrow Wilson Fellow.

Walter Yasuo Oi, A.M., Owen D. Young Fellow.

Boris Peter Pesek, A.M., Ford Foundation Fellow.

Duvvuri Venkata Ramana, A.M., Ford Foundation Fellow.

Jean Reynier, Diplôme D’études Supérieures De Doctorat, University of Paris Exchange Fellow.

Robert Oliver Rogers, A.M., Sears, Roebuck Fellow in Agricultural Economics.

John William Louis Winder, A.M., Edward Hillman Fellow.

___________________________

Introductory

                  The Department of Economics views the central problem of economic science as that of understanding the social organization of human and other scarce productive resources: principally the allocation of these resources among alternative uses by a system of exchange. The purpose of the Department is both to train economic scientists and to advance economic science.

                  The Department offers programs of instruction and research training not only for students seeking an advanced degree in economics at the University of Chicago but also for students working on an advanced degree at another institution who wish to complement the training available to them there and for students not seeking an advanced degree but who wish to pursue advanced study in economics at either the predoctoral or the postdoctoral level. Instruction is provided in all of the major fields of economics affording opportunity for well-rounded training in economics. Additional facilities in other parts of the University, including those in the other social sciences, mathematics, statistics, business administration, law, and philosophy, permit students wide choice among supplementary areas of study.

                  Courses of instruction at three levels of advancement are offered by the Department:

                  1. Intermediate courses (numbered in the 200’s) for those completing their work for the Bachelor’s degree and for others preparing for advanced training in economics.

                  2. Courses in economic theory, statistical inference, economic history, and economic analysis related to problem fields (numbered in the 300’s) that provide the strong theoretical foundation and related applied knowledge required of all candidates for advanced degrees in economics as preparation for economic research. Students are urged before entering these courses to acquire a command of the rudiments of the differential calculus.

                  3. Courses (including seminars, workshops, and other research working groups, and individual instruction) that provide arrangements for research and research supervision (numbered in the 400’s). These courses apply and seek to teach students to apply the foundations of economic analysis to research on particular economic problems.

THE ECONOMICS RESEARCH CENTER

                  The Department devotes a large proportion of its resources to research in economics and to the training of student research apprentices. The purpose of the Economics Research Center is to co-ordinate the research and research training activities of the Department. The Center supplies essential clerical, computing, and reference library services, assists in the organization of research seminars and working groups, and publishes the major research output of the Department in its series: “Studies in Economics.”

                  Some of the research training in the Center is organized on a continuing basis by one or more faculty members working with associates and students in research groups. (The staffs and research projects of these groups for the academic year 1955-56 are listed below.) Research training and facilities for research are available, however, to all qualified students, both those associated with a research group and those engaged in individual research.

Projects and Staffs of Research Groups, 1955-56

Workshop in Money and Banking

Faculty: Professors Cagan and Friedman.

Research Assistants and Fellows: Yossef Attiyeh, Hugh Roy Elliott, Duvvuri V. Ramana, and Robert E. Snyder.

Project: The role of monetary and banking factors in economic fluctuations.

Office of Agricultural Economies Research

Faculty: Professors Gustafson, Johnson, Schultz, and Tolley.

Research Associates: John A. Dawson, Cecil B. Haver, William E. Hendrix, Lester G. Telser, and Joseph Willett.

Research Assistants and Fellows: Marto Ballesteros, Michael Joseph Brennan, Donald S. Green, Hirsh Zvi Griliches, Vaughan Stevens Hastings, Roy J. Kelly, Edward Franklin Renshaw, James A. Rock, and Clifton R. Wharton, Jr.

Projects: (1) Agricultural inventories. (2) Conservation and development of natural resources. (3) Technical assistance in Latin American countries. (4) Developments affecting Negro farm families. (5) Soviet agriculture. (6) Technological growth in agriculture (hybrid corn). (7) Growth in output per unit of input in the United States and in agriculture.

Research Group in Labor Economics and Industrial Relations

Faculty: Professors Lewis, Rees, Rottenberg, and Seidman.

Projects: (1) The American worker as a union member. (2) Labor in the Mexican economy. (3) Real wages in the United States, 1890-1914. (4) Population, the labor force, and labor supply.

Research Group in Public Finance

Faculty: Professors Bailey and Harberger.

Research Assistants and Fellows: Meyer L. Burstein, Lawrence Fisher, Yehuda Grünfeld, Marc Leon Nerlove, William A. Niskanen, Jr., and Walter Y. Oi.

Projects:
(1) Resource allocation effects of federal taxes and of agricultural price supports.
(2) Sources and methods of controlling cyclical instability in the American economy.
(3) The capital market effects of federal taxation, expenditure, and regulatory policies.

Research Group in Economics of Consumption

Faculty: Professor Reid.

Research Assistant: Juliette Rey.

Project: Trends in, and factors determining, consumption levels.

Research Group in Economic Development

Faculty: Professors Hamilton, Harberger, Hoselitz, Rottenberg, and Schultz.

Projects: (1) Problems in the economic development of Chile. (2) Historical research in money, banking, prices, and interest rates, their interrelationship, and their role in the economic development of leading countries. (Note also projects (3), (6), and (7) of the Office of Agricultural Economics Research and project (2) of the Research Group in Labor Economics and Industrial Relations.) The Research Group in Economic Development works closely with the Research Center in Economic Development and Cultural Change of which Mr. Hoselitz is the director. The Center engages in research and publishes the journal Economic Development and Cultural Change.

                  Three members of the faculty of the Department are associated with research groups organized in other parts of the University: Mr. Hoselitz with the Research Center in Economic Development and Cultural Change; Mr. Nef, with the Committee on Social Thought; and Mr. Wallis, with the Committee on Statistics. In addition, other members of the economics faculty are engaged in individual research projects not associated with a research group: Mr. Metzler on the theory of international adjustment under conditions of full employment and high demand: and Mr. Christ on econometric research on economic growth and technological change.

FELLOWSHIPS, SCHOLARSHIPS,
AND RESEARCH ASSISTANTSHIPS

                  Students who wish to pursue a program of advanced instruction and research in economics at the University may compete not only for the regular University Fellowships and Scholarships described in these Announcements (see pp. 22-27) but also for the fellowships listed below:
[Note: The announcement transcribed here is a reprint of the Department of Economics section of the Announcements of Graduate Programs in the Divisions. Cross-references are to that publication]

Postdoctoral Fellowships:

Postdoctoral Fellowship in Political Economy awarded upon recommendation of the Department of Economics.

Postdoctoral Fellowships in Money and Banking awarded by the Workshop in Money and Banking in co-operation with the Department of Economics.

Predoctoral Fellowships:

Awarded upon recommendation of the Department of Economics:

Frank H. Knight Fellowships, Marshall Field Fellowship, Edward Hillman Fellowship Awarded upon recommendation of the Office of Agricultural Economics Research for students specializing in agricultural economics:
Sears, Roebuck Foundation Fellowships in Agricultural Economics

Stipends for the predoctoral fellowships, including the regular University fellowships, range generally from $1,000 to $3,000 per annum. Stipends for the postdoctoral fellowships range up to $4,000 per annum. Application blanks may be obtained from the Department of Economics or from the University Committee on Fellowships and Scholarships.

Research Assistantships

                  Research assistantships and associateships are available to qualified students who have research interests in particular problem areas. Application blanks for these positions may be obtained from the Economics Research Center.

ADVANCED DEGREES

                  The Department of Economics offers programs leading to both the A.M. and the Ph.D. degrees in Economics. The following paragraphs summarize briefly the major Departmental requirements for advanced degrees for students holding a four-year Bachelor’s degree or its equivalent. (The following paragraphs are not intended as an exhaustive statement of the requirements for advanced degrees; for the details of the requirements students should consult with the Departmental counselors.)

THE DEGREE OF MASTER OF ARTS

                  The Departmental requirements for the Master’s degree in Economics for students holding the traditional four-year Bachelor’s degree include: (1) satisfactory performance on two of the written field examinations in economics required for the Ph.D. degree; (2) a satisfactory command of the principles of economic theory; and (3) acceptance of a paper or report on a problem approved by the Department,

THE DEGREE OF DOCTOR OF PHILOSOPHY

                  The Departmental requirements for admission to candidacy for the degree of Doctor of Philosophy in Economics include: (1) satisfactory performance on written field examinations in price theory and monetary theory and banking and in one other field that, with the approval of the Department, may be a field outside of economics; (2) a well-rounded command of the subject-matter of the major fields of economics; (3) effective reading knowledge of French or German or some other foreign language approved by the Department; and (4) acceptance of the candidate’s thesis prospectus.

                  The Departmental requirements for the degree include in addition to the preceding requirements for admission to candidacy: (1) effective reading knowledge of a second foreign language or completion of an approved substitute program of study; (2) departmental approval of the completed thesis; and (3) satisfactory performance on a final oral examination on the field of the thesis.

SUMMER PROGRAM
FOR COLLEGE TEACHERS OF ECONOMICS

                  The Department of Economics will give particular attention in its Summer Quarter 1956 program to the interests of college teachers of economics, both those working for the Ph.D degree at another institution and others who wish to renew or to complement their training and experience in economics. A limited number of tuition and half-tuition scholarships will be available for teachers who do not hold the Ph.D. degree. (Application blanks for these scholarships may be obtained from the Department of Economics.) For those who hold the Ph.D. degree in Economics or related fields the Department invites application for guest privileges.

Courses of Instruction

INTERMEDIATE COURSES

208. A, B, C. The Elements of Economic Analysis. Aut (208A): Rees; Win (208B) Rees; Spr (208C): Cagan.

209. Intermediate Price Theory. Prereg: Math 150A or equiv. Aut: Lewis.

210. Index Numbers, National Accounting, and Economic Measurement. Prereq: Soc Sei 200A and Econ 209, or equiv. Aut: Christ.

213. Introduction to Mathematics for Economists. Prereq: Econ 209 and Math 150A, or equiv. Sum: Staff; Win: Theil.

220. Economic History of the United States. Spr: Hamilton.

240. Introduction to Industrial Relations. Win: Staff.

255. Introduction to Agricultural Economics. Prereq: Econ 208A and 208B, or equiv, Spr: Johnson.

260. Introduction to Government Finance. Prereq: Econ 208A and 208B, or equiv. Win: Bailey.

271. Economic Aspects of International Politics. Aut: Hoselitz.

299. Undergraduate Thesis Research. Prereq: consent of Departmental Secretary. Sum, Aut, Win, Spr: Staff.

ADVANCED COURSES

I. Price Theory

300. A, B. Price Theory. Prereg: For 300A, Econ 209 or equiv, and Math 150A or equiv, or consent of instructor; for 300B, 300A. Aut (300A): Friedman; Win (300A): Wallis; Spr (300B): Friedman.

301. Price and Distribution Theory (= Social Thought 382). Prereq: Econ 209. Sum: Knight.

302. History of Economic Thought (= Social Thought 381). Prereq: Econ 301 or equiv. Spr: Knight.

303. Recent Developments in Economics. Prereg: graduate work in economic theory. Sum: Harberger.

305. Economics and Social Institutions (= Philosophy 305). Prereg: Econ 301 and some European economic history. Sum: Knight.

308. Welfare Economics. Prereq: Econ 300A or equiv. Sum: Johnson.

309. Mathematical Economics. Prereq: Econ 213 and Econ 300A, or equiv. Win: Theil.

310. Special Topics in Mathematical Economics. Prereq: Econ 309, Math 150C, and the rudiments of matrix algebra; or consent of instructor. Spr: Theil.

II. Monetary Theory and Banking

303. Recent Developments in Economics. Prereg: graduate work in economic theory. Sum: Harberger.

330. Money. Prereg: Econ 208C or equiv. Aut: Staff.

331. Banking Theory and Monetary Policy. Prereg: Econ 330; Econ 335 desirable. Win: Cagan.

334. The Development of Monetary and Financial Institutions. Prereq: Econ 222 or 208C. Spr: Hamilton.

335. The Theory of Income, Employment, and the Price Level. Prereg: Econ 208A, B, C or equiv. Spr: Christ.

362. Monetary and Fiscal Policy. Prereg: Econ 208C; Econ 330 and 335 desirable. Spr: Harberger.

370. Monetary Aspects of International Trade. Prereg: Econ 330, 335, or equiv. Aut: Metzler.

439. Workshop in Money and Banking. An experiment in combining training in research and learning of subject-matter organized around a continuing investigation into monetary factors in business cycles. Students participate in this central investigation both directly and by undertaking individual projects in the general area. Each project is directed toward the preparation of a report of publishable quality. Guidance is provided on general reading in the field, and informal seminars are held from time to time to discuss general issues or specific projects. Students. are required to give full time to the workshop; they receive three credits per quarter of registration. Prereg: consent of instructor. Aut, Win, Spr: Friedman, Cagan.

III. Statistics

311. Principles of Statistical Analysis (= Business 321 and Statistics 301). Aut: Staff.

312. Techniques of Statistical Analysis (= Business 322 and Statistics 302). Prereg: Econ 311 or equiv. Win: Staff.

313. Applications of Statistical Analysis (= Sociology 308, Business 323, and Statistics 303). Prereq: Econ 312 or Stat 362 or equiv. Spr: Wallis.

314. Econometrics. Prereq: Econ 311 and either Econ 300A or Econ 335; Econ 210 desirable. Sum: Gustafson; Win: Christ.

315. Special Topics in Econometrics. Prereq: Econ 312, Econ 314, differential calculus, and rudiments of matrix algebra; or consent of instructor. Spr: Christ.

For other courses in statistics see page 203.

IV. Mathematical Economics and Econometrics

303. Recent Developments in Economics. Prereq: graduate work in economic theory. Sum: Harberger.

309. Mathematical Economics. Prereq: Econ 213 and Econ 300A, or equiv, Win: Theil.

310. Special Topics in Mathematical Economics. Prereq: Econ 309, Math 150C and the rudiments of matrix algebra; or consent of instructor. Spr: Theil.

314. Econometrics. Prereq: Econ 311 and either Econ 300A or Econ 335; Econ 210 desirable. Sum: Gustafson; Win: Christ.

315. Special Topics in Econometrics. Prereq: Econ 312, Econ 314, differential calculus, and rudiments of matrix algebra; or consent of instructor. Spr: Christ.

V. Economic History

320. American Economic Policies. Prereg: Econ 220 or equiv. Sum: Hamilton.

329A. The Geographical and Historical Background of the Genesis of Industrial Civilization (= Social Thought 324A and History 332G). Aut: Nef.

329B. The Role of the Discoveries and the Reformation in the Genesis of Industrial Civilization (= Social Thought 325A and History 332H). Spr: Nef.

334. The Development of Monetary and Financial Institutions. Prereg: Econ 222 or 208C. Spr: Hamilton.

VI. Labor Economics and Industrial Relations

340. The Labor Movement. Aut.

341. Labor Problems. Prereq: Econ 208A, 208B, and Econ 240; or equiv. Win: Rees.

344. Labor Economics. Prereq: Econ 300B. Spr: Lewis.

VII. Agricultural Economics

355A. Economic Organization for Growth (with particular reference to agriculture). Prereq: Econ 300A or equiv. Aut: Schultz.

355B. Economic Organization for Stability (with particular reference to agriculture). Prereq: Econ 300A or equiv. Spr: Schultz.

356. Income, Welfare, and Policy (with particular reference to agriculture). Prereg: Econ300A or equiv; Econ 300B and 355A recommended. Win: Johnson.

455. Seminar in Agricultural Economics. Prereq: consent of instructor. Aut, Win, Spr: Schultz, Johnson, Tolley, Gustafson.

VIII. Government Finance

360. Theory of Public Finance. Prereg: Econ 260 and Econ 300A, or consent of instructor, Aut: Bailey.

361. Public Finance in the American Economy. Prereq: Econ 300A; Econ 300B desirable. Win: Harberger.

362. Monetary and Fiscal Policy. Prereg: Econ 208C; Econ 330 and 335 desirable. Spr: Harberger.

IX. International Economic Relations

370. Monetary Aspects of International Trade. Prereq: Econ 330 and 335, or equiv. Aut: Metzler.

371. Economic Aspects of International Relations. Prereq: Econ 330 or equivalent. Win: Metzler.

372. Problems in Economic Development. Prereq: Econ 335 or equivalent, Econ 320 and 371 desirable. Spr: Hoselitz.

X. Economics of Consumption

381. Consumers and the Market (= Home Economics 341), Prereq: course in economic theory. Win: Reid.

383A. Consumption Levels (= Home Economics 343A). Prereq: course in statistics. Aut: Reid.

388. The Family in the American Economy (= Home Economics 348). Prereq: course in economic theory. Sum, Spr: Reid.

XI. Seminars and Workshops

439. Workshop in Money and Banking. Aut, Win, Spr: Friedman, Cagan.

455. Seminar in Agricultural Economics. Aut, Win, Spr: Schultz, Johnson, Tolley, Gustafson.

490. Research in Economics. Prereg: consent of Departmental Secretary, Sum: Staff.

498. Thesis Seminar. Registration may be made for one or more courses. Prereg: consent of Departmental Secretary. Sum, Aut, Win, Spr: Staff.

499. Individual Research. Registration may be made for one or more courses. Prereg: consent of Departmental Secretary. Sum, Aut, Win, Spr: Staff.

Source: University of Chicago Archives. George Stigler papers. Addenda. Box 31, Folder “7/87 Chic. School. GJS Folder. Lit., incl. “Pantaleoni?”, 1930 anti-tariff signers”.

Categories
Agricultural Economics Exam Questions Fields Harvard History of Economics Industrial Organization Money and Banking Public Finance Sociology Theory Undergraduate

Harvard. Division Exams for A.B., General and Economics, 1921

The Harvard Economics department was once one of three in its Division in the Faculty of Arts and Sciences. The Departments of History and Government shared a general division exam with the Department of Economics and also contributed their own specific exams for their respective departmental fields. This post provides the questions for the common, i.e. general, divisional exam, the general economics exam, and all the specific exams at the end of the academic year 1920-21 for those fields falling within the perview of the economics department.

_______________________________

Previously posted
Division A.B. Exams

Division Exams 1916
Division Exams, January 1917
Division Exams, April 1918
Division Exams, May 1919
Division Exams, April/May 1920

Division Exams 1931

Special Exam for Money and Government Finance, 1939
Special Exam Economic History Since 1750, 1939
Special Exam for Economic Theory, 1939
Special Exam for Labor and Social Reform, 1939

_______________________________

DIVISION OF HISTORY, GOVERNMENT AND ECONOMICS

EXAMINATIONS FOR THE DEGREE OF A.B.
1920-21

DIVISION GENERAL EXAMINATION

PART I

The treatment of one of the following questions will be regarded as equivalent to one-half of this examination and should therefore occupy one hour. Write on one question only. Insert before your answer to this question a sketch of your plan of treatment.

  1. Discuss the relations of civilization to climate.
  2. Does history show that the periods of a nation’s political and literary greatness tend to coincide?
  3. Was America’s entrance into the World War a consequence or a violation of her policies and traditions?
  4. Discuss the following: “One of the great difficulties, as well as one of the great fascinations of history is the constantly changing point of view; but we should beware of interpreting the past in the light of the present.”
  5. What have been and what should be the limitations upon the application of the principle of self-determination in national relations?
  6. Contrast Roman provincial, and nineteenth-century colonial relations.
  7. What should be the limits of nationalization of essential industries?
  8. What have been the marked characteristics of three great states at the time of their greatest power?
  9. “Society has departed very widely from the strict rule of non-interference with industry by the State; indeed, the policy of non-interference was never carried out logically by any State.” Comment.
  10. Discuss: “The patriotism of nations ought to be selfish.”
  11. What are the standards of social justice?

PART II

The treatment of four of the following questions in Part II is required and will be regarded as equivalent to one-half of this examination, and should therefore occupy one hour. The four questions are to be taken from the Departments in which the student is NOT CONCENTRATING; two questions from each of the two Departments.

A. HISTORY

  1. Briefly characterize, with approximate dates, five of the following: Alexander, Aristotle, Augustus, Francis Bacon, Frederick Barbarossa, Bolivar, Calvin, Chatham, Franklin, Richelieu.
  2. Give a short account of the rise of the Christian Church down to the period of the Crusades.
  3. Estimate the importance of the Netherlands in the development of Europe.
  4. Discuss the relations of England and the United States during the past one hundred years.
  5. Write a brief historical account of slavery in the Western Hemisphere.

B. GOVERNMENT

  1. Discuss: “Not independence but interdependence is the hope of nations.”
  2. Explain the evolution and significance of trial by jury.
  3. What is the significance of the following headlines in March, 1921?
    1. “Austria in dangerous unrest.”
    2. “Briand voted confidence on reparations.”
    3. “Crown prince is plotting.”
    4. “Lenin knows his Italian friends.”
  4. What are the limits of uniform state legislation?
  5. What political unities can best control:
    1. police,
    2. water supply,
    3. roads?

C. ECONOMICS

  1. “The fundamental fact in history is the law of decreasing returns. It is the cause of the origin and development of civilization. . . . It is equally, and for the same reason, the source of poverty and war.”
    State, explain, and indicate the significance of the law of decreasing (diminishing) returns.
  2. What are the fundamental features of the organization of modern industrial society?
  3. Discuss one of the following statements:
    1. “Employees have the right to contract for their services in a collective capacity, but any contract that contains a stipulation that employment should be denied to men not parties to the contract is an invasion of the constitutional rights of the American workmen, is against public policy, and is in violation of the conspiracy laws.”
    2. “In the old days, America outsailed the world. . . . I want to acclaim the day when America is the most eminent of shipping nations. . . . A big navy and a big mercantile marine are necessary to the future of the country.”
  4. Why should there be a labor party in England and not in the United States?
  5. What are the economic essentials of socialism?

_______________________________

GENERAL EXAMINATION
DEPARTMENT OF ECONOMICS

I

The treatment of two of the following questions will be regarded as equivalent to one-half of the examination and should therefore occupy one hour. Write on two questions only.

  1. Give the author, approximate date, and general character of five of the following works:
    1. National System of Political Economy.
    2. Essays in Political Arithmetick.
    3. England’s Treasure by Forraign Trade.
    4. Essay on the Principle of Population
    5. Principles of Political Economy.
    6. The Wealth of Nations.
    7. Das Kapital.
    8. Lombard Street.
    9. Capital and Interest.
  2. Explain four of the following terms:
    Abstinence; Manchester School; stationary state; iron law of wages; produit net; non-competing groups; Scholasticism; Utilitarianism.
  3. Locate on an outline map:
    1. The world’s principal sources of five of the following raw materials: cotton; copper; sugar; silk; wheat; tin; rice; nitrate; petroleum; gold.
    2. The more important routes of overseas transportation.
    3. The world’s chief regions of manufacture.

II

The treatment of three of the following questions will be regarded as equivalent to one-half of the examination and should therefore occupy one hour. Write on three questions only. Be concise.

  1. Define “thrift” and discuss its social significance.
  2. Analyze the determination of normal value under competitive conditions of joint cost.
  3. What is meant by “monetary inflation”? How is it to be measured and what is its importance?
  4. What has been the course of the interest rate in modern times? What probably will be the course of the rate during the next few years? Why?
  5. What are the purposes and limits of progressive taxation?
  6. Discuss the future of public utilities in the United States.
  7. To what extent and in what respects, if at all, is labor legislation of the times a corrective of the more serious defects of the existing social order?
  8. Discuss: “Perpetual prosperity would be a national calamity.”

_______________________________

SPECIAL EXAMINATION
ECONOMIC THEORY

Answer six questions

A

Take from this group at least two and not more than four

  1. What is the concept of “justice” in the theory of the distribution of wealth?
  2. Comment on the validity and significance of the following contention: “Labor is the source of all wealth.”
  3. “Whether capital is productive depends simply on the question: Are tools useful? It matters not how much or how little tools add to the product — if they add something, capital is productive.” Do you agree? Explain.
  4. “The forces which make for Increasing Return are not of the same order as those that make for Diminishing Return. . . . The two ‘laws’ are in no sense coordinate. . . . The two ‘laws’ hold united, not divided, sway over industry.” Comment critically.
  5. What relations exist between the accounting and economic concepts of “cost of production”?
  6. “The differences in the productive powers of men due to their heredity or social position give to certain individuals the same kind of an advantage over others that the owner of a corner lot in the center of a city has over one in the suburbs. If the income from a corner lot is a surplus and can therefore be described as unearned, the income of a man of better heredity, education or opportunity must also be regarded as a surplus income and therefore unearned.”
    Discuss this statement with reference to your general theory of distribution.

B

Take from this group at least one and not more than wto

  1. Give a brief historical account of the theory of population.
  2. Trace the development of the theory of international trade.
  3. In what ways have the following influenced the history of economic thought: Aristotle, Thomas Aquinas, Malthus, Ricardo, J.S. Mill, Marx?
  4. Outline the evolution of the theory of economic rent.

C

Take from this group at least one and not more than two

  1. “The profits of speculation on the Stock Exchange are just as unearned as the increment in the value of urban building sites; unlike the profits of speculation in produce, they represent no service to society.” Do you agree? Why, or why not?
  2. “There is a point beyond which advertising outlay is extravagant.” Explain.
  3. “I do not see how we can retain our home markets, upon which American good fortune must be founded, and at the same time maintain American standards of production and American standards of living unless we make other peoples with lower standards pay for the privilege of trading in the American markets.” Discuss.
  4. What are the advantages and disadvantages of the closed shop?

_______________________________

DIVISION SPECIAL EXAMINATION
ECONOMIC HISTORY

Answer six questions 

A

Take from this group at least one and not more than two

  1. “The opening of the Erie Canal affected both intensive and extensive agriculture in the United States.” Explain. Have there been analogous changes in later periods?
  2. Discuss the following statement: “The enactment of corporation laws by the various states is the most important step made during the past century in the development of American manufactures.”
  3. Analyze the important economic after-effects of the World War.
  4. Briefly explain the most satisfactory methods for separating the different types of variation in time series.

B

Take from this group at least two and not more than four

  1. Write a brief account of one of the early English trading companies.
  2. Sketch the rise of the modern factory system.
  3. Compare changes in farm ownership and tenancy during the nineteenth century in England and the United States.
  4. Outline the history of banking in the United States from 1830 to 1860.
  5. Write a brief narrative of the early development of the railroad.
  6. Give the history of the Sherman Silver Purchase Act.
  7. Trace the evolution of the middle class and forecast its future.

C

Take from this group at least one and not more than two

  1. Give a critical account of the policy of the Federal Government in its regulation of industrial combinations.
  2. Discuss the history and consequences of immigration into the United States since 1840.
  3. Review the development of German foreign trade before the War with special reference to the methods of trade promotion.
  4. Analyze the causes, extent, and consequences of changes in the price level in the United States since 1914.

_______________________________

DIVISION SPECIAL EXAMINATION
PUBLIC FINANCE

Answer six questions

A

Take from this group at least one and not more than two

  1. A law of 1691 authorizes the municipal corporations of New York “to impose any reasonable tax upon all houses within said city, in proportion to the benefit they shall receive thereby.” How far is this a correct principle of taxation and how far has it continued to be applied?
  2. Present a classification of Federal expenditures for a national budget system.
  3. Give a brief account of the financial statistics issued currently by the Federal Government.
  4. Discuss the proposal for the cancellation of all inter-allied debts.

B

Take from this group at least one and not more than two

  1. How has the Federal Constitution influenced national and state tax systems in the United States?
  2. Trace the history of an important fiscal monopoly.
  3. Give a brief account of the financial history of one of the American states.
  4. What connections have existed between currency systems and government finance? Illustrate fully.

C

Take from this group at least two and not more than four

  1. Compare the total expenditures in the United States in normal times for (a) national, (b) state, and (c) municipal purposes. What changes, if any, in the proportions are to be expected?
  2. To what extent is it desirable to separate state and local revenues in the United States?
  3. Indicate the nature and significance of the “grant in aid” in British public finance.
  4. What arguments have been used in European countries for and against a capital levy?
  5. Should the poll tax be abolished? Why, or why not?
  6. Discuss critically the present condition of the public debt of the United States.

_______________________________

DIVISION SPECIAL EXAMINATION
MONEY AND BANKING

Answer six questions

A

Take from this group at least one and not more than two

  1. What part, if any, do commercial banks play in (a) the process of investment; (b) the increase of capital; (c) the course of industrial development; (d) leadership in the business world? In what respects, if at all, may the influence of commercial banks be economically inexpedient?
  2. Discuss the desirability of uniform bank accounting in the United States.
  3. Describe critically the more important sources of statistics of currency and credit in the United States.
  4. Analyze the successive phases of the business cycle. What are the causes of financial panics; industrial crises?

B

Take from this group at least one and not more than two

  1. Give a brief account of the life and work of John Law.
  2. Trace the history of usury laws.
  3. Outline the political background of American monetary history from 1870 to 1900.
  4. Give a brief history of the Reichsbank.

C

Take from this group at least two and not more than four

  1. “It is quite clear that the money question no longer survives as a political issue.” Do you agree? Why, or why not?
  2. To what extent has the status of the gold standard been affected by the World War?
  3. “This little neutral country [Switzerland], surrounded by four great continental belligerents, and bordering on the two principal battle-fronts of Europe, possesses at present, curiously enough, an exceptional purchasing power. This is the consequence of the high level of Swiss currency, which is 250 per cent above the usual parity with the currency of the neighbor in the east, Austria-Hungary; 100 per cent higher than that of the neighbor in the north, Germany; 90 per cent higher than that of the neighbor in the south, Italy; and 20 per cent higher than that of the western neighbor, France. Even in overseas countries, Swiss currency has a higher buying power than the English sovereign or the American dollar.” Explain fully.
  4. What changes have been made in the original Federal Reserve System? What have been the purposes and effects of the changes? What further changes, if any, seem desirable?
  5. Compare the provisions for agricultural credit in two important countries.
  6. Comment upon the following statement: “Prosperity continued through the war, and gave the nation such a tremendous start in business activity that we would still be rejoicing in a period of great prosperity had it not been for the death-dealing blow of deflation of credit given by Mr. Wilson’s Federal Reserve Board.”

_______________________________

DIVISION SPECIAL EXAMINATION
CORPORATE ORGANIZATION, INCLUDING RAILROADS

Answer six questions

 A

Take from this group at least one and not more than two

  1. State the theory of value under conditions of monopoly. In what ways, if at all, is monopoly price affected by (a) cost of production per unit; (b) potential competition; (c) an elastic demand for the product; (d) the existence of satisfactory substitutes for the product; (e) hostile public opinion?
  2. Formulate a statistical classification of business organizations in the United States.
  3. Discuss the apportionment of railway operating expenses between freight and passenger service.
  4. Analyze the valuation of corporate assets from the standpoint of the principles of accounting.

B

Take from this group at least one and not more than two

  1. Compare the history of business corporations in England and the United States.
  2. Trace connections between railroad construction in the United States and related political and economic events.
  3. Give a brief narrative of the trust dissolutions of the Federal Government.
  4. What provisions of the Federal Constitution have been most important in determining policies of government regulation of public utilities?

C

Take from this group at least two and not more than four

  1. Discuss the following statement: “The enactment of corporation laws by the various states is the most important step made during the past century in the development of American manufactures.”
  2. What are the advantages and disadvantages of non-par stock?
  3. Discuss the probable consequences of the Supreme Court decision that stock dividends are not income under the income tax law.
  4. What is the nature and importance of good-will in corporation finance?
  5. To what extent may there be differences in the fair valuation of public utilities for the purposes of rate-making, condemnation, taxation, and capitalization?
  6. Did the Government act wisely in returning the railroads March 1, 1920 to their corporate owners for operation? Why, or why not?

_______________________________

DIVISION SPECIAL EXAMINATION
ECONOMICS OF AGRICULTURE

Answer six questions 

A

Take from this group at least one and not more than two

  1. Analyze the doctrine of economic rent from agricultural land.
  2. What are the functions of organized speculation in staple agricultural products?
  3. Describe the methods to be employed in making an annual farm inventory.
  4. What subjects are covered by the decennial Federal census of agriculture? What is the statistical value of the results of the several inquiries?

B

Take from this group at least one and not more than two

  1. Trace the history of the relations between landlords and tenants in England.
  2. What have been the most important changes in American agriculture since 1890?
  3. Give a critical account of the land policies of the Federal Government.
  4. Outline the development of the beet sugar industry in Europe.

C

Take from this group at least two and not more than four

  1. What factors determine the most efficient size of farms?
  2. What are the advantages of diversification of crops?
  3. Discuss the future of the meat supply of the United States.
  4. Describe and estimate the advantages and disadvantages of the different methods of marketing farm produce.
  5. State and defend a forest conservation policy for the United States.
  6. Compare the provisions for agricultural credit in two important countries.
  7. What are the principal problems of rural community life in the United States?

_______________________________

DIVISION SPECIAL EXAMINATION
LABOR PROBLEMS

Answer six questions

 A

Take from this group at least one and not more than two

  1. Discuss the proposal to restrict immigration into the United States by limiting the number of each nationality admitted each year to 3 per cent of the foreign-born of that nationality resident in this country in 1910.
  2. Describe the technique of statistical measurement of the high cost of living.
  3. What are the principal difficulties encountered in the collection of wage statistics?
  4. Analyze the relations between high money wages and high commodity prices.

B

Take from this group at least one and not more than two

  1. Describe the early development of the factory system.
  2. Trace the origins of trade-unionism in the United States.
  3. Write a brief narrative of the movement for a shorter working day.
  4. Review the relations between organized labor and the steel industry in the United States.

C

Take from this group at least two and not more than four

  1. What is “the labor problem”?
  2. Compare American and British labor leadership. How do you account for the differences?
  3. “Employers must be free to employ their work people at wages mutually satisfactory, without interference or dictation on the part of individuals or organizations not directly parties to such contracts.” Comment.
  4. Discuss a proposed law providing that “in the establishment of salaries for school teachers in the city of—, there shall be no discrimination based on sex or otherwise, but teachers and principals rendering the same service shall receive equal pay.”
  5. “The principle that each industry shall support its own unemployed is one that must be established if a real solution of unemployment is to be made.” Do you agree? Why, or why not?
  6. Discuss the relation of shop committees to trade-unionism.

_______________________________

DIVISION SPECIAL EXAMINATION
ECONOMICS AND SOCIOLOGY

Answer six questions

A

Take from this group at least one and not more than two

  1. Discuss the following contention: “The landlord is a parasite since he consumes without producing.”
  2. What is the meaning of “over-population”?
  3. “Hitherto it is questionable if all the mechanical inventions yet made have lightened the day’s toil of any human being.” Comment critically.
  4. What are the interactions of human instincts and modern factory labor?
  5. Discuss the nature and bases of economic prosperity.

B

Take from this group at least one and not more than two

  1. Describe the evolution of language.
  2. Trace the history of the middle class and forecast its future.
  3. Give a brief historical account of the status of women.
  4. What have been the chief cultural consequences of the machine process?

C

Take from this group at least two and not more than four

  1. What is the province of sociology?
  2. Discuss the family as a necessary social unit.
  3. Describe the leading forms of conflict and their effect upon group life. Why are some forms to be preferred to others? What are the factors which determine the forms actually prevailing at any time?
  4. Analyze the sources of prestige and influence in modern society.
  5. “From the standpoint of progress, the value of the individual depends on the excess of his production over his consumption.” Discuss.
  6. What are the criteria and causes of racial superiority?

_______________________________

Examinations not transcribed for this post

History:

General Examination
Special Examinations: Mediaeval History; English History; Modern European History to 1789; Modern History since 1789; American History

Government:

General Examination
Special Examinations: American Government; Municipal Government; Political Theory; International Law

_______________________________

Source: Harvard University Archives. Divisional and general examinations, 1915-1975 (HUC 7000.18). Box 6, Bound Volume (stamped “Private Library Arthur H. Cole”) “Divisional Examinations 1916-1927”.

Categories
Economist Market Economists Fields

Harvard. Economics department professors plan review of junior staff. 1932

 

Within the faculty of the Department of Economics at Harvard University, there was a Committee of Professors. From the following memo it appears that within the Committee of Professors there was an Executive Committee. The memo is interesting to read as an announcement of a pending review of the junior staff that will be stratified into five layers: “unusually able men”, “capable and useful” (hold), “capable and useful” (encourage to seek elsewhere), “not as useful here” (push to seek elsewhere), “capable young” (hold). Somewhat surprised that the strata assignments were identified ex ante. 

[I have added the full names and plus the dates and names of the institutions where undergraduate and graduate degrees had been awarded.]

Also worth noting are hopes for attracting Gottfried Haberler to continue and explicit mention of Wassily Leontief as someone to consider for hiring.

_______________________________________

[Handwritten note: Presented at Meeting Exec Cte Jan 21, 1932]

VERY CONFIDENTIAL

A. Among other matters the Committee of Professors will be asked to consider the status and work of certain members of the Junior Staff.

I. The men in this group have passed their Generals and are at work on their dissertations. They are unusually able men deserving special consideration.

Sweezy
[Alan Richardson Sweezy. A.B. (Harvard) 1929; A.M. (Harvard) 1932; Ph.D. (Harvard) 1934]

Walsh
[John Raymond Walsh. A.B. (Beloit College) 1921; A.M. (Harvard) 1931; Ph.D. (Harvard) 1934]

Smith
[Dan Throop Smith. A.B. (Stanford) 1928; A.M. (Harvard) 1931; Ph.D. (Harvard) 1934]

Abbott
[Charles Cortez Abbott. A.B. (Harvard) 1928; A.M. (Harvard) 1930; Ph.D. (Harvard) 1933]

II. The men in this group either have their degrees or will have them shortly. They are capable and useful, perhaps more. It may be to their advantage and ours to encourage them to remain here for some time longer. For the coming year, at least, promotion to faculty instructorship is not involved.

Anderson
[Karl Leopold Anderson. S.B. (Mt. Allison University) 1928; A.M. (Harvard) 1930; Ph.D. (Harvard) 1932]

Goldstein
[Aaron Goldstein. A.B. (Johns Hopkins) 1928; A.M. (Harvard) 1931; Ph.D. (Harvard) 1934]

Hoover
[Edgar Malone Hoover, Jr.] A.B. (Harvard) 1928; A.M. (Harvard) 1930; Ph.D. (Harvard) 1932]

Hunt
[Bishop Carleton Hunt. B.B.A. (Boston University) 1920; A.M. (Harvard) 1926; Ph.D. (Harvard) 1930]

Shaffner
[Felix Ira Shaffner, Rhodes Scholar (Oxford) 1924; A.B. (Harvard) 1925; A.M. (Harvard) 1926; Litt.B. (University of Oxford, England) 1928; Ph.D. (Harvard) 1933)]

Wallace
[Donald Holmes Wallace. A.B. (Harvard) 1924; A.M. (Harvard) 1928; Ph.D. (Harvard) 1931]

Wernette
[John Philip Wernette. A.B. (University of California) 1924; A.M. (University of Southern California) 1926; A.M. (Harvard) 1929; Ph.D. (Harvard) 1932]

III. The men in this group, all Ph.Ds, have reached or are nearing the point when they can be placed elsewhere most advantageously. They are capable and very useful here. They should be encouraged to take acceptable offers.

Currie
[Lauchlin Bernard Currie. S.B. (University of London, England) 1925; A.M. (Harvard) 1927; Ph.D. (Harvard) 1931]

Ellsworth
[Paul Theodore Ellsworth. A.B. (University of Washington) 1920; B.A. (University of Oxford) 1924; A.M. (Harvard) 1930; Ph.D. (Harvard) 1932]

Gilbert
[Donald Wood Gilbert. A.B. (University of Rochester) 1921; A.M. (University of Rochester) 1923; A.M. (Harvard) 1924; Ph.D. (Harvard) 1932]

White
[Harry Dexter White. A.B. (Stanford) 1924; A.M. (Stanford) 1925; Ph.D. (Harvard) 1930]

IV. The men in this group have their Ph.Ds or will have them shortly. They are useful here, but less so than group III. They should be moved at the first opportunity.

Ratzlaff
[Carl Johann Ratzlaff. S.B. (University of Minnesota) 1922; A.M. University of Minnesota) 1925; A.M. (Harvard) 1928; Ph.D. (Harvard) 1930].

Crane
[John Bever Crane. A.B. (Northwestern University) 1924; A.M. (Harvard) 1926; Ph.D. (Harvard) 1932]

Danielian
[Noobar Réthéos Danielian. A.B. (Harvard) 1928); A.M. (Harvard) 1929; Ph.D. (Harvard) 1932]

Eaton
[Albert Kenneth Eaton. A.B. (Acadia University) 1922; S.B. (London School of Economics) 1928; A.M. (Harvard) 1929, Ph.D. (Harvard) 1933]

Fields
[Morris Joseph Fields. S.B. (Tufts College) 1921; M.B.A. (Harvard) 1923; A.M. (Harvard) 1928; Ph.D. (Harvard) 1932]

Phinney
[Josiah Thompson Phinney. A.B. (Yale) 1923; A.M. (Harvard) 1928; Ph.D. (Harvard) 1931]

Ross
[James Alexander Ross, Jr. S.B. (Princeton) 1922; B.A. (University of Oxford, England) 1925; A.M. (Harvard) 1933; Ph.D. (Harvard) 1934]

Towle
[Lawrence William Towle. A.B. (Bowdoin College) 1924; A.M. (Harvard) 1927; Ph.D. (Harvard) 1932]

V. The men in this group are capable young men and will probably remain here for some time longer.

Baker
[George Pierce Baker, Jr. A.B. (Harvard) 1925; A.M. (Harvard) 1930; Ph.D. (Harvard) 1934]

Cassels
[John MacIntyre Cassels. B.A. (University of Alberta) 1924; B.A. (University of Oxford) 1927; Ph.D. (Harvard) 1934]

Krost
[Martin Max Krost. Senior Economist, Division of Research an Statistics, Board of Governors of the Federal Reserve System (October 1940) ]

Wendzel
[Julius Tugendreich Wenzel. A.B. (Kalamazoo College) 1928; A.M. (Tufts College) 1930, Ph.D. (Harvard) 1934]

B. The Committee should also consider our instruction in International Trade. At present Associate Professor Cole is giving Economics 9a, the undergraduate course in International Trade. The Department has voted that when possible this course is to become part of a full course—International Economic Problems. Our graduate course—Economics 39—will be given by Dr. Haberler during the second half of this year. Dr. Haberler may be available for another year or two if the Department cares to invite him.
Professor Cole is interested in the undergraduate instruction in International Trade and International Economic Problems, but not particularly in the graduate instruction.
A.E. Monroe is interested in the graduate instruction in International trade. Although he is on one-half time appointment, probably an arrangement could be made for him to give the graduate course.

C. There is a possibility—if some of our non-faculty instructors accept positions elsewhere—that we may be able to make a few new appointments. The following men should be considered.

Leontieff (if Haberler is not reappointed) (One of his articles is available in Mrs. Gilboy’s office).

Gardner (sic) Means
[Gardiner Coit Means. A.B. (Harvard) 1918; A.M. (Harvard) 1927; Ph.D. (Harvard) 1933]

Schmidt (California Ph.D. Credentials may be had from Miss Rogers).

Source: Harvard University Archives. Harvard University Department of Economics general office files.  (UAV349.11) Box 11, Folder “Full Professors Meetings of Department of Economics.”

Image Source: Detail from cover of the Harvard Class Album 1946.

Categories
Bibliography Chicago Fields

Chicago. Reading List for Industrial Organization. Stigler, 1959

 

The following (graduate) reading list comes from Zvi Griliches’ papers at the Harvard University Archives. In structure and content it matches George Stigler’s reading list from the University of Chicago in 1973 previously transcribed and posted, so there is no doubt where and from whom the reading list has come. There are indeed some additions and subtractions between the 1959 and 1973 versions which are indications of how the field evolved over those years, at least in George Stigler’s mind.

______________________________

READING LIST
INDUSTRIAL ORGANIZATION
1959

I. The Firm-Structure of Industries

1. The competitive concept in theory and quantitative studies

A. P. Lerner, “The Concept of Monopoly,” Review of Economic Studies, Vol. I
R. Triffin, Monopolistic Competition and General Equilibrium Theory, pp. 125 ff.
J. M. Clark, “Toward a Concept of Workable Competition,” American Economic Review, June 1950 or Readings in Social Control of Business
A. Marshall, Principles of Economics, Bk. V, Ch. 12
F. H. Knight, Risk, Uncertainty and Profit, pp. 76 ff.
E. Chamberlin, Theory of Monopolistic Competition, Ch. 1
G. Stigler, “Perfect Competition, Historically Contemplated,” Journal of Political Economy, 1957
R. Bishop, “Elasticities, Cross-elasticities, and Market Relationships,” American Economic Review, December 1952, June 1955
G. Rosenbluth, “Measure of Concentration,” in Business Concentration and Price Policy
T.N.E.C. Monograph 27, The Structure of Industry, Part 5
T. Scitovsky, “Economic Theory and Measurement of Concentration,” in Business Concentration and Price Policy

2. Some statistical studies

National Resources Comm., The Structure of the American Economy, Ch. 7, Appendix 7
Clair Wilcox, Competition and Monopoly, T.N.E.C. Monograph 21
The Structure of Industry, T.N.E.C. Monograph 27
Berle and Means, The Modern Corporation, Bk. II
G. Stigler, “Competition in the United States,” Five Lectures on Economic Problems
F.T.C., The Concentration of Productive Facilities
A. C. Harberger, “Monopoly and Resource Allocation,”American Economic Review, May 1954
A. D. Kaplan, Big Enterprise in a Competitive System

3. The trend of the structure

T.N.E.C. Monograph 27, Part I
G. W. Nutter, The Extent of Enterprise Monopoly
M. A. Adelman, “Measurement of Industrial Concentration,” in Industrial Organization and Public Policy
F.T.C. Changes in Concentration in Manufacturing, 1935 to 1947 and 1950

II. Factors Influencing Firm-Structures

1. Economies of scale

Cost Behavior and Price Policy, esp. Ch. 10
E. A. G. Robinson, The Structure of Competitive Industry, Ch. 2-7
J. M. Clark, Economics of Overhead Costs, Ch. 5, 6
W. Crum, Corporate Size and Earning Power
J. McConnell, “Corporate Earnings by Size of Firm,” Survey of Current Business, May 1945
J. Johnston. “Labour Productivity and Size of Establishment,” Oxford Institute of Statistics, 1954
R. C. Osborn, Effects of Corporate Size on Efficiency and Profitability
Caleb Smith, “Survey of Empirical Evidence,” in Business Concentration and Price Policy
J. S. Bain, “Economies of Scale, ….” in Industrial Organization and Public Policy
G. J. Stigler, “The Economies of Scale,” Law and Economics, 1958

2. Mergers

F.T.C., The Merger Movement
A. S. Dewing, “A Statistical Test of the Success of Consolidations,” Q.J.E., 1931
S. Livermore, “The Success of Industrial Mergers,” Q.J.E., 1935
A. S. Dewing, Corporate Promotions and Reorganizations, Ch. 20, 21
G. Stigler, “Monopoly and Oligopoly by Merger,” in Industrial Organization and Public Policy
Butters and Linter, “Effect of Mergers on Industrial Concentration,” Review of Economics and Statistics 1950
F.T.C. Report on Corporate Mergers and Acquisitions
J. Markham, “Survey of the Evidence and Findings on Mergers,” in Business Concentration
F. Machlup, Political Economy of Monopoly, pp. 105-17
J. F. Weston, The Role of Mergers in the Growth of Large Firms
G. Stigler, “The Statistics of Monopoly and Merger,” Journal of Political Economy, 1956

3. Raw materials

W. Y. Elliott, ed., International Control in the Non-ferrous Metals, essays on Nickel and Aluminum
E. A. G. Robinson, Monopoly, Ch. 3
R. H. Montgomery, The Brimstone Game, Ch, 4-9
D. H. Wallace, Market Control in the Aluminum Industry

4. Patents

A. Plant, “Economic Theory Concerning Patents for Invention,” Economica, 1934 (also companion article on copyrights)
Proceedings, American Econ. Assoc., May 1948 roundtable on patents
T.N.E.C. Monograph 31, pp. 109-15, 93-103
Seager and Gulick, Trust and Corporation Problems, pp. 280-303
Stocking and Watkins, Monopoly and Free Enterprise, Ch. 14
R. MacLaurin, “Patents and Economic Progress,” J.P.E., 1950

5. Taxation and tariffs

D. H. MacGregor, Industrial Combinations, pp. 127 ff.
Linter and Butters, “Effects of Taxes on Concentration,” in Business Concentration
T.N.E.C. Monograph No. 10

6. Unfair Competition

J. S. McGee, “Predatory Price Cutting,” Law and Economics, 1958

III. The Effects of Concentration

1. Collusion

R. B. Tenant, The American Cigarette Industry
W. Fellner, Competition Among the Few
W. Nicholls, Imperfect Competition Within Agricultural Industries, pp. 120-130
F. Machlup, Economics of Sellers’ Competition, Ch. 13

2. Prices

a. Discrimination

Burns, Decline of Competition, pp. 272-372
N.I.C.B., Public Regulation of Competitive Practices, pp. 63-85
J. P. Miller, Unfair Competition, Ch. 7-9
J. Robinson, Economics of Imperfect Competition, Bk. V
F. Machlup, The Basing Point System
J. M. Clark “Basing Point Methods,” Canadian Journal of Economics and Political Science, 1938
F.T.C., Price Bases Inquiry
T.N.E.C. Monograph 42
G. Stigler, “A Theory of Uniform Delivered Prices,” A.E.R. 1949
C. Kaysen, “Basing Point Pricing and Public Policy,” in Industrial Organization and Public Policy

b. Rigidity

G. Means, Industrial Prices and their Relative Inflexibility
Burns, Decline of Competition, Ch. 5
E. S. Mason, “Price Inflexibility,” Review of Economic Statistics, 1938
T.N.E.C., Monograph No. 1
Sweezy and Stigler, Articles in Readings in Price Theory
A. C. Neal, Industrial Concentration and Price Inflexibility
Machlup, Economics of Sellers’ Competition, Ch. 14

3. Profits

J. S. Bain, “The Profit Rate as a Measure of Monopoly Power,” Q.J.E., 1941
R. C. Epstein, Industrial Profits in the United States
J. S. Bain, “Relation of Profit Rate to Industry Concentration,” Q.J.E., August 1951

IV. Topics in Industry Behavior with Oligopoly

1. Advertising

E. Chamberlin, Theory of Monopolistic Competition, Ch. 6-7
N. Buchanan, Advertising Expenditures, J.P.E. 1942
N. Kaldor, “Economic Aspects of Advertising,” Review of Economic Studies, 1950

2. Vertical Integration

Smith, Wealth of Nations, Bk. I, Ch. 3
Marshall, Principles of Economics, Bk. IV, Ch. 10-13
A. Young, “Increasing Returns and Economic Progress,” E.J. 1928 (and in Clemence’s Readings in Economic Analysis 2 Vols.)
J. Jewkes, Factors in Industrial Integration, Q.J.E., 1930
S. Dennison, Vertical Integration and the Iron and Steel Industry, E.J. 1939
A. R. Burns, Decline of Competition, Ch. 9
Stigler, “Division of Labor is Limited by the Extent of Market,” J.P.E. 1951
M. Adelman, “Concept and Measurement of Vertical Integration,” in Business Concentration and Price Policy

3. Schumpeter’s Theory

Schumpeter, Capitalism, Socialism and Democracy, Ch. 7-8
K. Boulding, “In Defense of Monopoly,” Q.J.E., 1945
D. H. MacGregor, Industrial Combination, Ch. 12
G. Stigler, “Industrial Organization and Economic Progress,” in State of the Social Sciences.

V. Large Number Industries

1. Cartels

Stocking and Watkins, Cartels in Action, Ch. 4-11
Stocking and Watkins, Cartels or Competition, Ch. 3-7
C. Edwards, Economic and Political Aspects of International Cartels
Ben Lewis, Price and Production Controls in British Industry
A. F. Lucas, Industrial Reconstruction and the Control of Competition
R. Michels, Cartels, Combines and Trusts in Post-War Germany
R. Liefman, Cartels, Concerns and Trusts
C. Wilcox, Public Policies Toward Business, Ch. 16

2. Trade Associations

V. Mund, Government and Business, Ch. 11
Burns, Decline of Competition, Ch. 2
T.N.E.C. Monograph No. 18
H. Levy, Retail Trade Associations
Stocking and Watkins, Monopoly or Free Enterprise, Ch. 8, 10, 11

3. Retailing: Resale Price Maintenance

W. Bowman, “Prequisites and Effects of Resale Price Maintenance,” University of Chicago Law Journal, 1955
E. Grether, Price Control under Fair Trade Legislation
F.T.C., Resale Price Maintenance
W. Bowman, “Resale Price Maintenance,” Journal of Business, 1952
Mund, Government and Business, Ch. 21, 22

4. Government Cartels: Agriculture and Coal

W. Wilcox and W. Cochrane, Economics of American Agriculture Part VI
Readings on Agricultural Policy, Part II
C. Wilcox, Public Policy Toward Business, Ch. 15-16

VI. Anti-trust Policy

1. Early History

J. D. Clark, Federal Trust Policy
W. H. Taft, The Anti-trust Act and the Supreme Court
V. Mund, Government and Business, Ch. 10, 15, 16
H. B. Thorelli, The Federal Antitrust Policy

2. Major Dissolutions

E. Jones, Trust Problem in the United States, Ch. 18
Hale, “Trust Dissolution” in Columbia Law Review, 1940
W. S. Stevens, Industrial Combinations and Trusts, Ch. 14-15
S. Whitney, Antitrust Policies, 2 Vols.

3. Law of Conspiracy

U.S. v. Trenton Potteries, 273 U.S. 392 (1927)
F.T.C. v. Cement Institute, 68 Sup. Ct. 793 (1948)
M. Handler, T.N.E.C. Monograph 38
Report of Attorney-General’s National Committee on the Anti-trust Laws

4. Recent Decisions

U.S. v. Columbia Steel, 334 U.S. 495 (1948)
U.S. v. Aluminum Co., 148 F. (2nd) 416 (1945), 91 Fed Supp. 333 (1950)
Standard Oil v. Fed. Trade Comm., 71 Sup. Ct. 240 (1951)
E. H. Levi, “The Anti-trust Laws and Monopoly,” University of Chicago Law Journal, 1947
Economic Consequences of Some Recent Anti-trust Decisions, A.E.R., May 1949

5. Foreign Policy

F. A. McGregor, “Preventing Monopoly, — Canadian Techniques,” in Monopoly and Competition and their Regulation ed. by E. Chamberlin
C. D. Harbury and Leo Roskind, “The British Approach to Monopoly Control,” Q.J.E., 1953
M. Cohen, “Canadian Anti-trust Laws,” Canadian Bar Review, Vol. 16 (1938)
L. Reynolds, The Control of Competition in Canada
J. Jewkes, “British Monopoly Policy, 1944-56,” Law and Economics, 1958

6. Some Proposals and Issues

H. Simons, Economic Policy for a Free Society, Ch, 2, 3, 4.
C. Edwards, Maintaining Competition, esp. Ch. 4-8
The Sherman Act and the Enforcement of Competition, A.E.R., May 1918
Mund, Government and Business, Ch. 20, 24
S. C. Oppenheim, “Federal Antitrust Legislation,” Michigan Law Review, June 1952

Source: Harvard University Archives. Papers of Zvi Griliches, Box 130, Folder “Syllabi and exams, 1955-1959”.

Image Source:  George Stigler (1960). University of Chicago Photographic Archive (apf1-07960). Hanna Holborn Gray Special Collections Research Center, University of Chicago Library.

Categories
Economic History Exam Questions Fields Harvard Statistics

Harvard. Division Exams for A.B., General and Economics, 1920

The Harvard Economics department was once one of three in its Division in the Faculty of Arts and Sciences. The Departments of History and Government shared a general division exam with the Department of Economics and also contributed their own specific exams for departmental fields. This post provides the questions for the common, i.e. general, divisional exam and all the specific exams at the end of the academic year 1919-20 for fields covered by the economics department.

_______________________

Previously Posted Division A.B. Exams from Harvard

Division Exams 1916

Division Exams, January 1917

Division Exams, April 1918

Division Exams May 1919

Division Exams 1931

Special Exam for Money and Government Finance, 1939

Special Exam Economic History Since 1750, 1939

Special Exam for Economic Theory, 1939

Special Exam for Labor and Social Reform, 1939

_________________________

DIVISION OF HISTORY, GOVERNMENT AND ECONOMICS

DIVISION EXAMINATIONS FOR THE DEGREEE OF A.B.
1919-20

DIVISION GENERAL EXAMINATION
[April 29, 1920.]

PART I

The treatment of one of the following questions will be regarded as equivalent to one-third the examination and should therefore occupy one hour. Write on one question only.

  1. Compare pamphleteering and propaganda as methods of exerting political influence.
  2. What effect has the establishment of standing armies and navies had upon (a) political and (b) economic organization of the state?
  3. Show how, and why, the following were adapted to certain stages of society: (a) feudalism; (b) gilds; (c) nationality; (d) industrialism.
  4. Trace the course and explain the significance of the development of maritime law.
  5. Contrast the Greek and Italian city states.
  6. What are the wastes of the present industrial system and how, if at all, are they to be eliminated?
  7. Comment on the following: “History embraces ideas as well as events, and derives its best virtues from regions beyond the sphere of state.”
  8. Discuss the problems involved in the economic rehabilitation of Central Europe.
  9. What are the rights of minorities and how are they best secured?
  10. Compare the foreign policies of France, Germany, and the United States during the nineteenth century.

PART II

The treatment of three of the following questions in Part II is required and will be regarded as equivalent to one-third of the examination, and should therefore occupy one hour. The three questions are to be taken from the Departments in which the student IS NOT CONCENTRATING; two questions from one of these Departments and one question from the other.

A. HISTORY

  1. Why did Voltaire characterize the Holy Roman Empire as “neither holy, nor Roman nor an Empire”?
  2. What do you regard as the six most important naval battles in the history of the world! When and where were they fought, and who were the victors and the vanquished in each?
  3. Give a brief account of the relations of the United States and Canada.
  4. What have been the principal issues involved in the struggle over Home Rule?

B. GOVERNMENT

  1. What was the political condition of European states at the time of the Crusades!
  2. In what sense are constitutions of states “made”?
  3. If the principle of reparation of governmental powers is correct, why has the English cabinet system been approved?
  4. Explain the reasons for immigration to the United States from 1870 to 1895.

C. ECONOMICS

  1. What has been the contribution of the corporation to English and American political and economic institutions?
  2. Trace the evolution of collective bargaining in industry.
  3. What is “profiteering”? Explain its relation to the present high cost of living.
  4. Describe the development, and indicate the importance, of national budgets.

PART III

The treatment of three of the following questions in Part III is required and will be regarded as equivalent to one-third of the examination, and should therefore occupy one hour. The three questions are to be taken from the Department in which the student IS CONCENTRATING.

A. HISTORY

  1. Describe the changes in the attitude towards the Christians of the Roman Emperors down to Constantine.
  2. Discuss the development of national assemblies during the Middle Ages.
  3. What did the Tudors do for England?
  4. What is now the territory within the jurisdiction of the United States has been derived, directly or indirectly, from seven European nations. What are the seven, and what territory was derived from each?
  5. Enumerate, with dates, the principal changes in the form of government of France since 1789. How do you account for their frequency?

B. GOVERNMENT

  1. Discuss the development of the relations of President and Cabinet in the United
  2. Discuss and illustrate the following: “If tolerance can be allowed in a state, so much the better; that proves that the state is strong.”
  3. What should be the disposition of Constantinople?
  4. Give a brief sketch, explaining cause and naming period, of three of the following: (a) Dorr Rebellion; (b) Whiskey Insurrection; (c) Shay’s Rebellion; (d) Seminole War; (e) Ku-Klux Klan.
  5. How has the change in distribution of population affected governmental organization and administration?

C. ECONOMICS

  1. Discuss the probable future of the market for loanable funds in the United States and Europe.
  2. State the purposes and proper limits of progressive taxation.
  3. Describe the efforts of the Federal Government to enforce fair competition.
  4. What considerations are involved in the maintenance of public agencies for the distribution and employment of labor? What light is thrown on the subject by American and European experience?
  5. Sketch the history and present prospects of the American merchant marine.

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
ECONOMIC THEORY
[May 3, 1920.]

Answer six questions

A

Take from this group at least two and not more than four

  1. “It is the business of economic theory to explain, not to justify or condemn.” Comment.
  2. Discuss the rôle of mathematical analysis in the development of economic theory.
  3. “The determining cause of the general rate of money incomes and wages in a country is to be found in the exporting industries.” Explain.
  4. “The income from concrete instruments of production may be regarded as ‘rent’ or as ‘interest’ according to the point of view.” Explain and discuss.
  5. Of what concretely do invested, of what do uninvested, savings consist? Can savings accumulate to an indefinitely large amount? Can saving be carried to excess?
  6. “The standard of living affects wages, not directly, but through its influence on numbers. … A limitation of numbers is not a cause of high wages, but it is a condition of the maintenance of high wages.” Explain and criticize.
  7. Discuss the theories of business profits.

B

Take from this group at least one and not more than two

  1. Outline the history of mercantilism.
  2. Give an account of an important political episode in which economic theory has had a decisive influence.
  3. Trace the course of the rate of interest in modern times. What do you expect to be the course of the rate during the next fifteen years? Why?
  4. Characterize the more important developments in the history of socialism.

C

Take from this group at least one and not more than two

  1. What is the relation of (a) investment banking, (b) commercial banking, to capitalistic production?
  2. What theoretical problems are involved in government regulation of security issues?
  3. Does profit-sharing promise a solution of the problems of distribution? Why or why not?
  4. Discuss the following statement: “If you are not advertising, then advertise, because it saves money for you and it reduces the price to the consumer.”

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
ECONOMIC HISTORY
[May 3, 1920]

Answer six questions

A

Take from this group at least one and not more than two

  1. To what extent, if at all, and in what particulars, has the policy of high protection been of advantage to the American laborer?
  2. How do price revolutions, such as that in progress since 1897, tend to affect the distribution of wealth?
  3. Briefly explain the most satisfactory statistical methods for separating the different types of variation in time series.
  4. What is a logarithmic curve? What are its merits and defects in the graphic presentation of historical series?
  5. Trace the development of uniform accounting for railroads in this country. Indicate any connections between uniform accounting and government regulation of the railroads.

B

Take from this group at least two and not more than four

  1. Discuss the economic results of the crusades.
  2. Give a brief historical account of mercantilism.
  3. Outline the history of the public debt of one of the following countries: (a) Great Britain; (b) France; (c) United States.
  4. Trace the agrarian movement on the continent of Europe.
  5. Discuss the positions of the various English political parties and social classes on the question of Corn Law Repeal.
  6. Write a brief history of one of the following industries in the United States:

(a) Meat-packing;
(b) Tin-plate manufacture;
(c) Boot and shoe manufacture;
(d) Ship-building.

  1. When and by what steps was silver demonetized in the United States?
  2. Outline the development of the English textile industry.
  3. Give a brief account of the “trust movement” in the United States since 1898.
  4. Sketch the history of the export trade of the United States.

C

Take from this group at least one and not more than two

  1. Analyze the effects of England’s early commercial policy.
  2. What specific defects in the National Banking System was the Federal Reserve Act, 1913 intended to remedy?
  3. Trace and explain the history of the American merchant marine since 1840. What is its probable future and why?
  4. What industrial conditions are most conducive to the rapid growth of labor organizations? Why?

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
MONEY AND BANKING
[May 3, 1920]

Answer six questions.

A

Take from this group at least one and not more than two

  1. Discuss the distinction between currency expansion and currency inflation.
  2. What statistics of money and banking best serve as indices of financial, speculative, and general business conditions?
  3. Outline a system of accounts for a small commercial bank.
  4. What are the best sources of statistical data upon the following subjects:

(a) Bank clearings in the United States;
(b) Resources and liabilities of banks of New York City;
(c) Bank rates in the London and Paris money markets;
(d) The monetary stock of the United States;
(e) Changes in the value of gold in England?

B

Take from this group at least one and not more than two

  1. Outline the currency history of one of the following:

(a) Canada;
(b) Germany;
(c) British India;
(d) the Philippines;
(e) the American colonies;
(f) Russia.

  1. State and explain Gresham’s Law. Give four historical examples of the working of the law.
  2. Sketch the history of the relations between the United States Treasury and the banking institutions of the country.
  3. Compare American, British, and German banking methods and policy during the World War.
  4. Describe in detail one of the following financial panics: 1837; 1873; 1893; 1907.

C

Take from this group at least two and not more than four

  1. What have been the causes of the rehabilitation of silver?
  2. What are the arguments for and against an embargo upon gold exports from the United States at this time?
  3. Describe the business of an American bond house.
  4. Discuss critically the following statement made early in 1916:
    “The recent enactment of the Federal Reserve Act only made our sudden riches more embarrassing, for that Act had so changed our system of banking that every $18 of gold in the banks created $82 worth of loanable credit, whereas formerly, of every $100, $25 had to sit in the vaults while only $75 went out to work in the form of loans. In other words (as a result of the War and our banking reform), we not only had enormously more gold, but every dollar of it went a good deal further than ever before in financing new enterprises. This is the situation today.”
  5. Give a critical analysis of the policies of the Federal Reserve Board.
  6. Compare banking in France and England since the signing of the armistice.
  7. Why has London been the financial center of the world? What are the prospects that New York will in time displace London?

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
CORPORATE ORGANIZATION, INCLUDING TRANSPORTATION
[May 3, 1920]

Answer six questions

A

Take from this group at least one and not more than two

  1. In discussing the problems of capitalistic monopoly, it has been stated that “the matter at issue is a question, less of relative ‘economy’ of monopoly and competition than of the kind of economic organization best calculated to give us the kind of society we want.” Explain and discuss.
  2. What are the methods of measuring depreciation? What different policies with respect to depreciation have been advocated in the regulation of public utility rates?
  3. Discuss comparatively the public regulation of railway accounts in England, France, and the United States.
  4. To what extent do the reports of the Bureau of the Census furnish data upon corporate enterprise in the United States?

B

Take from this group at least one and not more than two

  1. Sketch the history of the Sherman Anti-Trust Law and its enforcement.
  2. Give a brief account of the functions and work of the United States Bureau of Corporations.
  3. Trace the evolution of the equipment of the modern railway.
  4. Outline the history of railroads in Germany.

C

Take from this group at least two and not more than four

  1. What are the purposes and customary scope of “blue sky” laws? What is the case for and against such legislation?
  2. What connections exist between banks and industrial combinations in the United States? Contrast the situation here with that in France.
  3. Compare American and German public policy toward industrial combinations.
  4. Give a critical analysis of the present railway rate structure in the United States.
  5. Discuss the Plumb Plan for the ownership and operation of the railways of the United States.
  6. Discuss the effects of the great inter-oceanic canals upon inland and ocean transportation.
  7. What are the problems of excess profits taxation?

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
PUBLIC FINANCE
[May 3, 1920]

Answer six questions.

A

Take from this group at least one and not more than two

  1. To what extent, if at all, and in what manner, are taxes a contributing cause of the present “high cost of living”?
  2. Discuss the proposal to tax individuals in proportion to their expenditure rather than their income, thus exempting savings.
  3. Describe the statistical features of the Census Bureau’s annual reports on “Financial Statistics of Cities.”
  4. What course has been taken by the reform of municipal accounting in the United States?

B

Take from this group at least one and not more than two

  1. Outline the development of the science of public finance.
  2. Give a critical account of the Independent Treasury of the United States.
  3. Trace the history of budget plans in American state and municipal government.
  4. Compare the financing of the American and French Revolutions.
  5. Give a brief historical account of direct taxation in Germany.
  6. Develop and defend a classification of public revenues.

C

Take from this group at least two and not more than four

  1. Compare government monopolies and internal revenue taxes as means of raising national funds.
  2. Analyze the financial results of the operations of the United States Post Office.
  3. Upon what bases should public utilities be valued and paid for when taken over by municipal authorities?
  4. “Taxation, while necessarily involving political and social considerations, is essentially a problem in national economies.” Do you agree? State your reasons.
  5. The practice of exempting government bonds from taxation is a pernicious American custom.” Comment.
  6. Discuss the effects of national prohibition upon public finance.
  7. Give a critical analysis of excess profits taxation.

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
LABOR PROBLEMS
[May 3, 1920]

Answer six questions

A

Take from this group at least one and not more than two

  1. Discuss the causes of the prevailing industrial unrest.
  2. To what extent and for what purposes should the state limit the hours of labor?
  3. Describe the technique of analyzing workingmen’s budgets.
  4. What statistical problems are involved in measuring labor turnover? What methods of measurement are most satisfactory?

B

Take from this group at least one and not more than two

  1. Compare trade unions and trade gilds, and the industrial conditions under each.
  2. Give a brief historical account of the employment of children in industry.
  3. Outline the development of the Railway Brotherhoods.
  4. Trace the history of the German Social Democratic Party.

C

Take from this group at least two and not more than four

  1. Analyze labor conditions in one of the following industries: (a) cotton manufacture; (b) coal mining; (c) steel manufacture.
  2. Discuss the main points of economic policy in the “reconstruction program” of the British Labor Party.
  3. What is the extent and importance of industrial unemployment?
  4. Discuss the present status of women in industry.
  5. Characterize the organization and results of the Washington industrial conferences of 1919-20.
  6. Discuss the aims, scope, and methods of employee representation in business management.
  7. What public policy should be adopted in regard to labor organizations among government employees?

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
ECONOMICS OF AGRICULTURE
[May 3, 1920]

Answer six questions

A

Take from this group at least one and not more than two

  1. To what extent are wages of management an element of cost in American agriculture?
  2. What are the interrelations of cold storage and prices of farm products?
  3. What statistical records are desirable for efficient operation of a dairy farm?
  4. To what extent and in what particulars is depreciation involved in farm accounting?

B

Take from this group at least one and not more than two

  1. Describe the agrarian revolution in England.
  2. Sketch the movement of the wheat belt in the United States since colonial times.
  3. Give a brief historical account of farm tenancy in the United States.
  4. Trace connections between the tariff policy of the United States and wool growing in this country.
  5. Outline the development of the work of the United States Department of Agriculture.

C

Take from this group at least two and not more than four

  1. Discuss the relations between climate and the productivity of land.
  2. Indicate the origins of the more important breeds of live stock. What contributions, if any, has this country made to the improvement of the breeds?
  3. Describe the effects of the World War upon the wool market.
  4. What are the relations between the wages of agricultural and factory labor?
  5. Compare the use and importance of artificial fertilizers in American and European agriculture.
  6. Give a brief critical analysis of the Federal Farm Loan Act.
  7. What are the causes of the increasing urbanization of population in the United States?

_________________________

DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
STATISTICS
[May 3, 1920]

Answer six questions

A

Take from this group at least two and not more than four

  1. Draft a set of rules for the construction of statistical tables.
  2. Explain “the necessity of the logical agreement of magnitudes from which an average is to be computed” and compare this with the requirement of “the greatest possible homogeneity of series.” Which of these requirements seems to you more difficult of fulfilment? Why?
  3. Describe the short-cut method of calculating the arithmetic mean from a frequency table. What assumptions underlie this method?
  4. Explain briefly: (a) discrete series; (b) mode; (c) Lorenz curve; (d) average of position; (e) Galton graph.
  5. Explain the different methods of eliminating secular trend in historical series.
  6. Describe the construction and characteristics of a logarithmic curve. What are the merits and defects of such a curve?
  7. What are the comparative advantages and disadvantages of chain indices and fixed-base indices in the measurement of changes in the price level?

B

Take from this group at least one and not more than two

  1. Give a brief account of the evolution of Statistics.
  2. Outline the history of the Bureau of the Census.
  3. Trace the development of price statistics in England.
  4. What has been the history of wage statistics in the United States?

C

Take from this group at least one and not more than two

  1. Discuss the different methods employed in estimating population.
  2. What are the principal difficulties in the collection of mortality statistics?
  3. Discuss critically current statistics of foreign trade in this country and abroad.
  4. What units have been employed in the statistics of railways? Analyze and appraise the different units.
  5. What are the best sources of statistical data upon the following subjects:

(a) Bank clearings in the United States;
(b) Resources and liabilities of banks of New York City;
(c) Bank rates in the London and Paris money markets;
(d) The monetary stock of the United States;
(e) Changes in the value of gold in England?

 

Source: Harvard University Archives. Harvard University Divisional and General Examinations, 1915-1975. Box 6, Bound volume Divisional Examinations 1916-1927 (From the Private Library of Arthur H. Cole).

Image Source: Widener Library from Harvard Class Album 1920.

Categories
Exam Questions Fields Johns Hopkins

Johns Hopkins. Graduate Theory of International Trade Exam. Machlup and Harberger, 1951

 

THE JOHNS HOPKINS UNIVERSITY
Theory of International Trade

Drs. Fritz Machlup and Arnold C. Harberger
May 28, 1951

Answer three questions including I.

I.

Assume that Country A has been importing 1,000,000 tons of X per period over a duty of $2.00 per ton. Domestic production has been 11,000,000 tons per period, the domestic price $6.00 per ton. Pure competition prevails among domestic and foreign producers. Demand and supply conditions remain stable everywhere; the elasticity of domestic demand is -1.0, the elasticity of domestic supply is + 0.5, and the elasticity of the foreign excess supply is infinite.

Now a tariff reduction of $1.00 per ton is granted for imports up to a certain maximum per period; imports in excess of this quota are permitted but subject to the full duty of $2.00. State the effects of the tariff reduction upon domestic price, domestic production, and total imports of X and upon customs revenue, if the tariff quote is

(a) 1,000,000 tons of X per period;
(b) 2,000,000 tons of X per period; and
(c) 4,000,000 tons of X per period.

[Your calculations need not be exact.]

 

II.

Comment on the following statements and discuss whether and under what conditions they may be true or false.

  1. A country cannot gain from imposing an export tax if the foreign demand for its exports is of greater than unit elasticity.
  2. In a country with a relative scarcity of capital the real interest rate will be higher if a general import tariff is imposed than it would be under free trade.
  3. For every situation in which trade is encumbered by tariffs, there exists a situation of unencumbered trade in which all countries involved would be better off.

 

III.

Would you expect “national welfare” in Country A to increase, decrease, or remain the same as a result of

  1. an increase in foreign demand for the export product(s) of country A?
  2. an increase in the foreign excess supply of the product(s) which country A imports?
  3. an improvement in technology in Country A?
  4. a tariff imposed on its imports by Country A?
  5. a tax imposed on its exports by Country A?
  6. a tariff imposed on imports from Country A by country B (the rest of the world)?
  7. a tax Imposed on exports to country A by country B (the rest of the world)?

Give reasons for your answers.

 

IV.

It is generally agreed that the receipt of dollar grants by a country will raise its maximum level of real consumption plus investment. Little has been said in the literature about changes in the relative shares of the increased total which go to the various factors of production. On the basis of the analysis developed in this course, what can be said about the circumstances under which these relative shares are likely to change? Are they likely to change at all? If so, in what direction? If not, why not? In your discussion, assume continuous full employment in all (both granting and receiving) countries, and assume that the grant is used fully by the receiving country.

Source: Johns Hopkins University. Eisenhower Library. Ferdinand Hamburger, Jr. Archives.  Department of Political Economy Series 6. Box 3/1, Folder: “Department of Political Economy. Graduate Exams, 1933-1965.”