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Exam Questions Harvard Suggested Reading Syllabus

Harvard. Graduate Core Economic Theory, Readings and Exams. Schumpeter, 1936-37

 

The reading lists and exams for Schumpeter’s graduate economic theory course in 1935-36 have been posted earlier (the year Paul Samuelson took the course). It is worth noting that Keynes and the General Theory (at least Chapters 11, 13-16) were added to the readings for the second term of 1936-37.

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Course Announcement, 1936-37

Economics 101 (formerly 11). Economic Theory

Mon., Wed., Fri., at 2. Professor Schumpeter.

Source:  Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences during 1936-37 (first edition). Official Register of Harvard University, Vol. XXXIII, No. 5 (March 2, 1936), p. 142.

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Course Enrollment, 1936-37

Primarily for Graduates:

[Economics] 101. (formerly 11). Professor Schumpeter.–Economic Theory.

Total 36:  30 Graduates, 3 Seniors, 3 Radcliffe.

Source: Harvard University. Report of the President of Harvard College for 1936-1937, p. 93.

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Economics 101

Following is a list of some of the most important works in English dealing with problems outside the range of perfect competition. They are not all assigned, but assigned reading is taken altogether from this list.

Pigou, A. C., Economics of Welfare, 3rd Edition.
Chamberlin, E. H., The Theory of Monopolistic Competition.
Chamberlin, E. H., On Imperfect Competition, in the March, 1934 Supplement of The American Economic Review, pp. 23-27.
Robinson, Joan, Economics of Imperfect Competition.
Robinson, Joan, What is Perfect Competition, Q. J. E., Nov. 1934.
Zeuthen, F., Problems of Monopoly and Economic Warfare.
Cournot, A. A., Mathematical Principles of the Theory of Wealth.
Edgeworth, F. Y., The Pure Theory of Monopoly (Papers, Vol. I)
Hotelling, Harold, Stability in Competition, E. J., March 1929.
Shove, G. F., The Imperfection of the Market, E. J., March 1933.
Harrod, R. F., Doctrines of Imperfect Competition, Q. J. E., May 1934.
Hicks, J. R., The Theory of Monopoly, Econometrica, Jan. 1935.

The subjects, in the order in which they will be taken up, together with the assigned reading, are given below.

I.  The Technique and the Background.

Pigou, Part II, Ch. XIV.
Robinson, Chs. 1, 2.
Chamberlin, Chs. 1, 2.

  

V. Monopolistic Competition

Chamberlin, Chs. 4, 5, 6, 7.
Robinson, Ch. 7. Q.J.E., Nov. ‘34
Shove, E.J., March ’33.
Harrod, Q.J.E., May ’34.
II.  Simple Monopoly.

Pigou, Part II, Ch. XVI.
Robinson, Chs. 3, 4, 5.

 VI. Discrimination.

Pigou, Chs. XVII, XVIII (Part II).
Robinson, Chs. 15, 16.
III.  Duopoly and Oligopoly

Pigou, Part II, Ch. XV.
Chamberlin, Ch. 3.

  
IV. Bilateral Monopoly.

Hicks, Sect. 3.

  

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes. Box 9, Folder “Ec 11, Fall 1936”.

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[Hand-written notes, neat, presumably to be typed]

  1. On Substitution

Marshall, V., Chs. 4, 8; VI, Ch.1.
Hicks, Theory of Wages, Ch. 6.
Robinson, Imperfect Competition, Ch. 22.
Machlup, “Commonsense of the Elast. of Subst.”, Rev. Econ. Stud., Vol II, No. 3. (on Econ. 1 shelf)

More Advanced

Hicks, Appendix.
Various notes on elast. of subs. In Vols I and II, Rev. Econ. Stud., by Hicks, Lerner, Kahn, Tarshis etc.
Hicks, Rev. Econ. Stud. Oct., 1936.
Pigou, Econ. Journal, June, 1934.

  1. On Period of Production

Böhm-Bawerk, E., Positive Theory of Capital, Bk II, Ch. 2, 3.
Knight, F. H., “Capital, Time + the Interest Rate,” Economica, August 1934 (on Econ. 151 shelf)
Hayek, F. A., Q. J. E., Feb., ‘36
Machlup, F. “Professor Knight + the Period of Production,” J. P. E., Oct. 1935.

More Advanced

Gifford, C.H.P., Econometrica, April 1935 (in Econ. 102 shelf).

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes. Box 9, Folder “Ec 11, Fall 1936”.

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1936-37
HARVARD UNIVERSITY
ECONOMICS 101

(Answer any FIVE questions)

  1. What meaning can be attributed to
    1. Positively inclined demand curves?
    2. Negatively inclined long-run average cost curves?
  2. Define arc elasticity of demand and explain the usefulness or otherwise of the concept.
  3. From given demand curves for consumers’ goods we derive demand curves for the producers’ goods or factors of production. From these in turn we derive the prices of factors and hence incomes. And these incomes determine the demand curves for consumers’ goods. Does this involve circular reasoning?
  4. Why is the explanation of market price by means of the theory of marginal utility superior to the explanation of market price by means of the Ricardian theory of quantity of labor?
  5. Consider a commodity A which is the product of two factors of production B and C. Then “an increase in the supply of A raises the demand for B in terms of money if the elasticity of the demand for A is greater than the elasticity of substitution.” Prove.
  6. Show why and in what sense price is determinate in the case of bilateral monopoly.
  7. “Perfect competition exists to such a negligible extent in the modern economy that all theorizing based on this assumption must be regarded as sheer waste of time.” What have you to say to this?
  8. “The key to problems of imperfect competition lies in the conditions of demand. But it is precisely when we come to problems of imperfect competition that the ordinary demand curve apparatus ceases to have any clear meaning.” Comment.

Mid-Year. 1937.

 

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes. Box 9, Folder “Ec 11, Fall 1936”.

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ECONOMICS 101 [“37” is handwritten here]

The first month of the second term will be devoted to a study of the principles underlying the theory of distribution, with special emphasis on wages.

  1. Substitution and Relative Shares
    1. Hicks, J. R., The Theory of Wages, Ch. VI.
    2. Machlup, Fritz, “The Common Sense of the Elasticity of Substitution”, Review of Economic Studies, June, 1935.
    3. Hicks, J. R., “Distribution and Economic Progress: A Revised Version”, Review of Economic Studies, October, 1936.
    4. Also notes and articles on substitution and relative shares in Review of Economic Studies, Vol. I, Nos. 1 and 2, though not required reading, may be consulted.
  2. Theory of Wages and Marginal Productivity
    1. Marshall, Bk. VI, especially Ch. I.
    2. Hicks, J. R., Theory of Wages, Ch. I.
    3. ——-, Marginal Productivity and the Principle of Variation,” Economica, February, 1932.
    4. Schultz, Henry and Hicks, J. R., “Marginal Productivity and the Lausanne School: “A Reply” and “A Rejoinder”, Economica, August, 1932.
    5. Robertson, D. H., “Wage Grumbles” in the volume of essays entitled Economic Fragments.
    6. Chamberlin, E. H., On distribution under Imperfect Competition, pp. 23-27 of the Supplement to the American Economic Review, March, 1934.

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes. Box 10, Folder “Ec 11, Spring 1937”.

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 ECONOMICS 101

            The next two or three weeks will be devoted to the discussion of capital and interest. A select bibliography and the assigned reading are listed below.

BIBLIOGRAPHY

  1. Böhm-Bawerk, E., Capital and Interest (a history of interest theories) [: and] The Positive Theory of Capital (the third edition, available only in German, containing the polemical Excursi, is to be preferred to the English translation)
  2. Marx, Karl, Capital (especially Vol. I, Parts III and VII; Vol. II, Part III; Vol. III, Parts II and III)
  3. Wicksell, Knut, Über Wert, Kapital und Rente [, and] Lectures on Political Economy, Vol. I
  4. Fisher, Irving, The Rate of Interest (1907) [; and] The Theory of Interest (1930) (a rewriting of the earlier work)
  5. Taussig, F.W., Wages and Capital
  6. Knight, F.H., “Interest”, article in The Encyc. of Soc. Science
  7. For a rather complete list of the numerous recent articles on capital, interest and the structure of production, Cf. Machlup, Fritz, “Professor Knight and the Period of Production”, Journal of Political Economy, 1935, first footnote.
  8. For an exposition of Böhm-Bawerk, Wicksell and the later work along the same lines done in Sweden, particularly by Gustav Akerman, Cf. Kirchmann, Hans, Studien zur Grenzproduktivitätstheorie des Kapitalzinses.
  9. Keynes, J. M., General Theory of Employment, Interest, and Money.

ASSIGNED READING

  1. Fisher, The Rate of Interest, Part I, Chs. 1,2,3; Part III, Ch. 10
  2. Böhm-Bawerk, Positive Theory, Book I, Ch. 2; Book II, Chs. 2,4,5; Book V, Chs. 1,2,3,4,5; Book VI, Chs. 5,6,7; Book VII, Chs. 1,2,3.
  3. Wicksell, Lectures, Vol. I, pp. 144-171; 185-195.
  4. Keynes, J. M., General Theory of Employment, Interest, and Money, 11, 13, 14, 15, 16.

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes. Box 10, Folder “Ec 11, Spring 1937”.

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1936-37
HARVARD UNIVERSITY
ECONOMICS 101

Answer FIVE questions. Arrange your answers in the order of the questions.

  1. Saving, by increasing the quantity of capital, will tend to increase its absolute and relative share. At the same time saving will tend to reduce the rate of interest and thereby to decrease capital’s absolute and relative share. State the conditions on which the net effect of saving on the absolute and relative share will depend. What do you think the actual effect is in practice?
  2. Classical economists spoke of a net benefit accruing from free trade. Have we any means to measure that benefit and to determine how it is divided between the trading nations?
  3. Which of the theories of interest which you have studied seems to you most acceptable and why?
  4. What warrant is there for the statement that in perfect competition and perfect equilibrium every firm will produce that quantity which corresponds to the point of minimum average cost?
  5. Discuss the problem of inequality of incomes from the following points of view: (a) measurement, (b) economic effects, (c) relation to welfare.
  6. Could unemployment exist with perfect competition?
  7. What do you regard as the most desirable railroad rate policy? State clearly and justify your criteria of desirability, and show how the policy selected meets these criteria.

Final. 1937.

 

Source: Harvard University Archives. Joseph Schumpeter Papers. Lecture Notes. Box 10, Folder “Ec 11, Spring 1937”.

Image Source: Harvard University Archives. HUGBS 276.90p(43) Irving Fisher and J. A. Schumpeter (May 12, 1934).

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M.I.T. Suggested Reading Syllabus

M.I.T. First term core macro. National income and employment. Readings and Exams. Domar, 1965

 

For the previous posting I transcribed Robert Solow’s reading list and mid-term exam for M.I.T.’s second term of graduate core macroeconomics. That course reading list was lean, short & sweet. Today we turn to my Doktorvater, Evsey D. Domar, who taught the first term of that graduate sequence. Both my obligation to friends of  Economics in the Rear-view Mirror and my profound doctor-filial piety were needed to motivate me to transcribe Domar’s entire fourteen page course reading list. I am delighted to say I was able to find the midterm and final exams for the year and include them here.

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THEORY OF NATIONAL INCOME AND EMPLOYMENT

E. D. Domar 14.451 Fall Term 1965-66
READING LIST

The purpose of this list is to suggest to the student the sources in which the more important topics of the course are discussed from several points of view. His objectives should be the understanding of these topics and not the memorization of opinions and details.

There now exists a good textbook on macroeconomics—Gardner Ackley, Macroeconomic Theory (The Macmillan Company, New York, 1961). Its knowledge is necessary but not sufficient for passing the course. While several copies are on reserve at Dewey, the acquisition of private copies is recommended.

It is also convenient to acquire the two National Income volumes published by the U.S. Department of Commerce and listed in Section I.

 

I. NATIONAL INCOME AND RELATED ITEMS
(September 21 – October 14)

REQUIRED

Ackley, Chapters 1-4.
Kuznets, S., National Income and Its Composition, Vol. I (New York, 1941). [handwritten note: Chap. 1]
National Income 1954 Edition, A Supplement to the Survey of Current Business, U.S. Department of Commerce (Washington, D.C., 1954), pp. 27-60, 153-58.
U.S. Income and Output, A Supplement to the Survey of Current Business, U.S. Department of Commerce (Washington, D. C., 1958), pp. 50-105. Browse through the statistical tables of both volumes to know what is available where.
Leontief, W. W., “Output, Employment, Consumption and Investment,” Quarterly Journal of Economics, Vol. 58 (February, 1944), pp. 290-314.
Leontief, Studies in the Structure of the American Economy (New York, 1953), pp. 27-35.
Dorfman, R., “The Nature and Significance of Input-Output,” Review of Economics and Statistics, Vol. 36 (May, 1954), pp. 121-33.
Kendrick, J. W., Productivity Trends in the United States (Princeton, 1961), pp. xxxv-lii, 20-77.
Domar, E. D., “On Total Productivity and All That,” The Journal of Political Economy, Vol. 70 (December, 1962), pp. 597-608. [This is a review of Kendrick’s book; several reprints are available in Dewey.]
Domar, E. D., “On the Measurement of Technological Change,” The Economic Journal, Vol. 71 (December, 1961), pp. 709-29. [Read only pp. 709-14, 726-29.]
Board of Governors of the Federal Reserve System, Industrial Production 1959 Revision (Washington, 1960), pp. iii-41. [Look for the method, not for statistical details.]
Sigel, S. J., “A Comparison of the Structures of Three Social Accounting Systems,” National Bureau of Economic Research, Input-Output Analysis: An Appraisal, The Conference on Research in Income and Wealth, Studies in Income and Wealth, Vol. 18 (Princeton, 1955), pp. 253-89.

ADDITIONAL READINGS:

Jaszi, G., “The Statistical Foundations of the GNP,” Review of Economics and Statistics, Vol. 38 (May, 1956), pp. 205-14.
Domar, E. D., “An Index-Number Tournament,” mult., 1963. [Several copies are available in Dewey; your comments will be appreciated.]
Griliches, Zvi, “Notes on the Measurement of Price and Quality Changes,” and comments by Jaszi, Denison and Grove, in Conference on Research in Income and Wealth, Models of Income Determination (Princeton, 1964), Vol. 28, pp. 381-418.
Lewis, Wilfred, Jr., “The Federal Sector in National Income Models,” and comments by Hickman and Pechman, in Conference on Research in Income and Wealth, Models of Income Determination (Princeton, 1964), Vol. 28, pp. 233-78.
Bailey, M. J., National Income and the Price Level (New York, 1962), pp. 269-300.
Kuznets, S., National Income and Its Composition (New York, 1941).
Ruggles, R. and N., National Income Accounts and Income Analysis (New York, 1956).
Ruggles, “The U.S. National Accounts,” American Economic Review, Vol. 49, (March, 1959), pp. 85-95.
National Bureau of Economic Research, The National Economic Accounts of the United States, Review, Appraisal and Recommendations, General Series 64, (Washington, 1958).
Organization for European Economic Cooperation, A Standardised System of National Accounts, (Paris, 1952).
Gilbert, M. and I. B. Kravis, An International Comparison of National Products and the Purchasing Power of Currencies, A Study of the United States, the United Kingdom, France, Germany and Italy, Organization for European Economic Cooperation (Paris, 1954).
Gilbert, M., Comparative National Products and Price Levels, A Study of Western Europe and the United States, Organization of European Economic Cooperation, (Paris, 1958).
United Nations, Yearbook of National Accounts Statistics, the latest issue.
United Nations, National Income Statistics, the latest issue.
United Nations, World Economic Survey and other Economic Surveys.
Studenski, The Income of Nations. Theory, Measurement, and Analysis: Past and Present (New York, 1958). [A wealth of information, particularly of historical character.]
Nove, A., “The United States National Income A La Russe,” Economica, Vol. 23, 1956.
Bergson, A. The Real National Income of Soviet Russia Since 1928 (Cambridge, Massachusetts, 1961).
Kravis, I. B., “Relative Income Shares in Fact and Theory,” American Economic Review, Vol. 49 (December, 1959), pp. 917-49.
Samuelson, P. A., “Evaluation of Real National Income,” Oxford Economic Papers (New Series), 1950, pp. 1-29.
Samuelson, “The Evaluation of ‘Social Income’: Capital Formation and Wealth,” in F. A. Lutz and D. C. Hague, editors, The Theory of Capital (London, 1961).
Leontief, W. W., The Structure of American Economy (New York, 1941).
Leontief, Studies in the Structure of the American Economy (New York, 1953).
Taskier, C. E., Input-Output Bibliography 1955-1960, United Nations (New York, 1961).
Evans, W. D., and M. Hoffenberg, “The Interindustry Relations Study for 1947,” Review of Economics and Statistics, Vol. 34, (May, 1952), pp. 97-142.
Stewart, I. G., “The Practical Uses of Input-Output Analysis,” Scottish Journal of Political Economy, Vol. 5, (February, 1958).
Dosser, D. and A. T. Peacock, “Input-Output Analysis in an Under-Developed Country: A Case Study,” Review of Economic Studies, Vol. 25 (October, 1957).
Input-Output Analysis: An Appraisal, Studies in Income and Wealth by the Conference on research in Income and Wealth, Vol. 18 (Princeton, 1955).
Solow, R. M. “Technical Change and the Aggregate Production Function,” Review of Economics and Statistics, Vol. 39 (August, 1957), pp. 312-20.
Abramovitz, M., “Resources and Output in the United States Since 1870,” American Economic Review, Papers and Proceedings, Vol. 46 (May, 1956), pp. 5-23, reprinted as National Bureau of Economic Research, Occasional Paper 52 (New York, 1956).
Kendrick, J. W., Productivity Trends in the United States (Princeton, 1961).
Denison, E. F., Sources of Economic Growth in the United States and the Alternatives Before Us (New York, 1962).
Abramovitz, M., “Economic Growth in the United States,” American Economic Review, Vol. 52 (September, 1962), pp. 762-82. [This is a review of Denison’s Book.]
Moorsteen, R. H., “On Measuring Productive Potential and Relative Efficiency,” Quarterly Journal of Economics, Vol. 75 (August, 1961), pp. 451-67.
Fabricant, S., The Output of Manufacturing Industries, 1899-1937 (New York, 1940), particularly Chapter 1.
United Nations, Statistical Office, Index Numbers of Industrial Production, St/Stat/ Ser/ F1 (New York, 1950).
Board of Governors of the Federal Reserve System, Flow of Funds in the United States 1939-53 (Washington, D. C., 1955).
Powelson, J. P., National Income and Flow-Of-Funds Analysis (New York, 1960).
Measuring the Nation’s Wealth, National Bureau of Economic Research, Studies in Income and Wealth, Vol. 29 (Washington, D. C., 1964).

 

II. GENERAL AGGREGATIVE SYSTEMS
(October 19 – October 28).

REQUIRED:

Ackley, Parts II and III.
Keynes, J. M., The General Theory of Employment, Interest and Money (London and New York, 1936). [Omit the appendixes to Chapters 6 and 19.]
Note: Neither book is arranged in the order of this reading list. Hence these two assignments apply to other sections of it as well.
Wells, P., “Keynes’ Aggregate Supply Function: A Suggested Interpretation,” The Economic Journal, Vol. 70 (September, 1960), pp. 536-42.
Johnson, H. G. and the discussants, “The General Theory After Twenty-five Years,” American Economic Review Papers and Proceedings, Vol. 60 (May, 1961), pp. 1-25.
Klein, L. R., “The Empirical Foundations of Keynesian Economics,” in K. K. Kurihara, ed., Post Keynesian Economics (New Brunswick, N. J., 1954), pp. 277-319.

ADDITIONAL READINGS:

Lekachman, Robert, Keynes’ General Theory: Reports of Three Decades, (New York and London, 1964).
Patinkin, D., Money, Interest, and Prices, Second Edition, (New York, 1965).
American Economic Association, Readings in Business Cycle Theory (Philadelphia, 1944), Essays 5, 7, 8.
American Economic Association, Readings in the Theory of Income Distribution (Philadelphia, 1946), Essay 24.
Metzler, “Three Lags in the Circular Flow of Income,” in Income, Employment and Public Policy, Essays in Honor of Alvin H. Hansen (New York, 1948), pp. 11-32.
Harris, S. E., The New Economics (New York, 1947), Essays 8-19, 31-33, 38-46.
Lerner, A. P., Economics of Control (New York, 1944), Chapters 21-23, 25.K
Kurihara, K. K., Post Keynesian Economics (New Brunswick, N. J., 1954).
Klein, L. R., The Keynesian Revolution, (New York, 1947), Chapters 3-5.
Ellis, H. S., A Survey of Contemporary Economics, Vol. 1, (Philadelphia, 1948), Chapter 2.
Burns, A. F., “Economic Research and the Keynesian Thinking of Our Times,” in his The Frontiers of Economic Knowledge, (Princeton, 1954), or in the Twenty-Sixth Annual Report of the National Bureau of Economic Research, Inc. (New York, 1946). See also the discussion by Hansen and Burns in the Review of Economic Statistics (November, 1947).
Dillard, D., “The Influence of Keynesian Economics on Contemporary Thought,” American Economic Review, Papers and Proceedings, 1957.
Hutt, W. H., Keynesianism: Retrospect and Prospect (Chicago, 1963).
Friedman, Milton, and G. S. Becker, “A Statistical Illusion on Judging Keynesian Models,” Journal of Political Economy, Vol. 55 (February, 1957), pp. 64-75.

 

III. PRICE FLEXIBILITY AND EMPLOYMENT
(November 2-11)

REQUIRED:

Patinkin, D., Money, Interest, and Prices, Second ed., (New York, 1965), Chapters 9-11.
Pigou, A. C., “The Classical Stationary State,” Economic Journal (December, 1943).
Power, J. H., “Price Expectations, Money Illusion and the Real Balance Effect,” Journal of Political Economy, Vol. 67 (April, 1959).
Mayer, T., “The Empirical Significance of the Real Balance Effect,” Quarterly Journal of Economics, Vol. 73 (May, 1959).

ADDITIONAL READINGS:

Readings in Monetary Theory, Essay 13.
Schelling, T. C., “The Dynamics of Price Flexibility,” American Economic Review (September, 1949).
Lange, O., Price Flexibility and Employment (Bloomington, Indiana, 1944). [Get the main idea and omit the details.]
Friedman, M., “Lange on Price Flexibility and Employment,” American Economic Review (September, 1946).
Patinkin, D., Money, Interest, and Prices (Evanston, Illinois, 1956).
Hicks, J. R., “A Rehabilitation of ‘Classical Economics’,” Economic Journal, Vol. 47, (June, 1957).

 

IV. THEORY OF INTEREST
(November 16-25)

REQUIRED:

Hicks, J. R., Value and Capital (Oxford, 1957), Chapters 11 & 12.
Lydall, H., “Income, Assets, and the Demand for Money,” Review of Economics and Statistics, Vol. 40 (February, 1958), pp. 1-14.
Gurley, J. G., and E. S. Shaw, “Financial Aspects of Economic Development,” American Economic Review, Vol. 65 (September, 1955), pp. 515-38.

ADDITIONAL READINGS:

Patinkin, the rest of his excellent book.
Gurley, J. G., and E. S. Shaw, Money in a Theory of Finance (Washington, 1960).
Tobin, J., “Liquidity Preference as Behavior Towards Risk,” The Review of Economic Studies, Vol. 25 (February, 1958), pp. 65-86.
Hart, A. G., and P. B. Kenen, Money, Debt and Economic Activity, Third Ed., (Englewood Cliffs, N. J., 1961).
American Economic Association, Readings in the Theory of Income Distribution (Philadelphia, 1946), Essays 22, 23, 26.
American Economic Association, Readings in Monetary Theory, (New York, 1951), Essays 6, 11, 15.
Patinkin, D., “Liquidity Preference and Loanable Funds: Stock and Flow Analysis,” Economica, Vol. 25 (November, 1958).
Lutz, F. A., “The Interest Rate and Investment in a Dynamic Economy,” American Economic Review, (December, 1945).
Wright, A. L., “The Rate of Interest in a Dynamic Model,” Quarterly Journal of Economics, Vol. 72 (August, 1958), pp. 327-50.
Matthews, R. C. O., “Liquidity Preference and the Multiplier,” Economica, Vol. 28 (February, 1961), pp. 37-52.
Supplement to the Review of Economics and Statistics, Vol. 45 (February, 1963) on “The State of Monetary Economics.”
Friedman, M. and A. J. Schwartz, A Monetary History of the United States 1867-1960 (Princeton, N. J., 1963).
Friedman, M., ed., Studies in the Quantity Theory of Money (Chicago, 1956).

See also INVESTMENT DECISIONS.

 

V. CONSUMPTION AND SAVING
(November 30- December 9)

REQUIRED:

Crockett, Jean, “Income and Asset Effects on Consumption: Aggregate and Cross Section,” and comments by D. B. Suits, in Conference on Research in Income and Wealth, Models of Income Determination (Princeton, 1964), Vol. 23, pp. 97-136.
Duesenberry, J. S., Income, Saving, and the Theory of Consumer Behavior (Cambridge, Massachusetts, 1949). Omit the details and get the main points.
Friedman, M., A Theory of the Consumption Function (Princeton, 1957), Chapter 9.
Friend, I., and I. B. Kravis, “Entrepreneurial Income, Saving and Investment,” American Economic Review, Vol. 47 (June, 1957), pp. 269-301.
Tobin, J., “On the Predictive Value of Consumer Intentions and Attitudes,” The Review of Economics and Statistics, Vol. 41 (February, 1959), pp. 1-11.
Farrell, M. J., “The New Theories of the Consumption Function,” The Economic Journal, Vol. 69 (December, 1959), pp. 678-96.
Dobrovolsky, S. P., Corporate Income Retention 1915-43 (New York, 1951). [Omit the details.]
Lintner, J. and discussants, “Distribution of Income of Corporations Among Dividends, Retained Earnings, and Taxes,” American Economic Review Papers and Proceedings, Vol. 46 (May, 1956), pp. 97-118.
Gordon, M. J., “The Optimum Dividend Rate,” presented at the 6th Annual International Meeting of the Institute of Management Sciences (Paris, September, 1959). [On library reserve.]
Domar, E. D., Essays in the Theory of Economic Growth (New York, 1957), pp. 154-67, 195-201.

ADDITIONAL READINGS:

Ferber, R., “The Accuracy of Aggregate Savings Functions in the Post-War Years,” Review of Economics and Statistics, Vol. 37 (May, 1955), pp. 134-48.
Friedman, the rest of his book.
Brown, E. C., Solow, R. M., Ando, A., and J. Karekan, “Lags in Fiscal and Monetary Policy,” in Commission on Money and Credit, Stabilization Policies (Englewood Cliffs, N. J., 1963), pp. 1-165.
Modigliani, F., and R. Brumberg, “Utility Analysis and the Consumption Function: An Interpretation of Cross-Section Data,” in Kurihara, K. K., ed., Post Keynesian Economics (New Brunswick, N. J., 1954), pp. 388-436.
See also its discussion by Brown, B., and F. M. Fisher, “Negro-White Savings Differentials and the Modigliani-Brumberg Hypothesis,” Review of Economics and Statistics, Vol. 40 (February, 1958), pp. 79-81.
Friend, I., and S. Schor, “Who Saves?,” The Review of Economics and Statistics, Vol. 41 (May, 1959), pp. 213-45.
Zellner, Arnold, “The Short-Run Consumption Function,” Econometrica, (October, 1957).
Dennison, E. F., “A Note on Private Saving,” Review of Economics and Statistics, (August, 1958).
Friedman, M., and G. Becker, “A Statistical Illusion in Judging Keynesian Models,” Journal of Political Economy, Vol. 65 (February, 1957).
Klein, L. R., “The Friedman-Becker Illusion,” Journal of Political Economy, Vol. 66 (December, 1958).
Morgan, J. N., Consumer Economics (New York, 1955).
Katona, G., and E. Mueller, Consumer Expectations 1953-56 (Ann Arbor, Michigan, 1956).
Bailey, M. J., “Saving and the Rate of Interest,” Journal of Political Economy, Vol. 45 (August, 1957), pp. 279-305. Reprinted in Landmarks in Political Economy, edited by E. J. Hamilton, A. Rees, and Johnson, H. G., (Chicago, 1962), pp. 583-622.
Klein, L. R., ed., Contributions of Survey Methods to Economics (New York, 1954).
Goldsmith, R. W., A Study of Saving in the United States, Three volumes (Princeton, 1952).
Heller, W. W., Boddy, F. M., and C. L. Nelson, Savings in the Modern Economy, a Symposium (Minneapolis, 1953).
Mincer, J., “Employment and Consumption,” The Review of Economics and Statistics, Vol. 42 (February, 1960), pp. 20-26.

 

VI. INVESTMENT DECISIONS
(December 14 – January 6)

REQUIRED:

Ackley, Chapter 17.
Solomon, E., ed., The Management of Corporate Capital (Glencoe, Ill., 1959), pp. 48-55, 67-73.
White, W. H., “Interest Inelasticity of Investment Demand—The Case from Business Attitude Surveys Re-examined,” American Economic Review, Vol. 46 (September, 1956), pp. 565-587.
Meyer, J. R., and E. Kuh, The Investment Decision (Cambridge, Massachusetts, 1957), Chapter 12.
Penrose, E., “Limits to the Growth and Size of Firms,” American Economic Review Papers and Proceedings, Vol. 45 (May, 1955), pp. 531-43.
Foss, M. F., and Natrella, V., “Ten Years’ Experience with Business Investment Anticipations,” Survey of Current Business (January, 1957).
Schultz, T. W., “Capital Formation by Education,” The Journal of Political Economy, Vol. 68 (December, 1960), pp. 571-83.

ADDITIONAL READINGS:

Lerner, A. P., “On the Marginal Product of Capital and the Marginal Efficiency of Investment,” Journal of Political Economy, Vol. 51 (February, 1953), pp. 1-14. Reprinted in Landmarks in Political Economy edited by E. J. Hamilton, Rees, A., and H. G. Johnson (Chicago, 1962), pp. 538-58.
Pitchford, J. D. and A. J. Hagger, “A Note on the Marginal Efficiency of Capital,” The Economic Journal, Vol. 48 (September, 1958), pp. 597-600.
Duesenberry, J., Business Cycles and Economic Growth (New York, 1958), Chapters 4-7.
Meyer and Kuh, the rest of the book.
Hirschleifer, J., “On the Theory of Optimal Investment Decision,” The Journal of Political Economy, Vol. 66 (August, 1958), pp. 329-352. [An excellent but difficult paper.]
James, E., A Reconsideration of the Theoretical Criteria for Optimum Investment Planning (M.I.T. doct. diss., 1961). [A good survey of the literature.]
Lovell, M. C., “Determinants of Inventory Investment,” in Conference on Research in Income and Wealth, Models of Income Determination (Princeton, 1964), Vol. 28, pp. 177-232.
Penrose, E. T., The Theory of the Growth of the Firm (Oxford, 1959).
The Quality and Economic Significance of Anticipations Data, A Conference of the Universities—National Bureau Committee for Economic Research (Princeton, 1960).
Foss, M. F., “Investment Plans and Realizations—Reasons for Differences in Individual Cases,” Survey of Current Business (June, 1957).
Foss, M. F., “Manufacturers’ Inventory and Sales Expectations—A Progress Report on a New Survey,” Survey of Current Business (August, 1961).
Robinson, J., The Accumulation of Capital (London, 1956). [Wish we had time for it.]
Lutz, F. A., and V., the Theory of Investment of the Firm (Princeton, 1951).
Heller, W. W., “The Anatomy of Investment Decisions,” Harvard Business Review, (March, 1951), pp. 95-103.
Meade, J. E., and P. W. S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” and “Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, No. 1, 1938 and No. 3, 1940.
Ebersole, J. F., “The Influence of Interest Rates,” Harvard Business Review, Vol. 17, 1938, pp. 35-39.
Henderson, H. D., “The Significance of the Rate of Interest,” Oxford Economic Papers (October, 1938), pp. 1-13.
Andrews, P. W. S., “Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, (February, 1940), pp. 32-73.
Sayers, R. S., “Business Men and the Terms of Borrowing,” Oxford Economic Papers (February, 1940), pp. 23-31.
Brockie, M. D., and A. L. Grey, “The Marginal Efficiency of Capital and Investment Programming,” Economic Journal, Vol. 46 (December, 1956).
White, W. H., “The Rate of Interest, the Marginal Efficiency of Capital, and Investment Programming,” Economic Journal, Vol. 48 (March, 1958).
Grey, A. L., and M. D. Brockie, “The Rate of Interest, Marginal Efficiency of Captial and Net Investment Programming: A Rejoinder,” Economic Journal (June, 1959).
Spiro, A., “Empirical Research and the Rate of Interest,” Review of Economics and Statistics, Vol. 40 (February, 1958).
Cunningham, N. J., “Business Investment and the Marginal Cost of Funds,” Metroeconomica, Vol. 10 (August, 1958).
Cunningham, N. J., “Business Investment and the Marginal Cost of Funds,” Part II, Metroeconomica (December, 1958).
Wilson, T., “Cyclical and Autonomous Inducements to Invest,” Oxford Economic Papers, Vol. 5, 1953.
Lydall, H. F., “The Impact of the Credit Squeeze on Small and Medium Sized Manufacturing Firms,” Economic Journal, Vol. 47 (September, 1957).
Friend, I., and J. Bronfenbrenner, “Business Investment Programs and Their Realization,” Survey of Current Business (December, 1950).
Schultz, T. W., “Investment in Human Capital,” American Economic Review, Vol. 60 (March, 1961) pp. 1-17.
Houthakker, H. S., “Education and Income,” The Review of Economics and Statistics, Vol. 41 (February, 1959), pp. 24-28.
Eckhaus, R. S., “On the Comparison of Human Capital,” Center for International Studies, M.I.T., mult.
Becker, G. S., Human Capital: a Theoretical and Empirical Analysis, with Special Reference to Education (New York, 1964).

See also THEORY OF INTEREST and MULTIPLIER AND ACCELERATOR

 

VII. MULTIPLIER AND ACCELERATOR
(January 11 – 18)

REQUIRED:

Kahn, R. F., “The Relation of Home Investment to Unemployment,” Economic Journal, 1931. Republished in Hansen and Clemence, Readings in Business Cycles and National Income (New York, 1953), Essay 15.
Readings in Business Cycle Theory, Essays 9-12.
Haavelmo, T., “Multiplier Effects of a Balanced Budget,” Econometrica, 1945, reprinted in Readings in Fiscal Policy, pp. 335-343.
Salant, William A., “Taxes, Income Determination, and the Balanced Budget Theorem,” The Review of Economics and Statistics (May, 1957).
Tsiang, S. C., “Accelerator, Theory of the Firm, and the Business Cycle,” Quarterly Journal of Economics, Vol. 65, 1951.

ADDITIONAL READINGS:

Tinbergen, “Statistical Evidence on the Acceleration Principle,” Economica, Vol. 5, 1938.
Eisner, R., “Capital Expenditures, Profits, and the Acceleration Principle,” and comments by G. H. Hickman, in Conference on Research in Income and Wealth, Models of Income Determination, (Princeton, 1964), Vol. 28, pp. 137-176.
Peston, M. H., “Generalizing the Balanced Budget Multiplier,” and “Comment” by W. A. Salant, The Review of Economics and Statistics (August, 1958).
Bowen, W. G., “The Balanced-Budget Multiplier: A Suggestion for a More General Formulation,” The Review of Economics and Statistics, (May, 1957).
Goodwin, R. M., “The Multiplier” in Seymour E. Harris, ed., The New Economics (New York, 1947), pp. 482-99.
Chenery, H. B., “Overcapacity and the Acceleration Principle,” Econometrica, Vol. 20 (January, 1952), pp. 1-28.
Caff, J. T., “A Generalization of the Multiplier-Accelerator Model,” The Economic Journal, Vol. 69 (March, 1961), pp. 36-52.
Kuznets, S., “Relation Between Capital Goods and Finished Products in the Business Cycle,” in Economic Essays in Honor of Wesley Clair Mitchell, (New York, 1935).
Knox, A. D. “The Acceleration Principle and the Theory of Investment: A Survey,” Economica, Vol. 19, 1952.
Harrod, R. F., Towards a Dynamic Economics (London, 1948).
Hicks, J. R., A Contribution to the Theory of the Trade Cycle (Oxford, 1950).
Goodwin, R. M., “Problems of Trend and Cycle,” Yorkshire Bulletin, Vol. 5 (August, 1953).
Ott, A. E., “The Relation Between the Accelerator and the Capital Output Ratio,” Review of Economic Studies, Vol. 25, (June, 1958).
Minsky, H., “Monetary Systems and Accelerator Models,” American Economic Review, Vol. 47, 1957.
Friedman, M. and D. Meiselman, “The Relative Stability of Monetary Velocity and the Investment Multiplier in the United States, 1897-1958,” Stabilization Policies, Commission on Money and Credit, (New Jersey, 1963), pp. 165-268.
Hester, D. D., “Keynes and the Quantity Theory: a Comment on the Friedman-Meiselman CMC Paper,” the reply by Friedman and Meiselman, and the rejoinder by Hester, The Review of Economics and Statistics, Vol. XLVI (November, 1964), pp. 364-377.

See also INVESTMENT DECISIONS.
This subject will also be discussed in Economics 14.452.

 

VIII. MISCELLANEOUS (If time permits)

Ackley, Chapters 16, 20.
Mincer, Jacob, “Investment in Human Capital and Personal Income Distribution,” The Journal of Political Economy, Vol. 66 (August, 1958), pp. 281-302.
Goldsmith, Selma F., “Size Distribution of Personal Income, 1956-59,” Survey of Current Business (April, 1960).
Liebenberg, M., and J. M. Fitzwilliams, “Size Distribution of Personal Income, 1957-60,” Survey of Current Business (May, 1961).

A few other sources may be added from time to time.

 

Source: Duke University, David M. Rubenstein Library. Economists’ Papers Archives. Papers of Evsey D. Domar, Box 15, Folder “Macroeconomics, Old Reading Lists”.

___________________

 MIDTERM EXAMINATION
(One hour and twenty minutes)

THEORY OF INCOME AND EMPLOYMENT
E. D. Domar ….. 14.451 ….. December 9, 1965

 

Please answer all questions. Use a separate book for each question.

  1. [25%] The economy consists of carrots, rabbits and dogs. Rabbits cultivate and eat carrots, while dogs breed and eat rabbits.
    You are asked to compute the national income and product for this economy from the point of view of:

(a) The rabbits
(b) The dogs

Explain your methods carefully and indicate the basic philosophy underlying them. [handwritten note:  Too easy]

  1. [25%] “Existing methods of national product computations exaggerate the rate of growth of real product over time in a given country, and overstate the ratio between the real product of highly developed and of underdeveloped countries.”
    Comment fully and critically. [handwritten note: explain better in class]
  2. [30%] Write a comprehensive essay on the subject of “Keynes and Patinkin on the Relation between the Quantity of Money on the one hand, and Interest Rate, Price Level and National Income on the other.”
  3. [20%] Discuss the treatment of intermediate products in several indexes of industrial productions. Give examples.

 

Source: Duke University, David M. Rubenstein Library. Economists’ Papers Archives. Papers of Evsey D. Domar, Box 15, Folder “Examinations (1 of 3)”.

___________________

FINAL EXAMINATION
Three Hours 

E. D. Domar ….. 14.451 ….. January 26, 1966

Please answer any FIVE questions out of six. Whenever you feel that the questions do not provide sufficient information for you to answer, add the necessary assumptions and state them clearly. Read each question through before answering any part of it.

  1. (a) “The best cure against inflation is a balanced budget.”
    (b) “The more each individual or corporation tries to save, the smaller will be the total savings for the economy as a whole.”

Comment on each statement separately.

  1. “The best cure against inflation is increased production.”

Comment fully. Assume that there are unemployed resources to allow for increased production. (Hint: production of what?)
In the light of your answer, do you think a prolonged strike in some industry is inflationary or deflationary? Explain your position.

  1. (a) Explain the several definitions of MONEY used in Price Flexibility and Employment discussions. In each case indicate the specific reasons for that particular definition.
    (b) For each definition of money given by you in (a), examine the effects on the stock of money of central bank purchases of (i) government securities, (ii) private securities, (iii) gold from the public.

Comment on your results.

  1. (a) Explain the meaning of PRODUCTIVITY from a private and from a social point of view.
    (b) In the light of your explanation given in (a), comment on the productivity of the following persons and on the treatment of their incomes in the national income and product accounts:

(i) A public relations employee of a private corporation

(ii) A public relations employee of the U.S. Department of Defense

(iii) A recipient of interest from the General Electric Company. (You happen to know that he has inherited his bonds from his great uncle who was a great swindler.)

(iv) A recipient of interest on U.S bonds issued in order to finance aid to schools.

(v) A lawyer defending a bookmaker in court

(vi) A nasty professor whose course was a complete waste of time.

Look over your answers and try to generalize (unless you have already said all you want to say in part (a)).

  1. Applying (a) such consumption theories as you know, and (b) your own common sense and empirical knowledge, discuss the effects on consumer spending of the following measures. Assume that the amounts of tax reduction in the first three cases and the amount of dividend in the fourth are all equal in a given year.

(i) A reduction in the Federal income tax (Specify the kind of reduction.)

(ii) A reduction in the Federal capital gains tax

(iii) A reduction in the Federal estate (inheritance) tax

(iv) A declaration of a national dividend (specify the kind) for a given year

(v) A redistribution of income from the rich to the poor

(vi) A redistribution of income from landlords to businessmen (in some underdeveloped country).

Any generalizations?

  1. (a) “Technological progress raises the level of income and employment by making existing assets obsolete and thus shortening their economic life.”

Comment on this statement. Assume that the economy has unemployed resources.

(b) Alvin Hansen used to argue that one reason for the stagnation of the American economy in the nineteen-thirties and for the high level of UNEMPLOYMENT then existing consisted in the slow growth of population at the time.

Do you agree? Comment fully. Should an underemployed economy encourage immigration or emigration, or neither?

 

Source: Duke University, David M. Rubenstein Library. Economists’ Papers Archives. Papers of Evsey D. Domar, Box 16, Folder “Macroeconomics, Final Exams”.

 

Image Source: Evsey D. Domar at the MIT Museum.

Categories
Exam Questions M.I.T. Suggested Reading Syllabus

M.I.T. Economic Growth and Fluctuations. Readings and Midterm Exam. Solow, 1966

 

The readings for the second term MIT graduate core course in macroeconomics “Economic Growth and Fluctuations” was taught by Robert Solow in 1966. The reading list and midterm questions transcribed for this posting come from his papers at the Duke Economists’ Papers Archive. Solow was indeed listed for this course in the internal report “Department of Economics, Teaching Responsibilities” dated March 4, 1966 in Box 3 of the Department of Economics Papers in the M.I.T. archives.

The first term course that academic year was taught by Evsey D. Domar. His 14-page reading list (!) together with the midterm and final examinations have been transcribed and posted as well.

________________________

Spring 1966

READING LIST          14.452

I. Economic Growth

  1. Stylized Facts

Kendrick and Sato, “Factor Prices, Productivity and Growth”, AER, December 1963.
Bureau of the Census, Long-Term Economic Trends (This is a compendium of data. Spend an hour or two leafing through it.)

  1. Aggregative Models

Hahn and Matthews, “The Theory of Economic Growth: A Survey”, Economic Journal, December 1964, Parts I, II, IV.
Modigliani, “Comment” in Behavior of Income Shares (NBER), pp. 39-50.
Tobin, “Money and Economic Growth”, Econometrica, October 1965.
Marty, “The Neoclassical Theorem”, AER, December 1964.
Diamond, “National Debt in a Neoclassical Growth Model”, AER, December 1965, pp. 1126-1135 only. Rest optional.
Findlay, “The Robinsonian Model…”, Economica, February 1963 and comments by Robinson and Findlay in Economica, November 1963.

  1. Sources of Potential Output

Nelson, “Aggregate Production Functions” AER, September 1964
Denison, Sources of Economic Growth in the U.S. (Don’t read every word, but try to grasp content.)
Abramovitz, “Review of Denison”, AER, September 1962.
Phelps, “The New View of Investment”, QJE, November 1962.
David and van de Kliendert, “Biased Efficiency Growth in the U.S.”, AER, June 1965.

II. Short-Run Macrodynamics

  1. Short-Run Movements in Productivity

Brechling: “The Relationship between Output and Employment…”, Review of Economic Studies, July 1965
Kuh, “Cyclical and Secular Labor Productivity…”, Review of Economics and Statistics, February 1965
Wilson and Eckstein, “Short-Run Productivity Behavior…”, Review of Economics and Statistics, February 1964.

  1. Measuring Potential Output and the Gap

Thurow & Taylor, “The Interaction between Actual and Potential Rates of Growth in the U.S. Economy”, Mimeo.
Kuh, “The Measurement of Potential Output”, mimeo.

  1. Cycles and Fluctuations

Samuelson, “Interaction between Multiplier Analysis and the Principle of Acceleration”, Review of Economics and Statistics, 1939, reprinted in AEA, Readings in Business Cycle Theory.
Metzler, “The Nature and Stability of Inventory Cycles”, Review of Economics and Statistics, 1941.
Kaldor, “A Model of the Trade Cycle”, EJ 1940, reprinted in Hansen and Clemence, Readings in Business Cycles and National Income.
DeLeeuw, “The Demand for Capital Goods by Manufacturers”, Econometrica, July 1962.
Eckstein, “Manufacturing Investment and Business Expectations”, Econometrica, April 1965.
Jorgenson, “Anticipations and Investment Behavior”, Ch. 2 in The Brookings Quarterly Econometric Model of the U.S., (optional).
Darling and Lovell, “Factors Influencing Investment in Inventories”, Ch. 4 in The Brookings Quarterly Econometric Model of the U.S.
Okun, Effects of the Tax Cut of 1964. To appear or else mimeo. [handwritten addition]

  1. Integration of Growth & Effective Demand [handwritten addition, no items listed]

________________________

First Examination     14.452           April 13, 1966

  1. Imagine a one-sector economy, satisfying all the standard simplifying assumptions, in a steady state with constant saving ratio, constant rate of population growth, and no technological change. Now let there be a sudden once-and-for-all shift in technology, with the property that output per man increases by 10% at each and every capital-per-man. There is no change in saving ratio or population growth.
    1. What happens along the full-employment path?
    2. In the new steady state, has capital per man increased by more or less than 10%? Has output per man increase by more or less than 10%?
    3. Describe roughly how the competitively imputed real wage, rate of interest, and relative distribution of income might differ between the new steady-state and the old. (You will not always be able to settle the direction of change.)
  2. In the same sort of economy, suppose that investment demand is such that businesses will quickly snap up all investment opportunities yielding at least some “target rate of return”, like 20%, but none yielding less. Discuss in terms of diagram or otherwise, whether the economy is likely to experience inadequate or excessive aggregate demand near the steady state. What effect would a sudden increase in the rate of population growth have (assuming that the saving ratio was not affected)?
  3. Denison has been described as a pessimist with respect to the possibility of raising the U.S. rate of growth through deliberate policy. Is that a fair description? If so, what are the main sources of his pessimism? What do you gather from Nelson, Abramovitz and Phelps on this subject?

 

Source: Duke University, David M. Rubenstein Library. Economists’ Papers Archives. Papers of Robert M. Solow, Box 67, Folder “Exams”.

Image Source: Robert M. Solow (undated). MIT Museum .

Categories
Cornell Harvard Suggested Reading

Harvard. Local taxation. Suggested topics and readings. Durand, 1902

 

This posting was prepared at the INET Festival for New Economic Thinking in Edinburgh (October 19-20, 2017). It turned out to be a nice case-study of preparing an artifact for Economics in the Rear-view Mirror. Edward Dana Durand was a Cornell Ph.D. in economics and statistics who was to go on to be a director of the U.S. Census. He taught at Harvard in 1902, between jobs. For this course I was only able to find the instructions for preparing a report on taxation with suggested reading.  Course description, enrollment figures as well as two short biographical pieces are included below.

A memorial piece by K. Pribram was published as “Edward Dana Durand (1871-1960)” in Revue de l’Institut International de Statistique / Review of the International Statistical Institute  Vol. 28, No. 1/2 (1960), pp. 118-120.

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EDWARD D. DURAND
THE NEW CENSUS DIRECTOR

The Outing Magazine, August 1909

WHEN your chief says it will take a “corking” good man to fill your place, it means he is paying you the best compliment possible. This is what Commissioner of Corporations Herbert Knox Smith said of his deputy, Edward Dana Durand, when the commissioner was told that President Taft had decided to place Mr. Durand at the head of the Census Bureau. In his office on the floor above Mr. Durand received the news with the pleasure of feeling that a part of his ambitions were about to be realized. He felt that he had at last been chosen to fill the most exacting office that could be assigned to a statistician.

Naturally Mr. Durand will encounter many difficulties in his new position, but it is expected that his confidence in himself will be of as great aid as it has been in the past. Different from Mr. North, his work is academic, Mr. Durand being possibly the best-trained statistician ever appointed to the position of Director of the Census Bureau.

While he has held various positions as a teacher, Mr. Durand has not gained the distinction in academic work that he has outside. Nevertheless his success in government service has been speedy and gratifying. His most significant work in the public eye has been his book on the finances of New York City, his work with the Industrial Commission, and with the Bureau of Corporations. While serving as secretary of the Industrial Commission he edited a very creditable report of nineteen volumes. This proved that while Mr. Durand is not a good writer he is a good organizer. As Deputy Commissioner of Corporations he gained experience with the report on the Beef Trust, for which report he was chiefly responsible. He set his standard as a statistician, however, in his report on the Standard Oil Trust, which was issued from the same bureau.

Mr. Durand was born in Romeo, Michigan, October 18, 1871, his father being Cyrus Y. Durand, a druggist. He is one of five children, all now living.

He lived for about eleven years at Romeo, when the family moved to Huron, South Dakota, then a very new town, and “took up a claim” of land near there. Mr. Durand finished his high-school education at Huron, and then went for one year to Yankton College. From there he went to Oberlin College, Ohio, and graduated there in 1893. During the summer of 1893 Mr. Durand was stenographer to the Secretary of the World’s Columbian Exposition at Chicago. He then went to Cornell University and took a post-graduate course in political science, economics, and statistics. During this time he was assistant to Prof. J. W. Jenks, Secretary of the American Economic Association. He received the degree of Doctor of Philosophy from Cornell, in 1896.

After leaving Cornell Mr. Durand was employed for nearly two years in the New York State Library, at Albany, his special duty being to prepare material for the assistance of members of the Legislature, including the publication of indices and digests of the laws passed annually by the various states of the country.

At the beginning of 1898 Mr. Durand was appointed Assistant Professor of Political Economy and Finance at Stanford University, California, where he remained for a year and a half. When the Industrial Commission, of which he was secretary, was disbanded, he lectured on corporation and labor questions for a year at Harvard University. In 1903 he was appointed an expert on street railways in the Census Bureau, where he held the position of special examiner for about four months before being called to the Bureau of Corporations.

He was married in 1903 to Mary Elizabeth Bennett, who had been a classmate of his at Oberlin College. They have two children, both boys.

When he finishes his work with the Census he may have his other ambition gratified of being called back to academic work, possibly as president of some college.

Mr. Durand becomes Director of the Census Bureau upon the eve of taking the Thirteenth Census of the United States. This is the government’s largest statistical job, and since our census is more elaborate and detailed than that of any foreign country, it can be recognized what the new officer has to encounter. Some idea of the immensity of the work can be gained by a study of the act of Congress authorizing the taking of the census.

While Mr. Durand is very affable in his manners there is nothing effusive about him. Of medium height and build, his forehead so high as to give the impression of being slightly bald, and wearing a small moustache, he is withal of striking appearance. During the last few days that he was Deputy Commissioner of Corporations he could be found busily engaged in putting the office in order for his successor. The days were warm and he worked without his coat, wearing most of the time a white shirt and a double-ply collar with a small black bow-tie.

Source: The Outing Magazine, Vol. 54, August 1909, pp. 563-564.

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 U. S. Census Bureau: History/Directors

Edward Dana Durand (1909-1913): Durand was born, in 1871, in Romeo, Michigan. When he was still a child, however, his parents moved to a homestead in South Dakota. Durand attended Yankton College for one year before transferring to Oberlin College. He received a Ph.D. from Cornell University in 1896. After receiving his doctorate, Durand moved between several government and academic positions until 1909, when he became deputy commissioner of corporations. Later that year, President Taft appointed him the new director of the census. He replaced Samuel North, who had left after repeated clashes with the secretary of commerce and labor, and took over the Census Bureau well into the planning process for the 1910 census.

Durand concentrated much of his energy on improving the preparation of census reports. He pioneered several lasting innovations in the presentation of data at the Census Bureau. For example, Durand introduced the publication of state-level reports and the early release in press releases of statistics for which there was the greatest demand (such as the total population of individual cities, states, and the United States population). These releases were be followed by bulletins, abstracts, and final reports with greater detail.

After leaving the Census Bureau in 1913, Durand eventually took a place on the U.S. Tariff Commission, where he served from 1935 until his retirement in 1952. He died in 1960.

Source:  From webpage of the U.S. Census Bureau. History, Directors 1909-21  .

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Course Description

[7b2 hf. The Theory and Methods of Taxation, with special reference to local taxation in the United States. Half-course (second half-year).]

Omitted in 1902-03. [sic]

In this course both the theory and practice of taxation will be studied. Attention will be given at the outset to the tax systems of England, France, and Germany; and the so-called direct taxes employed in those countries will receive special consideration. After this, the principles of taxation will be examined. This will lead to a study of the position of taxation in the system of economic science, and of such subjects as the classification, the just distribution, and the incidence of taxes. Finally, the existing methods of taxation in the United States will be studied, each tax being treated with reference to its proper place in a rational system of federal, state, and local revenues.

Written work will be required of all students, as well as a systematic course of prescribed reading. Candidates for Honors in Political Science and for the higher degrees will be given the opportunity of preparing theses in substitution for the required written work.

Course 7b is open to students who have taken Economics 1.

Source:   Harvard University, Faculty of Arts and Sciences. Division of History and Political Science comprising the Departments of History and Government and Economics, 1902-03 (University Publications, New Series, no. 55, June 13, 1902), pp. 49-50.

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Course Announcement

7b1 hf. The Theory and Methods of Taxation, with special reference to local taxation in the United States. Half-course (first half-year). Mon., Wed., Fri., at 12. Dr. Durand.

 

Source:   Harvard University, University Publications, new Series, No. 8 Extra Ed., Announcement of the Courses of Instruction provided by the Faculty of Arts and Sciences for the Academic Year, 1902-03 (1902), p. 44.

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Course Enrollment

7b 1hf. Dr. Durand.—The Theory and Methods of Taxation, with special reference to local taxation, in the United States.

Total: 21.   3 Graduates, 13 Seniors, 4 Juniors, 1 Other.

 

Source: Harvard University, Annual Report of the President of Harvard College, 1902-03, p. 68.

http://pds.lib.harvard.edu/pds/view/427018754?n=70&oldpds

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ECONOMICS 7b
REPORTS AND THESES, 1902

Each student is expected to prepare a brief, informal report on the system of State and local taxation in some particular State. The report should describe chiefly present methods, with considerable fullness, but need not enter into extensive criticism of the working of the system. The amount received by the State treasury from various sources should be stated wherever practicable. Reliance should be placed mainly on original documents. Among the States whose finances are most interesting and can be most easily and satisfactorily treated are: Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Ohio, Indiana, Michigan, Illinois, Wisconsin, Iowa, Maryland, North Carolina, Kansas, Mississippi, Georgia. Students will do well to write to the State comptroller or auditor for copies of tax laws and financial reports.

A more extensive and formal thesis will also be presented by each student. it should be primarily descriptive, but should involve some account of historical development, and careful criticism of the working of the system or method covered.        Exact references, by title, volume, and page, or by chapter and section, must be given for all facts cited, whether in reports or theses, and a bibliography of works consulted must be appended. Large diagrams should be prepared where statistics suitable for graphic presentation are found.

The following topics for theses are suggested, but others may be chosen if desired: —

SUGGESTED THESIS SUBJECTS

  1. The United States Internal Revenue System.
  2. History of the Tariff up to the Civil War.
  3. The Tariff during and since the War.
  4. Special War Taxes in the United States.
  5. The Federal Income Tax.
  6. Constitutionality of the Income Tax of 1894.
  7. The Tax System of Great Britain.
  8. The Tax System of Prussia.
  9. Taxation in the Australasian Colonies.
  10. Taxation in Massachusetts.
  11. Taxation in New York.
  12. Taxation in Pennsylvania—or some other selected State.
  13. Progressive Taxation in Practice.
  14. Excise Taxes in the United States and Europe.
  15. Stamp and Transaction Taxes.
  16. The Income Tax in the United States and Foreign Countries.
  17. Personal Property under the General Property Tax.
  18. Double Taxation under the General Property Tax.
  19. Theoretical Comparison of Property and Income Taxes.
  20. The Inheritance Tax.
  21. Taxation of Land Values.
  22. Business License Taxes.
  23. General Corporation Taxes.
  24. Taxation of Railroads.
  25. Taxation of Banks and insurance Companies.
  26. Legal Aspects of Corporation Taxes.
  27. Relation of State and Local Taxation.
  28. Special Assessments.
  29. Exemptions from Taxation in the United States.

CHIEF SOURCES FOR REPORTS ON STATE TAXATION

Poor, B. P.: Constitutions.

Clapperton, Geo.: Taxation in Various States and Canada. In Reports of the Industrial Commission. Vol. XI.

New York State Library: State Finance Statistics, 1890, 1895.

Census of 1890: Valuation and Taxation.

Ely, R. T.: Taxation in American States and Cities.

Seligman, E. R. A.: State Finance Statistics. In Publications of American Statistical Association, 1889.

Hollander, J. H., Ed.: Studies in State Taxation.

Chapman, J. W.: State Tax Commissions in the United States. In Johns Hopkins University Studies, 1897.

Reports of special State commissions and committees on taxation. The most important are the following, which are mostly in the library: Massachusetts, 1875, 1897; New York, 1871-72, 1894, 1900; Pennsylvania, 1889; Connecticut, 1887; Ohio, 1893; Maine, 1889; New Jersey, 1897; Illinois, 1885; Wisconsin, 1899-1901; Oregon, 1886.

Reports of State Bureaus of Labor Statistics in Illinois, 1894 and 1896; Missouri, 1896; Connecticut, 1896.

Compilations of tax laws of individual states, published separately, or in general compilations, known as Revised Statutes, General Laws, etc. Accessible in Law School.

Reports of State comptrollers or auditors, State treasurers, and State boards of assessment, equalization, etc. Few are in the Harvard Library, but many may be found in the Massachusetts State Library and the Boston Public Library, and others may be obtained by correspondence.

 

BIBLIOGRAPHY OF GENERAL WORKS

Many of the above references will be useful in preparing theses.

Wells, D. A.: Theory and Practice of Taxation.

Cossa, L.: Taxation, its Principles and Methods.

Cohn, G.: The Science of Finance (translation).

Leroy-Beaulieu, P.: Traité de la Science des Finances.

Wagner, A.: Finanzwissenschaft.

Palgrave, R. H. I.: Dictionary of Political Economy.

Conrad, J.: Handwörterbuch der Staatswissenschaften.

Say, L.: Dictionnaire des Finances.

Statesman’s Yearbook.

United Kingdom: Statistical Abstracts for Foreign Countries.

United States Treasury Reports.

Industrial Commission: Vol. XIX, Taxation: Vol. IX, Taxation of Transportation Companies; Vol. XI, Clapperton’s report.

Reports of the Special Commissioner of the Revenue, 1866-69.

Cooley, T. M.: Law of Taxation.

Howe, F. C.: Taxation under the Internal Revenue System.

Columbia College Studies in History, Economics, and Public Law; Various monographs on State systems and on special methods of taxation.

Seligman, E. R. A.: Essays in Taxation, Shifting and Incidence of Taxation, Progressive Taxation in Theory and Practice.

 

Source: Harvard University Archives. Syllabi, Course Outlines and Reading Lists in Economics, 1895-2003 (HUC 8522.2.1), Box 1, Folder “Economics, 1902-03”.

 

 

 

Categories
Harvard Suggested Reading Syllabus

Harvard. Undergraduate Honors Economic Theory Readings. Duesenberry and Kaysen, 1951-52

 

 

For some reason the annual Report of the President of Harvard College for 1951-52 does not include the staffing and enrollment figures for courses offered during the academic year. I have been using these annual reports to verify the actual staffing for courses because the course announcements are sometimes inaccurate, being by their nature listings published before the academic year gets going, but at least certainly before the second semester begins. Many times, though not always, there is an instructor’s name at the head of the course reading assignments that have been filed with the library for placing items on reading reserve. Thus for the undergraduate honors course “Economic Theory and Policy” (Economics 101), I am only certain that James Duesenberry taught the first semester (he is named in the Crimson article excerpt below, also in the course announcement, and finally on the first semester reading list itself). Carl Kaysen is mentioned in the course announcement for the second semester of the course, but there is no name on the second semester reading list nor can I verify without an ex post staffing report for the course. Let’s just say there is a strong presumption that Carl Kaysen indeed taught the second semester of Economics 101.

Note the second semester reading list ends with “to be continued” but, alas,  there is no further list to be found in the file.

___________________

Harvard Crimson Report

Three Steps to Economics

The Department’s courses have been organized on three levels, although Economics 1 is the only prerequisite for any course. Economics 1 is the first level course, a dull but thorough introduction to the field. A department committee is now at work considering revising the curriculum, and it is hoped that this basic course will be brighter next year.

There are four courses on the second level, each covering a division of the department. Theory and Policy (101) discusses current theories of production, exchange, and distribution. Professor Duesenberry will take over complete charge of this course next year. It is generally considered dull but important. Almost all of the students are honors candidates, and the course is graded accordingly….

Source: The Harvard Crimson, April 28, 1950.

___________________

Course Announcement

For Undergraduates and Graduates

The courses for Undergraduates and Graduates, unless otherwise stated, are open only to students who have passed in Economics 1.

Economics 101. Economic Theory and Policy

Full course. Mon., Wed., and (at the pleasure of the instructor) Fri., at 12.
Fall term: Assistant Professor Duesenberry; Spring term: Assistant Professor Kaysen.

Current theories of production, exchange, and the distribution of the national income, with some indications as to their relevance to contemporary economic problems. The course will be carried on mainly by discussion. It is intended primarily for candidates for the degree with honors and may be taken only with the consent of the instructor.

 

Source. Final Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1951-52. Official Register of Harvard University, Vol. XLVIII (September 10, 1951) No. 21, p. 76.

___________________

James S. Duesenberry

Economics 101a—Economic Theory
Fall term, 1951-52

I. The Problems of Economics

Samuelson: Economics. Chapter 1
Phelps-Brown: Framework of the Pricing System. Chapter 1
Council of Economic Advisers: Mid-year Report. July 1951

 

II. The Classical System

Ricardo: Principles of Political Economy and Taxation. Chapters 1, 2, 4, 5, 6, 21
Mill: Principles of Political Economy. Book I, Chapters 4, 5, 6, 10, 11, 12, 13
Book II, Chapters 11, 12, 13, 15, 16
Baumol: Economic Dynamics. Chapter 2

 

III. General Equilibrium Theory

Phelps-Brown: Framework of the Pricing System. Chapters 2-5
Marshall: Principles of Economics 8th edition. Books V and VI
Stigler: Theories of Production and Distribution. Chapters 4, 9

___________________

Economics 101, Spring Term 1951-52
Reading List

I. The Keynesian System

  1. Keynes, General Theory, Chs. 1-3, 8-11, 13, 15, 18
  2. J. R. Hicks, “Mr. Keynes and the Classics”, No. 24 in Blakiston, Readings in Business Cycle Theory.
  3. L. R. Klein, The Keynesian Revolution, Ch. 1-3.

 

II. Dynamics

  1. Keynesian Dynamics
    1. Keynes, General Theory, Ch. 22
    2. E. D. Domar, “Expansion and Employment,” American Economic Review, March 1947
    3. W. J. Fellner, Monetary Policy and Full Employment, Ch. 1, 2, 3
  2. Schumpeterian Dynamics
    1. Schumpeter, Business Cycles, Volume I, Ch. 3, 4, 6
  3. Marxian Dynamics
    1. Schumpeter, Capitalism, Socialism and Democracy, Ch. 1-4
    2. J. Robinson, Essay on Marxian Economics
  4. General Review
    1. W. J. Baumol, Economic Dynamics, Chs. 3, 4

[to be continued]

Source:   Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Fox 5, Folder “Economics, 1951-1952 (1 of 2)”.

Image Source: Duesenberry in Harvard Class Album 1951; Kaysen as 1955 John Simon Guggenheim Memorial Foundation Fellow

Categories
Bibliography Columbia Courses Economists Suggested Reading

Columbia. Friedman’s lecture notes to first Hotelling lecture in Mathematical Economics, 1933

 

 

On October 3, 2017, Antoine Missemer tweeted an image of an undated examination question by Harold Hotelling “Describe two mathematical contributions to economics published before 1910”. One should note that asking students to talk about work published at least a quarter century before the current academic year is not necessarily a deep dive into the history of economics, though of course Cournot, Bertrand and Edgeworth had achieved “historical” fame by 1933.

From Harold Hotelling’s course in Mathematical Economics taught in the first semester of 1933/34 at Columbia, Milton Friedman kept about forty-five 3 by 5 inch index cards worth of notes (both sides). From his first lecture, we can put together a convenient “short list” of Hotelling’s chosen greatest hits in mathematical economics. I have taken the liberty of expanding Friedman’s abbreviations, figuring the main purpose of transcribing archival material is to ease digital search down the road.

Earlier postings include a list of Hotelling’s courses and his class rolls at Columbia as well as an outline and exam for his course in mathematical economics offered at North Carolina (1946, 1950).

___________________________

Milton Friedman’s student notes to Harold Hotelling’s first lecture in Mathematical Economics (1933)

9/2/33 (1)

Hotelling, Harold on Mathematical Economics

Has been stated that methodological difference between economics + natural sciences is that in former cannot + in latter do experiments

Not entirely true: in econonomics may experiment, + in some physical sciences (e.g. astronomy, meteorology etc.) do not experiment.

Better dividing line to be found in number of relevant factors

 

Use of Mathematics in Economics:

A. Cournot 1838

J. Bertrand 1883 Journal des Savants (reviewed Cournot)

F. Y. Edgeworth 1881 Math. Psychics. Papers relating to Pol. Economy.

Pareto

Alfred Marshall Principles of Economics

(Edgeworth laid foundation of many theories more modern than Marshall

Using higher Mathematics in Economics

G. C. Evans

C. F. Roos

Zeuthen

Pareto in Encyclopedie des Science Math, Vol I, Tome IV part 4 (Tome I, Vol. IV)

[Yes, that is all that Friedman wrote down for that lecture]

Source: Hoover Institution Archives. Milton Friedman Papers, Box 120, Class note cards.

___________________________

Links to Works Referred to by Hotelling

Cournot, Augustin. Recherches sur les Principes Mathématiques de la Théorie des Richesses. Paris: Hachett, 1838.

Nathaniel T. Bacon translation: Researches into the Mathematical Principles of the Theory of Wealth with a bibliography of Mathematical economics by Irving Fisher. New York: Macmillan, 1897.

Bertrand, J. (Review of) Théorie Mathématique de la Richesse Sociale par Léon Walras: Recherches sur les Principes Mathématiques de la Théorie des Richesses par Augustin Cournot. Journal des Savants 67 (1883), 499-508.

Edgeworth, F. Y. Mathematical Psychics. An Essay on the Application of Mathematics to the Moral Sciences. C. Kegan Paul & Co., 1881.

Edgeworth, F. Y. Papers Relating to Political Economy.  Volume I;  Volume II; Volume III. London: Macmillan, 1925.

Pareto, Vilfredo. Économie mathématique, —in Encyclopédie des sciences mathématique, Tome I, vol. 4 (Fascicule 4, pp. 590-640), 1906 [?].

Marshall, Alfred. Principles of Economics (8th edition). London: Macmillan, 1920.

Griffith C. Evans. Mathematical Introduction to Economics. New York: McGraw-Hill Book Co., 1930.

Reviewed by Hotelling in Journal of Political Economy, 39, no. 1 (Feb 1931) pp. 107-09.

F. Zeuthen Problems of Monopoly and Economic Warfare. London: Routledge, 1930.

Reviewed by Corwin D. Edwards (New York University) in AER, 21, no. 4 (December, 1931), pp. 701-704.

Charles Frederick Roos. Dynamic Economics—Theoretical and Statistical Studies of Demand, Production and Prices. Monographs of the Cowles Commission for Research in Economics, No. 1. Bloomington, Indiana: Principia Press, 1934.

 

Image source: From a photo of the Institute of Statistics leadership around 1946: Gertrude Cox, Director, William Cochran, Associate Director-Raleigh and Harold Hotelling, Associate Director-Chapel Hill. North Carolina State University.

Categories
Berkeley Suggested Reading Syllabus

Berkeley. Graduate Macroeconomics. Syllabus, 1959

 

The following reading list from the University of California (Berkeley), Spring 1959, was found in the papers of Martin Bronfenbrenner who as far as I can determine was at Michigan State at the time. Perhaps someone who looks at the reading list (formatted more-or-less to look like the original mimeo) could identify which of the instructors listed for the course (Papandreou, Scitovsky, Caves, Minsky) might have assembled the reading list. The capitalization of book titles is not common. It is also interesting to note that income distribution, typically part of the second term of price theory elsewhere, is covered before turning to more familiar (today) macroeconomics territory.  Something else worth noting is the use of “macro-statics” and “macro-dynamics”. Comments welcome!

_________________________

Course Announcement

Graduate Courses

Admission to graduate courses requires, in all cases, the consent of the instructor. Undergraduate courses are not prerequisite to graduate courses, except where indicated.

 

200A-200B. Fundamentals of Economic Theory. (3-3) Yr.

            [Harvey Leibenstein, Ph.D., Associate Professor of Economics, in residence, fall semester only, 1958-59; Tibor Scitovsky, M.Sc., J.D., Professor of Economics; Philip W. Bell, Ph.D., Associate Professor of Economics, in residence, fall semester only, 1958-59; Richard E. Caves, Ph.D., Assistant Professor of Economics; Hyman P. Minsky, Ph.D., Assistant Professor of Economics.]

200A. Micro-economics: the behavior of firms and households, and the determination of prices and resource allocation patterns in a decentralized economy. Mr. Bell, Mr. Leibenstein, Mr. Scitovsky.

200B. Macro-economics: general interdependence and the behavior of aggregates in a decentralized economy. National income and employment determination. The impact of fiscal and monetary policies on employment, national income and its distribution. [Andreas G. Papandreou, Ph.D., Professor of Economics (Chairman of the Department)], Mr. Scitovsky, Mr. Caves, Mr. Minsky.

Source:   Bulletin of the University of California 1958-59. General Catalogue. Announcement of Courses, Departments at Berkeley. Fall and Spring Semesters, 1958-59. (July 10, 1958), pp. 109, 114.

_________________________

UNIVERSITY OF CALIFORNIA
Department of Economics
Spring, 1959

Reading List
Economics 200B

 

It is suggested that students purchase the following works:

J. M. Keynes, THE GENERAL THEORY OF EMPLOYMENT, INTEREST, AND MONEY
U. S. Department of Commerce, 1954 NATIONAL INCOME SUPPLEMENT to the survey of CURRENT BUSINESS.

I. The Pricing of Productive Services and the Distribution of Income

G. J. Stigler, THE THEORY OF PRICE, chaps. 10, 15
J. R. Hicks, THE THEORY OF WAGES, chaps. 1-4
E. Rolph, “The Discounted Marginal Productivity Doctrine,” in American Economic Association, READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 278-293
F. A. v. Hayek, “The Mythology of Capital,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 355-383
D. H. Buchanan, “The Historical Approach to Rent and Price Theory,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 599-637
F. H. Knight, “Profit,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp., pp. 533-546
B. F. Haley, “Value and Distribution,” SURVEY OF CONTEMPORARY ECONOMICS, Vol. I (ed. H. S. Ellis), pp. 26-48
N. Kaldor, “Alternative Theories of Distribution,” REVIEW OF ECONOMIC STUDIES, XXIII (1955-56), pp. 83-100
M. Kalecki, “The Distribution of the National Income,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 197-217

II. Macro-statics: National Income and Aggregate Demand

U. S. Department of Commerce, 1954 NATIONAL INCOME SUPPLEMENT
O. Lange, “Say’s Law: A Restatement and Criticism,” STUDIES IN MATHEMATICAL ECONOMICS AND ECONOMETRICS (ed. O. Lange, F. McIntyre, and T. O. Yntema), pp. 49-68

III. Consumer Behavior, the Consumption Function and Income Levels

J. S. Duesenberry, “Income-Consumption Relations and Their Implications,” in INCOME, EMPLOYMENT AND PUBLIC POLICY, ESSAYS IN HONOR OF ALVIN H. HANSEN, pp. 54-81.
J. Tobin, “Relative Income, Absolute Income, and Saving,” MONEY, TRADE, AND ECONOMIC GROWTH, ESSAYS IN HONOR OF J. H. WILLIAMS, pp. 135-156
M. Friedman, A THEORY OF THE CONSUMPTION FUNCTION, chaps. 2, 3
P. A. Samuelson, “The Simple Mathematics of Income Determination,” INCOME, EMPLOYMENT AND PUBLIC POLICY, pp. 133-155

IV. Business Behavior, the Level of Investment and the Rate of Interest

T. Scitovsky, WELFARE AND COMPETITION, pp. 216-226
J. Meyer and E. Kuh, “Acceleration and Related Theories of Investment,” REVIEW OF ECONOMICS AND STATISTICS, XXXVII, (August, 1955), pp. 217-230
A. P. Lerner, “On the Marginal Product of Capital and the Marginal Efficiency of Investment,” JOURNAL OF POLITICAL ECONOMY, LXI (February, 1953), pp. 1-15
J. R. Hicks, VALUE AND CAPITAL, chaps. 11-13
N. Kaldor, “Speculation and Economic Stability,” REVIEW OF ECONOMIC STUDIES, VII (October, 1939), pp. 1-27
J. Tobin, “Liquidity Preference and Monetary Theory,” REVIEW OF ECONOMICS AND STATISTICS, XXIX (May, 1947), pp. 124-130

V. Macro-static Models

P. Lerner, THE ECONOMICS OF CONTROL, chaps. 21-25
L. R. Klein, “Theories of Effective Demand and Employment,” JOURNAL OF POLITICAL ECONOMY, LV (April, 1957), pp. 108-131
J. R. Hicks, “Mr. Keynes and the ‘Classics’; A Suggested Interpretation,” READINGS IN THE THEORY OF INCOME DISTRIBUTION, pp. 461-476
F. Modigliani, “Liquidity Preference and the Theory of Interest and Money,” READINGS IN MONETARY THEORY, pp. 186-240
D. Patinkin, “Price Flexibility and Full Employment,” READINGS IN MONETARY THEORY, pp. 252-283

VI. Macro-dynamics and Economic Growth

E. D. Domar, “Expansion and Employment,” AMERICAN ECONOMIC REVIEW, XXXVII (March, 1947), pp. 34-55
R. Solow, “A Contribution to the Theory of Growth,” QUARTERLY JOURNAL OF ECONOMICS, LXX (February, 1956), pp. 65-93

VII. Inflation

A. C. L. Day, AN OUTLINE OF MONETARY ECONOMICS, CHAPS. 19-31

Source: Duke University, Rubenstein Library. Economists’ Papers Archive. Martin Bronfenbrenner Papers, 1939-1995. Box 26, Folder “Micro-econ + Distribution, 2 of 2, 1958-67, n.d.”.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Galbraith’s Business Organization and Control. Syllabus and Exams. 1949-50

 

 

Materials for the undergraduate course “Business Organization and Control” taught by Sidney Alexander in 1948-49 has been transcribed and posted earlier. The course was taught the following year by John Kenneth Galbraith and others. Below you will find enrollment data followed by transcriptions of  the syllabi for both semesters along with the mid-year and final examinations for the course.

_______________________

 Course Enrollment

[Economics] 161 (formerly Economics 61a and 62b). Business Organization and Control. (Full Co.) Dr. Galbraith

(F) Total 179: 2 Graduates, 61 Seniors, 75 Juniors, 32 Sophomores, 1 Freshman, 8 Radcliffe.
(Sp) Total 160:  2 Graduates, 56 Seniors, 70 Juniors, 24 Sophomores,  7 Radcliffe, 1 Other.

Source: Harvard University. Report of the President of Harvard College and Reports of the Departments for 1949-59, p. 73.

_______________________

[Fall Term, 1949-50]

Economics 161
Business Organization and Control
Dr. Galbraith

Date

 Topic Lecturer

Reading
Sept. 28 Preview Galbraith Bain, Ch. 1,2 (omitting pp. 26-41), 4, 5, 6, 8.

TNEC No. 21, pp. 20-48, 113-121.
Sept. 30 Applied Theory of Markets Galbraith
Oct. 3

“

 Galbraith
Oct. 5

“

 Galbraith
Oct. 7 Section
Oct. 10 Section
Oct. 12 HOLIDAY
Oct. 14 Forms of Business Enterprise Gordon Guthmann & Dougall, Chapter 2
Oct. 17 24 The Corporation: Origin and Legal Characteristics Gordon Buchanan, Ch. 3; Berle & Means, Book II, Ch. 1; Dewing, Book I, Ch. 1-2.
Oct. 19 26

“

 Gordon
Oct. 21 28 Section
Oct. 24 31 Concentration & Market Organization: The Role and peration of the Large Corporation Galbraith Gordon, Chapters 2, 4, 5.
Berle and Means, Book I, Ch. 1;
Book IV, Chapters 1-4.
Oct. 26
Nov. 2

“

 Galbraith
Oct. 28
Nov. 4		 Section
Oct. 31
Nov. 7		 Concentration & Market Organization: Holding companies and interest groups Galbraith Purdy, Chapter 7. Structure of the American Economy, Part I, Appendix 13
Nov. 2
Nov. 9		 Concentration & Market Organization: Trade Associations Gordon TNEC No. 18, pp. 45-67
TNEC No. 21, pp. 234-258
Nov. 4

Nov. 11

 Section

 

Bain, Joe S., Pricing, Distribution, and Employment, 1948.

U.S., Temporary National Economic Committee Monographs:

No. 18, Trade Association Survey;
No. 21, Competition & Monopoly in American Industry.

Guthmann, H. G., & Dougall, H. E., Corporate Financial Policy, 1948.

Buchanan, N. S., The Economics of Corporate Enterprise.

Berle, A. A., & Means, G. C., The Modern Corporation and Private Property, 1932.

Dewing, A. S., Financial Policy of Corporations, 1941, 2-volume edition.

Gordon, R. A., Business Leadership in the Large Corporation, 1945.

Purdy, H. L., Lindahl, M.L., and Carter, W. A., Corporate Concentration & Public Policy, 1942.

U.S., National Resources Committee, Structure of the American Economy, Part I, “Basic Characteristics.

_______________________

[Fall Term (cont.), 1949-50]

Economics 161
Business Organization and Control
Messrs. Galbraith and Gordon

Topic

 Lecturer

Reading
November 14 Price Leadership and Market Sharing Gordon Burns, Ch. III (ex. pp. 118-140), and Ch. IV.
November 16 Patents and Trademarks Gordon T.N.E.C. Monograph No. 21, pp. 158-165; Edwards, pp. 216-248.
November 18 Section
November 21 Advertising Galbraith Burns, Ch. VIII
November 23 Price Discrimination Gordon Boulding, pp. 533-43
November 25 Section
November 28 Basing Point System—Exposition Galbraith Machlup, Ch. 1 (ex. Appendix) and Ch. 3;

Kaysen, “Basing Point Pricing and Public Policy”
November 30 Basing Point System—Consequences Kaysen
December 2 Section
December 5 Economic Norms of Public Policy Duesenberry Hansen, Fiscal Policy and Business Cycles, Ch. XV
December 7

“

 Duesenberry
December 9 Section Galbraith, Essay on Monopoly and Concentration of Economic Power in Ellis, Review of Contemporary Economics
December 12 Economic Norms of Public Policy Duesenberry
December 14 Promoting Competition: The Anti Trust Laws Gordon Purdy et al., Chs. 16, 17, 18 (omitting pp. 354-360), 20 (omitting pp. 393-401), 28;

Adelman, “Effective Competition and the Anti Trust Laws”;
Mason, “The Current Status of the Monopoly Problem in the United States
December 16 Section
December 19 Promoting Competition: The Anti Trust laws
December 22

“

 

Adelman, M. A., “Effective Competition and the Anti Trust Laws,” M.I.T., Publications in the Social Sciences, Series No. 1, Reprint from Harvard Law Review, Sept. 1948.

Boulding, Kenneth, Economic Analysis, Revised Edition.

Burns, A. F., The Decline of Competition, 1936.

Edwards, Corwin, Maintaining Competition, 1949.

Kaysen, Carl, “Basing Point Pricing and Public Policy,” Q.J.E., August, 1949, pp. 289-314.

Machlup, Fritz, The Basing Point System, 1949.

Mason, Edward S., “The Current Status of the Monopoly Problem in the U.S.,” Harvard Law Review, June, 1949, pp. 1265-1285.

Purdy, H. L., Lindahl, M. L., and Carter, W. A., Corporate Concentration & Public Policy, 1942.

U.S., T.N.E.C. Monograph No. 21, Competition and Monopoly in American Industry, 1940.

Hansen, Alvin, Fiscal Policy and Business Cycles, 1941, First Edition.

Ellis, Howard, Review of Contemporary Economics, 1948.

_______________________

Final Examination, Fall Term 1949-50

1949-50
HARVARD UNIVERSITY
ECONOMICS 161

I.
(one hour)

Required

  1. A book published a couple of years ago entitled The American Individual Enterprise System, has the following to say about “the meaning of competition”;

“How a seller chooses to exercise his freedom, as long as he is independent, does not furnish a test of competition. The only true test, and the basic distinguishing feature of competition, is whether there are at least two suppliers of a market who make independent decisions on the prices and conditions at which they will offer their goods and services.”

Using the word “competition” in this sense, the book’s authors stat that “competition serves the public in the following ways”:

“It tends to assure that goods and services will be produced and distributed at the lowest possible cost.
“It tends to assure that profits will be held to the minimum.
“It tends to assure that the energy and raw materials and productive capacity of the nation will be used for providing those goods and services which the public wants, and in proportion to the relative demands of the public.
“It assures freedom of opportunity. Anyone at any time, if he has the necessary capital, can enter any line of business he desires.”

Questions:

(a) Do you concur in this definition of competition? Why or why not?

(b) Would an economic system which is “competitive” in the sense of the above quotation necessarily produce the results which the authors mention? Consider in turn each of the “results” mentioned above. Be specific, and make certain that you explain each step in your reasoning.

 

II.
(Seventy-five minutes)

Answer any three of the five.

  1. Give a concise, clear explanation of the mechanics of a multiple-basing point pricing using graphs if you wish.
  2. Under what circumstances and why are business firms likely to prefer non-price to price competition? Define your terms precisely.
  3. In what ways may it be argued that the American patent system is a stimulus and in what ways a deterrent, to invention and to realized technical progress in American industry?
  4. What is price discrimination? Outline a set of conditions under which discriminatory pricing operates to the advantage of buyers.
  5. State definitely but concisely the way in which each of the following cases affected the development of antitrust law.

C. Knight Case
Standard Oil Case
U. S. Steel Case
Aluminum Case

III.
(Forty-five minutes)

Required.

  1. Schumpeter and Clark appear to agree in advocating (or condoning) certain restraints on competition. Develop fully and discuss the lines of argument by which they arrive at their respective conclusions.

 

Mid-Year. January 1950.

_______________________

[Spring Term, 1949-50]

Economics 161
Business Organization and Control
Professor Galbraith and Mr. Gordon

Subject

 Lecturer

Reading
Feb. 8 Promoting Competition: Cartel Policy Gordon Mason, Controlling World Trade, Ch. 1, 2.
Feb. 10 Promoting Competition: The Recent Antitrust Cases Gordon Oppenheim, Cases on Federal Antitrust Laws, Ch. 5.
Nicholls, “The Tobacco Case of 1946,” American Economic Review, May 1949, pp. 284-96.
Feb. 13 Regulating Competition: Retail Trade and Regulation Galbraith TNEC Monograph 35, pp. 5-14, 145-160.
Adelman, “The A & P Case,” Quarterly Journal of Economics, May 1949.
Feb. 15 Regulating Competition: Retail Trade and Regulation Galbraith
Feb. 17 Section
Feb. 20 Limiting Competition: Agriculture Galbraith Black, Parity, Parity, Parity, Ch. 5, 20, 21.
Schultz, Production and Welfare of Agriculture, Ch. 4, 5, 8, 9, 12, 13, 15.
Feb. 22 HOLIDAY
Feb. 24 Limiting Competition: Agriculture Galbraith
Feb. 27 Limiting Competition: Agriculture Galbraith
Mar. 1 Regulated Monopoly: The Public Utility Concept Gordon Lyon, Abramson et al, Government and Economic Life, Vol. II, Ch. 21.
Mar. 3 Section
Mar. 6 Regulated Monopoly: Power and Transport Gordon
Mar. 8 Regulated Monopoly: Power and Transport Gordon Locklin, Economics of Transportation, Ch. VIII, XV, XVI.
Mar. 10 Section
Mar. 13 Regulated Monopoly: Power and Transport Gordon
Mar. 15 Corporate Financial Structure Gordon Dewing, Financial Policy of Corporations, Bk. I, Ch. 4 to p. 83, Ch. 7, 8, 9 to p. 218, and pp. 230-42; Bk. III, Ch. 1, 2.
Merrill, Lynch, How to Read a Financial Report (entire pamphlet)
Mar. 17 Section
Mar. 20 Corporate Financial Structure Gordon
Mar. 22 Corporate Financial Structure Gordon
Mar. 24 Section
Mar. 27 Regulation of Securities and Markets Gordon Stein, Government and the Investor, Ch. 2, 3, 4, 6.
Mar. 29 Regulation of Securities and Markets Gordon
Mar. 31 Section
Recess from April 2 through 9
Apr. 10 Conservation: Forest Products Nixon Jensen, Lumber and Labor, Ch. 1,2.
Apr. 12 Conservation: Oil and Gas Manne Rostow, A National Policy for the Oil Industry, Ch. 1-9, 13-15.
Apr. 14 Section
Apr. 17 Conservation: Oil and Gas Manne
Apr. 19 HOLIDAY
Apr. 21 Public Development: Housing Galbraith Fortune Magazine: The Industry Capitalism Forgot, August 1947, & Editorial, September 1947.

TNEC Monograph #8, Towards More Housing, Ch. IV, V, IX.
Apr. 24 Public Development: Housing Galbraith
Apr. 26 Economic Mobilization Galbraith Galbraith, “The Disequilibrium System,” American Economic Review, 1947.

Johnson, G. G., Economic Stabilization Program.
Apr. 28 Section
May 1 Economic Mobilization Galbraith
May 3 Reconciliation of Policy Galbraith
May 5 Summary Galbraith
Reading Period begins May 8

 

Mason, Edward S., Controlling World Trade, 1946.

Oppenehim, S. C., Cases on Federal Antitrust Laws.

Nicholls, W. H., “The Tobacco Case of 1946” in American Economic Review, May 1949, pp. 284-96.

Lyon, Abramson, et al, Government and Economic Life 1940.

Dewing, Arthur S., Financial Policy of Corporations, 1941, 2-volume edition.

Merrill, Lynch, Pierce, Fenner, and Beane, How to Read a Financial Report (pamphlet).

Stein, Emanuel, Government and the Investor.

Locklin, D. Philip, Economics of Transportation, 1947.

TNEC Monograph #8, Toward More Housing.

TNEC Monograph #35, Large-Scale Organization in the Food Industries.

Adelman, M. A., “The A & P Case. A Study in Applied Economic Theory,” Quarterly Journal of Economics, Vol. LXIII, No. 2, May 1949.

Schultz, T. W., Production and Welfare of Agriculture, 1949.

Black, J. D., Parity, Parity, Parity, 1942.

Jensen, Vernon, Lumber and Labor.

Rostow, Eugene V., A National Policy for the Oil Industry, 1947.

Galbraith, J. K., “The Disequilibrium System,” American Economic Review, Vol. XXXVII, #3, June 1947.

Fortune Magazine, “The Industry Capitalism Forgot,” August 1947, “Editorial,” September 1947.

Johnson, G. G., Suggestions for the Development of an Economic Stabilization Program for a War Emergency, National Security Resources Board, Document 47.

_______________________

Economics 161
[Midterm] Examination
April, 1950

  1. Retailing and agriculture are both industries composed of many small firms. What are the similarities in government policy toward these industries? What are the important differences?
  2. What were the principal provisions of the Securities Exchange Act of 1934? Discuss briefly in light of the abuses they were designed to remedy.

_______________________

Spring Term, Final Examination

1949-50
HARVARD UNIVERSITY
ECONOMICS 161

I.
(Forty-five minutes)

Required

  1. The special appeals court, which heard the Alcoa case in 1945, said that Congress, in passing the federal antitrust laws, “was not necessarily actuated by economic motives alone.” “It is possible,” the court said, “because of its indirect social or moral effect, to prefer a system of small producers, each dependent for his success upon his own skill and character, to one in which the great mass of those engaged must accept the direction of a few.”

Does this point of view seem to you to provide a persuasive argument for the fair trade laws, Robinson-Patman Act and the position of the government in the A & P cases? Explain.

II.
(Ninety minutes)

Answer three out of four.

  1. Explain the importance of the following in relation to public regulation of the petroleum industry:
    1. The rule of capture.
    2. The Connally “Hot Oil” Act.
    3. The Interstate Compact.
    4. Marginal well Acts.
    5. Compulsory unit operation.
  2. What are the Acts of Congress administered by the Securities and Exchange Commission? Outline the principal provisions of any three of them and the ends they were designed to achieve.
  3. Under what circumstances do you believe a certificate of convenience and necessity should be required for entry into a business? What industries would you add (or delete) from a list where such certificates are required and why?
  4. “The pricing system is not an appropriate means for stabilizing income from farming over time. To place this burden on the pricing system, as has been done in recent years can only reduce greatly its capacity [for allocating resources between alternative employments in agriculture and between agricultural and non-agricultural enterprise].”

What is the general character of the legislation “of recent years” to which Professor Schultz refers? Do you agree that it has inhibited resource allocation? Does the same objection hold for the Brannan Plan?

III.
(Forty-five minutes)

Required.

  1. Before signing or vetoing important legislation, the President customarily requests the Bureau of the Budget—or occasionally some other Executive department or agency—to prepare a confidential memorandum setting forth the main features of the proposed legislation, the principal groups favoring and opposing it together with their arguments and motives, a careful statement of the economic consequences of the legislation; and the recommendation to the President, properly defended, as to whether he should accept or veto the legislation.
    Would you prepare such a memorandum on the amendments to the Natural Gas Act of 1938 (the Kerr Bill), as passed by the Eighty-first Congress and keeping in mind the following:

    1. That you are asked to pass only on the economic questions posed by the legislation. You are at liberty to ignore any purely legal issues that may have been involved.
    2. That your concern is solely with the public welfare. You may ignore any political problems which the legislation poses for the President or his party.
    3. That the President is a busy man and should not be burdened with an unnecessarily long-winded discourse.

(The quality of your memorandum and its economic analysis and argument, not the particular recommendation you make, will be the guiding factor in marking your paper.)

 

Final. May 1950.

 

Source: John F. Kennedy Presidential Library, Papers of John Kenneth Galbraith. Box 519, Folder “Economics 161, 1949-50.”

Image: John Kenneth Galbraith in Harvard Class Album 1952.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Graduate Money and Banking, Reading List, Final Exam. Williams and Goodwin, 1947

 

Today’s post is the second of three devoted to the year long graduate sequence “Principles of Money and Banking” taught by Alvin H. Hansen, John H. Williams, and Richard M. Goodwin (second semester) at Harvard in 1946-47.

The reading list for Econ 141b is transcribed below, along with the corresponding final examination questions. The previous post provided  transcriptions for the first semester’s list of readings and final examination (Econ 141a) and course enrollments in each semester. The next post will have the “General Reference Reading” list for both semesters.

____________________________

SECOND SEMESTER
ECONOMICS 141b: PRINCIPLES OF MONEY AND BANKING

III. International Monetary Equilibrium:

  1. Cassel, G., The Downfall of the Gold Standard (1936).
  2. Copland, Douglas, Australia in the World Crisis (1934).
  3. Ellis, H. S., Exchange Control in Central Europe (1941).
  4. Graham and Whittlesey, Golden Avalanche (1939).
  5. Hall, M. F., The Exchange Equalization Account (1935).
  6. Hahn, George, International Monetary Cooperation (1945).
  7. Hansen, Alvin, H., America’s Role in the World Economy (1945).
  8. Hardy, C. O., Is There Enough Gold (1936).
  9. Harris, S. E., Exchange Depreciation (1936).
  10. Harris, S.E., Economic Problems of Latin America (1944).
  11. Iverson, Carl, International Capital Movements (1936).
  12. Kindelberger, C. P., International Short-term Capital Movements (1937).
  13. League of Nations: Final Report on Gold (1932).
  14. League of Nations: Economic Fluctuations in the United States and the United Kingdom, 1918-22 (1942).
  15. Nurkse, R., International Currency Experience (1944).
  16. Warren and Pearson: (a) Gold and Prices (1935);
    (b) World Prices and the Building Industry (1937).
  17. Williams, John H., Postwar Monetary Plans (Second Edition, 1945)

IV. Monetary and Fiscal Policy:

  1. Beveridge, Sir William, Full Employment in a Free Society (1945).
  2. British White Paper on “Employment Policy” (1944).
  3. de Chazeau, Hart, and Others, Jobs and Markets (1946).
  4. Economics of Full Employment. Six Oxford Economists (1945).
  5. Fellner, W., Monetary Policies and Full Employment (1946).
  6. Financing American Prosperity, Twentieth Century Fund (1945).
  7. Groves, H. M.: (a) Production, Jobs and Taxes (1944).
    (b) Postwar Taxation and Economic Progress (1946).
  8. Hansen, Alvin, H., Economic Policy and Full Employment (1946).
  9. Harris, S. E., Postwar Economic Problems (1943).
  10. Harris, S. E., Economic Reconstruction (1945).
  11. Hayes, H. Gordon, Spending, Saving and Employment (1945).
  12. League of Nations: Anti-Depression Policy (1945).
  13. Langum, John K., Postwar Banking Problems (1946).
  14. Postwar Economic Studies No. 3, Public Finance and Full Employment (1945).
  15. Postwar Economic Studies No. 8, Federal Reserve Policy (1946).
  16. Ruml and Sonne, Fiscal and Monetary Policy (1944).
  17. Terborgh, George, The Bogey of Economic Maturity (1945).
  18. Williams, John H. Postwar Monetary Plans (Second Edition, 1945), Chapters 4, 5.

 

Source: Harvard University Archives. Alvin Harvey Hansen Papers. Box 1 of Lecture Notes and Other Course Material, Folder “Econs 141”. Also found in Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1) Box 4, Folder “Economics, 1946-47 (2 of 2)”.

____________________________

1946-47
HARVARD UNIVERSITY
ECONOMICS 141b

PRINCIPLES OF MONEY AND BANKING

(Three hours)

Discuss one question in each part.

I

  1. Your own appraisal of Keynes’ “General Theory.”
  2. The consumption function as a guide to monetary and fiscal policy.

 

II

  1. The treatment of the interest rate in modern monetary theory.
  2. Hayek’s criticism of the Foster and Catchings thesis.
  3. Hawtrey’s theory of the business cycle.

 

III

  1. The problem of international monetary and trade adjustment in the postwar world.
  2. One of the following:

(a) The International Monetary Fund;
(b) The International Bank for Reconstruction and development;
(c) The ITO Charter.

  1. Keynes’ paper on the “Balance of Payments of the United States,” Economic Journal, June, 1946.

 

Final. May, 1947.

 

Source: Harvard University Archives. Harvard University Final Examinations 1853-2001. Box 14. Papers Printed for Final Examinations: History, History of Religions…, Economics, … , Military Science, Naval Science, May, 1947.

Image Source: John H. Williams in Harvard Class Album, 1950.

 

Categories
Exam Questions Suggested Reading Syllabus

Harvard. Money and Banking graduate course, readings and exam. Hansen, 1946-47

 

 

Today’s post is the first of three devoted to the year long graduate sequence “Principles of Money and Banking” taught by Alvin H. Hansen, John H. Williams, and Richard M. Goodwin (second semester) at Harvard in 1946-47.

The reading list for Econ 141a is transcribed below, along with the corresponding final examination questions as well as enrollment numbers for both semesters.

Following posts will provide transcriptions for the following semester’s list of readings and final examination (Econ 141b) plus the “General Reference Reading” list for both semesters.

____________________________

Course Enrollment

[Economics] 141a. (fall term) Professors J. H. Williams and Hansen.—Principles of Money and Banking.

Total 130: 88 Graduates, 1 Senior, 26 Public Administration, 15 Radcliffe.

 

[Economics] 141b. (spring term) Professors J. H. Williams and Hansen and Assistant Professor Goodwin.—Principles of Money and Banking.

Total 113: 75 Graduates, 23 Public Administration, 15 Radcliffe.

 

Source: Harvard University. Report of the President of Harvard College and Reports of Departments for 1946-1947, p. 71.

____________________________

ECONOMICS 141
PRINCIPLES OF MONEY AND BANKING

 

Economics 141a — First Semester, 1946-47 (Professor Hansen)

  1. Central Banking: Current Problems and Policies
  2. Theory of Money, Liquidity-Preference, Interest and Prices

Economics 141b — Second Semester, 1946-47 (Professor Williams)

III. International Monetary Equilibrium

  1. Monetary and Fiscal Policy

 

 

READING LIST FOR ECONOMICS 141a
Principles of Money and Banking
1946-1947

Note: Pre-requisite reading (for those who are deficient in undergraduate preparation in Money and Banking:

  1. Banking Studies, Board of Governors, Federal Reserve System, (1941).
  2. Southard, F. A., Foreign Exchange Practice and Policy, (McGraw-Hill, 1940).
  3. Any one standard textbook in Money and Banking, such as: Thomas, Our Modern Banking and Monetary System, (Prentice-Hall, 1942); or Reed, Money, Currency and Banking, (McGraw-Hill, 1942).

 

I. Central Banking: Current Problems and Policies.

A. Minimum Reading List:

I. Books and Pamphlets:

  1. International Currency Experience (League of nations, 1944), Chapters I-IV, pp. 7-112.
  2. World Economic Survey, 1942-44 (League of Nations, 1945), Chapter IV “Finance and Banking” (pp. 173-213).
  3. Money and Banking: 1942-44 (League of Nations, 1945).
  4. Ellis, H. S., (in Harris: Economic Reconstruction, McGraw-Hill, 1945), Chapter 13, “Central and Commercial Banking in Postwar Finance” (pp. 237-252).
  5. Hansen, Alvin H., America’s Role in the World Economy (Norton, 1945), Chapter XVII, “Gold, Exports and Liquidity” (pp. 144-157).
  6. Harris, S. E., Inflation and the American Economy (McGraw-Hill, 1945), Chapter XXIV, “Money and Savings” (pp. 372-383).
  7. Hawtrey, R. G., The Art of Central Banking (Longmans, 1933) pp. 116-207.
  8. Keynes, J. M., Treatise on Money, Volume II, Chapters 25, 32, 33.
  9. Robertson, D. H., Essays in Monetary Theory (King, 1940), Chapter II, “Theories of Banking Policy” (pp. 39-59); Chapter XII, “British Monetary Policy” (pp. 154-167).
  10. Williams, John H., Postwar Monetary Plans (Knopf, second edition, 1945), Chapter 6, “The Banking Act of 1935” (pp. 112-129); Chapter 8, “The Crisis of the Gold Standard” (pp. 154-172); Chapter 9, “Monetary Stability and the Gold Standard” (pp. 172-190).
  11. Financing American Prosperity (Twentieth Century Fund, 1945):
    1. Ellis, H. S., “Monetary Controls and the Business of Banking” (pp. 140-153).
    2. Hansen, Alvin, H., “Management of the Debt and Internal Stability” (pp. 246-256).
    3. Williams, John H., “Money and Banking” (pp. 381-5).
  12. Postwar Economic Studies, No. 3 (Board of Governors, Federal Reserve System, 1945):
    1. Robinson, R. I., “Monetary Aspects of National Debt Policy” (pp. 69-83).
    2. Wallich, H. C., “Public Debt and Income Flow” (pp. 84-100).
    3. Hansen, Alvin H., “Comments” (pp. 131-5).

II. Reports and Articles:

  1. Annual Report of the Secretary of the Treasury on the State of the Finances:
    1. Fiscal year ended June 30, 1944 (pp. 1-10).
    2. Fiscal year ended June 30, 1945 (pp. 1-10).
  2. Federal Reserve Bulletins:
    1. May 1946 (pp. 461-8), “Treasury Financing and Banking Developments.”
    2. July 1946 (pp. 707-15), “Postwar Business Finance”.
    3. February 1946 (pp. 122-3), “Estimated Liquid Assets of Individuals and Business”.
  3. Bopp, K. R., “Central Banking at the Crossroads”, Supplement, American Economic Review, March 1944 (pp. 260-77).
  4. Hansen, Alvin H., “Inflation”, Yale Review, Summer 1946.
  5. Macmillan Report, Royal Commission on Industry and Commerce, Cmd. 3897 (1931), pp. 2-45; 106-160.
  6. Samuelson, Paul, “The Effect of Interest Rate Increases on the Banking System”, American Economic Review, March 1945.
  7. Seligman, H. L., “The Problem of Excessive Commercial Bank Earnings”, Quarterly Journal of Economics, May 1946.
  8. Whittlesey, C. R., “Federal Reserve Policy in Transition”, Quarterly Journal of Economics, May 1946.

B. Supplementary Reading List:

I. Books

  1. Arndt, H. W., The Economic Lessons of the Nineteen Thirties, (Oxford, 1944).
  2. Coulborn, W, A. L., An Introduction to Money, (Longmans, 1938) Chapters 5, 13-14 (pp. 48-64, 209-241).
  3. Fisher, Irving, 100 Per Cent Money, (Adelphi, 1935; Third Edition City Printing Co., New Haven, 1945).
  4. Johnson, G. G., The Treasury and Monetary Policy, (Harvard 1939), Chapter I-V (pp. 3-160).
  5. Hawtrey, R. G., The Gold Standard in Theory and Practice (Longmans, Fourth Edition, 1939).
  6. Hawtrey, R. G., A Century of Bank Rate. (Longmans, 1938).
  7. Lewinski, J., Money, Credit and Prices, (King, 1929) Chapters IV-V (pp. 99-144).
  8. McCracken, Paul W., The Future of Northwest Bank Deposits, Federal Reserve Bank, Minneapolis, 1946.
  9. Mints, L. W., A History of Banking Theory (Chicago, 1945), Chapters VI and X (pp. 74-100; 178-197).
  10. Morgan, E. V., The Theory and Practice of Central Banking, (Macmillan, 1943).
  11. Niebyl, Karl H., Studies in the Classical Theories of Money, (Columbia, 1946).
  12. Sayers, R. S., Modern Banking, (Oxford, 1938), Chapters 4-5 (pp. 70-145).
  13. Viner, J. Studies in the Theory of International Trade, (Harper, 1937), Chapter V, “English Currency Controversies” (pp. 218-289).
  14. Wernette, P., Financing Full Employment, (Harvard, 1945), Chapter 3 (pp. 33-61).

II. Articles

  1. Abbott, C. C. (Review articles on Financing Problems and Bank Liquidity), Review of Economic Statistics, February 1946 (pp. 48-51).
  2. Abbott, C. C., “Management of the Federal Debt”, Harvard Business Review, Autumn 1945.
  3. Goldenweiser, E. A., “Commercial Banking After the War”, Federal Reserve Bulletin, September 1944.
  4. Seltzer, Lawrence, “Is a Rise in Interest Rates Desirable or Inevitable?”, American Economic Review, December 1945.
  5. Treasury Bulletin, April 1946, “Federal War-time Financing and the Growth of Liquid Assets”.
  6. Keynes, J. M., “The Objective of International Price Stability”, Economic Journal, June-September 1943.

C. General Reference Reading (see below).

II. Theory of Money, Liquidity Preference, Interest and Prices.

A. Minimum Reading List:

I. Books:

  1. Haberler, G., Prosperity and Depression, (League of Nations, 1939), Chapters 8, 13, (pp. 168-254; 455-507).
  2. Hansen, Alvin H.:
    1. Fiscal Policy and Business Cycles, (Norton, 1941), Chapters 1-5; 11-15; (pp. 13-105; 225-338).
    2. Full Recovery or Stagnation, (Norton, 1938), Chapters 1-5 (pp. 13-133); Appendix, pp. 331-343.
  3. Hayek, F. A., Prices and Production, (Routledge, 1935), Chapters 1 and 4 (pp. 1-31; 105-128).
  4. Hicks, J. R., Value and Capital, (Oxford, 1939), Chapters 12-13 (pp. 153-170).
  5. Keynes, J. M., Monetary Reform, (Harcourt, 1924), pp. 81-95; 152-191.
  6. Keynes, J. M., A Treatise on Money, (Harcourt, 1930), Chapters 9-13 and 30 (Volume I, pp. 123-220; Volume II, pp. 148-208).
  7. Keynes, J. M., General Theory of Employment, Interest and Money, (Harcourt, 1936), pp. 3-45; 61-65; 74-221; 245-271; 292-332; 372-384.
  8. Lerner, A. P., The Economics of Control, (Macmillan, 1944), Chapters 22-25 (pp. 271-345).
  9. Marget, Arthur W., The Theory of Prices, Volume I, (Prentice-Hall, 1938), Chapters 12 and 15 (pp. 302-343, 414-459).
  10. Marget, Arthur W., The Theory of Prices, Volume II, (Prentice-Hall, 1942), Chapter 3 (pp. 89-133).
  11. Marshall, A., Official Papers, (Macmillan, 1926), pp. 19-31.
  12. Pigou, A. C., Lapses from Full Employment, (Macmillan, 1945), Chapters 1-5; 8-9; 12. (pp. 1-29; 38-51; 69-73).
  13. Robertson, D. H., Money, (Harcourt, 1929), chapters 2-4; 7-8 (pp. 18-91; 144-197).
  14. Robertson, D. H., Essays in Monetary Theory, (King, 1940), Chapters 1, 6, 11 (pp. 1-38; 92-7; 113-153).
  15. Schumpeter, J. A., Business Cycles, (McGraw-Hill, 1939), Volume II, Chapter 8, (pp. 449-482).
  16. Wicksell, K., Interest and Prices, (Macmillan, 1936), Introduction by Bertil Ohlin; also author’s Preface; Chapters 5, 7-8, 11 (pp. 38-50; 81-121; 165-177).
  17. Wicksell, K., Money: Lectures on Political Economy, Volume II, (Macmillan, 1935), Chapter IV (pp. 127-228).
  18. Wright, David McC., The Creation of Purchasing Power, (Harvard, 1939), Chapters 4-6 (pp. 60-121).
  19. Macmillan Report, Royal Commission on Finance and Industry, Cmd. 3897 (1931), Part I, Chapter 11.

II. Articles:

  1. Clark, Colin, “Public Finances and Changes in the Value of Money”, Economic Journal, December 1945.
  2. Hicks, J. R., “Mr. Keynes and the Classics: A Suggested Interpretation”, Econometrica, April 1937.
  3. Hawtrey, R. G. and Hicks, J. R., “Interest and Bank Rate”, The Manchester School of Economic and Social Studies, October 1939.
  4. Keynes, J. M., “Relative Movement of Real Wages and Output”, Economic Journal, March 1939.
  5. Lange, O., “The Rate of Interest and the Optimum Propensity to Consume”, Economica, February 1938.
  6. Lerner, A. P., “Alternative Formulations of the Theory of Interest”, Economic Journal, June 1938.
  7. Lerner, A. P., “Interest Theory: Supply and Demand for Loans or Supply and Demand for Cash”, Review of Economic Statistics, May 1944.
  8. Lerner, A. P., “Ex Ante Analysis and Wage Theory”, Economica, November 1939.
  9. Lerner, A. P., “Some Swedish Stepping Stones in Economic Theory”, Canadian Journal of Economics and Political Science, November 1940.
  10. Mints, Hansen, Ellis, Lerner, Kalecki, “A Symposium on Fiscal and Monetary Policy”, Review of Economic Statistics, May 1946.
  11. Modigliani, F., “Liquidity Preferences and the Theory of Interest and Money”, Econometrica, January 1944.
  12. Pigou, A. C., “Employment Policy and Sir William Beveridge”, Agenda, August 1944.
  13. Reder, M. W., “Interest and Employment”, Journal of Political Economy, June 1946.
  14. Simons, H. C., “Debt Policy and Banking Policy”, Review of Economic Statistics, May 1946.

B. Supplementary Reading List:

I. Books:

  1. Adarkar, B. P., The Theory of Monetary Policy, (King, 1935), Chapter 1-8; 13-15 (pp. 3-52; 101-122).
  2. Chandler, L. V., An Introduction to Monetary Theory (Harper, 1940), pp. 1-205.
  3. Coulborn, W. A. L., An Introduction to Money, (Longmans, 1938), Chapters 6-8; 15-16 (pp. 65-116; 242-264).
  4. Lindahl, Erik, Studies in the Theory of Money and Capital, (Allen and Unwin, 1939), Part II, Chapters 4-6, (pp. 199-268).
  5. Myrdal, Gunnar, Monetary Equilibrium, (Hodge, 1939), Chapters 1-3 (pp. 1-48).
  6. Polanyi, M. Full Employment and Free Trade, (Cambridge Univ. Press, 1945), Chapters 1, 4, (pp. 1-66; 87-103).
  7. Sayers, R. S., Modern Banking. (Oxford, 1938), Chapter 6 (pp. 146-164).
  8. Thomas, Brindley, Monetary Policy and Crises, (Routledge, 1936), Chapters 3-4 (pp. 62-156).

II. Articles:

  1. Lange, O., “Economic Controls After the War,” Political Science Quarterly, March 1945.
  2. Marschak, J., “Wicksell’s Two Interest Rates”, Social Research, November 1941.
  3. Simons, H. C., “On Debt Policy”, Journal of Political Economy, June 1945.
  4. Warburton, Clark, “The Volume of Money and the Price Level Between the World Wars”, Journal of Political Economy, June 1945.
  5. a. Warburton, Clark, “The Monetary Theory of Deficit Financing”, Review of Economic Statistics, May 1945.
    b. Arndt, H. W., “The Monetary Theory of Deficit Financing; A Comment”, Review of Economic Statistics, May 1946.

C. General Reference Reading (see below).

Source: Harvard University Archives. Alvin Harvey Hansen Papers. Box 1 of Lecture Notes and Other Course Material, Folder “Econs 141”. Also found in Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1) Box 4, Folder “Economics, 1946-47 (2 of 2)”.

____________________________

Mid-Year Final Examination

1946-47
HARVARD UNIVERSITY
ECONOMICS 141a

(Write on any THREE questions.)

    1. Give a thorough discussion of current monetary and banking problems including in your essay the following topics:
      1. The increase in the quantity of money in the U. S. since 1934; causes and effects.
      2. War-time financing; the role of the Federal Reserve Banks and of the commercial banks.
      3. Recent and prospective trends in interest rates; causes and effects.
      4. New proposals with respect to reserve requirements, composition of bank assets, and control of bank credit.
      5. Management of the public debt.
    1. Write an essay on Keynes’ theory of interest, explaining the significance and role of the marginal efficiency schedule, the consumption function, liquidity preference, and monetary policy. In connection with Keynes’ interest theory, discuss the ideas and contributions of Hicks, Lerner and Modigliani.
    2. Compare Fisher, Marshall (Cambridge cash-balance school), Wicksell and Keynes with respect to the role of the quantity of money in the theory of money and prices.
    3. Write an essay (about an hour) on any two of the following:
      1. Hayek: Prices and Production
      2. Keynes: A Treatise on Money; or General Theory of Employment, Interest and Money
      3. Marget: The Theory of Prices
      4. Robertson: Money; or Essays in Monetary Theory
      5. Wicksell: Money; or Interest and Prices
      6. Hansen: Fiscal Policy and Business Cycles; or Economic Policy and Full Employment

Final. January, 1947.

Source: Harvard University Archives. Harvard University Final Examinations 1853-2001. Box 13. Papers Printed for Final Examinations: History, History of Religions…, Economics, … , Military Science, Naval Science, January, 1947.

Image Source: Alvin Hansen from Harvard Class Album 1952.