Simon Kuznets was born in Pinsk (Russian Empire, now Belarus) April 30, 1901. He went to secondary school in Rovno and in Kharkov. In 1918–1921 he attended Kharkov Commercial Institute, after which he worked 1921–1922 in the Department of Labor Statistics of South Bureau of Council of Trade Unions. His family emigrated to the United States in 1922.
HARVARD UNIVERSITY
Department of Economics
Economics 286
Professor Kuznets
Spring Term, 1963
List of Readings (preliminary)
The Malthusian Theory
T. R. Malthus, An Essay on the Principle of Population, 1st edition 1798, reprinted by Macmillan 1929 (or other reprints)
James Bonar, Malthus and His Work, London 1885, reprinted in 1924, (particularly Book I, pp. 1-207)
(For Browsing)
Kenneth Smith, The Malthusian Controversy, London 1951
Harold A. Boner, Hungry Generations, New York 1955
The Low-level Equilibrium Trap
R. R. Nelson, A Theory of the Low-Level Equilibrium Trap, American Economic Review, December 1956, pp. 894-908
Harvey Leibenstein, Economic Backwardness and Economic Growth, New York 1957, Chapter 10, pp. 117-173
Historical Background
United Nations, The Determinants and Consequences of Population Trends, New York 1953, Chapter II, pp. 5-20
Mortality
United Nations, volume listed under (7), Chapter IV, pp. 47-70
George J. Stolnitz, A Century of International Mortality Trends, Population Studies, vol, IX, no. 1, July 1955, pp. 24-55 and vol. X no. 1, July 1956, pp. 17-42
(For Browsing)
Thomas McKeown and R. S. Record, two papers on causes of decline in mortality in England in the 18th and in the 19th centuries, Population Studies, vol. IX, 1955, pp. 119-41 and vol. XVI, 1962, pp. 94-122
Fertility
United Nations, volume listed under (7), Chapter V, pp. 71-97
Frank Lorimer, Culture and Human Fertility, UNESCO 1954, pp. 15-251
Kingsley Davis and Judith Blake, Social Structure and Fertility: An Analytic Framework, Economic Development and Cultural Change, vol. IV, no. 3, April 1956, pp. 211-35
Gary S. Becker, An Economic Analysis of Fertility, Demographic and Economic Change in Developed Countries, Universities-NBER Committee volume, Princeton 1960, pp. 209-240
E. E. Hagen, Population and Economic Growth, American Economic Review June 1959, pp. 310-327
Migration
United Nations, volume listed under (7), Chapter VI, pp. 98-134
Economic Implications
United Nations, volume listed under (7), Chapter XIII, pp. 220-38
Simon Kuznets, Population Change and Aggregate Output, in the volume listed under (6), pp. 324-351
Ansley J. Coale and Edgar M. Hoover, Population Growth and Economic Development in Low Income Countries, Princeton 1958, Part Five, pp. 295-335
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Folder “Economics, 1962-1963 (2 of 2)”.
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HARVARD UNIVERSITY
Economics 286
Examination, May 23, 1963
Please answer six and no more than eight questions, choosing at least one question in each of the four Roman numeral groups.
A detailed outline of an answer is a good substitute for writing out the answer in full,
Please write legibly.
I
What are the connections in the Malthusian theory of population growth among the rate of natural increase of population, the “Iron” law of wages, and the law of diminishing returns? In answering consider birth and death rates separately.
What assumptions are made in the low-level equilibrium trap theories concerning the connection between death rates and per capita income? Concerning the connection between birth rates and per capita income? Discuss the validity of these assumptions.
II
What factors made for significant declines in mortality in the period since the late 18th century? In outlining the groups of factors involved, suggest why the declines were delayed for long periods in the 19th century in many developed countries.
Indicate the differences in magnitudes of decline in mortality among (a) age groups; (b) sex groups; (c) urban and rural population. Select any two of these for a discussion of the factors that may have been responsible for the differences in magnitude of mortality decline.
III
Outline the major trends in the birth rates since late 18th century in: (a) older developed countries of Europe; (b) younger offshoots of Europe overseas; (c) underdeveloped countries. In answering the questions, indicate, in case trends are significant, whether they apply to crude rates alone or also to rates per woman of child-bearing age and per married woman of child-bearing age.
What groups of factors have been suggested to account for the downward trends in birth rates in the developed countries? In outlining these, and the relevant theories, mention also the cross-section differentials in birth rates that provide the empirical base for such theories.
What do the current differences in crude birth rates between developed and underdeveloped countries reflect in the way of different marriage rates, different ages of women at marriage, differential fertility by age of mother and age of father, total number of children in a completed family? Suggest some economic implications of these differences.
IV
What relationship between population trends and economic trend account for much of internal and external migration observed since the late 18th century in and among developed countries? In answering, try to specify as closely as possible the economic and the population trends involved.
What effects on the efficiency of labor can be ascribed to internal (and external) migration in developed countries? Indicate briefly the various types of effect that might be usefully distinguished.
What effects on the pattern of life and consumption of the population can be ascribed to internal (and external) migration in developed countries? Indicate briefly the various type of effect that might be usefully distinguished.
Source: Harvard University. Faculty of Arts and Sciences. Papers Printed for Final Examinations [in] History, History of Religions, … , Economics, …Naval Science, Air Science. June 1963. In bound volume: Social Sciences, Final Examinations, June 1963 (HUC 7000.28, Vol. 147 of 284).
Before the 1958-59 academic year began, tragedy struck the Harvard economics department. Assistant professor of economics Stefan Valavanis (31 years old) was found shot in his tent near Mt. Olympus. He was to be the lead instructor for the Junior year honors course in economics during the up-coming year. With his loss the course was left to his assistant professor colleagues, Alfred Haskell Conrad and James Mitchell Henderson.
Alfred Haskell Conrad, Ph.D. 1954. The Redistribution of Incomes and the Matrix Multiplier: The Impact of Fiscal Policy on the Distribution of Income in 1950. Advisors: W.W. Leontief and John S. Chipman. (Mathematics Genealogy Project)
James Mitchell Henderson, Ph.D. 1955. The Efficiency of the Coal Industry: An Application of Linear Programming. Advisors: W.W. Leontief and Elizabeth Waterman Gilboy. (Mathematics Genealogy Project)
James M. Henderson was co-author with Richard Quandt of Microeconomic Theory: A Mathematical Approach, the leading graduate microeconomics text in its day and (fun fact) marriedAnne O. Kruegerin July 1981 when they both were professors at the University of Minnesota. The two of them moved on to become professors at Duke University. Henderson died in 1992.
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Course Announcement
Economics 100. Junior Honors Course
Full course. M., 4-6. Assistant Professors [Stefan] Valavanis (in charge), [Alfred Haskell] Conrad and (spring term) [James Mitchell] Henderson.
Permission required of Assistant Professor Valavanis.
Required course for Economics concentrators who are candidates for honors. This course will deal with the theory of wages and prices; problems of public policy in the fields of Industrial Organization and Labor; the relation between descriptive material and theoretical analysis; methods of testing hypotheses. One two-hour group meeting each week organized as a seminar with papers by students. Additional papers and individual conferences with staff members.
R. M. Alt, “Statistical Measurement of Price Flexibility,” Quarterly Journal of Economics, 1949, p. 92.
J. Bain, Barriers, Ch. 7.
J. Vanek, “The Nature of Equilibrium in Monopolistic Competition,” Mimeographed.
V. Investment Theory
A. An outline of formal theory
Samuelson, Economics, Ch. 29.
Boulding, Chs. 35-37 (revised edition).
Joel Dean, Capital Budgeting, Chs. 1-3.
J. M. Clark, “Business Acceleration and the Law of Demand,” Readings in Business Cycle Theory.
J. Meyer and E. Kuh, The Investment Decision, Ch. 11 (2).
B. Uncertainty
R. Weckstein, “On the Use of the Theory of Probability in Economics,” Review of Economics and Statistics, 1953, pp. 191-198.
Ward Edwards, “The Theory of Decision Making,” Psychological Bulletin, 1954.
A. G. Hart, Anticipation, Uncertainty, and Dynamic Planning.
C. Financial Considerations
J. Meyer and E. Kuh, The Investment Decision, Chs. 9, 12.
R. Mack, The Flow of Business Funds and Consumer Purchasing Power, Ch. VIII.
W. Heller, “The Anatomy of Investment Decisions,” Harvard Business Review, March 1951.
Fortune, “The Fine Art of Raising Capital,” u, July 1956 and ”How Much Can Business Borrow?” June 1956.
D. The Influence of Market Structure on the Investment Decision and Innovation.
W. Fellner,” The Influence of Market Structure on Technological Progress,” Quarterly Journal of Economics, November 1951, pp. 556-577.
C. Kaysen, “A Dynamic Aspect of the Monopoly Problem,” Review of Economics and Statistics, May 1949, pp. 109-113.
Schumpeter, Capitalism, Socialism and Democracy, Ch. VIIl, pp. 87-106.
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Economics 100
Reading List
Spring, 1959
I. General Equilibrium.
E. Phelps Brown, The Framework of the Pricing System, Chaps. II-IV.
F. Zeuthen, Economic Theory and Method, Chaps. 10-12 and pp. 194-197.
J. R. Hicks, Value and Capital, Part II.
W. W. Leontief, “Input-Output Economics,” Scientific American, October, 1951.
W. W. Leontief, “Input-Output Analysis and the General Equilibrium Theory,” in T. Barna, ed., The Structural Interdependence of the Economy, pp. 42-49.
Selected Applications
(The material listed under this heading may be used as the basis for tutorial papers and discussion. Specific assignments will be made by the instructor.)
W. W. Leontief, “Factor Proportions and the Structure of American Trade,” Review of Economics and Statistics, Nov., 1956.
R. S. Eckaus, “The Factor Proportions Problem in Underdeveloped Areas,” American Economic Review, September, 1955.
II. Welfare Economics.
T. Scitovsky, Welfare and Competition, Chaps. 4, 8, 16. (for review).
J. de V. Graaff, Theoretical Welfare Economics. Chaps. I-V, X, XI. (omit the appendices)
K. Boulding, “Welfare Economics,” in Survey of Contemporary Economics, Vol. II, B. F. Haley, ed.
A. P. Lerner, The Economics of Control, Chaps. 3, 4.
Selected Applications
M. Friedman, in R. Solo, ed., Economics and the Public Interest, Chap. 9.
W. S. Vickey, The Revision of the Rapid Transit Fare Structure of the City of New York, (hectographed; in Littauer Library).
J. V. Krutilla and O. Eckstein, Multi-Purpose River Development, 1958.
N. Kaldor, The Expenditure Tax.
III. Macro Models — Cycles, Growth, Money.
G. Haberler, Prosperity and Depression, Chaps. 2, 3, 5.
A. Hansen, Business Cycles and National Income, Part Il.
A. Hansen, Monetary Theory and Fiscal Policy, Chaps. 3-6.
J. S. Duesenberry, Business Cycles and Economic Growth, Chaps. 2-5, 9-12.
C. Christ, “Aggregate Econometric Models,” American Economic Review, June, 1956
H. Makower and J. Marschak, “Assets, Prices and Monetary Theory,” in G. Stigler and K. Boulding, eds., Readings in Price Theory. Chap. 14.
J. Gurley and E. Shaw, “Financial Aspects of Economic Development,” American Economic Review, September, 1955.
Selected applications from the fields of wage and price policy, inflation, international trade and development will be assigned by the instructors.
Source: Harvard University Archives. Harvard University: Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 7, Folder “Economics, 1958-59 (1 of 2).”
“Macro-economics” was explicitly named in the course description for the Harvard undergraduate economics tutorial in 1962-63. However, not a single course included “macroeconomics” in its title. Instead graduate students were treated to “aggregate economic theory”, an early and one might argue more felicitous name than “macroeconomics”. This post provides the reading list for Robert Dorfman’s aggregate economic theory course. During the second term of 1958-1959 the same course content was taught by Dorfman as “Economics 241. Money and Banking”.
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Course Announcement
Economics 241. Aggregate Economic Theory
Half course (fall term). M., W., (F.), at 12. Professor Dorfman.
J. M. Keynes. The General Theory of Employment, Interest and Money.
American Economic Association, Readings in Business Cycle Theory.
Also recommended:
Alvin H. Hansen, A Guide to Keynes
Introductory Material
A. P. Lerner, “The General Theory (1),” S.E. Harris, ed., The New Economics, Ch. 11.
L. Tarshis, “An Exposition of Keynesian Economics,” R.V. Clemence, ed., Readings in Economic Analysis, Vol. I, pp. 197-208.
Gardner Ackley, Macroeconomic Theory, Chs. II, III, IV.
U.S. Department of Commerce, National Income, 1954 Edition (Supplement to the Survey of Current Business), pp. 27-60 and skim the rest.
T.C. Schelling, “National Income, 1954 Edition,” Rev. of Econ. and Stat., XXXVII, 321-335 (November 1955).
Consumption
J.M. Keynes, General Theory. Book III.
Robert Ferber, “Research on Household Behavior,” Amer. Econ. Rev., LII, 19-63 (March 1962) .
Irwin Friend, Individuals’ Saving, Ch. 8
J.S Duesenberry, Income, Saving and the Theory of Consumer Behavior, Ch. 3.
M. Friedman, A Theory of the Consumption Function, Ch. 9, at least.
G. Haberler, “My. Keynes’ Theory of the Multiplier,” Readings in Business Cycle Theory, Ch. 9.
Fritz Machlup, “Period Analysis and Multiplier Theory,” Readings in Business Cycle Theory, ch. 10.
Investment
J.M. Keynes, General Theory, Chs. 11, 12, 16.
I. Fisher, Theory of Interest, Chs. 5-11.
A. A. Alchian, “The Rate of Interest, Fisher’s Rate of Return over Costs and Keynes’ Internal Rate of Return,” Amer. Econ. Rev., X, 938-943 (December 1955).
J.R. Meyer and E. Kuh, The Investment Decision. Chs. 2, 12.
J.S. Duesenberry, Business Cycles and Economic Growth, Chs. 3, 5.
F. Modigliani and M.H. Miller, “The Cost of Capital, Corporation Finance and the Theory of Investment,” Amer. Econ. Rev. XLVIII, 261-297 (June 1958).
J.M. Clark, “Business Acceleration and the Law of Demand,” Readings in Business Cycle Theory, Ch. 11.
Fall, 1962
HARVARD UNIVERSITY
Department of Economics
Economics 241 READING LIST NO. 2
Interest Theory
J. M. Keynes, General Theory. Chs. 13, 14, 15, 17.
G.L.S. Shackle, “Recent Theories Concerning the Nature and Role of Interest,” Economic Journal, 71 (June 1961), 209-254.
A.P. Lerner in S.E. Harris, ed, The New Economics, Chs. 45, 46.
B. Ohlin, “Some Notes on the Stockholm Theory of Saving and Investment,” Readings in Business Cycle Theory, Ch. 5
F. A. Lutz, “The Outcome of the Saving-Investment Discussion,” ibid., Ch. 6.
W. Fellner and H.M. Somers, “Alternative Monetary Approaches to Interest Theory,” Rev. of Ec. And Stat., Feb, 1941.
T. Wilson and P.S.W. Andrews, eds., Oxford Studies in the Price Mechanism, Ch. 1.
R. W. Clower, “Productivity, Thrift, and the Rate of Interest,” Economic Journal, March 1954.
Monetary Theory
Irving Fisher, The Purchasing Power of Money, Chs. 2, 3, 8.
Alfred Marshall, “Minutes of Evidence before the Royal Commission on the Values of Gold and Silver,” Questions 9629-9664 (pp. 34-46), Question 9686 (pp. 51-52).
J.M. Keynes, A Tract on Monetary Reform, pp. 74-87.
A.C. Pigou, “The Value of Money,” in F. A, Lutz and L.W. Mints, eds., Readings in Monetary Theory, Ch. 10
W.F. Crick, “The Genesis of Bank Deposits,” ibid., Ch. 4.
H.S. Ellis, “Some Fundamentals in the Theory of Velocity,” ibid., Ch. 7.
Milton Friedman, “The Quantity Theory of Money—A Restatement,” in M. Friedman, ed., Studies in the Quantity Theory of Money, pp. 3-21.
H. Johnson, “Monetary Theory and Policy,” Am. Ec. Rev., June 1962.
W.J. Baumol, “The Transactions Demand for Cash, Quarterly Journ. of Econ., November 1952.
Fall, 1962
HARVARD UNIVERSITY
Department of Economics
Economics 241 READING LIST NO. 3
Synthesis of Aggregative Economics
J.M. Keynes, General Theory: Chs. 18, 19, 21.
Franco Modigliani, “Liquidity Preference and the Theory of Interest and Money” in Readings in. Monetary Theory, Ch. 11.
J.R. Hicks, “Mr. Keynes and the ‘Classics’” in Readings in the Theory of Income Distribution, Ch. 24.
A.C. Pigou, “The Classical Stationary State,” Economic Journal, December 1943.
Don Patinkin, “Price Flexibility and Full Employment,” American Economic Review, September 1948.
P.A. Samuelson, “The Simple Mathematics of Income Determination,” in Income, Employment and Public Policy (New York: 1948), 133-155.
D.B. Suite, “Forecasting and Analysis with an Econometric Model.” American Economic Review, March 1962.
Marc Nerlove, “A Quarterly Econometric Model for the United Kingdom,” American Economic Review, March 1962.
Aggregative Models of Economic Growth
R.P. Harrod, Towards a Dynamic Economies, Lecture 3.
E.D. Domar, Essays in the Theory of Economic Growth, Chs. 3-5.
Robert Solow, “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, February 1956.
W.J. Baumol, Economic Dynamics, Ch. 4.
READING PERIOD ASSIGNMENT.
J. M. Keyes, The General Theory of Employment, Interest, and Money, entire.
J.G. Gurley and E.S. Shaw, Money in a Theory of Finance.
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 8, Folder “Economics, 1962-1963 (1 of 2)”.
Herbert Levine was trained in economics and Russian studies at Harvard before going off to lifetime employment at the University of Pennsylvania. He returned to Harvard in the fall term of 1963 to cover the Soviet economy class for Abram Bergson who was on leave at the Center for Advanced Study of the Behavioral Sciences at Stanford in 1963-64.
Along with a younger economist from the University of Texas, Ed Hewett, Levine championed my application to the International Research and Exchanges Board (IREX) for a research exchange fellowship in the German Democratic Republic back in the late 1970s. He was a mentor to many other young scholars working on the economies of the Soviet Union and Eastern Europe. I last saw him in November 2003 at an economics workshop at Harvard where drafts of papers were presented that would later be published in a special issue edited by Paul R. Gregory and Marshall Goldman in honor of Abram Bergson (Comparative Economic Studies, 2005).
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Obituary in The Daily Pennsylvanian
Former economics prof. leaves a legacy 47-year teacher is remembered fondly for his compassion and challenging courses
Herbert Levine, Economics professor at Penn from 1960 to 2006, died Sunday, succumbing to complications from leg surgery after battling prostate cancer for the past 15 years.
Levine was 78.
Receiving his B.A. [1950], M.A. [1952] and Ph.D. [1961] degrees from Harvard University, Levine specialized in Soviet economics and his insights were “in demand during the period leading up to the dissolution of the Soviet system,” according to a written statement by fellow Economics professor Lawrence Klein.
Levine published several articles on his area of expertise, yet never failed to acknowledge the importance of the broader study of economics.
Winning several awards for excellent teaching at Penn including the Lindback Foundation Award for Distinguished Teaching and the Kravis Prize for Distinction in Undergraduate teaching, Levine was highly regarded among students.
“Econ 1 is large, but [my dad] would call on people by name, he just taught that way and people cared for his courses,” said daughter and College alumna Jan Levine.
Former student and 1964 College alumnus Ted Kozloff echoed Levine’s revere for her father.
“Herb was a seminal figure in my education,” Kozloff said. “There are maybe one or two teachers in my lifetime that had an effect like Herb. . He enjoyed enormous popularity and there was enormous respect for him.”
And that respect remained prominent over his 47-year career at Penn.
Levine was Elizabeth Goldstein’s dissertation advisor in 1982, and she said he was “the most fabulous adviser anybody could ask for.”
Goldstein added, “He was rigorious but understanding and had an amazing gift for being able to guide people through very difficult and high-level economic theory.”
Many former students also noted his warmth and devotion to his personal life in addition to academics.
“Many people excel in their careers and forget their personal life, but Herb didn’t,” said former student Edward LaPuma.
Levine’s funeral was scheduled for this morning in Trevose, Pa.
He is survived by his wife Helene Levine, daughters Jan and Judith Levine, sister Myra Heller and three grandchildren. His son, Jonathon, predeceased him.
Obituary in the University of Pennsylvania Almanac,
Vol. 54, No. 1. July 17, 2007
Dr. Herbert S. Levine, professor emeritus of economics and expert on Soviet and post-Soviet Russia, died on June 10, after complications from surgery from a broken leg during the end of a fifteen-year battle with prostate cancer; he was 78.
Dr. Levine completed his postsecondary education at Harvard, earning an undergraduate degree in economics in 1950, followed by a master degree in Russian studies two years later. He also earned a doctorate from Harvard in 1961, writing his dissertation on the economic performance of the USSR, which earned important recognition of his research by winning the prestigious David A. Wells Prize.
Dr. Levine joined Penn’s faculty in 1960 as an assistant professor of economics. He studied the controlled economy of the USSR, in close touch with other members of a research center at Harvard University. He was promoted to professor in 1969. In addition to his teaching duties, Dr. Levine served as chairman of the graduate group in economics and as co-director of the Lauder Institute. After a 47-year career at Penn he retired in 2006.
His unusual abilities in presenting modern political economy to undergraduates resulted in him being awarded faculty prizes for his teaching including the Irving B. Kravis Prize for Distinction in Undergraduate Teaching (1988 and 1991) and the Lindback Award for Distinguished Teaching.
Dr. Levine is survived by his wife, Helene; two daughters, Jan Levine, and Judith Levine and their husbands Michael Zuckerman and Edward Sobel; their grandchildren, Rachel Zuckerman, Joshua Zuckerman and Julia Sobel; and his sister, Myra Heller and brother-in-law Jack Heller.
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Harvard Course Announcement Fall Term, 1963
Economics 133. The Economy of Soviet Russia (Offered jointly with the Committee on Regional Studies).
Half course (fall term). M., W., (F.) at 9. Professor Levine (University of Pennsylvania).
Economic development under the five-year plans: the rate of economic growth: structural changes; conditioning factors. Planning principles and procedures.
ECONOMICS 133, Fall Term, 1963-1964
The Economy of Soviet Russia
H. S. Levine
Course Outline and Reading List.
Books to be Purchased:
Dobb: M. Dobb, Soviet, Economic Development Since 1917, International Publishers, 1948.
Readings: Readings on the Soviet Economy, F. Holzman (ed.), Rand McNally, 1961.
Part One
I. Historical Overview
A. Pre-Revolution
(General Historical Background: D. Treadgold, Twentieth Century Russia, Rand McNally, 1959, Chapters 1-5, 8.
1. Bowden, Karpovich and Usher, An Economic History of Europe Since 1250, Chapters 14 and 29.
2. G. T. Robinson, Rural Russia Under the Old Regime, Chapters 6, 7, 11.
3. A. Gerschenkron, “The Rate of Industrial Growth In Russia Since 1885,” Part 1, The Journal of Economic History, Supplement VII, 1947, pp. 144-157 (only).
4. Supplementary Readings:
a) J. Blum, Lord and Peasant in Russia, Chapters 24, 26, 27.
b) Robinson, Chapters 5, 12.
c) P. I. Lyashchenko, History of the National Economy of Russia; on agriculture: Chapters 21, 23, 36; on industry: Chapters 25, 26, 32-34.
d) T. Von Laue, Sergei Witte and the Industrialization of Russia
e) A. Gerschenkron, “Russia: Patterns and Problems of Economic Development, 1861-1958, » in his Economic Backwardness in Historical Perspective (postpone Part Ill). This essay also appears in C. Black (ed.), The Transformation of Russian Society.
B. The Revolution, War Communism, and the New Economic Policy (1917-1927)
(General Historical Background: Treadgold, Chapters 9-14.
1. Dobb, Chapters 3-7.
C. The Industrialization Debates, Collectivization and the Beginning of the Plan Era
(General Historical Background: Treadgold, Chapter 17.
1. Dobb, Chapters 8 and 9
2. A. Erlich, “Preobrazhenski and the Economics of Soviet Industrialization,” Quarterly Journal of Economics, Feb. 1950, pp. 57-88
3. Readings: N. Jasny, “Early Kolkhozy and the Big Drive”
4. M. Fainsod, Smolensk Under Soviet Rule, pp. 242-258
5. Supplementary Reading:
a) Readings: A. Erlich, “Stalin’s Views on Soviet Economic Development”.
D. From the First Five Year Plan to the End of the War (1928-1945)
(General Historical Background: Treadgold, Chapter 18
1. Dobb, Chapter 10
2. N. Jasny, Soviet Industrialization 1928-1952, pp. 109-114
3. Dobb, Chapters 11, 12 and pp. 453-454
4 Jasny, Soviet Industrialization, pp. 177-187
E. Post-War to the Present
(General Historical Background: Treadgold, Chapter 25
1. Jasny, Soviet Industrialization, pp. 235-256
2. G. Grossman, “The Soviet Economy,” Problems of Communism, XIl:2, (Mar-Apr. 1963) pp. 32-40
3. Supplementary Readings:
a) O. Hoeffding, “Substance and Shadow in the Soviet Seven Year Plan,” Foreign Affairs, April, 1959
b) H. Levine, “The New Seven Year Plan,” The New Leader, May 25 and June 1, 1959,
II. Soviet Economic Growth
A. Problems of Measuring Growth
1. The Soviet Statistical System
a) G. Grossman, Soviet Statistics of Physical Output of Industrial Commodities, pp. 1-10, 22-46
2. Reliability of Soviet Statistics
a) Readings: A. Bergson, “Reliability and Usability of Soviet Statistics: A Summary Appraisal”
b) L. Turgeon, “On the Reliability of Soviet Statistics,” Review of Economics and Statistics, February 1952, pp. 75-6.
c) Grossman, Soviet Statistics, pp. 123-134.
3. Interpretation of Data
a) Readings: A. Bergson, “The Adjusted Factor Cost Standard of National Income Valuation.”
b) Readings: A. Nove, “1926/27 and All That.”
c) A. Gerschenkron, A Dollar Index of Soviet Machinery Output, pp. 47-58
d) R. Moorsteen, “On Measuring Productive Potential and Relative Efficiency,” Quarterly Journal of Economics, August 1961, pp. 451-467
e) Supplementary Readings
1) J. R. Hicks, “The Valuation of the Social Income,” Economica, May 1940, pp. 105-124
2) P. Samuelson, “Evaluation of Real National Income,” Oxford Economic Papers, January 1950, pp. 1-29.
3) A. Becker, “Comparisons of US and USSR National Output: Some Rules of the Game,”World Politics, October 1960, pp. 99-111.
B. What Has Been Accomplished?
1. National Income
a) A. Bergson, “National Income,” in A. Bergson and S. Kuznets (eds.), Economic Trends in the Soviet Union, pp. 1-16 (only).
b) S. Cohn, “The Gross National Product in the Soviet Union,” in Joint Economic Committee, Dimensions of Soviet Economic Power, pp. 69-77.
c) Supplementary Reading
1) A. Bergson, The Real National Income of Soviet Russia Since 1928, Chapters 13 and 14.
2. Industry
a) Readings: N. Kaplan and R. Moorsteen, “An Index of Soviet Industrial Growth”
b) R. Greenslade and P. Wallace, “Industrial Production in the USSR,” in Dimensions, pp. 119-130
c) Supplementary Reading
1) R. Powell, “Industrial Production,” in Trends, pp. 150-176
3. Agriculture
a) D. G. Johnson, “Agricultural Production”, in Trends, pp. 203-214
b) J. Willet, “The Recent Record in Agricultural Production,” in Dimensions, pp. 95-100.
4. Consumption
a) J. Chapman, “Consumption,” in Trends, pp. 235-270
b) Supplementary Reading
1) R. Golden, “Recent Trends in Soviet Personal Income and Consumption,” in Dimensions, pp. 347-366.
C. Analysis of Growth
1. H. Schwartz, Russia’s Soviet Economy (2nd and Revised Editions), pp. 1-26
2. W. Eason, “Labor Force,” in Trends, pp. 38-93
3. N. Kaplan, “Capital Formation and Allocation,” in A. Bergson (ed.), Soviet Economic Growth, pp. 37-80
4. A. Bergson, “National Income,” in Trends, pp. 17-35.
5. Supplementary Readings
a) F. Seton, “Production Functions in Soviet Industry,” American Economic Review, May 1959, pp. 1-14
b) R. Campbell, Soviet Economic Power, Chapter 4
c) N. DeWitte, “Education and the Development of Human Resources,” in Dimensions, pp. 233-268
d) Readings: “Forced Labor in the Soviet Union”.
Ill. The Operation of the Soviet Economy
A. General Operating Framework and Principles
1. P. Cook, “The Administration and Distribution of Soviet Industry,” in Dimensions, pp. 183-210.
2. A. Nove, The Soviet Economy, Chapter 1.
3. W. Loucks, Comparative Economic Systems (6th Edition), pp. 444-453.
4. Supplementary Reading
a) G. Grossman, “The Structure and Organization of the Soviet Economy,” Slavic Review, June 1962, pp. 203-222.
B. Planning
1. O. Lange, “On the Economic Theory of Socialism” in B. Lippincott (ed.), O. Lange and F. Taylor, On the Economic Theory of Socialism.
2. Schwartz, Chapter V
3. Readings: H. Levine, “The Centralized Planning of Supply in Soviet Industry.”
4. Readings: G. Grossman, “Scarce Capital and Soviet Doctrine”
5. Readings: “On the Problem of Determining the Economic Effectiveness of Capital Investments.”
6. Supplementary Readings
a) J. Drewnowski, “The Economic Theory of Socialism: A Suggestion for Reconsideration,” Journal of Political Economy, August 1961, pp. 341-354
b) Dobb, Chapter 1
c) H. Hunter, “Optimum Tautness in Developmental Planning,” Economic Development and Cultural Change, July 1961, Part l, pp. 561-572.
d) R. Campbell, Soviet Economic Power, Chapter 5
e) I. Yevenko, Planning in the USSR, (Foreign Languages Publishing House, Moscow), esp. Chapter III.
f) Readings: D. Granick, “An Organizational Model of Soviet Industrial Planning.”
C. The Firm and Problems of Industrial Administration
1. Readings: J. Berliner, “The Informal Organization of the Soviet Firm.”
2. Readings: A. Nove, “The Problem of Success Indicators in Soviet Industry.”
3. “The Liberman Proposals”
a) Current Digest of the Soviet Press, XIV:36 (Oct. 3, 1962), pp. 13-15
b) Harry Schafer, “Ills and Remedies,” Problems of Communism, May-June 1963, pp. 18-26.
4. A. Nove, “The Soviet Industrial Reorganization,” Problems of Communism, Nov.-Dec. 1957, pp 19-25.
5. H. Levine, “Recent Developments in Soviet Planning,” in Dimensions, 1st Section, pp. 167-185.
6. P. Cook, “Party, State and Economic Reorganization in the USSR.” The ASTE Bulletin, V:l (Winter 1963), pp. 2-11
7. Supplementary Readings
a) Readings: J. Berliner, “Managerial Incentives and Decisionmaking.”
b) G. Grossman, “Soviet Growth: Routine, Inertia, and Pressure,” American Economic Review, May 1960, pp. 62-72.
c) Readings: O. Hoeffding, “The Soviet Industrial Reorganization of 1957.”
d) M. Goldman, “Economic Controversy in the Soviet Union,” Foreign Affairs, 1963:3, pp. 498-512.
e) A. Nove, “The Liberman Proposals,” Survey, April 1963, pp. 112-118.
D. Prices
1. M. Bornstein, “The Soviet Price System,” American Economic Review, March 1962, pp. 64-103.
2. V. Nemchinov, “Value and Price Under Socialism,” Problems of Economics, IV:3 (July 1961), pp. 3-17.
3. R. Campbell, “Marx, Kantorovich, and Novozhilov: Stolmost Versus Reality,” Slavic Review, October 1961, pp.402-418.
4. M. Bornstein, “The 1963 Soviet Industrial Price Revision,” Soviet Studies, July 1963, pp. 43-52.
5. Supplementary Readings
a) Readings: G. Grossman, “Industrial Prices In the USSR.”
b) A. Wakar and J. Zielinski, “Socialist Operational Price Systems,” American Economic Review, March 1963, pp. 109-127
c) “The Great Value-Price Controversy in the USSR….” in H. Shaffer (ed.), The Soviet Economy (A Collection of Western and Soviet Views), pp. 340-421.
d) A. Zauberman, “Soviet Planometrics,” Soviet Studies, July 1962, pp. 62-74.
E. Finance
1. A. Nove, The Soviet Economy, Chapter 3
2. Readings: F. Holzman, “Financing Soviet Development”
3. Readings: F. Holman, “Soviet Inflationary Pressures, 1928-1957”
4. Readings: D. Hodgman, “Soviet Monetary Controls Through the Banking System”
5. Supplementary Reading. F. Holzman, Soviet Taxation, Chs. 1-4, 9.
F. Labor
1. Readings: E. Brown, “The Soviet Labor Market”
2. Schwartz, pp. 554-565, 534-548
3. Readings: A. Nove, “Social Welfare in the USSR.”
4. W. Galenson, “The Soviet Wage Reform” Proceedings of the Thirteenth Annual Meeting, Industrial Relations Research Association (1961), pp. 250-265.
5. A. Nove, “Toward a Communist Welfare State?” Problems of Communism, January-February 1960.
6. Supplementary Readings
a) E. Nash, “Trends in Labor Controls In the Soviet Union,” in Dimensions, pp. 393-404.
b) E. Brown, “Labor Relations in Soviet Factories,” Industrial and Labor Relations Review, January 1958
c) E. Brown, “A Note on Employment and Unemployment in the Soviet Union in the Light of Technical Progress,” Soviet Studies, January 1961, pp. 231-240.
G. Agriculture
1. Schwarz, Chapter VIII
2. C. Harris, “Soviet Agricultural Resources Reappraised,” Journal of Farm Economics, May 1956, pp. 258-273
3. Readings: L. Volin, “Agricultural Policy of the Soviet Union.”
4. J. Willet, “The Recent Record in Agricultural Production,” in Dimensions, pp. 100-113.
5. H. Walters, Agriculture in the United States and the Soviet Union, U.S. Dept of Agriculture, 1963).
6. Supplementary Readings
a) J. Newth, “Soviet Agriculture: the Private Sector, 1950-59,” Soviet Studies, October 1961 and April 1962.
b) A. Nove, “Soviet Agriculture Marks Time,” Foreign Affairs, July 1962.
c) D. G. Johnson, “Agricultural Production,” in Trends, pp. 214-234
H. Domestic Trade, Foreign Trade and Foreign Aid
1. M. Goldman, Soviet Marketing, Chapters 2, 3, 8.
2. A. Nove, and D. Donnelly, Trade with Communist Countries, pp. 21-57.
3. P. Thunberg, “The Soviet Union in the World Economy,” in Dimensions, pp. 409-438.
4. G. Carnett and M. Crawford, “The Scope and Distribution of Soviet Economic Aid,” in Dimensions, pp. 457-474.
5. A. Zauberman, “Economic Integration,” Problems of Communism, July-August 1959, pp. 23-29.
6. Supplementary Readings
a) M. Goldman, “Product Differentiation and Advertising: Some Lessons from Soviet Experience,” Journal of Political Economy, August 1960, pp. 346-357.
b) Readings: J. Berliner,“Soviet Foreign Economic Competition”
c) Readings: N. Spulber and F. Gehrels, “The Operations of Trade Within the Soviet Bloc.”
d) Readings: F. Holzman, “Some Financial Aspects of Soviet Foreign Trade.”
e) “Discrimination Within the Bloc: Mendershausen vs. Holzman,” The Review of Economics and Statistics: May 1959, May 1960 and May 1962.
I. Future Prospects and Their Implications
1. A. Bergson, “The Great Economic Race: USSR vs. USA,” Challenge, March 1963.
2. A. Bergson and J. Berliner, “Economic Aspects of the Party Program,” The ASTE Bulletin, IV:2 (Winter 1962) pp. 20-36.
3. Readings: O. Hoeffding, “Soviet State Planning and Forced Industrialization as a Model for Asia.”
4. Supplementary Reading
a) J. Hardt et al, The Cold War Economic Gap. (Praeger 1961).
b) Articles by Peterson, Colm, Rostow and Schwartz in Joint Economic Committee, Comparisons of the United States and Soviet Economies, Parts Il and Ill.
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 8, Folder “Economics, 1963-64”.
_____________________________
HARVARD UNIVERSITY
Department of Economics
Economics 133
Final Examination
January 27, 1964
Part I (One hour) Answer three of the following four questions.
1. (20 minutes)
Compare the economic policies of Vishnegradsky and Witte with those of Stalin.
2. (20 minutes)
Discuss the problem of “success indicators” in Soviet industry.
3. (20 minutes)
Describe briefly how prices and wages are formed and the role they play in the Soviet economy,
4. (20 minutes)
Describe the operation and role of foreign trade in the Soviet economy.
Part II (One hour) Answer two of the following three questions,
5. (30 minutes)
“In order to understand why the Russians (at least until very recently) have been so successful in achieving rapid economic growth, one need look no further than the high rate of investment they have been able to attain.”
Discuss.
6. (30 minutes)
You are a high ranking official of the Soviet Communist Party and you have just been appointed chief of agricultural affairs. You are requested to prepare a report in which you are to:
a) describe briefly the major reforms instituted in Soviet agriculture in the last 10 years;
b) discuss the extent of their success and/or failure; and
c) propose some further measures which may be taken to improve the agricultural situation.
How would you respond to this request? (“Flee the country” is not an acceptable response.)
7. (30 minutes)
The U.S. Central Intelligence Agency recently claimed that the rate of growth of Soviet national income in the last two years (1962 and 1963) has been 2.5% per year.
In analyzing this claim, answer the following questions:
a. What is meant by the “index number problem” in measuring economic growth? Why does it arise?
b. To what extent may there be an index number problem in CIA’s calculation?
c. How does this CIA figure differ from the rates of growth of Soviet national income which have been calculated by Bergson and Cohn for earlier periods?
d. What in your opinion might account for the differences?
e. Bonus (If you have time)
What do you think are the prospects for Soviet economic growth in the next 10 to 20 years? Explain.
Part III (One hour) Answer the following question.
8. (60 minutes)
Suppose the Soviet government were to decide that it were no longer necessary or desirable to maintain a policy of achieving a maximum rate of economic growth. Suppose instead, it were to decide on a policy of achieving moderate growth (say about 4% per year in national income), rising standards of living for its people and full employment (in short, a “civilized” economic policy).
Discuss the possible effects such a decision might have on the various different elements in the organization and operative of the Soviet economy.
Source: Harvard University Archives. Papers Printed for Midyear Examinations [in] History, History of Religions,…, Economics,…,Naval Science, Air Science (January 1964) in bound volume Social Sciences. Final Examinations. January 1964 (HUC 7000.28, vol. 150 of 284).
Image Source: Associate Professor of Economics, Herbert S. Levine. University of Pennsylvania Yearbook, The 1967 Record, p. 108.
What I find useful about the syllabus on classical economics from William Baumol’s Princeton course transcribed below is that it provides a lean and precise list of original text reading assignments to work through. Full-blown bibliographies have their use for students when writing term papers, but this butcher’s choice of filet cuts provides a wholesome main course that will last a semester and provide pleasant memories for a lifetime.
Here you will find other postings at Economics in the Rear-view Mirror that offer material from courses in the history of economics.
Smith, Adam, Wealth of Nations, 1776, Book I, Chapters 1, 2, 3, 5, 6, 7, 8 (first 20 pages), 10 (first 17 pages); Book II, Chapter 3; Book IV, Chapters 1, 2, 8.
Malthus, T.R., An Essay on the Principle of Population, 1798, Pelican Edition, 1970, Introduction by Anthony Flew, Chapters 1-5, 18, 19.
Ricardo, David, On the Principles of Political Economy and Taxation, London, 1817, Chapters I-X, XIX-XXI, XXX-XXXI.
*Ricardo David, Notes on Malthus, Piero Sraffa, editor, Cambridge: Cambridge University Press, 1951, Editor’s Introduction and pp. 300-382.
Marx, Karl and Friedrich Engels, Manifesto of the Communist Party.
Marx, Karl, Capital (3 volumes), New York: International Publishing Company.
Volume II:Preface; Chapter 9; Chapter 16, Part 3; pp. 390-396 (Chapter 17, last 6 pages on Simple Reproduction); Chapter 20; pp. 576-9 (Chapter 21, I, Accumulation in Department 1 (1) formation of a hoard).
*Marx, Karl, A Critique of the Gotha Program, Moscow, Progress Publishers, 1937.
*On reserve at Firestone Library.
Source: Edward Tower (compiler). Economics Reading Lists, Course Outlines, Exams, Puzzles & Problems, Vol. 24. History of Economic Thought. Durham, NC: Eno River Press, August 1990, page 38.
_______________________
PRINCETON UNIVERSITY
Department of Economics
General Examination for the Degree of Doctor of Philosophy
History of Economic Thought
January 1987
Time: 3 hours
Distinguish the roles of the labor command and the labor content discussions of value in Adam Smith. What was Smith’s general model of the determination of long run exchange value under competition?
In terms of the formal Ricardian model, explain the consequences of elimination of a tariff on grain (corn) (a) in the short run; (b) in the long run.
(a) Explain why, in Marx’s view, profits under capitalism can be expected to decline with the passage of time. (b) Why did he reject Ricardo’s model leading to the same conclusion? (c) On what grounds has Marx’s model of the declining profit rate been criticized?
In one sentence each, characterize some of the main work of the following:
Jeremy Bentham
Frederick Bastiat
J.B. Clark
J. R. McCulloch
Enrico Barone
(for Arthur Moretti) Describe the logic of the Hayek business cycle model. What role is played by technological elements? by monetary elements? What is the pertinence of the “Ricardo effect?”
(for Kin Yip Louie) Explain the source of Marshall’s error in using consumers’ surplus to argue that increasing returns industries should be subsidized. Would the Hicksian analysis of the four consumers surpluses have helped ra avoid the error? Why or why not?
(for Susan Skeath [“Susan Skeath van Mulbregt”, Princeton Ph.D., 1989; Professor of Economics at Wellesley College]) Explain the role played by utility in J. S. Mill’s value theory. Does his utility concept lead him to particular policy conclusions? How do Mill’s views on the appropriate role of government differ from those of his classical predecessors?
(for Teow-Hock Koh [“Winston Teow-Hock Koh”, Princeton Ph.D., 1988; Professor at Singapore Management University; died 2013]) (To what extent does Malthus’ contradistinction to his analysis conclusions) structure anticipate the of the Keynesian model? In provide a answering this, summary of the workings of the pertinent parts the Keynesian analysis. What features of Marxian Theory overlap with the Keynesian model?
(for Vicente Morales) a) Describe any of the mathematical solutions to the transformation problem showing how prices and the rate of profit are related to values and the rate of surplus value. b) Explain Samuelson’s criticism of the entire analysis and Morishima’s reply.
Source: Edward Tower (compiler). Economics Reading Lists, Course Outlines, Exams, Puzzles & Problems, Vol. 24. History of Economic Thought. Durham, NC: Eno River Press, August 1990, pp. 266-267.
Image Source: Cropped from portrait of William J. Baumol in 1981 published in his obituary published in The New York Times, May 10, 2017.
The two items below (syllabus and final exam) were incorrectly filed in Lloyd A. Metzler’s papers at Duke. I accidentally stumbled upon both today and thought that rather than trusting my memory of the locations of the syllabus and final exam for Economics 370 in 1971, I’d just transcribe and post the two artifacts today. According to the biographical note below, Lloyd Metzler retired from the University of Chicago in 1971 so this must have indeed been the last time that he taught international monetary economics at Chicago.
__________________________
Biographical Note
Lloyd Appleton Metzler was born on April 3, 1913 in Lost Springs, Kansas. He attended the University of Kansas, where he studied economics under John Ise and earned a Bachelor’s degree in 1935 and an MBA in 1938. Metzler then entered Harvard University. He served as an instructor and tutor at Harvard and completed a Ph.D. in economics in 1942. His dissertation, “Interregional Income Generation,” earned him the Wells Prize. That same year, Metzler was the recipient of a Guggenheim fellowship.
From Harvard, Metzler went on to Washington, D.C., where worked for the Office of Strategic Services and several economic policy and planning commissions between 1943 and 1946. Metzler joined the research staff of the Board of Governors of the Federal Reserve System in 1944. In 1946 he returned to academia when he accepted a teaching position at Yale University. He soon left Yale for the University of Chicago in 1947, where he remained for the rest of his career.
Dr. Metzler survived surgery for a brain tumor in 1952, and with the help of his wife Edith, managed to continue teaching and writing for the next twenty years. He served as Editor of the Journal of Political Economy from 1966 until his retirement in 1971. Metzler made numerous contributions to business cycle literature, macro-monetary theory, tariff theory, mathematical economics, and the field of international trade. The Metzler paradox, Laursen-Metzler effect, and Metzler matrix, all bear his name. He died on October 26, 1980.
Monetary Aspects of International Trade
Major Topics and Reading List
Winter, 1971
Mechanism of the Foreign Exchange Market
Alan R. Holmes and Francis Schott, The New York Foreign Exchange Market. New York: The Federal Reserve Bank of New York, 1965, Chapters 1-6.
Frank A. Southard, Jr., Foreign Exchange Practice and Policy. New York: The McGraw-Hill Book Company, 1940.
Norman Crump, The ABC of the Foreign Exchange. London: MacMillan and Company, Ltd., 1951.
James E. Meade, The Theory of International Economic Policy: Vol. I. The Balance of Payments. London: Oxford University Press, 1951, Chapter 1.
The Quantity of Money, the Rate of Interest, and the Price Level
James Tobin, “The Monetary Policy and the Management of the Public Debt: The Patman Inquiry,” Review of Economics and Statistics, Vol. XXXV, No. 2, May 1953, pp. 118-27.
Subcommittee on General Credit Control and Debt Management of the Joint Committee on the Economic Report, Hearings on the Question, What Should our Monetary and Debt Management Policy Be? 82nd Congress of the United States 1952, pp. 688-711, 691-98. (These pages include the testimony of Milton Friedman and Paul Samuelson).
Robert V. Roosa, “Interest Rates and the Central Bank,” In Money, Trade, and Economic Growth, in honor of John Henry Williams, New York: The Macmillan Company, 1951.
Lloyd A. Metzler, “Wealth, Saving, and the Rate of Interest,” Journal of Political Economy, Vol. LIX, No. 2, April 1951, pp. 93-116.
Robert A. Mundell, “The Public Debt, Corporate Income Taxes, and the Rate of Interest,” Journal of Political Economy, Vol. LXVIII, No. 6, December 1960, pp. 622-26.
George Horwich, “Real Assets and the Theory of Interest,” Journal of Political Economy, Vol. LXX, No.2, April 1962, pp. 158-69.
Don Patinkin, Money, Interest, and Prices, 1st edition, Evanston: Row, Peterson and Company, 1956, Part II.
The Role of Money in International Adjustment: Full Employment and Under-Employment
J. M. Keynes, Treatise on Money: Vol. 1. The Pure Theory of Money. London: Macmillan and Company, 1935, Chapter 21.
Lloyd A. Metzler, “The Theory of International Trade,” from A Survey of Contemporary Economics, Howard S. Ellis, Editor, Homewood, Ill.: R.D. Irwin, Inc., 1948.
Lloyd A. Metzler, “The Process of International Adjustment Under Conditions of Full Employment: A Keynesian View,” first delivered before the Econometric Society, 1960, republished in AEA, Readings in International Economics, Vol. XI, Richard Caves and Harry Johnson, editors, Homewood, Ill.: R. D. Irwin, Inc., 1968, Chapter 28.
Free-Market Exchange Rates
A. J. Brown, “The Foreign Exchanges,” in Oxford Studies in the Price Mechanism, T. Wilson and P.W.S. Andrews, editors, Oxford at the Clarendon Press, 1951, Part II.
Sidney Alexander, “Effects of a Devaluation on a Trade Balance,” International Monetary Fund Staff Papers, Vol. Il, No. 2, April 1952.
Milton Friedman, “The Case for Flexible Exchange Rates,” in Essays in Positive Economics, Chicago: The University of Chicago Press, 1953, pp. 157-203.
Joan Robinson, “The Foreign Exchanges,” in Essays in the Theory of Employment. Oxford: Basil Blackwell, 1947, Part III.
Lloyd A. Metzler, “Exchange Rates and the International Monetary Fund,” in International Monetary Policies, Postwar Economic Studies, No. 7, Washington, D.C.: The Board of Governors of the Federal Reserve System, September 1947.
Rudolph R. Rhomberg. “A Model of the Canadian Economy under Fixed and Fluctuating Exchange Rates,” Journal of Political Economy, Vol. LXXII, No. 1, February 1964, pp. 1-31.
Forward Exchange Rates
Paul Einzig, The Theory of Forward Exchange. London: Macmillan and Company, Ltd., 1937.
Paul Einzig, A Dynamic Theory of Forward Exchang. London: Macmillan and Company, New York: St. Martin’s Press, 1961.
Alan R. Holmes and Francis Schott, The New York Foreign Exchange Market. New York: The Federal Reserve Bank of New York, 1965, Chapters 7-8.
Paul Einzig, “Some Recent Development in Official Forward Exchange Operations,” Economic Journal, Vol. LXXIII, No. 290, June 1963, pp. 241-53.
Paul Einzig, “Some Recent Changes in Forward Exchange Practices,” Economic Journal, Vol. LXX, No. 279, September 1960, pp. 485-95.
The Balance of Payments and the Concepts of Income
R. F. Bennett, “Significance of International Transactions in National Income,” in Studies in Income and Wealth, Vol. VI. New York: The National Bureau of Economic Research, 1943.
U. S. Department of Commerce, Income and Output, 1958 Supplement to the Survey of Current Business.
The Theory of Income Transfers
J. M. Keynes, “The Transfer Problem,” Economic Journal, Vol. XXXIX, No. 153, March 1929, pp. 1-7.
B. Ohlin, “The Reparation Problem: A Discussion. I. Transfer Difficulties, Real and Imagined,” Economic Journal, Vol. XXXIX, No. 154, June 1929, pp. 172-78.
J. M. Keynes. “The Reparation Problem: A Discussion. II. A Rejoinder,” Economic Journal, Vol. XXXIX, No. 154, June 1929, 179-82.
J. Rueff, “Mr. Keynes’ Views on the Transfer Problem,” Economic Journal, Vol. XXXIX, No. 155, September 1929, pp. 388-99.
B. Ohlin, “Rejoinder to J. Rueff,” Economic Journal, Vol. XXXIX, No. 155, September 1929, pp. 400-04.
J. M. Keynes, “Reply to J. Rueff,” Economic Journal, Vol. XXXIX, No. 155, September 1929, pp. 404-08.
L. A. Metzler, “The Transfer Problem Reconsidered,” Journal of Political Economy, Vol. L, No. 3, June 1942, pp. 397-414.
H. G. Johnson, “The Transfer Problem and Exchange Stability,” Journal of Political Economy, LXIV, No. 3, June 1956, pp. 212-25, Republished in International Trade and Economic Growth. London: George Allen and Unwin, Ltd., 1958, Chapter VII.
L. A. Metzler, “Flexible Exchange Rates, The Transfer Problem, and the Balanced-Budget Theorem,” Rivista Internazionale di Scienze Economiche e Commerciale, Anno XIII, No. 4, April 1966, pp. 301-18. Republished in Essays in Honor of Marco Fanno, Vol. II, Tullio Bagiotti, editor, edizioni cedam, Padova, 1966, pp. 449-76.
Evolution of the International Monetary System
Randall Hinshaw. Toward Currency Convertibility. Princeton University, Essays in International Finance, No. 31, 1958.
Robert Triffin, Europe and the Money Muddle, New Haven: Yale University Press, 1957.
Charles P. Kindleberger. The Dollar Shortage, Cambridge, Mass.: The Technology Press, New York: John Wiley and Sons, Inc., 1950.
Robert Triffin, “The International Monetary Position of the United States,” in The Dollar in Crisis, Seymour E. Harris, editor, New York: Harcourt, Brace and World, Inc., 1961.
Hal B. Lary, Problems of the United States as World Trader and Banker, Princeton: Princeton University Press for the National Bureau of Economic Research, 1963.
Robert Triffin, The Evolution of the International Monetary System: Historical Reappraisal and Future Perspectives. Princeton Studies in International Finance Section. Princeton University, 1964.
Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Lloyd Appleton Metzler Papers, Box 9, Folder “The Dust Proof File”.
__________________________
L. A. Metzler
ECONOMICS 370
FINAL EXAMINATION
WINTER, 1971
Answer all questions
It is frequently said that forward purchases and sales have a two-fold effect upon the assets and liabilities of the bank making the forward transactions. When a bank makes a forward purchase, for example, it is entitled to receive a given amount of foreign currency some time in the future and this right to receive foreign currency constitutes an asset. On the other hand, when the bank receives the foreign currency, it is obligated to pay a given amount of its own currency, and exchange, and this obligation constitutes a liability. Conversely, when the bank makes a forward sale, it is obligated to deliver a given amount of foreign currency some time in the future and such an obligation constitutes a liability. But when the bank delivers the foreign currency, it is entitled to receive a given quantity of domestic currency to complete the transaction, and this receipt constitutes an asset.
In view of the two-fold effect of both forward sales and purchases, how can you justify the inclusion of forward sales as liabilities and the inclusion of forward purchases as assets in an account of the bank’s foreign currency position?
If it is actually true that both sales and purchases increase assets and liabilities by the same amount, what does this imply with respect to the bank’s ability to put itself in a closed position by means of operations on the forward exchange market?
The table, below, presents the yield on 90-day Canadian treasury bills (rc), the yield on 90-day U.S. treasury bills (rus), the 90-day forward exchange rate (FR), and the spot exchange rate (SR) for Canadian currency. The yields for both Canadian and United States bills are stated on an annual basis and the exchange rates represent the price, in United States dollars, of one unit of Canadian dollars. The table covers various periods of time, from A to I.
Period of time
Yield on
90-day Canadian treasury bills (rc)
Yield on
90-day
U.S.
treasury bills (rus)
90-day forward exchange rate (FR)
Spot exchange rate (SR)
A
.05
.06
1.0100
1.000
B
.06
.05
1.0050
1.000
C
.06
.04
1.0025
1.000
D
.07
.03
0.9975
1.000
E
.05
.04
0.9900
1.000
F
.04
.05
0.9950
1.000
G
.02
.04
0.9975
1.000
H
.02
.06
1.0025
1.000
I
.01
.05
2.0050
2.000
On the basis of the information given in the table above, you are asked to:
Indicate which periods are periods of short-term potential capital outflow (O), and which periods are periods of short-term capital inflow (I) from the point of view of U.S. banks.
Prepare a table showing the profits or losses on security transactions, the profits or losses on currency transactions, and the net outflow or inflow margin for all time intervals from A to I.
Show what transactions a U.S. bank would make in carrying out a short term covered capital outflow and what transactions the bank would make in carrying out a short term capital inflow. From this information, show that arbitrage activities of the U.S. bank always influence rc, rus, FR, and SR in such a way as to put the market values back on the interest parity line.
Comment on the stabilizing effects of interest arbitrage.
Professor Alexander maintains that devaluation will be ineffective unless fiscal measures are taken to control spending.
Discuss Alexander’s argument.
Is it also applicable against a system of flexible exchange rates? Explain.
Country A and Country B are trading with each other under a system of flexible exchange rates. Country A makes a unilateral transfer of t currency units, payable in the currency of B. On the assumption that both countries balance their budgets, prove that factor income remains unchanged in both countries while net output rises in A and falls in B. Give both an algebraic and a commonsense explanation of these results. What bearing do these results have on the controversy between Keynes and Ohlin concerning German reparations?
The success of the Canadian experiment with flexible exchange rates is frequently given as an argument for the introduction of flexible exchange rates as a means of eliminating the deficit in the U.S. Balance of Payments.
Would Alexander’s absorption principle apply to this situation?
Can you see any reason why the comparison between Canada and the United States might be inappropriate?
Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Lloyd Appleton Metzler Papers, Box 9, Folder “Econ 371 [sic] Reading List.”
Source Image: Posting by Margie Metzler on the Metzler Family Tree at the genealogical website, ancestry.com.
For some reason, Paul Samuelson was asked to help out with the teaching of Edward H. Chamberlin’s graduate theory course during the 1956-57 academic year. In Paul Samuelson’s papers at Duke I was able to find a letter from the Harvard economics chair, Seymour Harris, confirming his appointment as “Visiting Professor” for co-teaching Economics 201. The actual “allocation of subject matter” between Chamberlin and Samuelson is not clear from Samuelson’s papers, nor from the course outlines. Since the second semester reading list only has Chamberlin’s name on it, it seems likely that Samuelson’s participation was limited to the first semester of the course. Because Robert Bishop’s manuscript on Economic Theory (taught to generations of M.I.T. graduate students) was included in the first section of the fall semester reading list and we find questions for a one hour mid-term exam in Samuelson’s folder for the course, I am led to conjecture that Samuelson taught most or all of the first half of the fall semester of the course. As we can see from the internal M.I.T. department teaching records included below, Paul Samuelson continued teaching his courses at “Tech” that year.
Perhaps a future trip to Duke University’s David M. Rubenstein Rare Book Manuscript Library to consult the Edward H. Chamberlin papers that were donated in 2019 will help to establish why Samuelson was needed at Harvard that year.
_________________________
Letter from Chairman Seymour Harris to Paul Samuelson
May 25, 1956
HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS
Office of the Chairman
M-8 Littauer Center
Cambridge 38, Massachusetts
May 25, 1956
Professor Paul A. Samuelson
Department of Economics and Social Science
Massachusetts Institute of Technology
Cambridge 39, Massachusetts
Dear Paul:
Economics 201 meets Tuesday, Thursday, and at the pleasure of the instructor Saturday at 10. It would be hard to change that hour because of the arrangement of other courses, and also because we must have the same hour for the second semester.
I hope that you would get together with Ed and discuss the allocation of subject matter. You can have [Richard] Gill as an assistant, and he would, I am sure, be willing to meet the class once a week when you think it necessary. You will find him a most adequate assistant.
I may add that the Dean has agreed to recommend your appointment as a Visiting Professor, which is an unusual appointment, for most appointments of this kind, inclusive of Tech, are Visiting Lecturers. This suggests the high regard in which we hold you.
Sincerely yours,
[signed] Sey
Seymour E. Harris
Chairman
SEH/c
cc: Professor Chamberlin
P.S. I hope you will remember to bring my article on Saturday and any comments.
Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Paul Samuelson, Box 33, Folder “Ec201 Harvard Course, 1955-1956 [sic]”.
_________________________
From the M.I.T. economics department records for 1955-56
Paul Samuelson was teaching full time 1956-57. He taught Economics and Industrial Management (14.117) and Mathematical Approach to Economics (14.151) in the fall semester and Economic Analysis (14.122) and Economics Seminar (14.192) in the Spring semester.
Source: M.I.T. Archives. M.I.T. Department of Economics Records, 1947—. Box 3, Folder “Teaching Responsibility”.
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Enrollment figures from Harvard President’s Report
[Economics] 201. Economic Theory. Professor Chamberlin and Professor Samuelson (Massachusetts Institute of Technology). Full course.
(F) Total 38: 26 Graduates, 2 Seniors, 1 Junior, 4 Radcliffe, 5 Others.
(S) Total 39: 27 Graduates, 2 Seniors, 1 Junior, 3 Radcliffe, 6 Others.
Economics 201
Economic Theory
Fall 1956
READING LIST
I. Supply, Demand, Revenue and Cost
Marshall, Principles (4th edition or later), Book III, Ch. 3, 4, 6
Mill, Principles, Book III, Ch. 1-6
Chamberlin, Theory of Monopolistic Competition, Ch. 2
Schultz, H., Theory and Measurement of Demand, pp. 5-12
Bishop, Economic Theory Ms., Book II, Ch. 1, 2, 3
Viner, Cost Curves and Supply Curves (1930), AFA or Clemence Readings
Robinson, Economics of Imperfect Competition, Ch. 2
Suggested:
Ricardo, Political Economy (Gonner Edition or Sraffa Edition), Chapter I
Mills’ Autobiography or the Introduction to the Ashley edition of the Principles
Jevons, Theory of Political Economy, Chapters 3, 4
Keynes, “Alfred Marshall,” Economic Journal, September 1924 (Also in Keynes, Essays in Biography)
II. Production and Consumption Analysis
A. Production and Cost
Chamberlin, Theory of Monopolistic Competition, Ch. 8, Appendix B
Knight, Risk, Uncertainty and Profit, pp. 94-109.
Stigler, Production and Distribution Theories, Introduction
Stigler, Theory of Price, Chs. 7, 8
Suggested:
Douglas, P. Theory of Wages
Hicks, Value and Capital, Chs. 6, 7
Carlson, Sune, Theory of Production
Cassels, J. H, “On the Law of Variable Proportions,” in Explorations in Economics, essays in honor of Taussig
Schneider, E., Pricing and Equilibrium
B. Utility and Consumption Theory
Hicks, Value and Capital, Chs. 1, 2, 3
Stigler, Theory of Price, Chs. 5, 6
III. Welfare Economics
Boulding, K., “Welfare Economics,” Survey of Contemporary Economics, Vol. II
Hicks, J.R., “Foundations of Welfare Economics,” Economic Journal, 1939
Pigou, A.C., Economics of Welfare, Preface, Part I., Chs. 3, 7, 8; Part II, Introductory, Ch. 9
Lerner, A. P., Economics of Control, Chs. 3, 5, 6, 7, 9
Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003”, Box 6, Folder “Economics, 1956-1957 (2 of 2)”.
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Economics 201
Hour Exam
November 3, 1956
Define “external” and “internal” economies. What do we mean when we say these economies are (a) “pecuniary,” (b) technological”? (10 min.)
What are the conditions of stable equilibrium of supply and demand as analyzed by (a) Walras and (b) Marshall? Explain the “apparent contradiction” between the Walrasian and Marshallian stability conditions. (20 min.)
In the “Ricardian increasing cost” case, as described by Viner, what would be the effect on price, output, and rent to the fixed factor, of a tax of “x” cents per unit of output? Illustrate graphically. (20 min.)
Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Paul Samuelson, Box 33, Folder “Ec201 Harvard Course, 1955-1956 [sic]”.
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1956-57
HARVARD UNIVERSITY Economics 201
Midyear examination. January, 1957.
Answer the first two (2) questions and any three (3) of the others. Be sure to allocate your time approximately as indicated.
(Forty-five minutes). Assume two individuals (who act as pure competitors) and two commodities. Given the “production-possibility” or “transformation” curve for each individual and also his indifference map, indicate graphically: a) the equilibrium price; b) the equilibrium quantities of each good produced by each individual; and c) the quantity of each good exchanged.
(Forty-five minutes). Discuss the scope and limitations of “Welfare Economics.” Illustrate your discussion with reference to one or two specific theoretical problems (e.g., the box-diagram).
(One-half hour). A production function relates product (Q) to two factors, labor (L) and capital (C). Distinguish the “three stages” for each factor, and give an interrelations among them in a) the case of constant returns to scale (homogeneous production function) and b) the general case.
(One-half hour). Distinguish “internal” and “external” economies and analyze the possibility of equilibrium under pure competition in each case.
(One-half hour). A monopolistic firm can buy labor and land at fixed prices but sells its output in an impurely-competitive market. Now let it be subject to a tax of $X per unit of its output. On the oversimplified assumption that the tax leaves its factor prices, the consumer demand for its product, and its production function unchanged, compare the new equilibrium of output, price, and factor hirings with the old.
(One-half hour). Define the “income” effect and “substitution” effect of a price change. Indicate, in terms of these effects, the likelihood of a) a backward-bending supply curve, and b) a positively-sloping demand curve.
Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001. Box 25. Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Naval Science, Air Science. January, 1957.
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A twitter prayer.
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Economics 201
Spring Term, 1956-57
Economic Theory—Professor Chamberlin
Triffin, Monopolistic Competition and General Equilibrium T-heory, pp. 78-108.
Hall and Hitch, “Price Theory and Business Behavior,” Oxford Economic Papers, No. 2 (1939). (Also in Oxford Studies in the Price Mechanism, T. Wilson, Editor).
Chamberlin, “‘Full Cost’ and Monopolistic Competition,” Economic Journal, May 1952.
_________, “The Product as an Economic Variable,” Quarterly Journal of Economics, February 1953.
Schumpeter, Theory of Economic Development, Chapters 1-4.
Suggested:
1. Readings, 27, 29.
Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003”, Box 6, Folder “Economics, 1956-1957 (2 of 2)”.
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HARVARD UNIVERSITY
Department of Economics
Economics 201
Final Examination
May, 1957
A. Choose two of the following questions, allowing one-half hour for each.
Write a brief article on the subject of “oligopoly” designed for an encyclopedia of the social sciences, and therefore to be consulted and used mainly by non-specialists in the subject. (Consider well your objective before you begin.)
Discuss excess capacity in the economy, its meaning and its compatibility with “equilibrium.” What are the chief forces tending (a) to bring about, and (b) to eliminate, excess capacity?
(a) Discuss the issues involved in distinguishing between production costs and selling costs, and defend your own conclusions. (b) Are selling outlays, like production outlays, subject to the law of diminishing returns? Discuss, and illustrate your conclusion graphically.
B. Choose four of the following questions, allowing one-half hour for each.
“It is inappropriate to say that the marginal productivity of a certain type of labor determines its wage; wages, like the prices of all economic goods, are determined by both supply and demand.” Discuss with particular reference to the role of supply factors in an adequate theory of wages.
Develop the role which you would give to either (a) monopoly, or (b) rent, in your own theory of wages.
“Waiting is certainly not an element of the economic process in a static state, because the circular flow, once established, leaves no gaps between outlay or productive effort and the satisfaction of wants. Both are, following Professor Clark’s conclusive expression, automatically synchronized.” Discuss the several aspects of this quotation.
Outline your own theory of land rent, with some critical discussion of writers with whom you are familiar. (Restrict your discussion to the problem of land income, without extending the analysis to other factors.)
Write on risk as an element in the theory of profits, choosing such subdivisions or aspects of the problem as seem to you most significant. In what respects, if at all, would you regard a risk theory of profits as inadequate?
Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001. Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Naval Science, Air Science. June, 1957. In bound volume Final Exams—Social Sciences—June 1957 (HUL 7000.28, 113 of 284).
This post is an experiment in transcription. The HOPE Center at Duke University has started recently to provide pdf scans of syllabi from Ed Tower’s Eno River Press collection and I wondered how easy it would be to use the text-recognition software in Adobe Acrobat Pro to extract digital versions of the syllabi. It turns out that at least for this initial attempt, tweaking and correction of the OCR text required considerably less blood, sweat and tears than a standard typed transcription would have.
Like other members of the greater community of historians of economics, I eagerly await further scans from the Tower volumes by the HOPE Center. From time to time, I’ll convert a scanned syllabus to add to the collection of digital material posted at Economics in the Rear-view Mirror. Links to the original scans will be provided whenever available.
The purpose of this course is to discuss some of the issues at the foundations of economics as a social science. It will cover topics like the following (the numbers behind the titles refer to the reading list):
— Economics as moral philosophy (1, 13, 15, 20).
— Welfare economics and political economy (2, 3, 4).
— Methodological and normative individualism (14, 22).
— Subjectivism and opportunity costs (9, 12, 30).
— Utilitarianism and contractarianism (5, 16, 18, 19, 24).
— Agreement in exchange, in politics and in science (10, 29).
— Liberty, voluntariness and efficiency (7, 26).
— Justice as fairness and distributive justice (6, 11, 21, 23, 24).
— Homo economicus, rational choice and rule-following (8, 25, 27).
— Economics and morality (17, 19, 28).
Organization:
The constituting meeting for this course will be held on January 23, 7:20 p.m., in room R 2600. The core part of this course will be taught during the two-weeks period February 19 through March 2 in the library of the center for Study of Public Choice, George’s Hall, from 8:30 a.m. to 11:00 a.m. (daily Mon. through Fri.).
Grading:
Grades will be determined on daily (one page) protocols during the ‘core-period’ and a longer (15-20 pages) paper on a subject to be chosen between student and instructor.
Reading List:
(A set of xerox-copies of the following titles will be available from Kinko’s Copies, University Mall).
Albert, Hans “Knowledge and Decision” chpt. 3 in H. Albert Treatise in Critical Reason Princeton University Press 1985, 71-101.
Buchanan, James M. “Social Choice, Democracy, and Free Markets” in Fiscal Theory and Political Economy Chapel Hill 1960, 75-89.
— , — “Positive Economics, Welfare Economics, and Political Economy” in Fiscal Theory and Political Economy Chapel Hill 1960, 105-124.
— , — “The Relevance of Pareto Optimality” in The Journal of Conflict Resolution 6, 1962, 341-354.
— , — “Marginal Notes on Reading Political Philosophy” in J. M. Buchanan and G. Tullock The Calculus of ConsentAnn Arbor 1965, 307-322.
— , -— “Notes on Justice in Contract” in Freedom in Constitutional Contract Texas A&M University Press 1977, 123-134.
— , — “Criteria for a Free Society: Definition, Diagnosis, and Prescription” in Freedom in Constitutional Contract Texas A&M University Press 1977, 287-299.
— , — “ls Economics the Science of Choice?” in What Should Economists Do? Liberty Press 1979, 39-63.
— , — “General Implications of Subjectivism in Economics” in What Should Economists Do?” Liberty Press 1979, 81-91.
— , — “The Potential for Tyranny in Politics as Science” in Liberty, Market and State New York University Press 1985, 40-54.
— , — “Rules for a Fair Game: Contractarian Notes on Distributive Justice” in Liberty, Market and State New York University Press 1985, 123-139.
— , — “L.S.E. Cost Theory in Retrospect” in Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987, 141-151.
— , — “Political Economy and Social Philosophy” in P. Koslowski, ed., Economics and Philosophy, Tuebingen 1985.
— , — “The Foundations for Normative Individualism” mimeographed, Center for Study of Public Choice.
Buchanan, James and Gordon Tullock “The Politics of the Good Society,” Chpt. 20 in The Calculus of ConsentAnn Arbor 1965, 297-306.
Gauthier, David “On the Refutation of Utilitarianism” in H B. Miller and W. H. Williams (eds.) The Limits of Utilitarianism University of Minnesota Press 1982, 144-163.
— , — “Maximization Constrained: The Rationality of Cooperation” in R. Campbell and L. Sowden (eds.) Paradoxes of Rationality and Cooperation Vancouver 1985, 75-93.
Hahn, Frank “On Some Difficulties of the Utilitarian Economist” in A. Sen and B. Williams (eds.) Utilitarianism and Beyond Cambridge University Press 1982, 187-198.
Harsanyi John C. ”Morality and Social Welfare” chpt. 4 in J. C. Harsanyi Rational Behavior and Bargaining Equilibrium in Games and Social Situations Cambridge University Press 1977, 48-64.
Hayek, Friedrich A. “Kinds of Rationalism” in F. A. Hayek Studies in Philosophy, Politics and Economics The University of Chicago Press 1967, 82-95.
— , — “The Atavism of Social Justice” in F. A. Hayek New Studies in Philosophy, Politics, Economics and the History of Ideas The University of Chicago Press 1978, 57-68.
Lachmann, Ludwig M. “Methodological Individualism and the Market Economy” in L. M. Lachmann Capital, Expectations, and the Market Process Kansas City 1977, 149-165.
Nozick, Robert “Distributive Justice” chpt. 7 in R. Nozick Anarchy, State, and Utopia New York 1974, 149-164 + 183-189.
Rawls, John “Justice as Fairness” chpt. 1 in J. Rawls A Theory of Justice Harvard University Press 1971, 3-27.
Sen, Amartya “Behaviour and the Concept of Preference” in J. Elster (ed.) Rational Choice Basil Blackwell 1986, 60-81.
Vanberg, Viktor “Individual Choice and Institutional Constraints – TheNormative Element in Classical and Contractarian Liberalism” in Analyse & Kritik Vol. 8, 1986, 113-149.
— , — “Rational Choice, Rule-Following and Institutions” mimeographed, Center for Study of Public Choice, 1989, 49pp.
Vanberg, Viktor and James M. Buchanan “Rational Choice and Moral Order” in Analyse & Kritik 10, 1988, 138-160.
Vanberg, Viktor and James M. Buchanan “Interests and Theories in Constitutional Choice” in Journal of Theoretical Politics 1, 1989, 49-62.
Wiseman, Jack “General Equilibrium or Market Process: An Evaluation” in J. Wiseman Cost, Choice and Political Economy Edward Elgar 1989, 213-233.
— , — Freedom in Constitutional Contract Texas A&M University Press 1977.
— , — Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987.
Gauthier, David Morals By Agreement Oxford: Clarendon Press 1986.
Gray, John Liberalism Open University Press 1986.
Hayek, Friedrich A. Law, Legislation and Liberty University of Chicago Press 1974, 1976, 1979 (three volumes).
— , — The Fatal Conceit — The Errors of Socialism London: Routledge 1988 (Vol. 1 of The Collected Works of Friedrich August Hayek).
Nozick, Robert Anarchy, State, and Utopia New York: Basic Books 1974.
Rawls, John A Theory of Justice Harvard University Press 1971.
Vanberg, Viktor Morality and Economics —De Moribus Est Disputandum, New Brunswick: Transaction Books 1988 (Social Philosophy and Policy Center, Original Papers No. 7).
I don’t remember how this particular course outline came into my possession during my graduate student days. I presume my sticky fingers together with an early manifestation of a propensity to hoard papers resulted in these four-pages finding their way into my files of teaching material. Now decades later, this applied microeconomics outline from Daniel McFadden’s first semester on the M.I.T. faculty is digitised. Only wish I had the eight problem sets too…
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14.03
APPLIED MICROECONOMICS
Daniel McFadden
Fall 1978
MWF 11-12
16-134
General Information:
14.03 is organized around a set of applied microeconomic problems. It is not a course in economic theory, but theoretical topics will be treated as they arise in the applications. Students are expected to know basic microeconomics as taught in 14.01 or another course at the level of R. Leftwich’s The Price System and Resource Allocation. Students are also expected to be able to use calculus with ease. The textbook for 14.03 is Microeconomic Theory: Basic Principles and Extensions, 2nd ed., by Walter Nicholson (Dryden Press, 1978). Various other readings will be assigned.
Problem sets will be handed out on Wednesday and will be due the following Wednesday in class. They will be graded and returned on Friday. Generally, Monday and Wednesday will be devoted to lectures, and Friday to discussion and review, including discussion of the answers to the problems. Every student is expected to complete every problem set within the allocated time. There will be three quizzes in class. Problem sets will account for 40% of the course grade, the quizzes for 30%, and the final for 30%.
I will be available in E52-274B on Wednesday afternoons, and by appointment at other times; my phone is 253-3378. Generally, you should take questions about problem sets and grading to the teaching assistant (his name will be announced later) and questions about the lectures to me.
The problems to be covered are:
the demand for energy,
the demand for air conditioners,
the supply of electricity,
the market for natural gas,
the market for automobiles,
pricing of tugboat services and the anti-trust law,
costs and risks of nuclear and non-nuclear energy development,
L. Taylor, “The demand for electricity: A survey,” BELL JOURNAL OF ECONOMICS 6 (Spring 1975), 74-110.
D. McFadden et al., “Determinants of the long-run demand for electricity,” PROCEEDINGS OF THE AMERICAN STATISTICAL ASSOCIATION,
A TIME TO CHOOSE, Energy Policy Project of the Ford Foundation (Ballinger, 1974), Chap. 5 and Appendices A, B.
The demand for air conditioners.
Lectures: Sept. 25, 27.
Discussion: Oct. 6.
Problem Set 2: out Sept. 27; due Oct. 4
Read:
J. Hausman, “Consumer choice of durables and energy demand,” MIT, mimeo., 1978.
A. Goett, “Appliance fuel choice: An application of discrete multivariate analysis,” manuscript, 1978.
The supply of electricity.
Lectures: Oct. 2, 4, 13, 16.
Discussion: Oct. 20.
Problem Set 3: out Oct. 11; due Oct. 18.
Read: Nicholson 7, 8, 9.
D. Pearl and J. Enos, “Engineering production functions and technological progress,” JOURNAL OF INDUSTRIAL ECONOICS 24 (1), (Sept. 1975), 55-72.
L. Wipf and D. Bowden, “Reliability of supply equations derived from production functions,” AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS 51 (February 1969), 170-78.
M. Nerlove, “Returns to scale in electricity supply,” in MEASUREMENT IN ECONOMICS, C. Christ (ed.), (Stanford Univ. Press, 1963), pp. 167-98.
T. Cowling, “Technical change and scale economies in an engineering production function: The case of steam electric power,” JOURNAL OF INDUSTRIAL ECONOMICS 23 (1974-75), 135-52.
The market for natural gas.
Lectures: Oct. 18, 23, 25.
Discussion: Oct. 27.
Problem Set 4: out Oct. 18; due Oct. 25.
Read: Nicholson, Part IV, Chap. 10, 11, 12, 13 (skim 14, 15, 16).
P. MacAvoy and R. Pindyck, “Alternative regulatory policies for dealing with the natural gas shortage,” BELL JOURNAL OF ECONOMICS 4 (Autumn 1973), 454-98.
R. Hall and R. Pindyck, “The conflicting goals of national energy policy,” PUBLIC INTEREST 47 (Spring 1977), 3-15.
The market for automobiles.
Lectures: Oct. 30, Nov. 3.
Discussion: Nov. 10.
Problem Set 5: out Nov. 1; due Nov. 8.
Read: Nicholson 17.
G. Akerlof, “The market for ‘lemons’: Qualitative uncertainty and the market mechanism,” QUARTERLY JOURNAL OF ECONOMICS 84 (1970), 488-500.
Z. Griliches, PRICE INDICES AND QUALITY CHANGE (Harvard, 1971), Introduction and Chap. 3.
R. P. Smith, CONSUMER DEMAND FOR CARS IN THE USA (Cambridge, 1975), pp. 1-88.
Pricing of tugboat services and the anti-trust law.
Lectures: Nov. 6, 8.
Discussion: Nov. 17.
Problem Set 6: out Nov. 8; due Nov. 15.
Read: Nicholson 18, 19, 20.
P. Areeda and D. Turner, “Predatory pricing and related practices…,” HARVARD LAW REVIEW 88 (1975), 697-733.
F. Scherer et al., “Predatory pricing and the Sherman Act, “ HARVARD LAW REVIEW 89 (1976), 868-902.
D. McFadden and R. Palmer, “The economic foundation for liability and damages from predatory pricing,” manuscript, 1978.
S. Goldman, “Industrial concentration and economic welfare: Some theoretical observations,” Working Paper IP-251 in Economic Theory and Econometrics, Berkeley, October 1977.
Benefits and risks of nuclear and non-nuclear energy development.
Lectures: Nov. 15, 20, 22.
Discussion: Nov. 27.
Problem Set 7: out Nov. 15; due Nov. 22.
Read: Nicholson 6, 18, 19, 20.
S. Rosen and Thaylor, reference to be supplied.
A. Tversky, SCIENCE 185 (Sept. 27, 1974), 1124-31.
Joel Yellen, “The nuclear regulatory commission’s reactor safety study,” BELL JOURNAL OF ECONOMICS 7 (1) (Spring 1976), 317-39.
Public investment in transportation.
Lectures: Dec. 1, 4, 6, 11.
Discussion: Dec. 8.
Problem Set 8: out Nov. 29; due Dec. 6.
Read: Nicholson 21, 22, 23.
D. McFadden, “Revealed preferences of a government bureaucracy: Theory,” BELL JOURNAL OF ECONOMICS 6 (Autumn 1975), 401-16.
D. McFadden, “Criteria for public investment,” JOURNAL OF POLITICAL ECONOMY 80 (1972), 1295-1305.
T. Keeler et al., THE FULL COSTS OF URBAN TRANSPORT,
M. Webber, “The BART experience—What have we learned,” PUBLIC INTEREST 45 (Fall 1976), 79-108.
Judging by the following syllabus, the entry level graduate course for economic theory at Columbia sixty years ago seems to have been pitched no higher than the level of an undergraduate intermediate economic theory of today.
The syllabus transcribed for this post comes from William Vickrey’s papers in the Columbia University Archives. We can see there was a deviation from the originally announced announcement with the addition of Paul Wonnacott (a recent Princeton PhD) to co-teach with the department chairman Albert G. Hart. It is not clear what is meant below that Vickrey teaches “a reverse section” to start in January 1960, though I suspect it meant that the sequence could either be taken with Hart [first semester (101) then second semester (102)] or the sequence could be taked lagged one semester with Vickrey [second semester (101) then first semester of the following year (102)].
I will be going back into my files to see if I can find Hart’s 102 syllabus for 1960.
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From Course Announcements 1959-60
Economics 101-102. Economic Analysis
Sec 1: Professor [Albert G.] Hart. (3) ThTh 11.
Sec 2: Professor [William] Vickrey. (3) TuTh 4:10.
May be taken only for E credit [“examination credit” where course requirements include a final examination or paper with a recorded letter grade (A,B,C,D or Pass).]. Students who have not completed Economics 101 are admitted to 102 only with the instructor’s permission.
Detailed analysis of the reactions of producing units (firms) and consuming units (households); determination through the market of resource allocation, outputs, prices, and incomes; capital and interest; theories of general equilibrium (Walrasian and Kenesian); introduction to “dynamics.”
Economics 105-106. Economic Analysis
Professor [Gary] Becker. (3) Tu Thu 11.
Prerequisite: the instructor’s permission. The course may be taken only for E credit.
Topics noted under Economics 101-102, treated at a more advanced level.
Source:The Graduate Faculties 1959-1960 in the Columbia University Bulletin, Series 59, Number 19 (May 9, 1959), p. 40.
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Reading list for Hart and Wonnacott
ECONOMICS 101
AUTUMN 1959
Meetings:
Regular: M.W., 11 AM: 710 Business
Third hour (Rooms to be arranged):
(1) Th. 10 AM
(2) Th. 1 PM
Instructors:
A.G. Hart, 503 Fayerweather
P. [Paul] Wonnacott, 513 Fayerweather
For “reverse section” starting January 1960: W. Vickrey
Textbooks:
Each member of the course should own one of the following texts, and arrange loans back and forth with other students:
A. W. Stonier & D.C. Hague, Textbook of Economic Theory (2d ed., London, Longmans Green, 1957)
Chapters 1-8 are first-semester material.
G.J. Stigler, Theory of Price (Revised ed., New York, Macmillan, 1952)
Chapters 1-10 and 12 are first-semester material.
K.E. Boulding, Economic Analysis (3rd ed., New York, Harper, 1955)
Chapters 26-29 and 36 are first-semester material.
An optional item is the mimeographed BASIC MATHEMATICS OF ECONOMIC QUANTITIES (Economics Department office, $1.00).
In addition, each student’s working library should come to include some of the following:
J.M. Henderson and R.E. Quandt, Microeconomic Theory (New York: McGraw-Hill, 1958): mathematical.
J.R. Hicks, Value and Capital (Oxford: Clarendon Press; 2nd ed. 1946)
A. Marshall, Principles of Economics (8th ed., London: Macmillan, 1920)
G.J. Stigler & K.E. Boulding, Readings in Price Theory (Chicago: Irwin, 1952)
* * * * * * * * * * * * * * *
AGH/PW/8/27/59
[Economics] 101
Autumn 1959
INTRODUCTION
Sept. 28, 30. LOGIC OF SUPPLY-AND-DEMAND MODELS
Stonier & Hague, ch. 1-2 (pp. 9-33).
Stigler, ch. 1-2 (pp. 1-19).
E.J. Working, “What Do Statistical ‘Demand Curves’ Show?” in Readings in Price Theory, pp. 97-115.
ad lib. Henderson & Quandt, ch. 1 (pp. 1-5).
Oct. 2. Math short course: Quantitative concepts and their dimensions.
THE FIRM AND THE MARSHALLIAN INDUSTRY
Oct. 5, 7. SHORT-RUN AND LONG-RUN COST CURVES AND THE FIRM’S SUPPLY SCHEDULE
l Stonier & Hague, ch. 5 (pp. 87-122).
Stigler, ch. 7-8 (pp. 111-146); note that discussion is intermingled with that of the next topic.
Boulding, ch. 27 (note references to preceding chapters which have not been discussed in this course).
* * * * * * * * * *
J. Viner, “Cost Curves and Supply Curves” in Readings in Price Theory, pp. 198-232.
H. Staehle, “Measurement of Statistical Cost Functions” in Readings in Price Theory, pp. 264-79.
Oct. 9. Math short course: Charts, tables and functions.
H.S. Ellis & W. Fellner, “External Economies and Diseconomies” in Readings in Price Theory, pp. 242-63.
ad lib. Henderson & Quandt, ch. 3 (pp. 42-84).
Oct. 16. Math short course: Simple analytical networks.
Oct. 19, 21. COMPETITIVE EQUILIBRIUM.
l Stonier & Hague, ch. 6-7 (pp. 123-61).
Stigler, ch. 9-10 (pp. 148-86).
Oct. 23. Math short course: Maxima and derivatives.
Oct. 26, 28. COMPETITIVE EQUILIBRIUM, continued.
Marshall, Book V, ch. 1-5 (pp. 323-80).
ad lib. Henderson & Quandt, ch. 4 (pp. 85-125).
Oct. 30. Math short course: Maxima and derivatives, continued.
Nov. 2,4. MONOPOLY.
l Stonier & Hague, ch. 8 (pp. 162-81).
Stigler, ch. 12 (pp. 204-21).
Boulding, ch. 29 (pp. 605-27).
* * * * * * * * * *
Marshall, bk. V, ch. 14 (pp. 477-95).
Chamberlin, ch. 1-2 (pp. 3-29).
Robinson, ch. 3 (pp. 47-59: note references to preceding chapter on “the geometry”).
Robinson, ch. 15-16 (pp. 179-208).
ad lib. J.R. Hicks, “Theory of Monopoly” in Readings in Price Theory, pp. 361-83.
Nov. 6. Math short course: compound analytical networks.
Nov. 9, 11. HORIZONTAL AND VERTICAL LINKAGES OF MARKETS.
Marshall, Book V, ch. 6 (pp. 381-93).
Nov. 16. “MARGINALISM” AND THE FIRM.
R.L. Halland & C.J. Hitch, “Price Theory & Business Behavior” in T. Wilson (ed.) Oxford Studies in the Price Mechanism, pp. 107-38.
F. Machlup, “Marginal Analysis and Empirical Research”, American Economic Review, Sept. 1946 (pp. 521-54).
Nov. 18. Midterm hour exam.
THE HOUSEHOLD, AND MARKETS INVOLVING CONSUMERS.
Nov. 23, 25, 30. PREFERENCE AND UTILITY.
Stonier & Hague, ch. 2-4 (pp. 34-86).
Stigler, ch. 5 (pp. 68-93).
Boulding, ch. 32 (pp. 680-701), 36 (pp. 787-809).
Hicks, Value & Capital, ch. 1-2 (pp. 11-37).
Marshall, Book 3, ch. 1-5 (pp. 83-123).
ad lib. Henderson & Quandt, ch. 2 (pp. 6-41).
ad lib. S.W. Rousseas and A.G. Hart, “Experimental Verification of a Composite Indifference Map”, Journal of Political Economy, Aug. 1951 (pp. 288-318).
Dec. 2, 7, 9. INDIVIDUAL AND MARKET DEMAND FUNCTIONS.
Stigler, ch. 4 (pp. 42-66).
Hicks, Value & Capital, ch. 3 (pp. 42-52).
J.S. Duesenberry, Income, Saving and the Theory of Consumer Behavior, ch. 5 (pp. 69-92); ad lib. ch. 2 (pp. 6-16), 6 (pp. 93-110).
Dec. 16, 18. CONSUMER SURPLUS & INDEX NUMBERS.
Marshall, Book III, ch. 6 (pp. 124-37).
Hicks, Value & Capital, pp. 38-41.
Hicks, Revision of Demand Theory, pp. 95-106.
A.P. Lerner, “Note on the Theory of Price Index Numbers” in Essays in Economic Analysis (pp. 152-63).
Source: Columbia University Rare Book & Manuscript Library. William Vickrey Papers, Box 35. Folder 630, “Columbia/Economics 101 Course 1954-1959, n.d.”
