“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.
Source: Harvard University, Faculty of Arts and Sciences. Courses of Instruction for Harvard and Radcliffe, 1962-1963, p. 106.
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Fall, 1962
HARVARD UNIVERSITY
Department of Economics
Economics 241
READING LIST NO. 1
TEXTS
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)”.