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LSE Suggested Reading

LSE. Literature list for Economic Analysis. Hayek, 1942.

 

From today’s perspective one doesn’t usually think of Friedrich von Hayek as someone who would be seen swimming in contemporary conventional economic theory. Thus some visitors will be surprised to learn that in the Hayek Papers at the Hoover Institution Archives, one finds a year’s worth of handwritten lecture notes for Hayek’s three term sequence Economic Analysis I (Michaelmas term, 1942), Economic Analysis II (Lent Term, 1943)Economic Analysis III (Summer Term 1943) at LSE that covered conventional consumer and producer theory along with the apparatus of indifference curves, cost curves, Edgeworth-Bowley boxes and imperfect competition theory à la Joan Robinson. There was a war on, and I presume someone just had to cover the core theory course after all.

Hayek’s courses in 1942 were taught to a joint LSE/Cambridge class at Cambridge University. Pigou and Lewis also taught combined LSE/Cambridge courses during the war. [Tip of the hat to Tweetster @FriedrichHayek for this paragraph]

Perhaps someday, some kind person will transcribe those lecture notes for us. For now, I think it suffices to pluck the two pages of literature that would appear to have been discussed in Hayek’s second lecture of the first term. Links to all items have been included (warning: the links to Hicks-Allen Economica, 1934 are to jstor.org) .

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Literature

Assume that you are all familiar with an introductory text like

F. Benham, Economics 1939 [3rd edition 1943]
now also J. R. Hicks, The Social Framework 1942

Shall confine myself to literature on general theory and for non-specialists—specialists will have to master at least this in their first year.

Circulate more comprehensive mimeographed list.

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Alfred Marshall, Principles of Economics 1890! Though fifty years old still the only comprehensive system and in parts still indispensable[,] particularly books III, V, and VI  [8th edition, 1920]

No similar modern survey—of the recent textbooks of the required standard

Relatively the best the American

A. L. Meyers, Elements of Modern Economics 1937—though not quite high enough. [3rd edition, 1948]

The best English work[.]

L. Robbins, The Nature and Significance of Economic Science 2nd ed. 1935.
J. R. Hicks, Value and Capital, 1939, chapters 1-VIII (at least I, II, VI)

Absolutely indispensable [Value and Capital]the later parts probably too difficult except for specialists some may find the first part of the article by J.R. Hicks and R.G.D. Allen, A re-consideration of the theory of value[,] Economica [1934, Part I ; Part II] an easier exposition of the same subject as in[replaced with a short, illegible word] the first chapters of the book although different terminology may be confusing.

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Not absolutely essential, but very strongly to be recommended in general theory are

K. Wicksell, Lectures on Political Economy, vol. I. 1934 One of the most intelligent modern books, combining the Austrian and Walrasian approach.
F. H. Knight, Risk, Uncertainty and Profit 1921 (L.S.E. Reprints) Chapters I-VI

For those who find these difficult and want something easier to introduction to modern theory

Wicksteed, The Common Sense of Political Economy, vol. I
Which I hope some of you have read in their first year.

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To return to the essential books.

J. Robinson, The Economics of Imperfect Competition 1933 at least chapters II, IV, XV

The theoretical parts of

G. Haberler, The Theory of International Trade 1936 (not only for the special topics of International Trade but as one of the best exercises in applying the instruments of theory—and for the same reason, if you can spare the time, also the theoretical chapters of

J. Viner, Studies in the Theory of International Trade 1939)

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For Money, Fluctuations, and the whole applied side refer to printed list
Remember bibliographies in old School Calendar
[I] shall give references on special topics as I proceed.

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Those I have called “essential” you had better read as the course proceeds—the “recommended” ones you might save for next year

Also Pigou, Economics of Welfare 4th ed. 1932 at least parts II & III

Those who have a taste for a very rigorous treatment of central problem also his Economics of Stationary States

Gloss on mathematics [I] shall confine myself to geometry

Those who like algebraic treatment will find R.G.D. Allen, Mathematical Analysis for Economists, 1938 useful.

 

Source:  Hoover Institution Archives.  Papers of Friedrich A. von Hayek. Box 112, Folder 11 (Lectures, LSE, 1942. Economic Analysis I).

Image Source: Mises Institute Website. “Tribute to F.A. von Hayek ” by Ludwig von Mises (May 24, 1962).