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Harvard. Annual report on the department of economics. Dunlop, 1961-1962

An overview of the annual comings and goings of a department are typically chronicled in a report prepared by the department chair. Such low circulation documents are sometimes targeted to a specific readership, e.g. a visiting committee, a dean, the alumni, but the report transcribed in this post for the Harvard economics department in 1961-62 does not appear to have had a particular audience in mind.

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About  Chairman John T. Dunlop
(Harvard Album, 1960)

Sallying forth from an office in the farther reaches of Littauer to Washington, D.C., JOHN THOMAS DUNLOP, Professor of Economics and faculty member in the Graduate School of Public Administration, is certainly one of the university’s most travelled professors. Dunlop, a labor expert, teaches an undergraduate course on unionism and public policy applying to labor relations and problems; in the grad school he conducts two seminars, in one of which he had worked closely with the late Professor Slichter. But in addition to his teaching, Professor Dunlop is one of the country’s leading strike arbitrators, and he figures that he travels in the vicinity of 150,000 miles a year on this outside work. The occasion for a weekly trip to the nation’s capital is his post as the impartial chairman of a joint committee in the construction industry, comprising representatives of the eighteen major unions and contracting firms. In this position Professor Dunlop must mediate disputes between the union and management. He is also a permanent umpire for the women’s garment industry and in the past has served in similar capacities for the brass companies of Connecticut and the bituminous coal producers. The dispute in 1955 involving the complexities of the ratio of required conductors to the length of a freight train called him back to the role of mediator, following a long term with the Atomic Energy Labor panel. At present he edits the Wertheim series on the histories of various big corporations and unions, and he also administers a Ford Foundation grant to study the functionings of labor and management in the underdeveloped countries of Asia.

Professor Dunlop was born in the Forty-Niner gold region and graduated from the University of California in 1935. He has been with Harvard since 1938, when he joined the faculty as an instructor. He gets back to California at least once a year, and the last time he returned he did so by travelling eastward via Indonesia. Professor Dunlop lives in Belmont, and, when not compiling mileage, he devotes his time to his wife and three children, and concentrates on his tennis game.

Source: The Harvard Album, 1960, p. 29.

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Previously posted departmental reports

Department Reports to the Dean (1932-41)
Department Reports to the Dean (1942-1946)
Department Reports to the Dean (1947-1950)
Department Report to the Dean (1955-56)
Department Newsletter (June 1960)

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June 26, 1962

Report
Department of Economics, 1961-1962

1. Staff

Professor Gerschenkron was Taussig Research Professor for the year, and Professor Albert J. Meyer, lecturer in the Department, was also on leave. Professor Galbraith and Kaysen continued on leave in government appointments. During the spring term Professor Harris was on sabbatical leave; Professor Bergson held a Ford Faculty Research Fellowship, and Professor Leontief was Visiting Professor at the College du France, Paris. Assistant Professors Gill and Vanek were also on leave throughout the year.

As a consequence of the number of senior members on leave, the Department included this year a relatively large number of visiting professors and lecturers. Professor Jesse Markham of Princeton University taught the courses in industrial organization; Dr. Frank Spooner was in charge of economic history; Professor William H. Nicholls of Vanderbilt instructed in agriculture and economic development. Professor Jacob Viner was Taussig Research Professor, and while he taught no courses, we were delighted to have him with us for the year. Professor Schmookler of Minnesota was associated with the science and public policy seminar of the Littauer School, and was a visiting lecturer in the Department. In addition, Professor Domar of M.I.T. taught a course in the Soviet economy in the spring term. Mr. Langley gave courses ordinarily taught by Professor A.J. Meyer, and Professor Caleb Smith of Brown University continued to teach the accounting course.

2. New Appointments

       The Executive Committee unanimously recommended the appointment of Professor Richard Caves as a permanent addition to the Department. Following the established procedures, the governing boards on May 14, 1962 voted his appointment as Professor of Economics effective July 1, 1962. Professor Caves completed his Ph.D. degree in the Department in 1958 and has been on the staff at the University of California (Berkeley) since 1957. He has been vice-chairman of the Berkeley Department. The appointment of Professor Caves will materially strengthen the Harvard Department, particularly in the fields of international trade and industrial organization. Moreover, he is regarded as an excellent undergraduate teacher.

       The Department unanimously recommended and the President and governing boards approved the appointment of four new assistant professors starting July 1, 1962: Clopper Almon, Jr., Elliot Berg, Phoebus Dhrymes, and Thomas Wilson. It is planned that these assistant professors in the Department will devote part time to research and be paid in part from research budgets. Such arrangements, combined with the higher salary scales starting July 1, 1962, should facilitate the recruitment of first rate assistant professors; it has often been difficult in the past to fill this rank in this Department.

       In approving these four appointments on March 5, 1962, President Pusey stated:

“It is my understanding that these four new Assistant Professors will devote part of their five-year tenure to special research projects and that an appropriate fraction of their salaries during these periods will be charged against the project budgets. I approve in principle the idea of experimenting in this way with charging portions of the salaries of assistant professors to grants or contracts, provided these grants or contracts are of sufficient duration to avoid the danger of funds running out when there are still large salary commitments in excess of our normal academic salary budget. Thus I feel that we should move with caution in this direction, treating the above appointments as experimental, and waiting for the results to become apparent before venturing further along this road.”

3. Chair in Modern China Studies and Economics

       The primary responsibility for filling this chair has now been placed in the Department of Economics. After a series of conferences with the East Asia Research Center of Harvard University, President Pusey approved the arrangements under which the Department will seek a permanent appointment competent in Economics and with a command of the Chinese language. In the meanwhile, the Department is to be responsible for providing some instruction on term appointments in the field and is to have the use of the income of the endowment for such instruction and to develop promising scholars in this field.

       Professor Kuznets is to be Chairman of the Committee of the Department to seek appropriate appointments. It is expected that Mr. Dwight Perkins, a graduate student in the Department, will provide a half course of instruction on the Economy of China in the spring term, 1963.

4. Undergraduate Program

       The enrollment in the undergraduate courses in the Department has grown in the last several years. The aggregate enrollment in undergraduate courses was 926 in the fall of 1959 and 1375 in the fall of 1961; the aggregate enrollment was 1080 in the spring term of 1960 and 1281 in the spring of 1962. These figures include the enrollment in Economics 1 which averaged 540 in 1959 and 628 in 1962. It is thought that these increases in part reflect the reorganization of the undergraduate program placed into effect in the fall of 1960 following several years of work on the part of the committee on undergraduate instruction. The division of full year courses into half year courses, the arrangement of courses into four groups according to prerequisites and level of difficulty, the lectures in Economics 1 and the addition to the curriculum of a few new courses is thought to have stimulated enrollment.

       Despite the increases in enrollment in undergraduate courses, the Department faces a serious continuing problem to maintain and to increase the number of concentrators in the field. The percentage of all concentrators who elect the field of Economics has declined from 7.7 percent in 1956-57 to 6.0 percent in 1960-61. The low concentration in Economics at Radcliffe is of particular concern to the Department, and conferences seeking to increase interest among the students have been held with President Bunting and other members of the Radcliffe staff.

       In order to improve the quality of our instruction, Economics 98 (junior tutorial) is to be reorganized. The adoption of the Gill plan by the Faculty materially increased the number of students in Economics 98 from 40 or 50 to more than 80. The instruction in economic theory by lectures has proven to be inappropriate with the larger group. Next year, 1962-63, it is planned to divide the group into three or four seminars, each of approximately 20 students; each seminar is to be under the direction of a senior member of the Department or an assistant professor. In addition, tutorial groups of four or five students will meet with individual tutors. Professor Caves has been given overall responsibility for this important part of the undergraduate program.

5. Graduate Instruction

       There was a total of 48 first year graduate students in the Department this year including 5 women and 3 enrolled through Littauer. There were 88 continuing graduate students including 6 women, 6 from Littauer, and 2 in joint degrees, for a total of 136 graduate students; in addition, the Department had 10 special students and 10 special auditors. A total of 21 Ph.D. degrees were awarded to students in the Department of Economics.

       The competition for places in the graduate schools for work in the Department of Economics has grown more severe in recent years. From the more than 260 applications for admission to the Graduate School of Arts and Sciences received in the spring of 1962, there will only be about 45 new graduate students in the fall of 1962. Almost half of these students will be from outside the United States and Canada. For the fall of 1962 we have been able to obtain the admission of 8 out of the first 10 on our list, a considerably higher fraction than in recent years.

       The Department faces strong conflicting pressures in making decisions on the number of new graduate students to be admitted. On the one hand, the Department is anxious to provide individual instruction particularly after the first year of graduate study for the highest quality students. A greater enrollment would also complicate materially the teaching of the required graduate courses in economic history, statistics and theory, and after a point would require further manpower so that two senior members of the Department might give parallel courses or sections. On the other hand, the Department is anxious to make its contribution to the increased demands for economists particularly for developing countries. Moreover the quality of a number of the students rejected for admission (perhaps as many as 15 to 20) appears to be very good. In the selection of students from abroad it is particularly difficult to know whether one has made the best selections. When students are admitted whose records turn out to be poor, there are often many complications for both the student and the University. The Department has spent considerable energy in reviewing the records of students admitted during the past decade; a careful statistical study was made under the direction of Professor Houthakker. The Department is continuing to seek to improve admission procedures.

         Financial resources available to the Department for its own use for scholarships and fellowships is a serious problem since the money made available by the generous gift of Mr. Roger Kyes has now been exhausted.

6. Organization of the Department

The Department now performs much of its routine business through committees. The two major committees are on Undergraduate Instruction under Professor Eckstein and on Graduate Instruction under Professor Dorfman.

7. Research

         A very large amount of research activity is carried out by members of the Department of Economics. In addition to individual research by senior members, an increasing number of research projects which employ a number of graduate students and junior staff are being conducted under the direction of senior members. These research projects often provide opportunities for training of graduate students in research methods and afford topics and financing for Ph.D. dissertations.

         Among these research projects with financial support are the following:

Professor Leontief Harvard Economic Research Project which has recently been refinanced for a period of years.
Professor Mason The relations of government and business in economic development.
Professor Mason and Dr. Papanek Overseas operations and training
(Center for International Affairs)
Professor Kuznets Economic growth
Professor Eckstein Economics of public expenditures
Professor Houthakker Forecasting consumers’ expenditures
Professor Harris Education and Public Policy
Professor Schelling Defense studies and Experimental Study of Bargaining
Professor Dunlop Labor-Management History and Economics of Medical Care
Professor Duesenberry Capital Markets
Professor Meyer Business Decisions
Professor Bergson Soviet Economics
Professor Gerschenkron Economic History Workshop

8. Public and Professional Activities

         A number of members of the Department were engaged in a wide variety of professional activities and public service during the year. A few instances may be of interest; no attempt is made for a complete listing.

         The president of the American Economic Association comes from this Department two years in a row. Professor Mason is president for 1962, and Professor Haberler is president-elect.

         Professor Leontief was chairman of the International Conference on Input-Output Techniques held in Geneva, Switzerland in September 1961 and sponsored by the Harvard Economic Research Project in association with the U.S.[sic] Secretariat. He was also a member of the Commission of Experts for the United Nations which reported on the Social and Economic Consequences of Disarmament.

         Professor Dorfman served as a member of the President’s Scientific Advisory Committee team on Waterlogging and Salinity in West Pakistan. He is also a member of the President’s Committee to Appraise Employment and Unemployment Statistics.

         Professor Harris is serving as Economic Advisor to the Secretary of the Treasury and is a member of the Public Advisory Board of the Area Redevelopment Program.

         Professor John R. Meyer served as a consultant in connection with the President’s message on Transportation Policy.

         Professor Kuznets is Chairman of the Committee on the Economy of China of the Social Science Research Council.

         Professor Bergson is a member of this same Committee and chairman of the Joint Committee of Slavic Studies of the Social Science Research Council and the American Council of Learned Societies. His study, The Real National Income of Soviet Russia Since 1928, was published in 1961 by the Harvard University Press.

         Professor Mason is Chairman, Advisory Committee, A.I.D.

         Professors Duesenberry, Eckstein and Smithies have been consultants to the Council of Economic Advisors. Professor Duesenberry was on the staff of the Commission on Money and Credit and was chairman of the Joint Economic Committee’s Inventory Study Committee.

         Professor Schelling has been a consultant to the Department of Defense and to the Scientific Advisory Board of the Air Force. His study Strategy of Arms Control (with Morton J. Halperin), was published by the Twentieth Century Fund in 1961.

         Professor Houthakker has worked on revenue forecasting problems for the Department of the Treasury.

         Professor Dunlop was a member of the Presidential Railroad Commission (1960-1962), and is a member of the President’s Missile Sites Labor Commission. He was Chairman of the International Conference on Labor Productivity under the auspices of the International Economic Association held August-September 1961.

9. Visiting Committee

         A series of meetings this year with the Chairman of the Visiting Committee, and others of its members, have improved the relations between the Visiting Committee and the Department of Economics. I believe these new attitudes are reflected in the annual report of the Committee. There is a genuine desire on the part of both the Department and the Committee for a constructive relationship.

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John T. Dunlop
Chairman

Source: Duke University. Economists’ Papers Archive. David M. Rubenstein Rare Book & Manuscript Library. Edward H. Chamberlin Papers, Box 17, Folder “Economics Department 1960-62”.

Image Source: The Harvard Class Album 1960, p. 29.

Categories
Economist Market Economists Harvard

Harvard. Haberler pushes hiring Caves rather than Chenery or Arrow in 1961

 

Economics in the Rear-view Mirror has already posted two artifacts revealing Gottfried Haberler’s unfiltered opinions of other economists that he put into writing.

re: John Kenneth Galbraith vs. Paul Samuelson
re: Samuel Bowles

In my reading of the memo transcribed below I get the sense that Haberler was not shy of overstating his case for the  appointment of Richard Caves by diminishing Arrow’s virtues: “I cannot help feeling that some of his [Arrow’s] work is fanciful and esoteric in the extreme and its chance of survival is very low.”

Personal note: I once paid my Yale mentor William Fellner a courtesy call when he was a resident scholar at the American Enterprise Institute in Washington, D.C. in the 1970s. Fellner was a lunch-buddy of Gottfried Haberler and he invited me to join the two of them for lunch at the Mayflower Hotel. I confess (with a combination of understanding for myself and shame) that I hadn’t a clue who the frail old man wolfing down his lunch across the table from me was and he displayed no interest in conversation with me either. And now here I sit, posting a 63 year old Haberler memo for the historical record.

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All three were eventually given
Harvard professorships anyway

Kenneth Arrow (1951 Ph.D. Columbia, Harvard appointment 1968)

Richard Caves (1958 Ph.D. Harvard, Harvard appointment 1962)

Hollis Chenery (1950 Ph.D. Harvard, Harvard appointment 1965)

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Haberler’s Protest:
Preface to his Colleagues

To the Senior Members of the Department:

I am going to send the attached letter to the President unless anybody strongly objects. For the members of the Department I should like to add that I somewhat resent the surprise tactic used in bringing up the name of Arrow in yesterday’s discussion. Let me confess that this was not immediately clear to me — which on reflection causes me to deplore it all the more. I have reason to believe that others too were taken by surprise.

December 13, 1961

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Haberler’s Protest in Full

CONFIDENTIAL.

MEMO TO: The President, the Senior members of the Department of Economics, the Dean of the Graduate School of Public Administration

FROM: Gottfried Haberler

In my opinion, the Department of Economics is making a serious mistake in filling up the Department too much with mathematical and econometric economists through the proposal to appoint Arrow and Chenery. May I say by way of introduction that, although I am not myself a mathematical economist, I have a high appreciation of the mathematical and econometric method and have consistently shown that by my votes in the Department.

I do believe, however, that at the present time the Department is well supplied with talent in this field. Five members of the permanent staff belong to that category — Dorfman, Houthakker, Leontief, Meyer, Schelling. True, all of them have developed strong interests in policy problems and have worked on applied problems. None of them is a “pure” theorist in the sense that he works exclusively in the theoretic-mathematical-econometric field, but all of them (with the exception of Schelling) have been appointed for their theoretical, mathematical, econometric skills.

In addition to the permanent members, there are always non-permanent members in that category, at present especially Clopper Almon [Obituary].

No two of these five men are quite alike and Arrow is different from all of them. As far as I know, Arrow has not yet developed an active interest in policy questions. I do not criticise him for that — it may well be an asset. All I want to say is that we are well supplied in his general field of competence. He certainly is a most competent man and he, rightly, has a high reputation in the profession. But I cannot help feeling that some of his work is fanciful and esoteric in the extreme and its chance of survival is very low. On earlier occasions when he was discussed in the Department, Professor Leontief expressed precisely the same doubts and reservations. Now he thinks that a large department, such as ours, should have men of that type even if — as he still readily concedes — the permanent value of his ideas is problematic. My point is that we are well supplied with this sort of talent and that we are tilting the balance of the Department too strongly in one particular direction.

The fact that we propose to the School of Public Administration the appointment of Chenery fortifies in my opinion the above criticism.

Chenery too is a mathematical-econometric economist of high quality and great energy. His special field is input-output analysis in its application to less developed countries. He is not, of course, a “pure” theorist. On the contrary, application of the theoretical-statistical tools is his strength, especially of input-output analysis. He has also developed administrative talents. At this time, he holds an important position in Washington which makes him look especially attractive to Littauer, I am not in a position to evaluate his suitability for his government assignment. But I should like to say this: I feel strongly that input-output is of no use for the less developed countries, because their basic statistics are woefully inadequate. This does not mean that Chenery will be a poor administrator. It is possible that for him, in his present position, input-output will be a mere ritual. I assume, however, that Littauer does not appoint him for his administrative capabilities, but rather for his scholarly talents, and these latter belong to the same general field — mathematical-econometric analysis — as Arrow’s and the five members of the Department whom I mentioned.

I feel all the more strongly that the Department is making a grave mistake, because we are passing up a rare opportunity to appoint another man who fits into our Department better than either of the two men mentioned and who has other talents which we urgently need, namely, Richard Caves.

The Department has unanimously voted to recommend the appointment of Caves if Arrow is not available. I therefore need not argue his high competence and standing in this profession. Let me only say this: Caves has shown that he not only understands and appreciates the modern mathematical, statistical and econometric methods of analysis, but also — which is a different thing — that he knows how to use them. He has shown himself at the same time to be a master of traditional economic theory and of modern quantitative analysis, a very rare combination indeed. In addition to that he has become a very effective and stimulating undergraduate teacher, which neither one of the other two men is. We are often criticised for neglecting undergraduate teaching. We have tried to remedy this situation, but the difficulty has always been to find a man who measures up to our standards of scholarship and is at the same time an effective undergraduate teacher. Here we have the very rare opportunity, the opportunity of a lifetime, to appoint a man who is both at the same time — an accomplished scholar who is thoroughly familiar with the history of his science and wields modern quantitative methods of analysis effectively, and is also an inspiring undergraduate teacher. It would be inexcusable to let that opportunity pass.

It should be added that Caves is younger than the other two and is being considered by two leading universities for a permanent position. If we do not get him now we will in all probability have lost him forever.

I should also like to say that I disagree with the view that Chenery is better suited for Littauer than Caves. True, being older he has more administrative experience. But this should not be decisive, in my opinion, except that from a superficial public relations standpoint it may look appropriate to appoint someone to Littauer who has held a high position in Washington. Both men are intensely interested in policy problems, but both will always feel that they are primarily economists and neither will want to lecture only on policy problems or only to Littauer students.

December 13, 1961

Source: Economists’ Papers Archive, David M. Rubenstein Rare Book & Manuscript Library, Duke University. Edward H. Chamberlin Papers, Box 17, Folder “Economics Department 1960-62”.

Image: Radcliffe Archives. Portrait of Gottfried Haberler. (1965).