History of Economic Thought
Econ 311 -- Fall 2008 -- Professor Roger Frantz Office: N.H. 313, 594-3718. Office Hours: M 2:45-6:45, W 10-11; Home Page: http://www-rohan.sdsu.edu/~frantz/index.html; e-mail: rfrantz@mail.sdsu.edu. Why study the history of economic thought? [1] Intellectual curiosity is enough of a reason. [2] To understand the evolution of economic thought. [3] To pass this class. [4] To recognize the role which economists played in economic, social, and political changes and reforms. [5] To appreciate the humanity of economists often thought of as one-dimensional nerds. We can say that their have been four revolutions in the history of economic thought: [1] Adam Smith, the 18th century revolution in economics; [2] John Maynard Keynes’ 20th century macro revolution; The University of Chicago School, another 20th century revolution in economics, and; [4] Behavioral Economics, a revolution which began c.1960 and has gained momentum to this day. There have also been (at least) two important “forks-in-the-road” -- economics could have gone in one of two directions. They are: [1] whether economics would follow the method of either Thomas Malthus or David Ricardo, both early 19th century economists, and; [2] whether economics would follow either neoclassical analysis or historical materialism -- socialism -- or historical analysis, all of which began in the 19th century and have extended to the present.
Student Learning Outcomes. By the end of the course students will be able to:
[1] Summarize the major characteristics of the different schools of thought. [2] Compare and contrast the economic outlook of the different schools of thought. [3] Illustrate the various “revolutions” and “forks in the road” which have occurred in the history of economic thought. [4] Profile the lives of 3 or 4 economists studied in the class. [5] Appraise which economists made the largest contribution to economic thought. [6] The role which economists played in social and economic reform in both Western Europe and the U.S.
Required Text: The Evolution of Economic Thought. Stanley Brue and Randy Grant. Optional Text: Two Minds. R. Frantz (Paperback) Suggested Books on the History of Economic Thought:
[1] The Making of Modern Economics. Mark Skousen. [2] New Ideas from Dead Economists. Todd Buchholz. [3] Dr. Strangelove’s Game. A Brief History of Economic Genius. Paul Strathern. [4] Economics and Religion. Robert Nelson. [5] History of Economic Analysis. Joseph Schumpeter.
Suggested Web-Sites on the History of Economic Thought:
[1] History of Economics Society. http://www.eh.net/HE/; www.eh.net/HE/he_resources/ [2] Nobel Prize Winners in Economics. http://almaz.com/nobel/nobel.html [3] Japanese History of Economics Society. http://society.cpm.ehimeu.ac.jp/shet/shet.html [4] European History of Economics Society. http://www.ecn.bris.ac.uk/het1/links.htm
Topics and Readings
I. An Overview of the History of Economic Thought. Summary of the Major Schools, and Some of the Interesting “Characters.” II. Chicago School of Economics: (Maybe) The Greatest Economics Department Ever. 1. The Chicago School, text Ch 24. 2. The Antithesis of Chicago: Aristotle: Scholasticism: Usury. III. Austrian School of Economics. So Close and Yet So Far From Chicago. 1. Austrian Economics. Text: pages for F. Hayek (410), J. Schumpeter (479-482), O. Lange (409-411) 2. Vienna & Chicago. Friends or Foes. Mark Skousen. Chapter 1. 3. Nobel Prize Winners. http://almaz.com/nobel/nobel.html IV. The Classical School of Economics. The 18th-19th Century Revolution in Economics; The Beginning of Modern Economics. 1. Predecessors of Classical Economics. Mercantilists. Text Ch 2; Physiocrats. Text Ch 3. 2. Adam Smith. Herald of the Modern World.. Text chapter 5 3. Thomas Malthus. The First Professor of (Political) Economics. Text chapter 6. 4. David Ricardo. The Beginning of the “Ricardian Vice.” Text Ch. 7 5. J. B. Say. Text pp. 128-131. 6. John Stuart Mill. Boy Genius, Social Reformer. Text Ch 8. V. The Socialist and Marxist Alternative to Classical Economics. 1. Socialism’s Various Forms. Text Ch 9. 2. Karl Marx. History is on “Our” Side. Text Ch 10. 3. Marxism Bites the Dust (At Least for Now). Lange (pp. 409-411), Hayek (p. 410), Schumpeter (pp. 479-482). VI. Neoclassical Economics. 19th Century Revolution in Economics; The “Conservative” Alternative to Socialism and Marxism. 1. Overview of Marginalism. Text Ch 12, pp. 211-215. 2. William Stanley Jevons, Carl Menger, Friedrich von Weiser, Eugen von Bphm-Bawerk. Text Ch 13 3. Alfred Marshall. The First Economics Department. Text Ch 15. 4. Leon Walras (Text pp. 350-351), and Vilfredo Pareto (Text pp. 257-258, 397-401).
VII. Institutionalism. The First American School of Economics. 1. Predecessors. The German Historical School. Text Ch 11 2. John Bates Clark. Text pp. 265-272. c. American Institutionalists, Text Ch 19. VIII. Mathematical Genius. And Non-Institutionalists 1. John von Neumann and Oscar Morgenstern. Text pp. 354-357 2. John Nash. Text 358-359 VIII. John Maynard Keynes. 20th Century Revolution in (Macro) Economics. 1. Predecessors. Edward Chamberlin and Joan Robinson. Text pp. 325-328; 330-337 2. Keynes. Text Ch 21. 3. Alvin Hansen. Keynes Comes to America. Text pp. 447-455. 4. Paul Samuelson. Text pp. 458-464. IX. Behavioral Economics. Merging Psychology and Economics. 21st Century Revolution in Economics: Behavioral Economics.Louis Uchitelle. “Some Economists Call Behavior A Key.” New York Times, Feb 11, 2001.
Exams & Grades
Midterms. Three 50 minute 100 point exams, approximately every five weeks: Friday Oct 3, Friday Nov 7, and Wed Dec 10. Each exam will consist of 10 short answer questions, 10 points per question. The questions ask for very specific information such as “list the 3 main parts of Frantz’s theory of everything,” or “define Smith’s use of the terms sympathy, and virtue.” There are no make-ups. Comprehensive Final Exam, to replace a missed exam or a low score. It is scheduled for Monday, Dec. 15, 1030-1230. The score on the final will count, so you may be replacing a low score for an even lower one. There will be several questions covering the material from each of the three exams. You must answer all the questions from the exam you either missed or hope to replace, plus an as yet undetermined number of questions covering the material from the other two exams. The exam is worth 100 points. There may be other essays/homework, and there may be other readings. Final class grades are based on total points. A grade of A requires earning at least 85% of total points. A grade of B requires at least 75% of total points. A grade of C, and D requires at least 60% and 50% of total points, respectively. +/- grades will be used for each exam and for final class grades. In other words, the curve for each exam is 85, 75, 60, 50.
Conduct. SDSU’s policy about inappropriate conduct and cheating, and its consequences are
contained in the General Catalog on pages 451-452 (“Student Conduct and Grievances”). Also, please, turn off your cell phones before class begins.
Please Note. Reading assignments, exam dates, types of exam questions, and all other matters
pertaining to this class are subject to change but with plenty of notice. However, I do not expect to make (m)any changes.