Economics 327 History of Economic Thought
Spring 2005

Prof. Hugh Rockoff
NJ Hall 209C
Phone: 932-7857 (speak slowly and clearly, repeat your name and telephone number twice).
E-mail: Rockoff@econ.rutgers.edu
Homepage: http://www.economics.rutgers.edu/home/rockoff
Office Hours: 3:00-5:00 Tuesday and Friday or by appointment.

Prerequisites: 220:102 and 103, or 200

Required Texts: Heilbroner, The Worldly Philosophers, seventh edition (H). There are also assigned readings that you can download from my website.

Attendance. Attendance at the Lectures is at your discretion. But I do ask that that you be polite. Do not make a habit of coming late. When you miss a class you alone bear the cost. When you are late you impose a cost on the whole class. If you do come, stay until the end. Getting up and leaving in the middle of a class is disruptive and insulting.

Exams and Class Participation. There are two exams during the term each worth 100 points, and a final worth 200 points. Each exam will consist of multiple choice and short-answer questions. Thus, you can earn 400 points. The grading scale will be the usual (barring special circumstances): 90%-100% = A, 80%-89% = B, 70%-79% = C, 60%-69% = D, below 60% = F. B+ will be reserved for students at the top of the B range, 88%-89%. C+ will be reserved for students at the top of the C range, 78%-79%.

If You Miss an Exam. If you miss an exam during the semester I will count the other exam 40% and the final 60%. If you miss the first exam and the second exam you must make up the second exam. If you miss the final, you must make it up. Students who miss the second exam (after having missed the first) and students who miss the final for medical emergencies, religious holidays or other reasons approved by the Dean will be allowed to take a makeup without penalty. Students without an excuse approved by the Dean will be subject to an 10-percentage-point penalty. The exams given during the semester will consist of multiple-choice questions and short-answer questions. Make-up exams will consist of essay questions. The make-up exams are at the same level of difficulty as the regular exams. The reason the make-ups are essay exams is that it takes a long time to construct a multiple-choice exam, and this is not worthwhile if only a few students are taking it.

Class, Date, Topic, Chapters

Note: H stands for Heilbroner. Heilbroner’s book is a delightful combination of biography and history. Generations of economists, including myself, decided to study economics after reading The Worldly Philosophers. Excluding textbooks, it is the best selling book in the history of economics. In addition to Heilbroner, there are various readings that you can download from my website. Some are excerpts from the writings of the great economists. Others are my notes on particular subjects. 
 
 

Schedule of Lectures

Class Meeting, Date

Topic of Lecture

Readings

1. Tuesday, 
January 18

The Family Tree of Economics 

“Obituary: Robert Heilbroner”

2. Friday, 
January 21

Adam Smith (Economic Man) 

H3

 

“Smith – the Authority of Conscience”

 

 

Portrait of Adam Smith (Place under your pillow at night)

 

3. Tuesday, 
January 25

Adam Smith (The Invisible Hand)

H3

 

“Smith -- Of the Division of Labor” 

 

4. Friday, 
January 28

Thomas Robert Malthus -- The Malthusian Dilemma 

H4:75-94

 

“Malthus -- Essay on Population.”

 

5. Tuesday, 
February 1

Classical Monetary Economics

“Notes on the Quantity Theory of Money.”

6. Friday, 
February 4

David Ricardo -- The Theory of Rent 

H4:94-104

 

“Notes on the Theory of Rent”

 

7. Tuesday, 
February 8

Free Trade (I) -- The Theory of Comparative Advantage

“Notes on Comparative Advantage.”

8. Friday, 
February 11

Free Trade (II) -- The Theory of Comparative Advantage

Continue to study “Notes on Comparative Advantage.”

9. Tuesday, 
February 15

FIRST EXAM 

100 Points, multiple-choice and short- answer questions, stressing, but not limited to, the lectures 

10. Friday, 
February 18

Karl Marx -- The Labor Theory of Value

H6

 

“Notes on the Labor Theory of Value”

 

“Marx – the Factory Acts”

 

11. Tuesday, 
February 22

Karl Marx -- The Future of Capitalism 

Continue the readings about Marx

12. Friday, 
February 25

No Class

 

13. Tuesday, 
March 1

William Stanley Jevons (my hero) -- Utility, Price Indexes, Money, and Sunspots 

“William Stanley Jevons”

 

Portrait of William Stanley Jevons

14. Friday, 
March 4

Alfred Marshall -- Supply and demand, time, and consumer surplus 

H7: 205-212

15. Tuesday, 
March 8

Leon Walras -- General Equilibrium Theory (I)

“Notes on Leon Walras”

16. Friday, 
March 11

No Class

 

March 15, 18

Spring Break

 

17. Tuesday, 
March 22

Leon Walras -- General Equilibrium Theory (II)

Continue to read “Notes on Leon Walras”

18. Friday, March 25

Thorstein Veblen 

H8

19.Tuesday,  March 29

John Kenneth Galbraith

“Essay on Galbraith”

 

“Galbraith – Economics as a System of Belief”

20. Friday, 
April 1

Edward Hastings Chamberlin 

Chamberlin -- Product Heterogeneity and Public Policy.”

21. Tuesday, April 5

SECOND EXAM

100 points, multiple-choice and short-answer questions, stressing, but not limited to, the lectures, will cover the material since the last exam

22. Friday, 
April 8

Joseph Schumpeter

H10

23. Tuesday, 
April 12

John Maynard Keynes -- Labor Markets and Wage Cutting

H9

24. Friday, 
April 15

John Maynard Keynes -- Monetary Policy

Continue to read H9

25. Tuesday, April 19

Milton Friedman (I) -- The Counterattack on Keynesian Economics

Interview with Milton Friedman,”

 

Autobiography of Milton Friedman,”

 

Friedman -- The Role of Monetary Policy

 

26. Friday, April 22

Milton Friedman (II) -- Economic Policy 

Continued reading the articles by Friedman

27. Tuesday, April 26

Origins of Econometrics

No reading

28. Friday, April 29

The Chicago School of Economics

Coase – Autobiograhy

 

Coase -- Prize Lecture

Stigler -- Autobiography;

 

Stigler -- Prize Lecture

29. The final for T2F2 is May 5 from 12:00 pm to 3:00 pm in the Gym Annex. The final for T3F3 is 8:00 am to 11:00 am May 11 in the regular classroom

FINAL EXAM (200 points).  The final is about half review and half material since the second exam. The location may be changed from the regular classroom -- check my website.

 

 

Frequently Asked Questions.

(1) Do the exams stress the book or the lectures?

The exams will stress the class lectures, although some material covered only in the text may be included on the exams as well. Let’s say that 80 percent of the exam will be based on the class lectures.

(2) Do I have to know facts and dates?

Yes! You will have to learn some facts and dates. The exams will stress major themes and economic analysis rather than isolated facts and dates. Generally, it is more important to fit particular developments into the era in which they occurred rather than to memorize particular dates. When I want you to know a precise date or number, I will try to warn you explicitly. But you will have to learn some facts and dates in this course. In some theory courses you can work out a great part of the analysis from first principles. That won't work here. History is about remembering the past. You will have to memorize things.

(3) Do I have to know everything you say in class?

As I indicated above, I try to stress important themes on the exams. However, the bottom line is this: everything discussed in class and everything covered in the assigned readings is fair game for the exams.

(4) What if I miss class?

If you miss class for any reason it is important to get the notes from another student, and to clarify any problems during office hours. I do not have lecture notes that would substitute for class attendance. The class outlines and clarifying notes on the website should give you a good overview of the material covered in class. If you can’t get a set of notes you feel comfortable with, I will be able to suggest some additional readings that will help.

(5) How should I study for the exams? Studying the old exams on my website is the best way of getting a sense of how I go from the lecture and text to specific questions, and to some extent what will appear on this semester's exams. Most students find it useful to study with a few friends. One student can read the exam question, and then if the reasoning is not obvious, you can talk over the question, and try to think of likely variations. But the course changes from semester to semester so you cannot rely totally on old exams. You will also need to study your notes and do the assigned readings.

(6) Can we have class outside?

No 

The schedule and remarks about exams given above are tentative and subject to change on short notice. If you are absent from class you must check to see if things have changed.

I keep my office hours religiously, but I like to make an appointment if you want to see me at another time.