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DEPARTMENT OF ECONOMICS

Economics 3214 History of Economic Thought Monday & Wednesday, 8:30-10:00 am, RC 3014

L. Di Matteo/Winter 2015 Office: EC 3016E Phone: 343-8545 e-mail: [email protected] OFFICE HOURS: Monday & Wednesdays 1:30pm – 2:30pm

A. Summary: This course examines the evolution of economic thought and analysis through the ages with an emphasis on the rise of modern economic thought. Although modern economics is about 250 years old, economic thought has a tradition going back to ancient times. It is only since with the emergence of market economies that economics has become a social science of its own accord rather than a subset of philosophy. Does economic theory emerge spontaneously or in response to the economic environment? This course will also be accompanied by brief overviews of world economic history to set context for economic thinkers and their ideas.

B. Texts

Main Text Robert B. Ekelund, Jr. and Robert F. Hebert (2014) A History of Economic Theory and Method. 6th Edition.

Supplementary Texts

Daniel R. Fusfeld (2002) The Age of the Economist, 9th Edition Barber, William J. (2002) A History of Economic Thought Mark Blaug (1986) Great Economists Before Keynes. Harry Landreth and David C. Colander (1994) History of Economic Thought, 3rd Edition.

Web Resource The McMaster University Archive for History of Economic Thought. http://socserv.mcmaster.ca/~econ/ugcm/3ll3/ This web site contains digitized copies of many original works by famous economists.

Resources including outline summaries of lectures on Powerpoint slides are available on the Course Web Site on Desire to Learn:

(2015W) ECON-3214-WA - History of Economic Thought – 83135 https://lakeheadu.desire2learn.com/d2l/home/21394 C. Course Requirements

Term paper - 20% (Due March 23rd) Term tests - 50% (Scheduled for February 4th & March 11th) Final exam - 30% (Take home exam)

D. Learning Outcomes

Upon completion of this course, the student should be able to:

• Explain and analyze the development of economics as a discipline over time and in various cultures with references to the historical setting. • Overview of long-term global economic history and conditions • Trace the development of European economic thought and analyze its concepts in historical context with particular reference to industrialization. • Compare and contrast Ancient and Medieval economic ideas. • Compare and contrast Mercantilist and Classical economic theories. • Compare and contrast Neo-Classical and Keynesian approaches in the modern era. • Compare and contrast Non-orthodox approaches to economic thought. • Summarize and evaluate the merits of alternative approaches.

E. Outline

1/ Introduction to History of Economic Thought

Ekelund & Hebert, Chapter 1, 1-6

Fusfeld, Introduction, 1-5. McCloskey, Donald N. (1992) If You're So Smart The Narrative of Economic Expertise (Chicago, University of Chicago Press). Anderson, G.M., D.M. Levy & R.D. Tollison (1989) "The half-life of dead economists" Canadian Journal of Economics, XXII, 1, 174-183.

2/ Ancient, Medieval & Pre-Mercantile Economic Thought

Ekelund & Hebert, Chapter 2, 9-45

Fusfeld, Chapter 1, 7-12.

3/ Mercantilism & Early Liberal Economic Thought

Ekelund & Hebert, Chapter 3, 46-71, Chapter 4, 72-104 Fusfeld, Chapter 2, 13-22.

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The McMaster University Archive for History of Economic Thought

Thomas Mun, Englands's Treasure By Foreign Trade. William Petty, A Treatise of Taxes & Contributions. Francois Quesnay, Tableau Economique.

4/ Classical School

Ekelund & Hebert, Chapter 5, 105-135, Chapter 6, 136-155, Chapter 7, 156- 184, Chapter 8, 183-208, Chapter 9, 211-230.

Fusfeld, Chapter 3, 23-56.

The McMaster University Archive for History of Economic Thought

Adam Smith, The Wealth of Nations. Thomas Malthus, An Essay on the Principle of Population. David Ricardo, Principles of Political Economy & Taxation Mill, John S., Principles of Political Economy.

5/ The Reaction to Classical Theory

Ekelund & Hebert, Chapter 11, 256-283, Chapter 12, 284-306.

Fusfeld, Chapter 5, 57-74

The McMaster University Archive for History of Economic Thought

Karl Marx, Capital, Volume 1 Friedrich List, The National System of Political Economy.

6/ Neo-Classical Economics/ The Marginalist Revolution

Ekelund & Hebert, Chapter 13, 309-335, Chapter 14, 336-366, Chapter 15, 367-393, Chapter 16, 394-432, Chapter 17, 433-453.

Fusfeld, Chapter 7, 85-98

The McMaster University Archive for History of Economic Thought

Alfred Marshall, Principles of Political Economy.

7/ American Institutionalism

Ekelund & Hebert, Chapter 19, 475-501.

Fusfeld, Chapter 8, 99-116. J.K. Galbraith, The Affluent Society, 229-234.

The McMaster University Archive for History of Economic Thought

Thorstein Veblen, The Theory of the Leisure Class.

8/ Keynesianism and Modern Macroeconomics

Ekelund & Hebert, Chapter 21, 528-551, Chapter 22, 552-370.

J.M. Keynes, The General Theory of Employment, Interest and Money

9/ Other Economic Thought Traditions

Austrian Economics Ekelund & Hebert, Chapter 23, 571-594.

Mathematical and Empirical Economics Ekelund & Hebert, Chapter 25, 619-647.

10/ Canadian Contributions to Economic Thought

Harold Adams Innis (1930) The Fur Trade in Canada 5

F. Term Paper Guidelines

Students will be required to write a term paper as part of the requirements for this course. The paper will be on an economic thinker to be selected from the list below. There is to be only one student per topic. The paper should be organized as follows:

A. Introduction B. Biography The life of the economist or economic thinker in question placing him/her in historical context. C. Achievements and Contributions What did they contribute to economic thought and an assessment of their influence on the economic profession and public policy. D. Conclusion

The paper is to be typed, double-spaced and a maximum of 10 pages in length, including references and bibliography. Format and footnoting should generally follow that of articles in the Canadian Journal of Economics but any format is acceptable provided it is consistent.

Below is the list of the economists or economic thinkers that can be selected. One student per topic:

1) Joseph A. Schumpeter 2) Henry George 3) Irving Fisher 4) Joan Robinson 5) Knut Wicksell 6) Arthur C. Pigou 7) Nikolai D. Kondratieff 8) Antoine Augustine Cournot 9) Eugen von Bohm-Bawerk 10) John Bates Clark 11) Edward Gibbon Wakefield 12) Friedrich List 13) Oskar Lange 14) Max Weber 15) Wesley Clair Mitchell 16) Simon Kuznets 17) Robert Fogel 18) Douglass North 19) James Buchanan 20) John R. Commons