Center for the History of Political Economy

2013-2014 Annual Report

Summer 2014

Prepared by Bruce Caldwell, Center Director

Center Mission

The mission of the Center for the History of Political Economy is to promote and support research in, and the teaching of, the history of economics. It supports an active Fellowship and Visiting Scholars program, a regular Workshop series, a Hope Lunch series for the discussion of work in progress, special events, a summer Teaching Institute, the Summer in the Archives Program, and, with Duke University Press, the annual History of Political Economy conference. The Center was founded in 2008 with a significant grant from the John W. Pope Foundation. Additional major funding has been provided by the Earhart Foundation, the Institute for New Economic Thinking, and the Thomas W. Smith Foundation.

Personnel

The Center is directed by Bruce Caldwell, who is also a Research Professor in the Department of Economics. Bruce has half of his appointment in the Economics Department, and half of his appointment in the Dean’s Office of Trinity College. The Center is overseen by a Steering Committee.

The work of the Center is principally carried on by the Director and the four other professors in the history of economics at Duke, Craufurd Goodwin (emeritus), E. Roy Weintraub, Neil De Marchi, and Kevin Hoover, and by Ms. Angela Zemonek, the Center’s Administrative Assistant. Angela works 25 hours a week and reports to Bruce Caldwell. It should further be noted that Paul Dudenhefer works 40 hours a week in the offices of the journal History of Political Economy.

Center Activities 2013-2014

We had another active year for our Workshop and HOPE Lunch series. The list of events appears in Appendix A.

This past year we had eight Research Fellows join us, as well as thirteen shorter term Visiting Scholars. Their names and affiliations are listed below. Matt Panhans has completed his second year of the PhD program, and John Singleton his third; both list the history of economics as a field. In addition, three MA students, Jeremy Spater, Alexandra Hecker, and Vicki Eastman, were supported by the Center for their interest in the history of economics. Over the course of the year, Jeremy worked on various projects in the Economists’ Papers Project archives and Alexandra assisted Bruce Caldwell with the translation of letters from German to English for his biography of F. A. Hayek. Vicki worked in the archives in the spring.

In April the Center hosted the annual HOPE conference. Organized by Steve Medema (University of Colorado – Denver) and Alain Marciano (Université de Montpellier 1), its theme was “Market Failure in Context.” This event was co-sponsored by Duke University Press.

The 5rd Annual Summer Institute, titled “Topics in the History of Economics,” ran from June 1 – 13, 2014. Thirty graduate students and professors from around the world came to Duke for a two week course led by a distinguished group of historians of economics. The response by those who came was overwhelmingly positive. Participants were encouraged to integrate what they had learned in their future classes, which spanned a variety of disciplines.

The Summer in the Archives project continued in 2014. One of the participants was Scott Scheall, who just finished up as a Fellow, the other is Reinhart Schumacher, who begins as a Fellow this coming fall. Both worked alongside professional archivists, organizing and cataloging papers in the Karl Menger collection.

In addition we made further progress on the Econometric Society (ES) initiative. In Summer 2013 Duke graduate students Matt Panhans and John Singleton systematically examined the holdings of the Economists’ Papers Project and identified those that related to the ES. They composed a finding guide and developed a Slide Show to showcase some of the most interesting documents. This was meant to be a demonstration project, showing what might be involved if the ES wanted, with the assistance of historians of economics, to recover and display the history of their Society. Their work is highlighted on the Center website: http://hope.econ.duke.edu/node/830. On the basis of this work, Bruce Caldwell discussed possible further development of the project with the Executive Committee of the ES at the ASSA meetings in Philadelphia in January 2014. Discussion about the project with Jim Heckman is ongoing.

We had four speakers to campus for the Hayek Lecture Series. This series is funded by a grant from the Thomas Smith Foundation and is co-sponsored by the , Politics and Economics Program and the Program in American Values and Institutions at Duke. In September the prize-winning author and journalist Amity Shlaes gave a talk on “Can Austerity Ever Be Popular? What Amity Shlaes Learned from Calvin Coolidge about Austerity and Property Rights.” In December another prize-winning author and journalist, , spoke on “The Power of Glamour.” Economist David Rose of the University of Missouri – Saint Louis spoke in March about “The Empathy Problem.” Finally, in April philosopher of the University of Arizona spoke on “Corruption.”

HOPE Faculty Activities

Bruce Caldwell In addition to serving as Director of CHOPE, Bruce is the General Editor of the book series The Collected Works of F. A. Hayek. He also holds the Ludwig Lachmann Research Fellowship at the London School of Economics (2012-2015). Funds from the Fellowship have been used for course buy-outs and to finance travel to gather materials (archival trips, interviews, family correspondence) for an authorized biography of F. A. Hayek. Recent work includes:

“F. A. Hayek, the Economic Calculus, and the Market Order,” submitted.

(with Leon Montes) “Hayek’s Two Trips to Chile,” submitted.

“Hayek’s Nobel Prize,” in progress, being prepared for a conference in October 2014 to celebrate the 40th anniversary of his receipt of the Prize.

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The Market and Other Orders, volume 15 of The Collected Works of F. A. Hayek. Chicago: University of Chicago Press, 2014.

Bruce’s speaking activities as Center Director may found in Appendix B.

Neil De Marchi Neil will direct with Marina Bianchi the 2015 HOPE conference on “Psychology and Economics: The Early History.” In addition to giving talks on the art market to various groups (e.g., Skate’s Index and Sotheby’s Institute, London, May 2013, at a conference on “Trust and Transparency in Art Markets”), his recent contributions include:

(with Hans J. Van Miegroet and Sandra van Ginhoven) “Supply-Demand Imbalance in the 17th Century Antwerp Paintings Market,” in Neil De Marchi and Sophie Raux (eds), Moving Pictures:The European Trade in Imagery, 1400-1800. Turnhout: Brepols, 2014. [This volume is the outcome of a five-year long team project, funded by French sources and involving 14 economists, art historians and social historians. Neil is the lead editor of the volume.]

(with Hans J. Van Miegroet) “Containing Uncertainty: A Dealer Ring in 1780’s Paris Auctions,” in Anna Dempster (ed), Risk and Uncertainty in Art Markets. London: Bloomsbury, 2014.

Craufurd Goodwin Though officially Emeritus since 2012, Craufurd continues to edit the Cambridge University Press book series, Historical Perspectives on Modern Economics. His recent scholarly contributions include:

Walter Lippmann, Public Economist. Cambridge: Press, 2014.

"On Editing the History of Political Economy," in Michael Szenberg and Lall Ramrattan (eds), Secrets of Economics Editors. Boston: MIT Press, 2014.

“Walter Lippmann: The Making of a Public Economist,” History of Political Economy, annual supplement to volume 45. Durham: Duke University Press, 2013.

Kevin Hoover Since 2010 Kevin has served as the Editor of History of Political Economy. He also is the editor of 2 SSRN e-journals, “Philosophy and Methodology of Economics” and “History of Economics.” Recent contributions include:

“Reductionism in Economics: Causality and Intentionality in the Microfoundations of Macroeconomics, keynote paper for a conference on “Reduction and Emergence in the Sciences” at Ludwig-Maximillian University, Munich, Germany, 14-16 November 2014. “The Ontological Status of Shocks and Trends in Macroeconomics,” Synthese, forthcoming. (with Katarina Juselius) “Trygve Haavelmo's Experimental Methodology and Scenario Analysis in a Cointegrated Vector Autoregression,“ Econometric Theory, forthcoming.

3 (with Mauro Boianovsky) “In the Kingdom of Solovia: The Rise of Growth Economics at MIT, 1956-1970,” History of Political Economy, annual supplement to vol. 46. Durham: Duke University Press, 2014. “On the Reception of Haavelmo's Econometric Thought,” Journal of the History of Economic Thought, vol. 36, 2014. “The Role of Hypothesis Testing in the Molding of Econometric Models,” Erasmus Journal for the Philosophy of Economics, vol. 6, 2013. “Identity, Structure, and Causal Representation in Scientific Models,” in Hsiang-Ke Chao, Szu-Ting Chen, and Roberta Millstein (eds) Towards the Methodological Turn in the Philosophy of Science: Mechanism and Causality in Biology and Economics, Dordrecht: Springer, 2013, pp. 35-60.

E. Roy Weintraub Roy directed the 2013 HOPE conference and edited the resulting volume, MIT and the Transformation of American Economics. Durham: Duke University Press, 2014. Other recent contributions include:

(with Till Düppe) Finding Equilibrium: Arrow, Debreu, McKenzie and the Problem of Scientific Credit. Princeton: Press, 2014.

(with Till Düppe) “Sitting the New Economic Science: The Cowles Commission’s Activity Analysis Conference of June 1949,” Science in Context, vol. 27, 2014.

History of Political Economy

Since 1969 the journal History of Political Economy has been published at Duke. It is universally acknowledged to be the leading journal in the field. The journal has had three editors, Robert Smith (1969), Craufurd Goodwin (1969-2010) and Kevin Hoover (2010-present). The other HOPE faculty serve as Associate Editors, and the Advisory Board is composed of prominent historians of economics from around the world. In 2013-2014, HOPE received 89 new submissions and 28 revised submissions, for a total of 117 submissions. The journal published 25 articles in that period, with an acceptance rate of approximately 20 percent. A list of article titles, by issue, is provided in Appendix C.

Fellows and Visitors, 2013-2014

Senior Research Fellows

Bob Dimand, Brock University, Canada, Fall 2013. Bob worked on two major book projects, one on the contributions of the Nobel laureate James Tobin, the other on Irving Fisher’s role in the development of modern macroeconomics. He also completed a number of smaller projects, among them book chapters and entries for the International Encyclopedia of the Social and Behavioral Sciences and A Biographical Dictionary of European Economists.

4 Jeff Biddle, Michigan State University, Spring 2014. Jeff completed a paper “The Genealogy of the Labor-Hoarding Concept,” and worked on a book manuscript, Professor Douglas’s Regression, about the development and interpretation of the Cobb-Douglas production function.

Matthias Klaes, University of Dundee, Spring 2014. Matthias organized together with Bruce Caldwell a one-day workshop on “Digital Histories of Economic Collections: Potential and Challenges.” He completed two papers that are forthcoming: “Ronald Harry Coase, 1910-2013” for the European Journal for the History of Economic Thought, and “From Lenin’s Factory to Deng’s Reforms: Ronald Coase and the Limits of ” for the Journal of Institutional Economics. He also worked on two manuscripts, “What Did Coase Know about the Law of Tort” (with D. Campbell) and “‘The Truth Will Out’: Coase on the Nature of the Firm in the Market for Ideas.”

Leon Montes, Universidad Adolfo Ibáñez, Santiago, Chile, Spring 2014. Leon worked with Bruce Caldwell on a substantial paper, “Hayek’s Two Trips to Chile.” The trips were provocative because on one of them Hayek met Pinochet. An early version of the paper was presented at the History of Economics Society meetings, and a revised version will be presented at the Southern Economic Association meetings in November 2014.

Research Fellows

Alex Gill, North Carolina State University, Fall 2013. Alex is in the fifth year of the Economics PhD program at NC State. He had earlier attended two of our Summer Institutes and on the basis of what he learned was invited this fall to teach a class on the history of economic thought at State. In November he presented his paper, “Ben Bernanke: Theory and Practice” at both our workshop and at the Southern Economic Association meetings in Tampa.

Kyu Lee, Anjou University, South Korea, 2013-14 Academic Year. Kyu worked on a series of papers on the development of experimental economics in the 1970s and 1980s, emphasizing the interactions of the experimentalists with a group of scholars in mechanism design. One has been submitted to a Korean journal, another he presented another at a session at the ASSA meetings in January.

Scott Scheall, Arizona State University, 2013-2014 Academic Year. A philosopher, Scott worked on issues at the intersection of the history of economics, economic methodology, and philosophy, with an emphasis on the contributions of F. A. Hayek. In the fall he had one paper accepted for publication at Journal for the History of Economic Thought, another submitted to Journal of Economic Methodology, and on the basis of feedback at workshops at Duke, NYU, and George Mason, has decided to split his current paper, “Economics and Ignorance,” into two articles. Next year he will be a fellow at the Mercatus Center at .

Gerardo Serra, London School of Economics, Fall 2013 – Gerardo finished up a chapter for his dissertation entitled “Continental Visions: Ann Seidman, Reginald H. Green, and the Radical Economics of African Unity,” which he also presented at a HOPE lunch. Gerardo also co- authored a chapter on “West Africa” that will appear in The Routledge Handbook of the History of Global Economic Thought.

5 Visiting Research Scholars

Romain Plassard, University of Lille (May-July)

Steve Medema, University of Colorado at Denver (September)

Alejandro Camargo, Syracuse University (October)

Sharon Zhang, Shanghai University of Finance and Economics (October – April)

José Edwards, Adolfo Ibáñez University (February)

Robert King, Sierra Nevada College (February)

Hansjoerg Klausinger, Wirtschaftsuniversitat Wien, Austria (February)

Paul Dragos Aligica, George Mason University (March)

Danilo Freitas Ramalho da Silva, University of Sao Paulo (March)

Catherine Herfeld, Ludwig Maximilian University, Munich (March)

Edd Noell, Westmont College (March)

Renee Prendergast, Queen's University, Belfast (April)

Camila Orozco Espinel, École des Hautes Études (June)

6 Appendix A

Center Activities, 2013-2014

September 2013:

September 6 – HOPE Workshop – Bruce Caldwell (Duke), “F. A. Hayek and the 'Economic Calculus'”

September 24 – Hayek Lecture Series – Amity Shlaes, author, “Can Austerity Ever Be Popular? What Amity Shlaes Learned from Calvin Coolidge about Austerity and Property Rights"

September 27 – HOPE Lunch – Scott Scheall (Arizona State University), “Economics and Ignorance”

September 27 – HOPE Workshop –Amy C. Offner (University Pennsylvania), “From Public Housing to the Privatized City: Bogotá, Colombia, 1950-1980”

October 2013:

October 4 – HOPE Lunch – John Singleton (Duke), “Sorting Charles Tiebout: The Construction and Stabilization of Postwar Public Good Theory”

October 4 – HOPE Workshop – Steve Medema (University of Colorado at Denver), “The World(s) in the Model(s): The Coase Theorem in the Long Run”

October 11 – HOPE Lunch – Kyu Sang Lee (Ajou University), “The Legitimization of Laboratory Experimentation in the Economics Profession during the Reagan Era”

October 11 – HOPE Workshop – Deborah Boucoyannis (), “Why the Market Economy was Meant to Level Inequality: Adam Smith, the Wealth of Nations, and the ‘Rapacity’ of ‘Those Who Live by Profit’”

October 25 – HOPE Lunch – Alex Gill (North Carolina State University), “Ben Bernanke: Theory and Practice”

October 25 – HOPE Workshop – Ross Emmett (Michigan State University), “Frank Knight and the Committee on Social Thought: Contrasting Visions of Interdisciplinary in the 1950s”

November 2013:

November 1 – HOPE Workshop – Craufurd Goodwin (Duke), “Walter Lippmann: The Economy of the Post-War World”

November 15– HOPE Lunch – Gerardo Serra (London School of Economics), “Continental Visions: Ann Seidman, Reginald Green and the Radical Economics of African Unity in 1960s Ghana”

November 15 – HOPE Workshop - E. Roy Weintraub (Duke), "Arrow, Debreu, McKenzie and the Problem of Scientific Credit"

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November 22 – HOPE Workshop – Robert W. Dimand (Brock University), "James Tobin and Modern Monetary Theory"

December 2013:

December 2 – Hayek Lecture Series – Virginia Postrel, author, “The Power of Glamour”

January 2014:

January 17 – HOPE Workshop - Jeff Biddle, Michigan State University, "The Genealogy of the Labor Hoarding Concept"

January 24 – HOPE Workshop - Kevin Hoover, Duke University, "Charles Sanders Peirce and the Science of Economics"

January 31 – HOPE Lunch - John Singleton, Duke University, "Slaves or Mercenaries: and the End of the Military Draft"

February 2014:

February 7 – HOPE Lunch - Jose Edwards, Adolfo Ibáñez University, "The Behaviorist Myth in Economics"

February 7 – HOPE Workshop - Erik Angner, George Mason University, "'To Navigate Safely in the Vast Sea of Empirical Facts': Ontology And Methodology In Behavioral Economics"

February 8 – One Day Conference – Organized by Bruce Caldwell (Duke) and Matthias Klaes (University of Dundee), on “Digital History of Economics Collections: Potential and Challenges.”

February 21 – HOPE Workshop - Hansjoerg Klausinger, University of Vienna, Austria, "Hans Mayer, Last Knight of the , Vienna Branch"

March 2014:

March 3 - Hayek Lecture Series - David C. Rose, University of Missouri-St. Louis, "The Empathy Problem"

March 7 – HOPE Lunch - Giovanni Zanalda, Duke University, "The Cost of Empires. Antonio Serra and the Debate on the Causes and Solutions of Economic Crises in the Kingdom of Naples in the Seventeenth Century"

March 21 – HOPE Lunch - Danilo Freitas Ramalho da Silva, University of Sao Paulo, "The Establishment of Robert E. Lucas Jr.’s Macroeconomics of Equilibrium in the 1970’s"

March 28 – HOPE Lunch - Catherine Herfeld, Ludwig Maximilian University, Munich, "Has There Been a Normative Turn in Early Post War Economics? The Case of Jacob Marschak and the Cowles Commission, 1943-1955"

March 28 – HOPE Workshop - Julian Reiss, Durham University, “On the Causal Wars”

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April 2014:

April 4 – HOPE Workshop - David M. Levy, George Mason University, “‘Almost Wholly Negative’: The Ford Foundation's Appraisal of the Virginia School”

April 10 – Hayek Lecture Series - David Schmidtz, University of Arizona, "Corruption"

April 11 – HOPE Lunch - Dan Hirschman, University of Michigan, "Do Economists Make Policies?"

April 11 – HOPE Workshop - Jeff Biddle, Michigan State University, "Professor Douglas's Regression"

April 18-19 – Annual HOPE Cnference, organized by Steve Medema (University of Colorado – Denver) and Alain Marciano (Université de Montpellier 1) on “Market Failure in Context.” This event was co-sponsored by Duke University Press.

April 23 – HOPE Lunch - Matt Panhans and John Singleton, Duke University, "Uses of the Roy Model"

April 23 – HOPE Twofer Workshop - Bruce Caldwell, Duke University, Andrew Farrant, Dickinson College, Leonidas Montes, Adolfo Ibáñez University, "Hayek, Chile and Pinochet"

June 2014

June 1 – 13 – 5rd Annual Summer Institute, titled “Topics in the History of Economics.” 30 student participants; discussion leaders included Steve Medema (University of Colorado – Denver), Tim Leonard (Princeton), Ross Emmett (Michigan State), Bruce Caldwell and Kevin Hoover (Duke).

9 Appendix B

Center Director’s Speaking Activities

The Center is an interdisciplinary unit within Duke, and also aims to serve constituencies well beyond the borders of campus. In keeping with our focus on interdisciplinary at Duke, I continue my affiliated faculty relationships with Duke’s Center for European Studies and with the Duke- UNC Philosophy, Politics and Economics Program.

In the fall I gave a guest lecture on Hayek’s contributions to economic and social theory to Jason Brent’s history of economic thought class at UNC and to Alex Gill’s history of economic thought class at NC State. Both Jason and Alex participated in our Summer Institutes, on the basis of which they were invited to teach undergraduate classes in the history of economics at their respective institutions.

Further from home, in August I spoke about Adam Smith, Karl Marx, and Friedrich Hayek at the annual meeting of the Carolina Summer Academy of the Common Sense Society. In September and October I presented my paper “F. A. Hayek and the ‘Economic Calculus’” at the Eucken Institute in Freiburg, the NYU Colloquium on Market Institutions and Economic Processes, and the George Mason University PPE Workshop. In November I led a 2 hour webinar on the economic and social theory of F. A. Hayek for the European Students for Society. In December I presented a talk on the economic and social theory of F. A. Hayek as part of the McKenna Lecture Series at Saint Vincent College, Latrobe PA. In February I gave the John W. Pope Lecture at Clemson University on “Champion of the Market: The Life and Ideas of F. A. Hayek.” In March I served as the discussion leader for a / colloquium on “Hayek and Keynes on Human Nature and Liberty.” And in April I gave a guest lecture on “The Intellectual Contributions of F. A. Hayek” for an undergraduate class, and led a graduate student discussion of Hayek’s ideas at the University of Arizona in Tucson. At all of these I promoted the Center and its programs.

Other professional activity included attending the Mont Pèlerin Society meetings in the Galapagos Islands in June 2013, where I conversed with a number of people who are important for my larger Hayek project, among them Ken Minogue, Ed Feulner, Richard Zundritsch, and Leon Montes. I presented a paper on “F. A. Hayek and the ‘Economic Calculus’” at the Southern Economic Association meetings in Tampa, Florida in November, and I also attended a Liberty Fund Colloquium on “The 50th Anniversary of Buchanan and Tullock’s The Calculus of Consent.” Finally, in April I attended the fifth annual meeting of the Institute for New Economic Thinking in Toronto as a member of the Advisory Board and the Chair of the History of Economic Thought Research Program, one of five Research Programs that INET sponsors.

10 Appendix C

Titles of Articles Published in HOPE, 2013-2014

Fall 2013

Were Jevons, Menger, and Walras Really Cardinalists? On the Notion of Measurement in Utility Theory, Psychology, Mathematics, and Other Disciplines, 1870–1910 IVAN MOSCATI

Beggars: Jeremy Bentham versus William Wordsworth JAMES P. HENDERSON

The Emergence of Econophysics: A New Approach in Modern Financial Theory FRANCK JOVANOVIC AND CHRISTOPHE SCHINCKUS

The Puzzle of Marx’s Missing “Results”: A Tale of Two Theories GILBERT L. SKILLMAN

Adam Smith’s “Collateral” Inquiry: Fashion and Morality in The Theory of Moral Sentiments and The Wealth of Nations CRAIG SMITH

Discovery of the Faustmann Formula in Natural Resource Economics ESA-JUSSI VIITALA

Winter 2013

Economics for the Masses: The Visual Display of Economic Knowledge in the United States (1910–45) LOÏC CHARLES AND YANN GIRAUD

Abba Lerner and the Political Economy of Bureaucracy and Organizations DANIEL L. CUDA

Design for a Streamlined War Economy ABBA P. LERNER

Friedrich List and the Economic Fate of Tropical Countries MAURO BOIANOVSKY

Tariffs and Trusts, Profiteers and Middlemen: Popular Explanations for the High Cost of Living, 1897–1920 MARK ALDRICH

Spring 2014

Progressivism and Academic Public Finance, 1880 to 1930 MARIANNE JOHNSON

11 A Tale of Two Destinies: Georgescu-Roegen on Gossen PAOLA TUBARO

Adam Smith’s “Optimistic Deism,” the Invisible Hand of Providence, and the Unhappiness of Nations TERRY PEACH

Paul Samuelson and Revealed Preference Theory D. WADE HANDS

Are There Important Differences between Classical and Twenty-First-Century Monetary Theories? Did the Keynesian and Monetarist Revolutions Matter? JOHN H. WOOD

Rigor versus Relevance in Economic Theory: A Plea for a Different Methodological Perspective ANDREA SALANTI

Summer 2014

The Puzzle of Metallism: Searching for the Nature of Money FILIPPO CESARANO

Haavelmo’s Epistemology for an Inexact Science MARCEL BOUMANS

J. S. Mill and the Value of Utility SHIRI COHEN KAMINITZ

Social Needs, Social Goods, and Human Associations in the Second Edition of Carl Menger’s Principles GIANDOMENICA BECCHIO

The Role of Intelligence, Institutions, and Place in Carlo Cattaneo’s Economics TIZIANO RAFFAELLI

What Is a Just Society? The Answer according to the Socialistes Fraternitaires Louis Blanc, Constantin Pecqueur, and François Vidal LUDOVIC FROBERT

Guicciardini’s La Decima scalata: The First Treatise on Progressive Taxation NIKOLA REGENT

An Unpublished Letter from James Mill to Jean-Baptiste Say VICTOR BIANCHINI AND NICOLAS RIEUCAU

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