Economics 455 Fall 2018 History of Economic Thought Professor Lynne Kiesling Tuesday-Thursday 4:30-5:50 Krannert G012 Office location: 345 Krannert Hall Email: [email protected] Office hours: Thursday 2:00-4:00 By appointment Readings: Jürg Niehans, A History of Economic Theory (HET) – required Adam Smith, The Wealth of Nations, Liberty Press edition (WN) – required Bucholz, New Ideas from Dead Economists – required All other readings available on the course Blackboard website Readings marked with an asterisk (*) are required and are all included in the assigned texts or the online readings. The other references are optional additional reading, all of which should also be available in the library if you want to explore something in more depth. NOTE: You should also ensure that you have access to intermediate micro and macro texts, as you may feel the need to brush up on the theory that we will be discussing. For example, I will take as given that you are familiar with the IS/LM framework of the Keynesian model, and the contrasting classical model, when we discuss Keynes. McCloskey’s Applied Theory of Price is an intermediate micro book that’s available online if you don’t still have yours from 340: http://www.deirdremccloskey.com/docs/price.pdf Description: The development of economic thought and economic methodology from the advent of the mercantilists to the formation of current schools of economics in the early 20th century. The course will focus on economics as an evolving body of thought and an ongoing conversation, with strong emphasis the movement from classical economics to neoclassical economics in the 19th century as a foundation for modern economic theory. This course is intended to be a capstone to your economics major, to be taken after completion of the major's core classes and several electives. Prerequisites: Economics 252 and Economics 340 Learning objectives: After completing this course, students will be able to • Think more deeply and independently about economic theory and practice, and apply that deeper understanding to modern economic thought • Describe the chronological and thematic progression of economic ideas from the 17th century to the 1930s • Identify the different fundamental questions in economic analysis during this period and how and why they changed over time • Identify important writers in economics, the works and ideas associated with them, and the interaction of their ideas with those of other writers • Analyze and critique these ideas, both within their historical context and as they relate to current economic thought Evaluation: Daily discussion questions 10% Class participation 10% Short essays (4) 20% Midterm exam/paper 25% Final exam/paper 35% Mobile Communications Policy: You may not use electronic devices in the classroom except to access class readings and search for passages as we discuss them. If you have an accommodation (see below) under which you use an electronic device to take class notes, please contact me as soon as possible so I am familiar with your situation. Academic Dishonesty: Purdue prohibits "dishonesty in connection with any University activity. Cheating, plagiarism, or knowingly furnishing false information to the University are examples of dishonesty." [Part 5, Section III-B-2-a, University Regulations] Furthermore, the University Senate has stipulated that "the commitment of acts of cheating, lying, and deceit in any of their diverse forms (such as the use of substitutes for taking examinations, the use of illegal cribs, plagiarism, and copying during examinations) is dishonest and must not be tolerated. Moreover, knowingly to aid and abet, directly or indirectly, other parties in committing dishonest acts is in itself dishonest." [University Senate Document 72-18, December 15, 1972] If the professor finds that a student is cheating on an assignment or quiz, that student will receive a failing grade on the assignment or quiz. If the professor finds that a student is cheating on an exam (either receiving or giving help), the students involved will receive a failing grade on the exam and the student will be reported to the University. Accessibility and Accommodations: Purdue University strives to make learning experiences as accessible as possible. If you anticipate or experience physical or academic barriers based on disability, you are welcome to let me know so that we can discuss options. You are also encouraged to contact the Disability Resource Center at: [email protected] or by phone: 765- 494-1247. Online Behavior: Disruptive behavior on the discussion boards or towards others in the class is not tolerated and is grounds for being removed from the online class. Disruptive students will be referred to the Dean of Students Office for further action. Purdue University is committed to maintaining a community which recognizes and values the inherent worth and dignity of every person; fosters tolerance, sensitivity, understanding, and mutual respect among its members; and encourages each individual to strive to reach his or her own potential. In pursuit of its goal of academic excellence, the University seeks to develop and nurture diversity. The University believes that diversity among its many members strengthens the institution, stimulates creativity, promotes the exchange of ideas, and enriches campus life. Purdue University prohibits discrimination against any member of the University community on the basis of race, religion, color, sex, age, national origin or ancestry, genetic information, marital status, parental status, sexual orientation, gender identity and expression, disability, or status as a veteran. The University will conduct its programs, services and activities consistent with applicable federal, state and local laws, regulations and orders and in conformance with the procedures and limitations as set forth in Executive Memorandum No. D-1, which provides specific contractual rights and remedies. Any student who believes they have been discriminated against may visit www.purdue.edu/report-hate to submit a complaint to the Office of Institutional Equity. Information may be reported anonymously. Use of Copyrighted Materials: The video lectures, problem sets, and quizzes that are presented as part of this course are protected by copyright law. Always assume the materials presented by an instructor are protected by copyright unless the instructor has stated otherwise. Students enrolled in, and authorized visitors to, Purdue University courses are permitted to take notes, which they may use for individual/group study or for other non-commercial purposes reasonably arising from enrollment in the course or the University generally. No individual is permitted to sell or otherwise barter notes or course materials, either to other students or to any commercial concern, without the express written permission of the course instructor. Emergency: In the event of a major campus emergency, course requirements, deadlines and grading percentages are subject to changes that may be necessitated by a revised semester calendar or other circumstances beyond the instructor’s control. Relevant changes to this course will be posted onto the course website or can be obtained by contacting the instructors or TAs via email. You are expected to read your @purdue.edu email on a frequent basis. READINGS: I. The nature of criticism and the progression of ideas *HET, Chapters 1 and 2 II. Pre-classical political economy: Mercantilism, Hume, Cantillon, Physiocrats *HET, Chapters 3, 4 (Cantillon), 5 (Quesnay), and 6 (Money, Hume) *Mercantilism handout *“Mercantilism”: http://campusvirtual.uma.es/econlinks/Escuelas/mercant.htm *“Mercantilism,” Concise Encyclopedia of Economics: http://www.econlib.org/library/Enc/Mercantilism.html *D. Hume, Essays Moral, Political, and Literary, “Of the Balance of Trade” (para. 1-13 only) and “Of the Jealousy of Trade,” Chapters II.V and II.VI: http://www.econlib.org/library/LFBooks/Hume/hmMPL.html *Bio of Cantillon: http://www.newworldencyclopedia.org/entry/Richard_Cantillon *Text of Essai sur la Nature du Commerce, in English (Table of contents; Part I Chapters I-IV, X, XIII; Part II Chapter II): http://www.econlib.org/library/NPDBooks/Cantillon/cntNT.html *Bio of Quesnay: http://www.econlib.org/library/Enc/bios/Quesnay.html *Facsimile of the Tableau Economique: http://www.taieb.net/auteurs/Quesnay/t1759m.html *Text of the Tableau Economique, in French: http://www.taieb.net/auteurs/Quesnay/t1758.html -Vaggi & Groenewegen, Concise Theory of Economic History, (Palgrave, 2003) Chapters 7, 8 -Bernard Mandeville, Fable of the Bees -David Hume, Writings on Economics -Jacob Viner, "English Theories of Foreign Trade before Adam Smith," in Studies in the Theory of International Trade (1937) -Kuczyinski and Meek, eds. Quesnay's Tableau Economique (1972) -Meek, ed. Turgot on Progress, Sociology and Economics (1973) -Robert L. Meek, The Economics of Physiocracy (1962) -Antoin Murphy, Cantillon: Entrepreneur and Economist (1986) III. Classical economists: Smith, Malthus, Ricardo, Say, J. S. Mill *HET, Chapters 7, 9, 11, 12, pp. 110-115 (Say) *Adam Smith, Theory of Moral Sentiments, selections (see attached list): http://www.econlib.org/library/Smith/smMS.html *Smith, WON, assigned readings (see attached list) *Coase, “Adam Smith’s View of Man” *David Ricardo, Principles of Political Economy and Taxation, Chapters 2, 3, 7 *J.B. Say, Treatise on Political Economy, Chapter 15: http://www.econlib.org/library/Say/sayT15.html *T. R. Malthus, Definitions in