Course Outline ------------- Fall 2008

ECONOMICS 290S

The Development of Modern Economic Thought


Professor E. Roy Weintraub; Office: Social Sciences 320

Phone and Voicemail: 660-1838; email: erw@duke.edu


"Nobody can separate the `internal' history of science from the `external' history of its allies. The former does not count as history at all. At best it is court historiography, at worst Legends of the Saints. The latter is not history of `science', it is history." (Bruno Latour, The Pasteurization of France, p. 218.)

This class generally concerns the history of 20th century economics, focusing particular attention on the discipline as a mainstream discourse in the United States. One of the particular concerns of the course will be to suggest the ways, and the history of how, a broad and varied set of approaches and practices early in the 20th century evolved, by late in the 20th century, to a single mainstream, now called neoclassical economics or some such variant, and a variety of marginalized discourses mostly critical of neoclassical economics.

The seminar will meet once a week. There will be required material to be read each week. All required reading is in either a) the paperbacks How Economics Became a Mathematical Science by me, Backhouse’s The Ordinary Business of Life, or Niehans’s A History of Economic Theory, or b) e-reserve from the library. Some of the recommended material is to be found in The New Palgrave: A Dictionary of Economics, in four large oversize volumes, edited by John Eatwell, Murray Milgate, and Peter Newman. Duke owns three publicly accessible copies of this set of books, one each in the Fuqua and Law School Libraries, and one set in Perkins in the Reference Department. Please use these books at the table in Perkins where the books are shelved, and return them to their places immediately so that others may use them. There are no really reliable textbooks on 20th century economic thought: nevertheless, I have placed texts by Spiegel, by Beaud and Dosteller, and by Screpanti and Zamagni on reserve in the Perkins Reserve Room, on three hour closed reserve; some other materials are also on e-reserve -- see Readings.

Note that there is another excellent source for readings available on the World Wide Web: Professor Roderick Hay is making available non-copyrighted materials in the history of economics at Readings on the Web. I should also note that there is a fairly comprehensive, although somewhat idiosyncratic, history of economics website maintained at the New School for Social Research at http://cepa.newschool.edu/het/.

All students will keep a journal that will be a journal of responses to the reading, and questions which are raised by the readings which seem to merit class discussion. This journal is not notes on the reading but rather your response to the reading. I will collect these journals at the end of the semester.

For graduate students, the focus on the course is the reading, and the class discussions. I will moreover help shape individual projects, suited for the various graduate programs of the students, as appropriate.

Topics, and common readings to be done by all class members, follow below. Entries in The New Palgrave are in parentheses. Niehans’s book should be read continuously; with his chapters each focusing on an individual, you should be able to read about each of the people we are to discuss in class:  

·         Week 1: Introduction
Required Reading: Prologue, in Backhouse (OBL); Chapter 9 in Weintraub’s (HEBMS); Chapters 1, 37 in Niehans (HET). {Background Reading: Chap 16, "A Methodological Postscript" in Mark Blaug, Economic Theory in Retrospect (3rd ed.); Donald Walker, "Ten Major Problems in the Study of the History of Economic Thought", Hist. of Econ. Soc. Bull. 10, 2, Fall 1988; E. R. Weintraub, Chaps. 1, 8 in Stabilizing Dynamics, 1991; Additional Reading can be found in the collection of papers put together by Mark Blaug, The Historiography of Economics (1991)

·         Week 2: Economics Circa 1900
Required Reading: Chapter 1 (HEBMS); Chapter 8 (OBL); Chapters 22-23 (HET); Chap 9, "Economic Orthodoxies", in Robert Skidelsky, John Maynard Keynes, 1986. {Background Reading: (Cassel, Volterra, Pareto);  Chap 2, "Cambridge Civilisation", in Robert Skidelsky, John Maynard Keynes, 1986; Chap 8, "The Marginal Revolution" in Mark Blaug; Chap 4, "Leon Walras" in Bruna Ingrao and Giorgio Israel, The Invisible Hand, 1990; (Walras, Marshall, Jevons, Edgeworth, Carl Menger, Russell)}

·         Week 3: Institutional Economics
Required Reading: Chapter 9 (OBL); William Baumol’s “On Method in U.S. Economics a Century Earlier” American Economic Review, 75 (6) 1985; Bradley Bateman’s "Clearing the Ground: The Demise of the Social Gospel Movement and the Rise of Neoclassicism in American Economics" in Mary Morgan and Malcolm Rutherford’s From Interwar Pluralism to Postwar Neoclassicism (1998); Bradley Bateman’s “Reflections on the Secularization of American Economics” (Duke Library e-journal) Journal of the History of Economic Thought 30, 1, March 2008. {Background Reading: "Marginalism and Historicism in Economics: Chapter 6" of Dorothy Ross’s The Origins of American Social Science (1991); Malcolm Rutherford’s Institutions in Economics (1994)}

·         Week 4: Business Cycles
Required Reading: Required Reading: Chapter 10 (OBL); Chapters 2 & 3 in Mary S. Morgan’s The History of Econometric Ideas (1990). {Background Reading: (business cycles); Judy L. Klein’s Statistical Visions in Time (1997); Kyun Kim’s Equilibrium Business Cycle Theory (1988);  (Hayek, Irving Fisher )}

·         Weeks 5 and 6: Keynes and Revolution?
Required Reading: Chapter 15 of Skidelsky’s John Maynard Keynes, Volume 2; "Chapter 4: Keynes General Theory, A Problem for Historians" of Peter Clarke’s The Keynesian Revolution and its Economic Consequences. {Background Reading: Don Patinkin and J. Clark Leith (eds.) Keynes, Cambridge, and the General Theory, 1978; J. M. Keynes, Collected Works, Vol. 13 (The General Theory and After, Part 1, Preparation; (D.H. Robertson, Keynes, Keynes' General Theory, Joan Robinson, Harrod, Hawtry)} 

·         Week 7: General Equilibrium
Required Reading: Chapter 11 (OBL); Chapters 4 and 6 in Weintraub (HEBMS); Chapter 6 in Weintraub’s General Equilibrium Analysis: Studies in Appraisal, 1985.  {Background Reading: Ingrao and Israel, Chap 7; (Karl Menger, David Hilbert, Abraham Wald, John von Neumann, activity analysis, Brouwer's Fixed Point Theorem, Kurt Gödel, Arrow-Debreu Model, etc.)}

·         Week 8: Economics and World War II
Required Reading: Chapters 12 & 13, Backhouse (OBL); (handout) Chapter 4 of Mirowski’s Machine Dreams. {Background Reading: Andrew Pickering’s "Cyborg History and the WWII Regime" in Perspectives on Science, 3, 1995, pp.1-45.}

·         Week 9: Dynamics, and the Neoclassical Synthesis
Required Reading: E. R. Weintraub, Chapter 3 in Stabilizing Dynamics (1991) and (handout) Chapter 4 of E. R. Weintraub’s Microfoundations (1979). {Background Reading: Ingrao and Israel, Chap 8; (Ragnar Frisch, George David Birkhoff, Jan Tinbergen, Henri Poincare, Solomon Lefschetz , Liapunov Theory, Paul Samuelson, stability, dynamics, etc.)}

·         Week 10: Game Theory
Required Reading: Philip Mirowski’s "What Were von Neumann and Morgenstern Really Up To?"; and Robert Leonard’s, "Creating a Context For Game Theory" in E. Roy Weintraub's Toward a History of Game Theory (1991).{Background Reading: Philip Mirowski’s "When Games Grow Deadly Serious" in Craufurd Goodwin's Economics and National Security; Robert Leonard "From Parlor Games to Social Science" in Journal of Economic Literature, 33, June 1995, pp.730-761. (neoclassical synthesis, real balance effect, Borel, game theory, Oskar Morgenstern)}

·         Week 11: Heterodoxies I: Post Keynesianism
Required Reading: Chapter 14, Backhouse (OBL); (handout) Chapter 6 & 7 in J. E. King’s A History of Post Keynesian Macroeconomics.  

·         Week 12: Heterodoxies II: Neo Austrianism
Required Reading: Chapters 5-6 of Karen I. Vaughn’s Austrian Economics in America (1994). {Background Reading: (Hayek); Don Lavoie’s Rivalry and Central Planning: the Socialist Calculation Debate Reconsidered (1985)}

·         Week 13: Neoliberalism 
Required Reading: Backhouse’s “The Rise of Free Market Economics” in Medema and Boettke (2005) (handout); Van Horn and Mirowski’s “The Rise of the Chicago School of Economics and the Birth of Neoliberalism” (2006) (handout)

·         Week 14: Heterodoxies III: The Post-Autistic Economics Movement

 

 

Last modified June 30, 2008