Course Syllabus: History of Economic ThoughtUVM EC 195/Fall 2009/RM L403 LafayetteProf: John F. Summa, Ph.D.Office: Old Mill, Rm. 236 Office Hours: M-W-F 10:30-11:30 (or by appointment)Phone: (802) 656-4392 (o); (802) 846-7509 (c)E-mail: [email protected] Texts:*Adam's Fallacy (Paperback edition), Duncan Foley The Worldly Philosophers (Revised 7th edition), Robert HeilbronerNew Ideas from Dead Economists (2nd revised edition), Todd Buchholtz Recommended Text:**History of Economic Thought: A Critical Perspective (Updated 2nd edition), E. K. Hunt* Required texts have been ordered by UVM's bookstore and should be available by start of classes. New and used editions, meanwhile, are available through a number of online book vendors, such as Amazon.com and CampusBooks.com. There will be assigned readings that will be placed on reserve which will supplement reading assignments from the required texts. Most of the readings placed on reserve will be available online (see learning methodology section below for more on online resources).** Recommended text will be placed on reserve.Course Objectives:One of the most important objectives of this course is to provide students with an understanding of how and why new economic ideas and theories emerge historically. To achieve this goal of understanding the development of economic thought, we will need to keep one eye on the watershed events and social transformations that preoccupied each of the great economic thinkers. Specifically, we want to ask: How did historical events influence development of new thinking about society and economics. 1A second objective and emphasis in this course relates to a central question in economic thought – what is value? What is this thing called value? It is not an easy question to answer and we will spend a great deal of the semester exploring how such a seemingly simple question could become so contentious amongst economists. We will explore the “evolution” of views on value beginning with pre-classical thought, continuing through the classical economists, and ending with neo-classical thinkers. Theories of value have significant implications politically, a dimension that will be fully explored.A third learning focus will be on the question of distribution – who gets what and why from the economic pie? Here it is important to pay attention to why some social classes get bigger slices than others and how the distribution of income impacts prospects for economic growth. We will trace theories of distribution (and value) of all the great thinkers and explore the implications of, and problems with, such theories. Finally, there will be some off-the-beaten-path explorations of the unique contributions the major thinkers have made to the study of economics that are not necessarily connected to the objectives outlined above. Generally speaking, the aim of the course is to foster development of a broad grasp of the main schools of economic thought – old and new – and provide students with an understanding of the important current and historical economic debates. Learning Methodology:With a subject as vast as the history of economic thought, and with so little time in a 3-credit course, we will need to develop an efficient methodology for learning – and one that helps students achieve the objectives outlined above. Reading assignments and related class lectures, therefore, will need to be approached with a detective's mindset, looking for the important clues to getting the story right and not fixating on unnecessary details. To help students parse the important details from the unimportant, I created a set of essential study questions to use while reading and attending lectures. These questions (see below) should be kept in mind when reading and participating in lectures. This will help keep the learning process more organized and productive. The questions below should thus frame the focus of your attention throughout the course.2Study Guide Questions:1. How did economic/social/political events shape development of each school of economic thought?2. What value concept underlies each theory or school of economic thought? How do they differ? How are they the same?3. Who gets what and why from the economic pie according to each school of economic thought?4. What key assumptions are made by each school of economic thought? How do these assumptions reflect bias, if any?5. Is there a major social problem being targeted for solution by each school of economic thought? What is it?6. Where do the roots of a theory or school of economic thought lead politically? Ideologically?7. Who appears to gain from a theory or school of economic thought? Who appears to lose, if anbody? 8. What implicit and explicit conclusions are reached about individuals and markets by each school of economic thought?When readings are assigned, it is expected that students be able to prepare for class using the above questions as a means of preparation. This will allow for more informed discussion of the readings during class. Readings will be assigned from required texts (and recommended text if any) at the end of each lecture/discussion. Occasionally, additional readings will be assigned from non-required text and articles. Readings will be largely non-technical and the load will be reasonable. Online Resources:Reading assignments will be placed on reserve and generally be available at New School University's History of Economic Thought (HET) website. The URL is http://cepa.newschool.edu/het/index.htm. The HET pages at NSU's website are a valuable resource that can save students lots of time, so be sure to take advantage of them. Course Outline:*** (Readings will be assigned at end of each class)I. Introduction: Pre-Classical Thinking About Economics: Week 1 A. Aristotle's questions B. Mercantilist thought C. Quesnay and the Physiocrats3II. The Emergence of Classical Economics (Surplus Value/Objective Value): Weeks 2-4 A. Adam Smith's Wealth of Nations B. David Ricardo's Principles C. Malthus's Essay on Population D. Karl Marx's Das KapitalIII. The Rise of Neo-Classical Economics (Marginalist/Subjective Utility): Weeks 5-7 A. Subjective utility value theory B. Jevons, Menger, Walras and Marshall C. General equilibrium economicsIV. The Challenge of Keynesian Unorthodox Economics (Market Failure/Uncertainty): Weeks 8-9 A. Keynes on economic disequilibrium B. The General Theory of Keynes C. The Keynesian synthesisV.