| HISTORY of ECONOMIC
THOUGHT
1-2 module, 2002 / 2003
Academician
Revold Entov
Assistant: Konstantin Styrin
The
purpose of the course is to give the audience an overview of the
growth and development of the economic thought. Studying the history
of economic theory is helpful in understanding the predecessors
of the modern economic problems and the logic of the evolution
of Economics.
The
course includes 28 lectures and 3 seminars. The final grade will
include two essays (each weighing 20%) and the exam (60%).
Literature:
1.
R. Ekelund, R.Herbert “A History of Economic Theory and Method”.
McGraw Hill Publ. Co. 1990.
2.
M. Blaug “Economic Theory in Retrospect” Cambridge University
Press 1991
3.
T. Negishi “History of Economic Theory “ North-Holland 1989
4.
J. Schumpeter “A History of Economic Analysis” Oxford University
Press
5.
G. Stigler “Production and Distribution Theories: the Formative
Period” McMillan 1941
Syllabus
Lecture
1
The
purpose of the course. The importance of original sources. The
structure of Economic Theory and models of scientific knowledge
growth.
[4], ch 1,3.
Lecture
2
Economic
thought in the Ancient Ages.
The idiosyncrasies of the ancient social concepts. “Household
theory”. Plato’s labour division and distribution theory.
Plato “Protagor” (vol 1), “State” (vol 3)
Lecture
3
Aristotle’s
economic theory. Private and state property. Aristotle’s value
theory. His role in the later development of economic theory.
Aristotle’s “Nichomachus’ Ethics” ch.1
Lecture
4
Economic
thought in the Middle Ages. The influence of the Early Christianity
and scholastics. The evolution of the concepts of money, value,
usury and market.
[1], ch. 2; [7], vol.1, ch 4.
Lecture
5
Mercantilism.
The development of the international market. The aims of economic
policies. National and Liberal Economics.
[1], ch.3; [7], ch. 7
Lecture
6
Physiocrats.
An attempt to define labour productivity and production efficiency.
Canais: a model of goods and money flows. Development of the theory
of value.
[4], ch..4
Lecture
7
Cantillion’s
Theory: an insightful sketch of General Equilibrium Theory.
General Structure of economy: Cantillion’s scheme. The importance
of land and labour. Cantillion’s theoretical model. The concept
of “land value”.
[1], ch 4
Lecture
8
English
economic theory of XVII century.
Empirical method in Economic Theory. “Political Arithmetic “ of
W.Petty. The problem of money in the works of Petty of Lock. The
search for sources of value. “Demand laws” of H. King and Ch.
Dovenut.
[1], ch 4.
Lecture
9
Classical
school of Political Economy.
Idiosyncrasies of the school’s method. Studies of the nature and
reasons of wealth of nations. Analysis and classification of production
factors. The concept of “homo economicus”. “Natural Law” and private
property. The importance of utility (Bentham). An attempt to create
a non-contradictionary theoretical scheme
[4], ch. 1-2, ch 5
Lecture
10-11
A.
Smith’s economic theory.
A relation between moral philosophy and economic theory: normative
and positive concepts. Division of labour: the importance and
limitations. Market price and “natural price”. Creation of integral
theory of value. Competition and Monopoly.
A. Smith “Wealth of Nations”
Lecture
12
Ricardo’s
economic model
Ricardian model of the market system: a general overview. The
theory of value. Labour and non-labour income: a distribution
system . International division of labour and relative advantages.
The theory of Finance, “Ricardo’s principle”, tax exertion problems.
Ricardian traditions in Economic Theory.
D. Ricardo ”Introduction into Political Economy and Taxes”
Labour
13
Th. Malthus: a search for general theory.
Demographical problems in Economic Theory: the role of Th. Malthus.
Malthus’s value theory. A search for valid methods in economic
analysis: Malthus vs Ricardo.
Capital accumulation and consumption.
Th. Malthus “Principles of Political Economy”
Lecture
14
The
problems of money and credit relations in English Political Economy
in XVIII-XIX centuries.
Quantity theory of money. Credit money and market equilibrium
. The “natural “ interest rate : Thornton’s arguments.
[4], ch 7.
Lecture
15
G. S. Mille: completion of the theoretical framework.
Mille’s theoretical system: structure, logic and limitations.
The crisis of classical school; classical and neo-classical analysis
Mille’s concepts. Theoretical discussions about economic policies.
G. S. Mille “Political Economy Foundations”
Lecture
16
Opposition
to the classical school: Sysmondi and socialists.
Sen-Simon’s attempt to comprehend the nature of “industrialism”.
Political economy as a social management science : Sysmondi’s
approach. The problem of capital overaccumulation: how realistic
is Say’s model? Deductive and Inductive methods in Economics.
Attempts to construct ideal economic model - Owen, Fouriex, Prudon.
Lecture
17
Economic
Theory of K.Marx.
Can Marx be considered as a representative of the classical school?
Marxian theory as the political economy of growing social conflict.
Main assumptions of the theory of surplus value. Developing dynamic
models: gains and losses. Some results of revolutionalist experiments:
theory and practice of Marxism.
Lecture
18
The
Historic School.
The problem of economic revolution: the role of institutions.
The old historic school as a reaction on “excess rationalism”
of classical foundations. “Economic person” in the framework of
the historic school.
Ways
of development of the historic school. Schmoller and “Methodenstreit”.
Schemes of periodization of economic history. The concept of “National
economy” and problems of economic policy. “The crisis of economic
theory” and ways to get over it recomended by the .historic school.
Lecture
19
Mathematical
Methods in Economic Investigations: O. Cournot.
The response of the economic theory on the achievments of science.
O. Cournot on the method of economic investigation. The concept
of economic equilibrium. The analysis of the monopoly and duopoly.
The concept of consumer surplus.
Sources of the marginalist revolution.
Developing the theory of marginal productivity is the final stage
of forming the marginal concept. The meaning of J.B. Clark. Static
and dynamic analysis in the theory of Clark. Äæ. Êëàðê
“Ðàñïðåäåëåíèå áîãàòñòâà” Ì. 1992;[5], ãë. 4
Lecture
25
American
institutions.
The
notes of Veblen about specific features of social and economic
researches. The impact of the institutions on behavior of economic
agents. The forms of interactions of technological and "ritual"
institutions. Relationship between industry and commerce. The
theory of J.Commons. The legislation for economy.
Ò.
Âåáëåí “Òåîðèÿ ïðàçäíîãî êëàññà” Ì. 1984;
Ä. ÌàêÊëîñêè “Ïîëåçíî ëè ïðîøëîå äëÿýêîíîìè÷åñêîé íàóêè”.
“Òåçèñ”, ò.1, âûï. 1, (1993 ã.).
Lecture
26
Economic
theory of K.Wicksell.
Relation
of microeconomics and macroeconomics in the theory of.Wicksell.
Monetary theory of Wicksell. Capital and interest rate, the effect
of the real interest rate. Dynamics in Wicksell's models. The
impact of cumulative processes. K.Wecksell and developing of Stockholm
School.
R. Frisch “K. Wicksell: a Cornerstone in Modern Economic
Theory” Oslo 1951, Chapters 1,2
Lecture
27-28
Keynesian
revolution. Social and economic conditions which had been preceded
to incipiency of unbalanced macroeconomic theory. The evolution
thought of Keynes. Monetary theory of Keynes. The principles of
Keynesian model. Interaction of aggregate demand and aggregate
supply in this model. The impact of investment. Recommendations
for economic policies. The results of the postwar experience of
Keynesian regulation.
Äæ.
Ì. Êåéíñ “Îáùàÿ òåîðèÿ çàíÿòîñòè, ïðîöåíòà è äåíåã” (ðàçëè÷íûå
èçäàíèÿ).
A. Leijonhufvud “On Keynesian Economics and the Economics
of Keynes” NY 1968
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