HISTORY OF ECONOMIC THOUGHT

ECON 105
FALL 2014; 12:30-2:00 TTH
Instructor: Joseph W.H. Lough
CNN: 22528
Units/Credits: 4
Course Location: 10 EVANS
email: joseph_lough@berkeley.edu
Office phone: 510-219-6569
Office Hours: TBA
Course Description
History of Economic Thought was originally conceived to cover economic thought
from Adam Smith to John Maynard Keynes. However, in light of the prolixity of
economic thought since the 1940s, we have elected to move both ends of this
timeline forward; beginning our story with the neoclassical economists at the end of
the nineteenth century and concluding it with a couple of illustrations of economic
thought that challenge the so-called Washington consensus. Our aim throughout
the course will be to explore the ways that history and economic thought, from
Alfred Marshall to Amartya Sen, shape one another.
This Syllabus
While students may rely upon this syllabus for all readings and assignments, they
should also be aware that unforeseen contingencies may require that we alter the
syllabus from time to time. Students are therefore encouraged to log onto and
consult the syllabus on bSpace at regular intervals (at least three times weekly).
Course Materials
The following books are available for purchase at the usual outlets. You should also
purchase a Paper Reader at University Copy.
Required Texts
Frieden, Jeffrey. Global Capitalism. Norton. ISBN: 978039332381-0
Keynes, John Maynard. The General Theory of Employment, Interest, and Money
ISBN-13: 978-1448673025. [Various Editions including Kindle and Google Books
Editions]
Lucas, Robert. Lectures on Economic Growth. Harvard. ISBN: 9780674016019.
Marshall, Alfred. Principles of Economics ISBN-13: 978-1171516699. [Various
Editions including Kindle and Google Books Editions]
Menger, Carl. Principles of Economics. ISBN-13: 978-1908089083 [Various Editions
including Kindle and Google Books Editions]
Piketty, Thomas. Capitalism in the Twenty-First Century. ISBN-13: 978-0674430006
Sen, Amartya. Development as Freedom. ISBN-13: 978-0385720274.
Course Requirements
Under the conviction that scholarship is a collective venture (even when we think
we are conducting it alone), students will be expected to actively participate in

ECON 105 History of Economic Thought (rev. 1 2014-09-05)

LOUGH Fall 2014
Page 2
discussions and presentations (whether or not they are the presenters). For our
purposes, emailing, on-line chatting, and texting do not constitute active
participation. More than two unexcused absences may invite being dropped from
the course. Attendance is not optional.
Students are expected to have read the assigned readings and to be ready to
share questions, interpretations, challenges, alternatives, etc. to the positions
presented by the authors.
Electronic Media: Unless a student submits a written, signed and dated
permission slip from a medical or learning specialist, students may not take
notes on computing devices during lecture. Students who receive permission
to use a computing device must turn off the devices WiFi and Bluetooth technology.
Written assignments (i.e., mid-term, presentation summary, final paper)
must be type-written, appropriately formatted, with the course name, student
name, date, and assignment clearly visible.
Presentation: On January 19, students will select their presentations. Based on
their selections, students will be broken down into teams of between 4 and 5
students. Presentation teams will meet with me during my office hours to discuss
their project. They will be responsible for collaborating together on a presentation,
not to exceed fifteen minutes, during which they will (1) identify the problem the
author(s) are addressing; (2) the position against which the author(s) is/are arguing;
(3) the author(s) solution to the problem. PRESENTERS MUST NOT SUMMARIZE
THE AUTHOR(S) POSITION. PRESENTERS MUST PRESENT THEIR AUTHOR(S)
SOCRATICALLY, I.E., BY IDENTIFYING THE QUESTION THE AUTHOR(S) ARE
RAISING AND ENGAGING THEIR CLASSMATES OVER THIS PROBLEM. Each
student must then submit his/her own 5-page paper: (1) identify the problem the
author(s) are addressing; (2) the position against which the author(s) is/are arguing;
(3) the author(s) solution to the problem. The paper must not summarize.
Final: Students must visit me during office hours prior to the Spring Break to
discuss the two economists they intend to focus on in their final paper. Students will
present to their assigned Reader a bibliography of works they intend to use writing
their final paper no later than week 14. In their final paper: (1) students will identify
a problem common to both economists; (2) identify how this problem arose in
response to historical changes; (3) critically reflect on how well (or poorly) the
economists grasp and respond to these changes; and (4) identify the solutions that
each economist settles upon to this problem; and (5) state how they would revise
these solutions to make them more adequate.
Plagiarism
The University of California, Berkeley, its faculty and its students pride themselves
on the standards of excellence we have set for ourselves and attempt daily to
match up to. Among these standards of excellence are originality of scholarship and
academic integrity. To help maintain these standards the students,
administration, and faculty have established and continue to enforce severe
penalties for students and faculty who represent someone elses statements,

ECON 105 History of Economic Thought (rev. 1 2014-09-05)

LOUGH Fall 2014
Page 3
research, or ideas as their own. If you are discovered to have plagiarized, you will
receive a summary F for the assignment and will be referred for further
investigation to Student Judicial Affairs. If you are unsure what constitutes
plagiarism, please consult document Tips for Avoiding Plagiarism posted on the
following address:
http://students.berkeley.edu/files/osl/Student_Judicial_Affairs/TipsForAvoidingPlagiari
sm.pdf. The University of California, Berkeley, students, faculty, and administration
also prohibit cheating, conveying false information, fabricating or altering
information, alteration of University documents, and rude conduct toward other
students, faculty, or administrators.
Evaluation Criteria
Attendance
Participation
Presentation
Presentation Paper
Bibliography
Take-Home Midterm
Final Paper

20%
10%
10%
10%
10%
20%
20%

Your final grade will be based on your cumulative points, not on a curve. The
maximum number of points you can earn for the course is 100. I will be using the
following conversion from number to letter grade:
A
AB+
B

93 and>
90-92.9
87-89.9
83-86.9

BC+
C
C-

80-82.9
77-79.9
73-76.9
70-72.9

D+
D
DF

67-69.9
63-66.9
60-62.9
below 60

Course Calendar
PART ONE: THE REVOLUTION
WEEK ONE: THE HISTORICAL STUDY OF ECONOMIC LIFE
Date
Title
Assignment (completed by date)
August 28
Introduction
Overview; The Classical and the Neoclassical
Traditions; W Sewell, The Historical Study of
Economic Life (bSpace)
WEEK TWO: IN THE BEGINNING . . .
Date
Title
Assignment (completed by date)
September
Gymnasium on a Recommended Reading: Aristotle, Politics
2
Stick
(bSpace); Plato, Gorgias (bSpace); Plato,
Republic (bSpace); I Kant, Prolegomena
(bSpace); GFW Hegel, Civil Society (bSpace);
K Marx, Capital (bSpace)
September
The Great Boom
Required Reading: EJ Hobsbawm, Age of Capital
4
(excerpts) (bSpace)

ECON 105 History of Economic Thought (rev. 1 2014-09-05)

LOUGH Fall 2014
Page 4

WEEK THREE: THE MARGINAL REVOLUTION

Date
Title
Assignment (completed by date)
September
No other method
Required Reading: WS Jevons, The Theory of
9
Political Economy (excerpts) (bSpace)
September
The German
Required Reading: G v Schmller, Class Conflict
11
Historical School
(bSpace); T Veblen, Review [of Schmllers
and its detractors Economics] (bSpace)
WEEK THREE: THE BEGINNING AND END OF THE METHODENSTREIT
Date
Title
Assignment (completed by date)
September
The other method Required Reading: C Menger, Principles of
16
Economics, Chapter 1, Sections 1-3 (bSpace);
PRESENTAITON
September
Time and Error
Required Reading: C Menger, Principles of
18
Economics, Chapter 1, Section 4 (bSpace);
PRESENTATION
WEEK FOUR: THE MASTER
Date
Title
September
Rigorous Price
23
Theory, Markets,
and Supply and
Demand
September
Rigorous Price
25
Theory, Markets,
and Supply and
Demand
WEEK FOUR: THE MASTER
September
Demand Price,
30
Risk, and Marginal
Costs
October 2
Marginal Costs,
Equilibrium, and
the theory of
Maximum
Satisfaction
WEEK FIVE: THE MASTER
Date
Title
October 7
Monopolies,
Equilibrium, and
Income

Assignment (completed by date)

Required Reading: A Marshall, Principles of
Economics, Book V, chaps. 1-3;
PRESENTATION
Required Reading: A Marshall, Principles of
Economics, Book V, chaps. 4-5;
PRESENTATION

Required Reading: A Marshall, Principles of

Economics, Book V, chaps. 6-9;
PRESENTATION
Required Reading: A Marshall, Principles of
Economics, Book V, chaps. 10-13;
PRESENTATION

Assignment (completed by date)

Required Reading: A Marshall, Principles of
Economics, Book V, chaps. 14-15; Book VI,
chap. 1; PRESENTATION

ECON 105 History of Economic Thought (rev. 1 2014-09-05)

LOUGH Fall 2014
Page 5
PART TWO: HISTORY AND ECONOMICS
WEEK FIVE: PROBLEMATIZING HISTORY AND ECONOMICS
Date
Title
Assignment (completed by date)
October 9
Economics, the
Required Reading: M Weber, Objectivity in the
Social Sciences,
Social Sciences (BSpace); PRESENTATION
and Value Theory
(DIFFICULT)

ECON 105 History of Economic Thought (rev. 1 2014-09-05)

LOUGH Fall 2014
Page 6

WEEK SIX: DESCENT INTO CHAOS

Date
Title
Assignment (completed by date)
October 14 The Political v.
Required Reading: C Schmitt, Concept of the
The Economic
Political (BSpace); PRESENTATION
October 16 JM Keynes
Required Reading: JA Frieden, Global
Capitalism, chapters 6,10, and 10 (bSpace); JM
Keynes, The Worlds Economic Outlook (bSpace)
WEEK SEVEN: ADDRESSING THE CRISIS
Date
Title
Assignment (completed by date)
October 21 Elements of
Required Reading: JM Keynes, General Theory,
Effective Demand chapters 1-5; PRESENTATION
October 23 Consumption
Required Reading: JM Keynes, General Theory,
chapters 6-9; PRESENTATION
WEEK EIGHT: ADDRESSING THE CRISIS
Date
Title
Assignment (completed by date)
October 28 Demand,
Required Reading: JM Keynes, General Theory,
Consumption, and chapters 10-13; PRESENTATION
Interest
October 30 Interest, Money,
Required Reading: JM Keynes, General Theory,
and Employment
chapters 14-18; PRESENTATION
POST MID-TERM QUESTIONS ON BSPACE
WEEK NINE: THE GENERAL THEORY
Date
Title
Assignment (completed by date)
November
Price
Required Reading: JM Keynes, General Theory,
4
chapters 19-21; PRESENTATION
PART III: THE WAR OF THE WORLDS
WEEK NINE: TALKING ABOUT A REVOLUTION
Date
Title
Assignment (completed by date)
November
Contra oikonomia Required Reading: M Friedman, A Monetary and
6
politeia
Fiscal Framework for Economic Stability
(BSpace); PRESENTATION
MID-TERM RESPONSES DUE ON BSPACE

ECON 105 History of Economic Thought (rev. 1 2014-09-05)

LOUGH Fall 2014
Page 7

WEEK TEN: BECKER CLARIFIES THE CHOICES

Date
Title
Assignment (completed by date)
November
Like any other
Required Reading: G Becker, The Classical
11
commodity . . .
Monetary Theory: The Outcome of the
Discussion (BSpace); PRESENTATION
November
Markets: The
Required Reading: G Becker, Competition and
13
Ultimate
Democracy (BSpace); PRESENTATION and
Democracy
Irrational Behavior and Economic Theory
(BSpace) PRESENTATION
MIDTERM GRADES AND PARTICIPATION POSTED
ON BSPACE
WEEK TWELVE: THE LONG RUN
Date
Title
Assignment (completed by date)
November
The Great
Required Reading: R Lucas, Lectures on
18
Convergence
Economic Growth, Introduction and Chapter 4;
PRESENTATION (WONKISH)
November
The Long Run
Required Reading: G Arrighi, The Long Twentieth
20
Century, The Rise of Capital (BSpace);
PRESENTATION
WEEK THIRTEEN: WHATS NEXT
Date
Title
Assignment (completed by date)
December
A Sen
Required Reading: A Sen, Development as
2
Freedom (ALL)
December
T Piketty
Required Reading: T Piketty, Capitalism in the
4
21st Century (ALL)
WEEK FOURTEEN: READING WEEK
December
I WILL HOLD OFFICE HOURS THIS WEEK
8December
12
WEEK FIFTEEN: EXAMINATION WEEK
December
FINAL PAPERS ARE DUE NO LATER THAN 10:59
15AM, FRIDAY, DECEMBER 19
December
19