Learning Opportunities will be offered for achieving your final grade.

Transcription

1 Professor John Hall Institutional Economics, EC446U Portland State University Winter Term, 2014 Office CH241-P Office Visitation: Tue, Thu, 2:00 to 2: :40-7:30 p.m., and by appointment This ten week course in Institutional Economics is designed to introduce to students evolutionary-institutional approaches to social science, in general, and to economic science, in particular. We shall start out at a basic level. However, over the ten week term we shall aspire to sit on the moon, and from there to reach out and touch the stars in the social science heavens. This course offers at least two clearly stated goals for students to achieve over this ten-week term. If not before, at least by Week 11 of this course, enrolled students would have raised their levels of proficiency and knowledge of a wide range of contributors to Institutional Economics, and to understand Institutional Economics as a bona fide school of thought within Economic Science. The second goal that registers as equally important: by Week 11 of this course, enrolled students would have raised their proficiencies for absorbing and thinking through high-level ideas, and then writing up their own synthetic ideas artfully and in a manner that makes use of a sophisticated approach for developing a perspective: that involves effectively citing literature from major thinkers. In our course we shall largely be exploring economic, social, and philosophical thinking that was advance by Thorstein Veblen. However, we shall also seriously consider his antecedents -- especially American Pragmatist Philosopher Charles Sanders Peirce, the great evolutionary theorist Charles Darwin, and the well known but not so well read early social scientist, Karl Marx. While considering Veblen s contributions we shall also consider ideas advanced by some of his most important disciples, who, along with Veblen, laid the foundation for what is known as Original Institutional Economics (OIE). These thinkers include but are not limited to: Wesley Mitchell, Clarence Ayres, John Fagg Foster, Marc Tool, John Kenneth Galbraith, C. Wright Mills, Paul Dale Bush, and William Dugger. In the interests of balance in exposure, as well as our continued edification in this field of inquiry, we shall also consider selected contributions from a newer, neighboring, and challenging tradition known as New Institutional Economics. This, related but competing field, is built on ideas advanced by Ronald Coase, Douglass North, Oliver Williamson, and to a degree with Elinor Ostrom, coming in from her unique angle. Learning Opportunities will be offered for achieving your final grade. All students start with a zero which is an especially low F, something like a F-. Writing a midterm could count for as much as 50 points, but still renders a low F.

2 Writing the first draft of your term paper could count for as much as 25 points. This could possibly stretch your grade to 75 points, yielding an unquestioned C. Turning in the second draft of your paper could count for as much as 25 points, and potentially yielding a whopping 100 points what would register in as super strong A. During the course materials will be handed out, and instruction will be provided, to assist you in writing up your research. Your learning opportunities will be judged by how effectively you can manage to incorporate the new knowledge into your research and writing. Finally, presenting your research findings is wholly optional, but could serve to raise your final grade by five additional points, assuming it done earnestly and your ideas and their presentation hold our interests. Failure to turn in or perform any of the assignments on time would result in zero (0) points for that assignment. Or, I could take off five points for each day the assignment is turned in late. Your choice. When the course ends in early December, grades will be calculated and turned in on time. One s final grade would be based on the accumulated points set against the standard PSU grading scale, plus considering whether research was presented. I do not plan to offer any incompletes, that is, I grades. Assignments have to be handed in as paper documents (no electronically transferred documents will be accepted). Assignments are to be typed, double spaced, normal margins, and with a 12 point font that proves easy on my eyes, (I like Times New Roman #12 font, then print out on fronts of pages only. If papers are handed in printed on fronts and backs, I shall subtract 5 points under style. I like staples in the upper left hand corner. Papers are to be referenced according to the style established in the Journal of Economic Issues with variations that will be explained in detail in class lectures. An assignment will be issued for you to complete outside of class time as a take-home. This Learning Opportunity 1 is due by 5:00 pm on Monday, 10 February. Then, you will be required to consider Learning Opportunities 2 and 3. The 2 nd Learning Opportunity involves writing up a first draft for a 2,850 word, or about a 10 or 11 page term paper. This first draft is due by 5:00 p.m. on Monday, 03 March. Learning Opportunity 3 involves refining your :earning Opportunity #2, creating and handing it in as Second and Final Draft. And, this Final Draft is due by 5:00 pm on the day of our officially scheduled final exam (Exam Week is 17 to 21 March, 2014) Guidelines will be presented regarding the writing and referencing format for the exam and term paper. You assignments will be graded based upon my assessment content and style. Attendance will not be taken as the logistics are too difficult. However, material and information will be presented during classes and students will be obliged to respond. If classes are being missed, then shortcomings should show up in the quality of your writing assignments, that will be graded rigorously as if each student made perfect attendance. I hope that you enjoy this course.

3 Books: Required McCormick, Ken. Veblen in Plain English: A Complete Introduction to Thorstein Veblen s Economics. Youngstown, NY: Cambria Press, Veblen, Thorstein. The Theory of Business Enterprise, (TBE) New York: Cosimo Classics [1904]. Might Prove Useful Veblen, Thorstein. Theory of the Leisure Class. [1899] Veblen, Thorstein. The Higher Learning in America [1918] (many materials are available with a google search, others are available through our website Sites.google.com/site/econreadings45/ Week 1 Topic #1: The Seminal Article Defining this Field of Inquiry: Why is Economics not an Evolutionary Science, by Thorstein Veblen, Quarterly Journal of Economics, Volume 12, (July, 1898). Topic #2 Locating Institutional Economics within a larger framework: Darwin, Peirce, Marx, Schmoller Read: McCormick: Part I, Chapter 1. Instincts, Chapter 2. Institutions Hall and Whybrow, Continuity and Continuousness: The Chain of Ideas Linking Peirces s Synechism to Veblen s Cumulative Causation Journal of Economic Issues, (John Hall s Homepage ( Veblen, The Socialist Economics of Karl Marx and His Followers [1906, 1907] Again consider: Why is Economics Not an Evolutionary Science? [1898] Week 2 (14, 16 Jan.) McCormick, Chapter 3. Technology; Chapter 4. Technological Change and Institutional Change, Chapter 5 Social Evolution Veblen, Thorstein. Veblen (TBE), Chapter I. Introductory; Chapter II, The Machine Process; Chapter III. Business Enterprise. Week 3 (21 to 23 Jan.) McCormick, Chapter 6. The Last Train Runs Fastest; Chapter 7. Capital; Chapter 8. Business Enterprise and the Industrial System. TBE, Chapter IV, Business Principles; Chapter V. The Use of Loan Credit; Chapter VI, Modern Business Capital

4 Week 3, continued Chapter VII, The Theory of Modern Welfare; Chapter VIII, Business Principles in Law and Politics; Week 4 Immanuel Kant s understanding of Erschleichung, and Veblen s introduction of subreption into social science. See: Hall and Dunlap s paper, Subreption and Institutional Inquiry At homepage: Plus, William Dugger subreption and Power: An Institutional Framework of Analysis, Journal of Economic Issues, vol. 14, no. 4 (December, 1980): Corporate Hegemony An Institutionalist Analysis of Corporate Power: Journal of Economic Issues, vol. 22, no. 1 (March, 1988): Learning Opportunity 1, due by 5:00 p.m. on Monday, 10 February and under my office door, Cramer Hall, 241-P Weeks 5 and 6 (4, 6, and 11, 13 Febr.) TBE Chapter IX The Cultural Incidence of the Machine Process; Chapter X, The Natural Decay of Business Enterprise. Plus, Sociology and Veblenian Analysis C. Wright Mills and his research White Collar ; and The Power Elite, New York: Oxford University Press, McCormick, Chapter 9. Conspicuous Leisure and Conspicuous Consumption; Chapter 10, Some Implications of Status-Driven Consumption. The Theory of the Leisure Class [1899] Chapter I, Introductory; Chapter II, Pecuniary Emulation; Chapter III, Conspicuous Leisure; Chapter IV, Conspicuous Consumption. Chapter VIII, Industrial Exemption and Conservatism. Citibank: Two Papers on Plutonomy, see google readings. Week 7 (18, 20 Febr.) Gunnar Myrdal s Institutionalist Perspective, plus Myrdal and Nicholas Kaldor s notion of circular and cumulative causation.

5 Week 7 (continued) Plus, Veblen s The Higher Learning in America [1918] Ch1 Introductory; Ch2 Governing Boards; 3. The Academic Administration Ch.4 Academic Prestige and the Material Equipment; Ch. 5 The Academic Personnel; Ch. 6 The Portion of the Scientist; Ch7 Vocational Training; Ch. 8 Summary and Trail Balance. Myrdal, Rich Lands and Poor: The Road to World Prosperity. New York: Harper and Row, Hall and Ludwig, Gunnar Myrdal and the Persistence of Germany s Regional Inequality, Journal of Economic Issues, vol. xliii, no. 2 (June 2009): Hall and Ludwig, Veblen, Myrdal, and the Convergence Hypothesis: Toward an Institutionalist Critique, Journal of Economic Issues. Vol. xliv, no. 4 (December 2010): Week 8 (25, 27 Febr.) Institutionalist Post Keynesian Analysis, At PSU Home Page Hall and Ludwig, Explaining Persistent Unemployment in Eastern Germany, Journal of Post Keynesian Economics Hall and Ludwig, Neoclassical Versus Post Keynesian Approaches to Eastern German Unemployment, Journal of Post Keynesian Economics, vol. 3, no. 1 (Fall, 2008) Hall and Ludwig, Neoliberalism, the Changing German Labor Market, and Income Distribution, Journal of Economic Issues, vol. xliv, no. 2 (June 2010): plus Appreciating John Kenneth Galbraith as Veblenian and Post Keynesian The Affluent Society. Houghton Mifflin [1958]. The Culture of Contentment, Boston: Houghton Mifflin [1992]. And as Veblenian and Institutionalist-Post Keynesian The New Industrial State Boston: Houghton Mifflin [1967].

6 Week 9 First Draft or 2 nd Learning Opportunity due by 5:00 p.m. on Monday, 03 March. As a template for constructing your research paper, please visit my homepage and consider the manuscript for Veblen s Predator AFEE, Paper presented in Chicago, January, 2012 New Institutional Economics, Coase, Ronald, The Nature of the Firm, Economica, vol. 4, no. 16 (Nov., 1937): North, Douglass, Institutions Journal of Economic Perspectives, vol. 5, no. 1, (Winter 1991): More on New Institutional Economics Williamson, Oliver. The Economic Institutions of Capitalism: Firms, Markets, and Relational Contracting. New York: Free Press, Markets and Hierarchies: Analysis and Antitrust Implications: A Study in the Economics of Internal Organization, New York: Free Press, Ostrom, Elinor. Rules, Games and Common-Pool Resources, Ann Arbor: University of Michigan Press, The Mechanisms of Governance, New York: Oxford University Press, Governing the Commons: The Evolution of Institutions for Collective Action, New York: Cambridge University Press, 1990 The Commons in the New Millennium: Changes and Adaption. Cambridge, MA: MIT Press, Ostrom and Basurto, Crafting Analytical Tools to Study Institutional Change Journal of Institutional Economics, vol. 7, no. 3 (2011): Critique: Meramveliotakis, Giorgos; and Milonakis, Dimitris, Surveying the Transaction Cost Foundations of New Institutional Economics, Journal of Economic Issues, vol. xliv, no. 4 (December 2010):

7 Week 10, (11, 13 March: Special Topics, The Importance of Veblenian Thinking) Final Draft of Research Paper by 5:00 p.m. under my office door on the day of the scheduled final exam. House Rules: Please do not consume food of and in any form in our classroom. If a student disturbs me by breaking my concentration the student could be asked to leave the course for the remainder of the class time. Affirmative Action Portland State University supports equal opportunity for all, regardless of age, color, disability, marital status, national origin, race, religion or creed, sex or gender, sexual or gender identity, sexual orientation, veteran status, or any other basis in law. Disability Resources at PSU Students with accommodations approved through the Disability Resource Center are responsible for contacting the faculty member prior to, or during, the first week of term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval should contact the DRC immediately. Academic Honesty Academic honesty is expected and required of students enrolled in this course. Suspected academic dishonesty in this course will be handled according to the procedures set out in the Student Code of Conduct.