COURSE OUTLINE AND READING LIST FOR

 

                   AMERICAN ECONOMIC HISTORY

 

SPRING 2000

 

 

Prof. Hugh Rockoff

NJ Hall 102

Phone: 732‑7857

Rockoff@economics.rutgers.edu

WWW.fas-econ.rutgers.edu/home/rockoff

Hours: wednesdays 3:30-5; mondays 9-11 or by appointment

 

 

This course surveys the economic history of the United States from the Revolution to the present day. The central purpose is to show how economic analysis illuminates past trends and events; and how, at the same time, an understanding of economic history illuminates current economic problems.

                             

 

                          Textbook

 

All students are expected to read the relevant chapters of Gary Walton and Hugh Rockoff, History of the American Economy (eighth edition) before class in order to gain an understanding of the basic historical and economic issues.

 

 

                   Papers and Examinations

 

Twenty percent of your grade will be based on the midterm exam and 40 percent on your final exam. These will be essay exams, which ask you to summarize and critically evaluate material discussed in the assigned readings and in class. The exams will cover broad and important themes. But please realize that in a economic history course, unlike some other economics courses, you will be expected to learn some facts -- you will have to memorize them.

 

Approximately 30 percent of your grade will be based on a research paper of approximately 25 pages due on friday, April 28.

 

During the first couple of weeks of the semester it is your job to stop by my office to get acquainted and to begin discussing your paper topic. A three-page abstract of the paper is due on Friday February 11. It is expected that the research paper will contribute to knowledge in economic history by examining new evidence, or reexamining existing evidence. Finding a good topic for your paper may be one of the hardest parts of the course. Some suggestions on how to find a good topic are in the appendix at the end of the syllabus.

 

The remaining 10 percent of your grade will be based on class participation.

 

American Economic History

 

The Semester at a Glance

Week

Date

Topic

1

1/19-21

Scope and Method

2

1/26-28

Railroads

3

2/2-4

Slavery

4

2/9-11

Antebellum Banking

5

2/16-18

Postbellum South

(Abstract for Paper is due -- statement of the idea, key sources)

6

2/23-25

Postbellum Capital Markets

7

3/1-3

Gold Standard

8

3/8

Rise of the Modern Corporation

3/10

Midterm Exam

 

3/15-17

(Spring Break)

9

3/22-24

World War I and the 1920s

10

3/29-31

The Great Depression

11

4/5-7

World War II

12

4/19-21

Modern Labor Markets

13

4/26

Growth of the Federal Government

4/28

Convergence Among Regions and Nations (Paper due)

15

 

Final Exam by arrangement


 

                          Readings

 

The readings for each week are divided into basic and supplementary readings. The latter are intended for students who wish to pursue a topic in greater depth, especially for students whose research paper will be related to that topic.

 

Each unit will consist of a lecture and a class discussion centered on the starred reading.

 

Copies of the basic journal articles are on reserve in the Department library. Copies of the basic books are on reserve in  Alexander library.

 

 

                      1. January 19,21

 

          Scope and Methodology of Economic History

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 1.

 

*McCloskey, Donald N. (1976) "Does the Past Have Useful Economics." Journal of Economic Literature 14: 434-61.

 

Rockoff, Hugh. "History and Economics." in Engaging the Past, Eric H. Monkkonen, ed., (Durham: Duke University Press, 1994), 48-76.

 

Supplementary Readings

 

David, Paul A. "Clio and the Economics of QWERTY." American Economic Review, Papers and Proceedings 75 (1985): 332-337.

 

Fogel, Robert W. "The Specification Problem in Economic History." Journal of Economic History (September 1967): 283-308.

 

North, Douglass C. "Structure and Performance: The Task of Economic History."  Journal of Economic Literature 16 (1978): 963-78.

 

Redlich, Fritz. "'New' and Traditional Approaches to Economic History and Their Interdependence." Journal of Economic History 25 (December, 1965): 480-95.

 

 

                      2. January 26-28

 

      Railroads and the Growth of the American Economy

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapters 9, 16.

 

*Fogel, Robert W., Railroads and American Economic Growth (Baltimore: The Johns Hopkins University Press, 1964), pp. 1-146.

 

Fogel, Robert W. "Notes on the Social Saving Controversy." Journal Of Economic History 39 (March 1979): 1-54.

 

Lebergott, Stanley. "United States Transport Advance and Externalities." Journal of Economic History 26 (December 1966): 437-61.

 

                   Supplementary Readings

 

Coatsworth, John H. "Indispensable Railroads in a Backward Economy: The Case of Mexico." Journal of Economic Hisotry 39 (December 1979): 939-60.

 

David, Paul. "Transport Innovations and Economic Growth: Professor Fogel On and Off the Rails." In Paul David (ed.), Technical Choice, Innovation, and Economic Growth (New York: Cambridge University Press, 1975), chapter 6.

 

Engerman, Stanley L. "Some Issues Relating to Railroad Subsidies and the Evaluation of Land Grants." Journal of Economic History 32 (June 1972): 443-63.

 

Fishlow, Albert. American Railroads and the Transformation of the Antebellum Economy. Cambridge: Harvard University Press, 1965.

 

W.W. Rostow. The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press, 1960.

 

 

 

                       3. February 2-4

 

                           Slavery

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 13.

 

Fogel, Robert W. and Stanley L. Engerman. Time on the Cross: The Economics of American Negro Slavery. Two Volumes. Boston: Little, Brown and Company, 1974, passim.

 

 

*Fogel, Robert W. and Stanley L. Engerman. "Explaining the Relative Efficiency of Slave Agriculture in the Antebellum South." American Economic Review 67 (1977): 275-296.

 

Steckel, Richard H. "A Peculiar Population: The Nutrition, Health, and Mortality of American Slaves from Childhood to Maturity." Journal of Economic History 46 (1986): 721-42.

 

                   Supplementary Readings

 

Conrad, Alfred H. and John R. Meyer (1958) "The Economics of Slavery in the Ante Bellum South" Journal of Polit­ical Econ­omy 66: 95-130. Reprinted in their book The Economics of Slavery and Other Studies in Econometric History, Chicago: Aldine, 1964: 43-92.

 

Fogel, Robert W. Without Consent or Contract: The Rise and Fall of American Slavery. New York: W.W. Norton Company, 1989.

 

A number of papers attacked the evidence offered by Fogel and Engerman to show that slave agriculture was more efficient than free agriculture. These include the following.

 

David, Paul A. and Peter Temin. (1979) "Explaining the Relat­ive Effic­iency of Slave Agriculture in the Antebellum South: A Comment." American Economic Review 69: 213-218.

 

Field, Elizabeth B. (1988) "The Relative Efficiency of Slavery Revisited: A Translog Production Function Approach."  American Economic Review 78: 543-549.

 

Schaefer, Donald and Mark D. Schmitz. "The Relative Efficiency of Slave Agriculture: A Comment." American Economic Review 69 (1979): 208-212.

 

Wright, Gavin "The Efficiency of Slavery: Another Interpretation." American Economic Review 69 (1979): 219-26.

 

Fogel, Robert W. and Stanley L. Engerman. "Explaining the Relative Efficiency of Slave Agriculture in the Antebellum South: Reply."  American Economic Review 70 (1980): 672-690.

 

 

                      4. February 9-11

 

                     Antebellum Banking

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 12.

 

Temin, Peter. The Jacksonian Economy, New York: Norton, 1969.

 

*Rockoff, Hugh. "The Free Banking Era: A Re‑Examination," Journal of Money, Credit and Banking, May 1974, pp. 141‑173.

 

Rolnick, Arthur J., and Warren E. Weber. "New Evidence on the Free Banking Era." American Economic Review 73 (1983): 1080-1091.

 

 

                   Supplementary Readings

                             

Engerman, Stanley. "A Note on the Economic Consequences of the Second Bank of the United States," Journal of Political Economy 78 (July/August 1970): 725B28.

 

Hammond, Bray. Banks and Politics in America from the Revolution to the Civil War. Princeton, N.J.: Princeton Univ. Press, 1957, passim.

 

Kahn, James A. "Another Look at Free Banking in the United States." American Economic Review 75 (1985): 881-885.

 

Macesich, George. "Sources of Monetary Disturbances in the U.S., 1834-1845." The Journal of Economic History 20 (1960): 407-34.

 

Redlich, Fritz. The Molding of American Banking: Men and Ideas. New York: Hafner, 1947 and 1951, 2 vols.

 

Rockoff, Hugh."New Evidence on Free Banking in the United States," American Economic Review 76 (September 1986): 886‑889.

 

Rolnick, Arthur J. and Warren E. Weber. "The Causes of Free Bank Failures: A Detailed Examination of the Evidence." Journal of Monetary Economics 14 (1984): 267‑91.

 

 

                      5. February 16-18

 

                    The Postbellum South

 

                  (Abstracts of papers due)

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 14.

 

*Engerman, Stanley. "The Economic Impact of the Civil War." In The Reinterpretation of American Economic History, Robert Fogel and Stanley Engerman. New York: Harper & Row, 1971.

 

Ransom, Roger. L., and Richard Sutch. One Kind of Freedom: The Economic Consequences of Emancipation. New York: Cambridge Univ. Press, 1977, passim.

 

Wright, Gavin. Old South, New South: Revolutions in the Southern Economy. New York: Basic Books, 1986, passim.

 

                   Supplementary Readings

 

Alston, Lee, and Robert Higgs. "Contractual Mix in Southern Agriculture since the Civil War: Facts, Hypotheses, and Tests." Journal of Economic History 42 (1982): 327-53.

 

DeCanio, Stephen. Agriculture in the Postbellum South. Cambridge: MIT Press, 1974.

 

Fishback, Price V. "Debt Peonage in Postbellum Georgia," Explorations in Economic History 26 (1989): 219-36.

 

Goldin, Claudia, and Frank Lewis. "The Economic Cost of the American Civil War." Journal of Economic History 35 (1975): 294B326.

 

Higgs, Robert. Competition and Coercion: Blacks in the American Economy, 1865B1914. New York: Cambridge Univ. Press, 1977.

 

Margo, Robert A. "Accumulation of Property by Southern Blacks Before World War One: Comment and Further Evidence." American Economic Review 74 (September 1984): 768-76.

 

Margo, Robert A. Race and Schooling in the South, 1880-1950. Chicago: University of Chicago Press, 1990.

 

Reid, Joseph. "Sharecropping as an Understandable Market Response: The Postbellum South." Journal of Economic History 33 (1973): 106B30.

 

Ransom, Roger L. Conflict and Compromise: The Political Economy of Slavery, Emancipation, and the American Civil War. New York and London: Cambridge Univ. Press, 1989.

 

Temin, Peter. "The Post-Bellum Recovery of the South and the Cost of the Civil War." Journal of Economic History 36 (1976): 898B907.

 

Wright, Gavin. Old South, New South: Revolutions in the Southern Economy. New York: Basic Books, 1986.

 

 

              6. February 23-25;  7. March 1-3

 

   The Integration of Capital Markets after the Civil War

 

[We will discuss both the regional integration of capital markets in the United States, and the international integration of capital markets through the gold standard.]

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 19.

 

*Davis, Lance. "The Investment Market, 1870-1914: Evolution of a National Market." Journal of Economic History 25 (September 1965): 355-99.

 

Bordo, Michael D. (1981) "The Classical Gold Standard: Some Lessons for Today" Federal Reserve Bank of St. Louis, Review. 63: 1-17.

 

Friedman, Milton and Anna Jacobson Schwartz. A Monetary History of the United States, 1867-1960. Princeton: Princeton University Press, for the NBER, 1963, chapter 3, especially, 104-118.

 

James, John A. "The Development of a National Money Market, 1893B1911." Journal of Economic History 33 (1976): 878B97.

 

 

                   Supplementary Readings

 

Bodenhorn, Howard and Hugh Rockoff "Regional Interest Rates in Antebellum America." In Claudia Goldin and Hugh Rockoff, eds., Strategic Factors in Nineteenth Century American Economic History: A Volume to Honor Robert W. Fogel. Chicago: University of Chicago Press, 1992.

 

Bordo, Michael. "The Traditional Approach" in Michael Bordo and Anna J. Schwartz, eds., A Retrospective on the Classical Gold Standard 1821B1931 (NBER, University of Chicago Press, 1984), pp. 1-120.

 

Davis, Lance E. "Capital Immobilities and Finance Capitalism: A Study of Economic Evolution in the United States." Explorations in Entrepreneurial History 1, no. 1 (Fall 1963): 88B105.

 

James, John A. Money and Capital Markets in Postbellum America. Princeton: Princeton Univ. Press, 1978. 

 

Sylla, Richard. "Federal Policy, Banking Market Structure, and Capital Mobilization in the United States, 1863B1913." Journal of Economic History 29 (1969): 657B86.

 

Zecher, J. Richard, and McCloskey, D.N. "The Success of Purchasing Power Parity: Historical Evidence and Its Implications for Macroeconomics," in Michael Bordo and Anna J. Schwartz, eds., A Retrospective on the Classical Gold Standard 1821B1931 (NBER, University of Chicago Press, 1984), pp. 121B150.

 

 

8. March 8

 

 

 

             The Rise of the Modern Corporation

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 17.

 

*Chandler, Alfred D., Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge: Harvard University Press, 1977), passim, and chapter 8.

 

Lamoreaux, Naomi R. The Great merger Movement in American Business, 1895-1904. New York: Cambridge University Press, 1985, passim.

 

                   Supplementary Readings

 

Allen, Robert C. "The Peculiar Productivity History of American Blast Furnaces, 1840-1913." Journal of Economic History 37 (1977): 605-33.

 

Atack, Jeremy. "Industrial Structure and the Emergence of the Modern Industrial Corporation." Explorations in Economic History 22 (1985): 29-52.

 

Hughes, Jonathan. The Governmental Habit: Economic Controls from Colonial Times to the Present. New York: Basic Books, 1977.

 

 

                         8. March 10

 

                        MIDTERM EXAM

 

The midterm exam will consist of a series of essay questions that will ask you to synthesize and critically evaluate the most important trends and ideas discussed in the readings and class lectures.

 

                        * March 15-17

 

                        Spring Break

 

                       9. March 22-24

 

            World War I and the Roaring Twenties

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapters 21-22.

 

*White, Eugene N. "When the Ticker Ran Late: The Stock Market Boom and Crash of 1929." In The Stock Market Crash in Historical Perspective, ed., Eugene Nelson White. Homewood, IL.: Dow Jones-Irwin, 1989.

 

Galbraith, John Kenneth. The Great Crash of 1929, reissued with a new introduction. Boston: Houghton Mifflin, 1961, passim.

                         

Rockoff, Hugh. Drastic Measures: A History of Wage and Price Controls in the United States. New York: Cambridge University Press, chapter 3.

 

                   Supplementary Readings

 

Clark, John Maurice. "The Basis of War-Time Collectivism." American Economic Review 7 (1917): 772-790.

 

Clark, John Maurice.. The Costs of the War to the American People. New Haven: Yale University Press, 1931.

 

Libecap, Gary D. "The Political Allocation of Mineral Rights: A Reevalua­tion of Teapot Dome," Journal of Economic History 14

(1984): 381-93.

 

                       10. March 29-31

 

                    The Great Depression

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 23, 24.

 

*Friedman, Milton and Anna J. Schwartz. A Monetary History of the United States. Princeton: Princeton University Press, 1965, pp. 299-545, especially 299-332.

 

Temin, Peter. Did Monetary Forces Cause the Great Depression? New York: W.W. Norton, 1976.

 

Bernanke, Benjamin. "Non Monetary Effects of the Financial Crisis in the Propagation of the Great Depression." American Economic Review 73 (1983): 257-276.

 

 

                   Supplementary Readings

 

Bordo, Michael D. (1989) "The Contribution of A Monetary History of the United States, 1867 - 1960 to monetary history" in Michael D. Bordo (ed.) Money, History, and International Finance: Essays in Honor of Anna J. Schwartz. Chicago: University of Chicago Press: 15-70.

 

Romer, Christina. "The Great Crash and the Onset of the Great Depression." Quarterly Journal of Economics CV (1990): 597-624.

 

Schwartz, Anna J. "Understanding 1929-33." In Karl Brunner (ed.) The Great Depression Revisited. The Hague: Martinus Nijhoff, 1981.

 

Temin, Peter. Lessons from the Great Depression Cambridge, MA: MIT Press, 1989.

 

White, Eugene N. "A Reinterpretation of the Banking Crisis of 1930." Journal of Economic History 44 (1984): 119-138.

 

 

                        11. April 5-7

 

                        World War II

 

                       Basic Readings

 

 

Walton and Rockoff, History of the American Economy, chapter 25.

 

*Friedman, Milton. "Price, Income and Monetary Changes in Three Wartime Periods." American Economic Review (May 1952): 612-625.

 

Evans, Paul. "The Effects of General Price Controls in the United States during World War II." Journal of Political Economy 90 (1982): 944-966.

 

Rockoff, Hugh. Drastic Measures: A History of Wage and Price Controls in the United States. New York: Cambridge University Press, chapters 4 and 5.

 

                   Supplementary Readings

 

Galbraith, John Kenneth. A Theory of Price Control. Cambridge, Mass: Harvard University Press, 1952, passim.

 

Gordon, Robert J. "45 Billion of U.S. Private Investment has been Mislaid." American Economic Review 59 (June 1969): 221-38.

 

Higgs, Robert. "Private Profit, Public Risk: Institutional Antecedents of the Modern Military Procurement System in the Rearmament Program 1940-1941." In Geofrey Mills and Hugh Rockoff, eds., The Sinews of War: Essays on the Economic History of World War II Ames: Iowa State University Press, 1993..

 

Rockoff, Hugh. "The Response of the Giant Corporations to Wage and Price Controls in World War II." Journal of Economic History 41 (March 1981): 123-8.

 

 

                       12. April 19-21

 

          The Evolution of the Modern Labor Market

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 30.

 

*Donohue, John J., III, and James Heckman. "Continuous Versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks." Journal of Economic Literature (December, 1991): 1603-43.

 

Goldin, Claudia. "The Political Economy of Immigration Restriction in the United States, 1890-1921." In Claudia Goldin and Gary D. Libecap (eds.) The Regulated Economy (Chicago: University of Chicago Press for the NBER), 1994, 223-258.

 

Goldin, Claudia D. "The Role of World War II in the Rise of Women's Employment." American Economic Review 81 (1991): 741-56.

 

 

                   Supplementary Readings

 

Goldin, Claudia. (1988) "Maximum Hours Legislation and Female Employment: A Reassessment" Journal of Political Economy 97: 535-560.

 

Goldin, Claudia. (1990) Understanding the Gender Gap: An Economic History of American Women. New York and Oxford: Oxford University Press.

 

Goldin, Claudia, and Robert A. Margo. (1992) "The Great Compression: The Wage Structure in the United States at Mid-Century" Quarterly Journal of Economics 107: 1-35.

 

Wright, Gavin. "Cheap Labor and Southern Textiles." Quarterly Journal of Economics 96 (1981) : 605-630.

 

 

                        13.1 April 26

 

            The Growth of the Federal Government

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 26.

 

*Higgs, Robert. Crisis and Leviathan: Critical Issues in the Emergence of the Mixed Economy. New York: Oxford University Press, 1986, passim, especially 35-76.

 

Hughes, Jonathan, R.T. The Governmental Habit. New York: Basic Books, 1977.

 

 

                   Supplementary Readings

 

Borcherding, Thomas E. "The Sources of Growth of Public Expenditures in the United States, 1902-1970." In Budgets and Bureaucrats: The Sources of Government Growth, ed. Thomas E. Borcherding. Durham, N.C.: Duke University Press, 1977.

 

Edelstein, Michael. "What Price Cold War? Military Spending and Private Investment in the US, 1946-1979." Cambridge Journal of Economics 14 (1990): 421-37.

 

Hughes, Jonathan, R.T. The Governmental Habit. New York: Basic Books, 1977.

 

McCraw, Thomas K. Prophets of Regulation. Cambridge MA: Harvard University Press, 1984.

 

Meltzer, Allan H., and Scott F. Richard.  "Why Government Grows (and Grows) in a Democracy."  Public Interest 52 (Summer 1978): 111-118.

 

Meltzer, Allan H., and Scott F. Richard. "A Rational Theory of the Size of Government." Journal of Political Economy 89 (October 1981): 914-27.

 

Meltzer, Allan H., and Scott F. Richard.  "Tests of a Rational Theory of the Size of Government." Public Choice 41 (1983): 403-418.

 

Niskanen, William A. Bureaucracy and Representative Government. Chicago: Aldine-Atherton, 1971.

 

Peltzman, Sam. "The Growth of Government." Journal of Law and Economics 23 (Oct. 1980): 220-285.

 

 

                        13.2 April 28

 

            Convergence among Regions and Nations

 

                       Basic Readings

 

Walton and Rockoff, History of the American Economy, chapter 31.

 

*Abramovitz, Moses. "Catching Up, Forging Ahead, and Falling Behind." Journal of Economic History XLVI (June 1986): 385-406.

 

                   Supplementary Readings

 

Baulmol, William J. "Productivity, Growth, Convergence, and Welfare: What do the Long-run Data Show." 78 American Economic Review (December 1986): 1072-1085.

 

De Long, J. Bradford. "Productivity Growth, Convergence, and Welfare: Comment." 76 American Economic Review (December 1988): 1138-1159.

 

Easterlin, Richard A. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence." In Paul David and Melvin Reder, eds. Essays in Honor of Moses Abramovitz. New York: Academic Press, 1974.

 

Gershenkron, Alexander.  Economic Backwardness in Historical Perspective New York: Praeger, 1962.

 

Lebergo