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Lamoreaux, N. History of American Enterprise
Economics 184: History of American Enterprise Fall, 1997 Prof. N. Lamoreaux 9268 Bunche email: email@example.com Office hours: Mon., 1:30-3:00 PM Wed., 9:00-10:30 AM (or by appointment) The purpose of the course is to understand the dynamics of innovation in the American economy by studying historical examples. The course will use the long sweep of American history to explore the shifting role in economic development played by markets, firms, and what are alternatively called networks or systems. The first part of the course will use standard neoclassical tools to understand innovative behavior in the small-firm world of the early nineteenth century. By the late nineteenth and early twentieth centuries, firms had grown much larger, and in the second part of the course we will use their experience to explore the various arguments that have been made about the role of large-scale enterprises in economic growth. Although the first two parts of the course will also deal with issues of finance, government regulation, and location-specific supports for innovation, in the third part of the course we will explicitly broaden the discussion beyond individual entrepreneurs and firms to deal with such topics as the effect of government regulation on innovative activity, the rise of Òindustrial districtsÓ like the Silicon Valley, claims about the declining competitiveness of the American economy, and the concept of national innovation systems. Part I: The Small-Firm Economy of the Early Nineteenth Century Sept. 26: Introduction to the Course Alfred D. Chandler, Jr., The Visible Hand, pp. 1-78* Sept. 29: Theories of Entrepreneurship: the Supply Side Joel Mokyr, The Lever of Riches, pp. 273-299** Oct. 1: The Demand Side Kenneth L. Sokoloff, ÒInventive Activity in Early Industrial America,Ó Journal of Economic History, 48 (Dec. 1988), pp. 813-50** B. Zorina Khan and Kenneth L. Sokoloff, ÒSchemes of Practical Utility,Õ Ó Journal of Economic History, 53 (June. 1993), pp. 289-307** Oct. 3: The Labor Scarcity Thesis H. J. Habakkuk, American and British Technology in the Nineteenth Century, pp. 11-63** Oct. 6: The American System and the Role of the Military David A. Hounshell, From the American System to Mass Production, pp. 15-65** Oct. 8: Networks of Inventors Anthony F. C. Wallace, Rockdale, pp. 186-239** Oct. 10: Collective Invention Judith McGaw, Most Wonderful Machine, pp. 117-157** Oct. 13: Financial Institutions Naomi R. Lamoreaux, ÒInformation Problems and BanksÕ Specialization in Short-Term Commercial Lending,Ó in Peter Temin, ed., Inside the Business Enterprise, pp. 161-203* Oct. 15: Why Not the South? Gavin Wright, The Political Economy of the Cotton South, pp. 89-127** Oct. 17: First Midterm Examination Part II: The Rise of Big Business Oct. 20: New Theoretical Issues: Transactions Costs and Agency Problems Daniel M. G. Raff and Peter Temin, ÒBusiness History and Recent Economic Theory,Ó in Temin, ed., Inside the Business Enterprise, pp. 7-40* Oct. 22: The Railroads: The First Big Business Chandler, The Visible Hand, pp. 81-205* Oct. 24: The Integration of Mass Distribution with Mass Production Chandler, The Visible Hand, pp. 209-314* Oct. 27: The Great Merger Movement Chandler, The Visible Hand, pp. 315-376* Tony Freyer, ÒLegal Restraints on Economic Coordination,Ó in Naomi R. Lamoreaux and Daniel M. G. Raff, eds., Coordination and Information, pp. 183-205.* Oct. 29: American Commercial Banking vs. German Universal Banking Charles W. Calomiris, ÒThe Costs of Rejecting Universal Banking,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 257-321.* Oct. 31: Finance Capital J. Bradford DeLong, ÒDid J. P. MorganÕ s Men Add Value?Ó in Temin, ed., Inside the Business Enterprise, pp. 205-49* Nov. 3:Learning to Manage Information Margaret Levenstein, ÒThe Use of Cost Measures,Ó in Temin, ed., Inside the Business Enterprise, pp. 71-116* JoAnne Yates, ÒInvesting in Information,Ó in Temin, ed. Inside the Business Enterprise, pp. 117-59* Nov. 5: Learning to Manage Competition Naomi R. Lamoreaux, The Great Merger Movement, pp. 118-158** Margaret Levenstein, ÒMass Production Conquers the Pool,Ó Journal of Economic History, 55 (Sept. 1995), pp. 575-611** Nov. 7: Learning to Manage Workers Daniel M. G. Raff, ÒThe Puzzling Profusion of Compensation Systems in the Interwar Automobile Industry,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 13-33.* Daniel Nelson, ÒIndustrial Engineering and the Industrial Enterprise, 1890-1940,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 35-53.* Nov. 10: Learning How to Manage Chandler, The Visible Hand, pp. 381-500* W. Bernard Carlson, ÒThe Coordination of Business Organization and Technological Innovation within the Firm,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 55-99* Nov. 12: Learning to Manage Technology Naomi R. Lamoreaux and Kenneth L. Sokoloff, ÒInventors, Firms, and the Market for Technology,Ó forthcoming paper** David C. Mowery, ÒThe Boundaries of the U.S. Firm in R&D,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 147-182* Nov. 14: Second Midterm Examination Part III: Worries about Competitiveness Nov. 17: The Standard View of Government Regulation Thomas K. McCraw, Prophets of Regulation, pp. 222-299** Nov. 19: An Alternative View of Regulation Sally Clarke, ÒNew Deal Regulation and the Revolution in Farm Productivity,Ó Journal of Economic History,Ó 51 (Mar. 1991), pp. 101-123** Kenneth A. Snowden, ÒThe Evolution of Interregional Morgage Lending Channels,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 209-255* Nov. 21: Big Business Woes H. Thomas Johnson, ÒManaging by Remote Control,Ó in Temin, ed., Inside the Business Enterpise, pp. 41-69* Michael C. Jensen, ÒEclipse of the Public Corporation,Ó Harvard Business Review, 67 (Sept.-Oct. 1989), pp. 61-74** Nov. 24: Do Firms Develop Special Capabilities? David A. Hounshell, ÒAssets, Organizations, Strategies, and Traditions,Ó forthcoming paper** Daniel M. G. Raff and Peter Temin, ÒSears Roebuck in the Twentieth Century,Ó forthcoming paper** Nov. 26: Flexible Production and Industrial Districts Michael J. Enright, ÒOrganization and Coordination in Geographically Concentrated Industries,Ó in Lamoreaux and Raff, eds., Coordination and Information, pp. 103-46* Nov. 28: Thanksgiving Holiday Dec. 1: Networks of Information Louis Galambos and Jeffrey L. Sturchio, ÒSustaining Innovation,Ó forthcoming paper** Dec. 3: National Innovation Systems David Mowery, ÒThe U.S. National Innovation System,Ó Research Policy, 21 (April 1992), pp. 125-144** David Mowery and Nathan Rosenberg, Technology and the Pursuit of Economic Growth, pp. 169-202** Final Exam as Scheduled Course Requirements and Grading: All reading assignments should be completed by the date in which they appear on the syllabus, and students should bring copies of dayÕ s readings to class. There will be two in-class midterm examinations, as well as the regularly scheduled final examination. Each of the midterms will count for one fourth of the final grade, and the final examination will count for one half. In addition, I expect students to attend class and participate regularly in discussions. Students who participate actively and intelligently in discussions throughout the quarter will receive a boost of up to 5 percentage points in their final grades. Notes: *Available at the UCLA Bookstore. Also on reserve at Powell Library. **In a course packet available at the UCLA Bookstore. The packet is also on reserve at Powell Library.