Note to anyone reading this syllabus on the URPE Web site: All of my courses have lecture notes, problems and tests, and if people want to use this material all you need to do is to ask me. Fred

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COLLOQUIUM IN ADVANCED                               Professor F. S. Lee

MICROECONOMICS                                     Office:  Manheim Hall Room 202D

(ECON 602)                                                                Office Hours:  MW 4.30 – 5.30

Fall 2003                                                                                             or by appt.

                                                                                    E-mail:  leefs@umkc.edu

                                                                                    Tel.:  816-235-2543

 

Lectures:         Monday, Wednesday 5.30 – 5.45, ???????.

 

Texts:              F. S. Lee, Post Keynesian Price Theory.

                        P. Downward, Pricing Theory in Post Keynesian Economics.

                        H. Bortis, Institutions, Behaviour and Economic Theory:  A Contribution to Classical-

Keynesian Political Economy

                        M. A. Lutz, Economics for the Common Good.

                        N. Fligstein, The Architecture of Markets.

                        N. J. Smelser and R. Swedberg, The Handbook of Economic Sociology.

                        R. P. F. Holt and S. Pressman, A New Guide to Post Keynesian Economics

                       

Problems:        Problem sets will be distributed.

 

Assessment:    Mid-term examination worth 25% of your final grade on October 14, 2002.

                        A set essay of 3,000 words, typed.  It will assigned on November 4, 2002 and must be turned in on November 11, 2002.  Worth 25% of your grade.

                        Final exam worth 50% of your final grade on December 12, 2002.

 

Special Events:           Lecture by Professor John King on “Post Keynesian Macroeconomics” on

                                                September 30, 2002.

                                    Lecture by Dr. Stefan Kesting on “Heterodox Microeconomic Theory” on

                                                November 11, 2002.

 

Course Description:    The course covers heterodox/Post Keynesian microeconomic theory.  It

introduces the student to the historical background and methodology of the

theory and then deals with the business enterprise, production and costs,

pricing and prices, industry and market, reproduction of the business

enterprise, consumer, industrial and government demand, market price and

market governance, trade associations, price leadership, government

regulation, and the microfoundations of heterodox/Post Keynesian

macroeconomics.  The course will also introduce the student to the

heterodox/Post Keynesian disaggregated price-output model of the economy.

 

                                                  LECTURE AND READING OUTLINE

 

I.          Introduction to Heterodox Microeconomic Theory

 

            A.        The Scope of Heterodox Microeconomics

                        1.         Bortis, Institutions, Behaviour and Economic Theory, chs. 1 – 2, 5.

                        2.         Dugger, W. M.  1996.  “Redefining Economics:  From Market Allocation to Social Provisioning.”  In Political Economy for the 21st Century, pp. 31 – 43.  Edited by C. Whalen.  Armonk:  M. E. Sharpe, Inc.

 

            B.        The Methodology of Heterodox Microeconomics

                        1.         Lawson, T.  1994.  "The Nature of Post Keynesianism and its Links to other Traditions:  a realist perspective."  Journal of Post Keynesian Economics 16.4 (Summer):  503 - 538.

                        2.         Strauss, A. and Corbin, J.  1994.  "Grounded Theory Methodology:  An Overview."  In Handbook of Qualitative Research, pp. 273 - 285.  Edited by N. K. Denzin and Y. S. Lincoln.  Thousand Oaks:  Sage Publications.

                        3.         Wilber, C. K. and Harrison, R. S.  1978.  "The Methodological Basis of Institutional Economics:  Pattern Model, Storytelling, and Holism."  Journal of Economic Issues 12 (March):  61 - 89.

                        4.         Downward, Pricing Theory, ch. 2.

                        5.         Holt and Pressman, A New Guide to Post Keynesian Economics, ch. 2.

                        6.         Bortis, Institutions, Behaviour and Economic Theory, chs. 3 and 5.

                        7.         Finch, J. H.  2002.  “The Role of Grounded Theory in Developing Economic

Theory.”  Journal of Economic Methodology 9.2:  213 – 234.

 

                       

            C.        Structural Organization of Economic Activity:  An Overview

                        1.         Leontief, W. 1986.  Input-Output Economics.  New York:  Oxford University Press, chapters 1-2.

                        2.         Leontief, W.  1951.  The Structure of American Economy, 1919 - 1939.  White Plains:  International Arts and Sciences Press, Inc.

                        3.         Bureau of Economic Analysis.  1998.  Benchmark Input-Output Accounts of the United States, 1992.  Washington, D.C.:  Government Printing Office, M-2 – M-30.

                        4.         Lawson, A. M.  1997.  “Benchmark Input-Output Accounts for the U.S. Economy, 1992.”  Survey of Current Business 77.11 (November):  36 – 82.

                        5.         Okubo, S. O., Lawson, A. M., and Planting, M. A.  2000.  “Annual Input-Output Accounts of the U.S. Economy, 1996.”  Survey of Current Business 80.1 (January):  37 – 86.

                        6.         Bortis, Institutions, Behaviour and Economic Theory, chs. 3 and 5.

[the input-output articles can be found at http://www.bea.doc.gov/ and then click on gross product and input-output data and/or articles.]

 

II.         The Business Enterprise

 

            A.        Nature of the Business Enterprise

                        1.         Moss, S.  1981.  An Economic Theory of Business Strategy.  New York:  John Wiley and Sons, pp. 16 - 44.

                        2.         Herman, E. S.  1981.  Corporate Control, Corporate Power.  Cambridge:  Cambridge University Press, pp. 1 - 52.

                        3.         Eichner, A.  1976.  The Megacorp and Oligopoly.  Cambridge:  Cambridge University Press, ch. 1.

                        4.         Chandler, A. D.  1988.  The Essential Alfred Chandler:  Essays Toward a Historical Theory of Big Business.  Boston:  Harvard Business School Press, chs. 2, 3, 8, 9, 14, 15, and 16.

                        5.         Lee, Post Keynesian Price Theory, chs. 1 - 10.

 

            B.        Structure of Production and Costs of the Business Enterprise

                        1.         Eichner, A. S.  1976.  The Megacorp and Oligopoly.  Cambridge:  Cambridge University Press, ch. 1.

                        2.         Dean, J.  1976.  Statistical Cost Estimation.  Bloomington:  Indiana University Press, pp. 3 - 35.

                      *3.         Gold, B.  1981.  "Changing Perspectives on Size, Scale, and Returns," Journal of Economic Literature 19 (March):  5 - 33.

                        4.         Lee, F.  1986.  “Post Keynesian View of Average Direct Costs:  A Critical Evaluation of the Theory and the Empirical Evidence."  Journal of Post Keynesian Economics 8.3 (Spring):  400 - 424.

 

            C.        Costing, Pricing, and Prices

                        1.         Lee, Post Keynesian Price Theory, ch. 11.

                        2.         Downward, Pricing Theory, chs. 3 - 8.

                        3.         Lee, F. S.  1995.  "From Post Keynesian to Historical Price Theory, Part II:  Facts, Theory, and Empirically Grounded Pricing Model," Review of Political Economy 7 (January):  72 - 124.

                        4.         Hall, S, Walsh, M., and Yates, A.  2000.  “Are UK Companies’ Prices Sticky?”  Oxford Economic Papers 52.3 (July):  425 – 446.

                        5.         Eichner, A.  1976.  The Megacorp and Oligopoly.  Cambridge:  Cambridge University Press, ch. 3.

                        6.         Holt and Pressman, A New Guide to Post Keynesian Economics, ch. 3.

                        7.         Downward, P.  2001.  “Price Stickiness:  A Post Keynesian Microeconomic Perspective.”  Eastern Economic Journal 27.2 (Spring):  165 – 182.

                        8.         Downward, P.  2000.  “A Realist Appraisal of Post Keynesian Pricing Theory.”  Cambridge Journal of Economics 24.2 (March):  211 – 224.

                                               

            D.        Investment, Employment, and Production

                        1.         Moss, An Economic Theory of Business Strategy, chs. 3 and 8.

                        2.         G. C. Harcourt and P. Kenyon, "Pricing and the Investment Decisions," Kyklos (1976):  449 - 477.

                        3.         Lavoie, M.  1992.  Foundations of Post-Keynesian Economic Analysis.  Aldershot:  Edward Elgar, ch. 3.

                        4.         Eichner, A.  1976.  The Megacorp and Oligopoly.  Cambridge:  Cambridge University Press, ch. 3.

                        5.         Bewley, T. F.  1999.  Why Wages Don’t Fall During a Recession.  Cambridge:  Harvard University Press.

 

III.       The Market and the Business Enterprise

 

            A.        Industry and Market

                      *1.         Nightingale, J.  1978.  "On the Definition of 'Industry' and 'Market'," Journal of Industrial Economics 27 (September):  31 - 40.

                        2.         Moss, An Economic Theory of Business Strategy, ch. 5.

                      *3.         G. B. Richardson, "Organization of Industry," The Economic Journal (1972).

                        4.         Fligstein, N.  1996.  "Markets as Politics:  A Political-Cultural Approach to Market Institutions," American Sociological Review 61 (August):  656 - 673.

                        5.         Granovetter, M.  1985.  "Economic Action and Social Structure:  The Problem of Embeddedness," American Journal of Sociology 91 (November):  481 - 510.

                        6.         Smelser and Swedberg, The Handbook of Economic Sociology, chs. 11 and 15.

                        7.         Fligstein, The Architecture of Markets, chs. 1 – 4.

 

            B.        Structure of Market Demand:  Consumer, Industrial, and Government

                        1.         Fuller, C. G.  1996.  "Elements of a Post Keynesian Alternative to 'Household Production'".  Journal of Post Keynesian Economics 18 (Summer):  595 - 607.

                        2.         Lavoie, M.  1994.  "A Post Keynesian Approach to Consumer Choice."  Journal of Post Keynesian Economics 16 (Summer):  539 - 562.

                        3.         Lavoie, M.  1992.  Foundations of Post-Keynesian Economic Analysis.  Aldershot:  Edward Elgar, ch. 2

 

            C.        Structure of Market Demand, the Business Enterprise, and the Market Price

                        1.         Eiteman, W. J.  1949.  Price Determination:  Business Practice versus Economic Theory.  Ann Arbor:  University of Michigan, pp. 15 - 35.

                      *2.         Robinson, R.  1961.  "The Economics of Disequilibrium Price," Quarterly Journal of Economics 75 (May):  199 - 233.

                      *3.         Williams, J. B. 1967.  "The Path to Equilibrium," Quarterly Journal of Economics 81 (May):  241 - 255.

                        4.         Lee, F. S.  1990-91.  "Marginalist Controversy and Post Keynesian Price Theory," Journal of Post Keynesian Economics 13 (Winter):  252 - 263.

                        5.         Lee, F. S.  1984.  "Full Cost Pricing:  A New Wine in a New Bottle," Australian Economic Papers 23 (June):  151 - 166.

                       

IV.       Competition, the Market Price, and Market Governance

 

            A.        Business Enterprise, Competition, and the Market Price

                        1.         Richardson, G. B.  1965.  "The Theory of Restrictive Trade Practices," Oxford Economic Papers 17 (November):  432 - 449.

                        2.         Moss, An Economic Theory of Business Strategy, chs. 5 - 8.

                        3.         Clifton, J. A. 1987.  "Competitive Market Process."  In The New Palgrave Vol. I A to D, pp. 553 - 556.  Edited by J. Eatwell, M. Milgate, and P. Newman.  New York:  Stockton Press.

                        4.         Grabher, G. (ed.)  1993.  The Embedded Firm.  London:  Routledge, chs. 1 - 2.

                        5.         Campbell, J., Hollingsworth, J., and Lindberg, L.  (eds.)  1991.  Governance of the American Economy.  Cambridge:  Cambridge University Press, chs. 1, 2, 11, 12.

 

            B.        Market Governance and the Market Price:  Trade Associations, Price Leadership, Government Regulation, and Laws

                       *1.        Howe, M.  1972-73.  "A Study of Trade Association Price Fixing."  Journal of Industrial Economics 21:  236 - 256.

                         2.        Maunder, P.  1972.  "Price Leadership:  an appraisal of its character in some British Industry."  The Business Economist  4.3 (Autumn):  132 - 140.

                         3.        Richardson, G. B.  1967.  "Price Notification Schemes."  Oxford Economic Papers 19:  359 - 369.

                        4.         Smelser and Swedberg, The Handbook of Economic Sociology, ch. 18.

 

V.        Microfoundations of Heterodox Macroeconomics

 

            A.        Disaggregated Price-Output Model of the Economy

                        1.         Lee, Post Keynesian Price Theory, ch. 12.

                        2.         Lee, F. S.  1996.  "Pricing, the Pricing Model and Post-Keynesian Price Theory."  Review of Political Economy 8 (January):  87 - 99.

                        3.         Bortis, Institutions, Behaviour and Economic Theory, ch. 4.

                        4.         Eichner, A.  1976.  The Megacorp and Oligopoly.  Cambridge:  Cambridge University Press, ch. 6.

                       

            B.        Mark Ups, Investment, and Economic Activity

                        1.         Foster, J. B. and Szlajfer, H. (ed.)  1984.  The Faltering Economy.  New York:  Monthly Review Press, pp. 23 - 56, 198 - 213, and 236 - 250.

                        2.         Shapiro, N.  1988.  "Market Structure and Economic Growth:  Steindl's Contribution." Social Concept 4.2 (June):  72 - 83.

                        3.         D. P. Levine, "The Theory of the Growth of the Capitalist Economy," Economic Development and Culture Change (1975):  47 - 74.

 

            C.        Social Welfare and Corporate Capitalism

                        1.         Eichner, A.  1976.  The Megacorp and Oligopoly.  Cambridge:  Cambridge University Press, chs. 5, 7, and 8.

                        2.         Lutz.  Economics for the Common Good, chs. 1, 5-8, and 11.

                        3.         O’Boyle, E. J.  1996.  Social Economics:  Premises, Findings and Policies. 

                                    London:  Routledge, chs. 1, 4-8, and 10.

 

 

Heterodox economic journals students should be aware of:

 

Cambridge Journal of Economics

Capital and Class

Economy and Society

International Papers in Political Economy

International Review of Applied Economics

Journal of Economic Issues

Journal of Post Keynesian Economics

Review of Political Economy

Review of Radical Political Economics

Review of Social Economics

Science and Society

 

Heterodox Economics on the Web

 

Association for Evolutionary Economics                    www.orgs.bucknell.edu/afee

Association for Heterodox Economics                        www.hetecon.com

Association for Institutional Thought                          www.afit.cba.nau.edu/

Association for Social Economics                              www.socialeconomics.org

Cambridge Realist Workshop                                     www.econ.cam.ac.uk/seminars/realist/

Conference of Socialist Economists                            www.cse.web.org.uk/

European Association for Evolutionary Political Economy    www.eaepe.org

International Association for Feminist Economics      www.facstaff.bucknell.edu/jshackel/iaffe

International Confederation of Associations for Pluralism in Economics

                                                                                    www.econ.tcu.edu/econ/icare/main.html

International Society for Ecological Economics         www.ecologicaleconomics.org/

Monthly Review                                                          www.monthlyreview.org

Political and Ethical Knowledge on Economic Activities      www.pekea.org

Post-Autistic Economics Network                              www.paecon.net/

Post Keynesian Thought Internet Archive                    http://csf.colorado.edu/pkt/

Science and Society                                                    www.scienceand society.com

Society for the Advancement of Socio-Economics     www.sase.org/home.html

Union for Radical Political Economics                       www.urpe.org

 

The articles marked by an * can be found on JSTOR that can be found at:

http://www.jstor.org/cgi-bin/jstor/listjournal

 

JSTOR includes the following economic journals:

 

American Economic Review                          Review of Economics and Statistics

Econometrica                                                  Review of Economic Studies

Economic Journal                                           

Journal of Economic History

Journal of Economic Literature

Journal of Industrial Economics

Journal of Political Economy

Quarterly Journal of Economics