School of Social Sciences & Humanities

Department of Economics
History of Economic Thought ECO 406
Course Instructor: Dr. Samina Naveed
Class Timings: Wednesday: 1300-1600
Office Contact: 90853564
E-mail:samina.naveed@s3h.nust.edu.pk
Course Description and Objectives:
This course is primarily about the evolution of main stream economic analysis. It provides an
introduction to the history of economic ideas from the time of the ancient Greeks to modern
times. Understanding the thought process of great minds in economics provides valuable lessons
and insights for todays economists. The aim of this course is to understand how the economic
thought has evolved over time and how social relations and political situation of specific periods
have influenced economic thought.
This course is primarily divided into four parts. Part one attempts to analyze the pre classical
economics period which is characterized by the contribution of Ancient Greeks, Scholastics,
Mercantilist and Physiocrats. Part II discusses the Classical Period. The contribution of great
minds of that time such as Adam Smith, Ricardo, John Stuart Mill and the revolt against
classical economics by Karl Marx. The Neo classical period will be discussed in part III. While
part IV is about Twentieth century paradigms, Keynesian Economics and the development of
modern macroeconomics. Contemporary macroeconomics such as quantity theory, monetarism
and rational expectations will also be discussed under this part.
Course Process:
This is not a mathematical or technical course per se, however, we will discuss the technical
aspects of the ideas and economic theories. This course requires a lot of reading and discussion.
In fact, class participation will count towards your final grade. Besides this, you will be required
to write a term paper on a topic of your choice, related to the history of economic thought, which
will be due before the final exam. You will have to discuss the topic with me before you begin to
write the essay. The length of the essay can be anywhere between five and 8 pages. It is expected
that all work that is handed will be your own. Any ideas or content that come from another
source must be properly cited (including any content taken from the Internet, books, articles and
lectures). Moreover, Turnitin will be used as the plagiarism software to evaluate your
submission. To ensure no cheating, the plagiarism /cheating policy as described under academic
dishonesty will be followed.

Main Textbooks:

Ekelund, Robert B., and Robert F. Hebert 1997 A History of Economic Theory and
Method Mc Graw Hills.
Screpanti E., and Stefano Zamagni 2005 An Outline of History of Economic
Thought, Translated by David Field and Lynn Kirby, New York: Oxford University
Press.
Hunt, E.K., and Mark Lautzenheiser 2011 History of Economic Thought A Critical
Perspective PHI Learning Private Limited.

Grading Criteria:
Final exam : 50%
Midterm exam: 25%
Class participation/Term Paper: 25%
Course Contents
PART I-PRE-CLASSICAL ECONOMICS
1: Ancient and Medieval Economic Thought (Lecture Week=1)
A.
B.
C.

Contribution of Ancient Greeks

Roman and Early Christian Contribution
Medieval Economic Thought

Required readings: Ekelund/Hebert , Ch. 2

2: Mercantilism (Lecture Week=2)
A. Mercantilism
- Mercantilism as Doctrine: The Economics of
-Mercantilism as economic process
B. Transition to Liberalism
Required readings: Ekelund/Hebert , Ch. 3
3: Economic Ideas before Adam Smith (Lecture Week=3)
A. The Irish Roots of Political Economy
B. Harbingers of Liberalism: Boisguilbert and the Physiocrats
C. Spanish Enlightment Economics

Required readings: Ekelund/Hebert , Ch. 4

PART II- THE CLASSICAL PERIOD

4: Adam Smith (Lecture Week=4)
A. Nature of Smiths Economic System
- The Micro economic functions of wealth of Nations
- Smiths Macroeconomics
Required readings: Ekelund/Hebert , Ch. 5
5: Classical Economics: Utility, Population and Money (Lecture Week=5)
A. Jeremy Bentham and Utilitarianism
B. Thomas Malthus and Population
C. Early Monetary Issues
Required readings: Ekelund/Hebert , Ch. 6
6: Classical Economics: The Ricardian system and its Critics (Lecture Week=6)
A.
B.
C.
D.

The Ricardian System

Ricardos Critics
Supremacy of Ricardian Economics
The elegant Dynamics of Classical system

Required readings: Ekelund/Hebert , Ch. 7

7 : Classical Economics: John Staurt Mill (Lecture Week=7)
A. The structure of Mills Inquiry into economics
B. Mills Normative Economics
C. The Decline of classical Economics
Required readings: : Ekelund/Hebert , Ch. 8
(Lecture Week= 8,

MID TERM EXAM)

9: Economic Policy in the classical period (Lecture Week= 9)

A. Policy prescription of Nassau Senior
B. Policy prescription of John Staurt Mill

C.

Policy prescription of Edwin Chadwick

Required readings: Ekelund/Hebert , Ch. 9

10: Karl Marx and the Revolt against Classical Economics ( Lecture Week =10)
A.
B.
C.
D.

Overview of the Marxian System

Marxs economic interpretation of History
Marxs writing on capitalist production
The Nature of Capitalism

Required readings: Ekelund/Hebert , Ch. 10

PART 3: THE NEO-CLASSICAL PERIOD
11:Neo classical theorist (Lecture Week =11&12)
A. A.A Cournot
-Cournot on Methods
-Cournot Micro models
B. Jules Dupuit
-Dupuits unique view of Economics
-Marginal utility and demand
-Consumer Surplus, Monopoly and Discrimination
C. William Stanley Jevons
-Theory of Value
-Theory of Exchange
Required readings: Ekelund/Hebert , Ch. 11,13

12: Founders of Modern Neo-classical Analysis (Lecture Week =12&13)

A. Alfred Marshal
Marshall and his methods
Marshall on Optimum pricing and Monopoly
Marshall on Elasticity, Input Demand and the optimum allocation of resources
B. Leon Walras Partial equilibrium Vs General equilibrium
Walras and Marshall on Market adjustment mechanism
Walras Correspondence and its Impact on economics
Required readings: Ekelund/Hebert , Ch. 14,15
PART 4: THE TWENTIETH CENTURY PARADIGMS

13: Competition Reconsidered: Chamberlin and Robinson

(Lecture Week 14)

A. Chamberlin
-Chamberlines Quest for a new theory of value
B. Robinson and Imperfect Competition
Required readings: R Ekelund/Hebert , Ch. 17
14. John Maynard Keynes, The General theory and the Development of Modern Macroeconomics
(Lecture Week 14&15)
A. General Theory: Major Theoretical Outlines
B. Keynes and Economic Policy
C. Neo-classism reviewed in classical terms
Required readings: R Ekelund/Hebert , Ch. 18
15.: Contemporary Macroeconomics: The Quantity Theory, Monetarism, and Rational
Expectation (Lecture Week 16)
A. The neo Classical origin of Monetarism
B. Modern Monetarism: Theory and Policy
Required readings: R Ekelund/Hebert , Ch. 19