This book is a treasure. More so, because I grabbed this book from my advisor's personal collection. It is a revelation to read a book which has your teacher's handwriting, notes and lots of underlines -- it speaks about your teacher's thought processes. There were moments when I saw one marked line and said to myself, "Why did Sir find this important?" And two seconds later, the importance of the line struck me. I hope every book lover gets a chance to get their hand's on their teacher's books. It is an absolute delight!
Alfred Nobel did not state anything about establishing an Economics Nobel Prize in his will in 1895. The prize was established in 1968 by a donation from Sweden's central bank, the Sveriges Riksbank, on the bank's 300th anniversary. If only mathematicians or geologists had such benefactors! Those economics laureates who were faculties in American universities were (and still are) invited to Trinity University to deliver an address titled "My Evolution as an Economist." This second edition is a compilation of the lectures of ten such economists (year of receiving prize in brackets): Paul Samuelson (1970), Kenneth Arrow (1972), Milton Friedman (1976), W. Arthur Lewis (1979, British citizen), Lawrence R. Klein (1980), James Tobin (1981, British citizen), George J Stigler (1982), Franco Modigliani (1985, Italian), James M. Buchanan (1986) and Robert M. Solow (1987). The latest sixth edition of the book has (academic) life stories of twenty three economics Laureates -- new readers may choose to procure this version.
The book is an excellent compilation of major developments in economics. Lewis' anti-imperialistic leanings motivated him to write on economic development and his travels to Third World brought him first hand insights on to many of their
economic problems. Arrow's sketch of his unearthing of social choice began with a reflection on how large corporations amalgamated the will of their many stockholders. This was the Newton's apple for social choice theory. His story on how he started thinking on general equilibrium theory is equally enlightening. Modigilani's essay on life cycle hypothesis is so simply stated -- wealth is low in one's youth, peaks in middle years and declines after retirement -- that any octogenarian would dismiss it as obvious. He goes on to explain that this hypothesis had a novel implication, namely the main determinant of national saving is not how much the country produces but its growth rate.
Personality wise, the laureates have several features in common. Excitement about economics, stellar academic records, tenacity in mathematics and statistics, surrounded by learned colleagues cum friends are some of the few. Almost all of them have skipped in Harvard, MIT, Chicago circles. The 1930s Depression had a lasting influence on their lives, primarily in directing them to study economics. Many have attributed their love for economics to the teachings and discussions of Frank Knight, Harold Hotelling, Henry Simons. Lewis is possibly the only black economist to win the Nobel prize so far. Harvard alumni laureates (Samuelson, Tobin and Solow) ooze supreme confidence in their writing. Samuelson rightly calls himself the last generalist in economics -- he knows it all in economics and writes about it with such flair! No wonder he wrote the textbook Foundations of Economic Analysis (studied even today) in his first two years of PhD! Laureates who were educated in Columbia or Chicago may lack the flamboyance of their peers from Harvard but their writings are candid, crisp and inspiring. Modigilani, Arrow and Stigler are my favourites. One excerpt which both me and my advisor liked goes like this:
Alfred Nobel did not state anything about establishing an Economics Nobel Prize in his will in 1895. The prize was established in 1968 by a donation from Sweden's central bank, the Sveriges Riksbank, on the bank's 300th anniversary. If only mathematicians or geologists had such benefactors! Those economics laureates who were faculties in American universities were (and still are) invited to Trinity University to deliver an address titled "My Evolution as an Economist." This second edition is a compilation of the lectures of ten such economists (year of receiving prize in brackets): Paul Samuelson (1970), Kenneth Arrow (1972), Milton Friedman (1976), W. Arthur Lewis (1979, British citizen), Lawrence R. Klein (1980), James Tobin (1981, British citizen), George J Stigler (1982), Franco Modigliani (1985, Italian), James M. Buchanan (1986) and Robert M. Solow (1987). The latest sixth edition of the book has (academic) life stories of twenty three economics Laureates -- new readers may choose to procure this version.
The book is an excellent compilation of major developments in economics. Lewis' anti-imperialistic leanings motivated him to write on economic development and his travels to Third World brought him first hand insights on to many of their
economic problems. Arrow's sketch of his unearthing of social choice began with a reflection on how large corporations amalgamated the will of their many stockholders. This was the Newton's apple for social choice theory. His story on how he started thinking on general equilibrium theory is equally enlightening. Modigilani's essay on life cycle hypothesis is so simply stated -- wealth is low in one's youth, peaks in middle years and declines after retirement -- that any octogenarian would dismiss it as obvious. He goes on to explain that this hypothesis had a novel implication, namely the main determinant of national saving is not how much the country produces but its growth rate.
Personality wise, the laureates have several features in common. Excitement about economics, stellar academic records, tenacity in mathematics and statistics, surrounded by learned colleagues cum friends are some of the few. Almost all of them have skipped in Harvard, MIT, Chicago circles. The 1930s Depression had a lasting influence on their lives, primarily in directing them to study economics. Many have attributed their love for economics to the teachings and discussions of Frank Knight, Harold Hotelling, Henry Simons. Lewis is possibly the only black economist to win the Nobel prize so far. Harvard alumni laureates (Samuelson, Tobin and Solow) ooze supreme confidence in their writing. Samuelson rightly calls himself the last generalist in economics -- he knows it all in economics and writes about it with such flair! No wonder he wrote the textbook Foundations of Economic Analysis (studied even today) in his first two years of PhD! Laureates who were educated in Columbia or Chicago may lack the flamboyance of their peers from Harvard but their writings are candid, crisp and inspiring. Modigilani, Arrow and Stigler are my favourites. One excerpt which both me and my advisor liked goes like this:
[STIGLER:] For quite a few thousand years most new or unfamiliar ideas must have been wrong: if they were not, the task of being a well-educated scholar would be quite overwhelming. Many “ new ”ideas are not new at all, only unfamiliar, and most new or unfamiliar ideas are mistaken or infertile.
This raises the question of how a science adopts a new idea, which returns us to the social element in scientific work. Even the new ideas that are eventually judged by many to be good ideas are not often easily absorbed by a discipline. [...]
A successful innovator therefore finds his work only half done when he has developed a new idea. Indeed the fraction is probably less than half, since the criticisms and misunderstandings his idea encounters will force him to work further on it. He will have to show how it can be developed further, how it is applicable in interesting ways, and how its weaknesses can be patched up. He will be much assisted in all this work if he can enlist a few fervent disciples. Not only may they help in developing the theory, but they can engage in a variety of controversies, which are the best of ways in which to publicize the idea.
If the discoverer lacks the energy or position to pursue the new idea, it is likely to lie fallow. A host of creative ideas — not only those of Cournot and Gossen but some of those of successful economists like Edgeworth and Pareto — required decades to become subjects of active investigation. In passing, I may remark that I have usually moved on to another subject fairly soon after working on one, and as I read the history of science that is a failing.
The book encapsulates the settings in which these academicians achieved their fullest potential: talented individuals surrounded by equally talented peers and juniors, working together in pursuit on knowledge. At times, these individuals have fought against racist and xenophobic administration to get the best scholars in their faculty and student bodies. In India, only a countable number of institutions can claim such a fame. In the twenty-first century, Indian universities still hire individuals of the right caste, language, gender and who possess superlative ability in sycophancy.
The book presents utopia of economic research. Walk into this world. The journey is the reward.
The book presents utopia of economic research. Walk into this world. The journey is the reward.