Paramed College

Department of Economics
Department Economics
Course Title History of Economic
Thought I Course Code Econ 4141
Instructors Firew (MSc., EPA)

ECTS Credits (CP) 5

Year/semester Year IV, semester I,

Course Description
The module, History of Economic Thought is organized in to two parts: History of
Economic Thought I and History of Economic Thought II. The course History of
Economic Thought I provide students with a general picture of the development
of economics until the emergence of classical economics, socialism and marginal
revolution. The course demonstrates the contributions of pre-classical thinking,
classical thinkers and deviant thinkers from classicism in shaping contemporary
economic thought. Critical analysis of preceding schools of thought, beginning
from economic ideas of the ancient philosophers up to more recent ones, which
help students in developing broader understanding of contemporary economic
theories.
Course Objective
The main objective of this Course is to provide students with a broader
understanding of contemporary economic theories through a critical analysis of
the main succeeding schools of thought beginning with the economic ideas of the
ancient philosophers to those of recent economic thinkers. The specific objectives
are: To acquaint students with the creation and evolution of alternative school
of economic thought
 To investigate the technological, ideological, and social forces that has
influenced these schools of thought and the associated theories that were
used to explain and analyzed particular choices.
To encourage the discussion and study of how the rapidly changing events
will alter society's (and the student's) perspective about economic
relationships. What new economic theories will these altered perspectives
encourage?
To consider the impacts that alternative schools of thought have had on"
main stream" economics
To Encourage the discussion and create brain storming environmental for
students to forward their reflection freely
To encourage students to question themselves, to pose economic issues
and
be able to examine, synthesis them.
To encourage students to ask themselves the questions:
o"What do I know?"
o"How do I know?"
o"What do I believe?” and
o"Why do I believe it?"
o"Why did economic philosophers develop different economic theories
and principles?" What were the pushing factors behind?"

Course content
Lecture Topic of the
Lecture
Hours
1. Introduction
1.1.Defining history of Economic thought
1.2.The interaction between Economic history and History of economic
thought
1.3.Scope and Significance of History of thought
1.4.The five major questions that we need to beat in mind in considering
the various schools of thought. These are
1.4.1. What was the historical background of the school? Or the
2 hours
pushing factors behind
1.4.2. What were the basic tenets of the school? Who were
the forerunners?
1.4.3. Whom did the school benefit? Or seek to benefit?
1.4.4. How was the school valid, useful, or correct in its time?
1.4.5. Which tenet of the school becomes long lasting
contribution? 1.5.What was the historical situation in Ethiopia when these
ideas were developed elsewhere?
 2. Methodological Issues of Economic
2.1.Methodological Controversies in Economics and Evolution of Various
Methodologies
2.1.1. Economics as an Art and as a Science
2.1.2. The importance of Empirical Verification and
2.1.3. The Rise of Logical positivism
2.1.4. From Logical positivism to falsificationism
5 hours 2.1.5. Falsificationism to paradigm
a.K. Popper and its Critics
b.Thomas Kuhn
2.1.6. Recent developments in the Methodology of
Economics a.Lakatos Research Program
b.Rhetorical and sociological approachs
c. Post rhetorical approach
3. Ancient Ideas of Economic Thought or Pre Classical Economics
3.1. Hebrewa, Greeck, Plato, Aristotle, Xeno Phone
3.2. Synicism, Stoicism, Epicurism, The Romance
3.3. Medieval Economics and Feudalism– St. Thomas Acquinas, Nicholas
Oresme, 12 hours Grasham
3.3.1. Just price, Manor, Guild, usury
3.3.2. Economic functions of the State
3.4. Mercantilism
3.5. The Physiocratic school of Economic thought
4. The Classical School
4.1.Overview of the classical school
4.2.Factors for the Emergence of the Classical school
4.3.The forerunners: William petty , R. Cantillon , Dudly North , David Hume
4.4.Adam smith: Adam Smith and Industrial revolution, Dicision of labor, the
measure and values of labor, Cost of production theory, supply-determined
prices etc
4.5.Thomas Robert Malthus's population theory, The theory of general Gults, The
15 hours LDR, differential Rent, The alternative cost of land, Land as a factor
of production
4.6.David Ricardo's system's: The labor theory of value, Capital costs and Labor
values, The Ricardo effect, the Invariable Measure of value, the fundamental
theorem of value, the effect of capital accumulation, the trend of relative
shares, the theory of Comparative costs etc
4.7.Jean Baptist Say: Say; Say’s Law and classical monetary theory, say's identity
Other contributors to the classical school: Jeremy Bentham, Nassau William Senior,
John Stuart Mill
2 hour 5. German Historical School: Frederic List
6. The rise of Socialist thought
5.1Pre Marxian Socialist thinkers: Robert Owen, Sismonde de Sismondi, Pierre
Joseph Proudhon, Proudhan, Lassale, Louis Bllance, Max Webber etc
6 hours
5.2Marxian Economics: Marx’s Methodology, Value and Surplus Value, The
transformation Problem, Solutions of the Transformation Problem, Historical
transformation, Profits as Unearned income, etc
7. The Marginal Revolution:
7.1 Overview of the Marginalist School, The Maximization Principle
7.1 Forerunners of Marginalism: Antoine Augustin Cournot and Herman Heinrich
6 hours
Gossen,
7.2First - Generation Marginalists: Jevons, Walras, and The Austrian School
7.3Second - Generation Marginalists: Edgeworth, Wicksteed, Clark, Wicksell,
Course Policy
Late coming is not allowed and no student is allowed to enter after class
has started.
Duplication of assignments is strictly forbidden; it entails serious penalty.
Assignments are required to be submitted before or on the deadline.
Cheating during exam sessions results in a minimum of “F “grade while
cheating in quizzes and tests is subjected to a zero mark. All cheating cases
will be reported to the department for further considerations.
Course Delivery Methods
The delivery method shall be student-centered. Students are highly expected to participate in class works
at the middle and end of each session and in group discussions inside and outside of the class.
Specifically the course will be delivered through the following methods: Lecture Method
Group Work
In-class problem solving Assignment
Assessment Methods
Student evaluation in this Course consist both formative and summative assessments including quizzes,
test and final exam. Marks will be allocated according to the following grading schedule.
Assessment method Weight
Assignment (Indiv/group) 30%
Quizzes/Tests(Max of 10 % each) 20%
Final Exam 50 %
Total 100%

Reference Book:
Spigle: (1991) the Growth of Economic thought
I. Hahane Rimma: (1986) Development of Economic thought
Boden, V. Elbert, Economic Evolution: Principles, Issues, Ideas, South
Western Publishing Co., Chicago, USA
Gray, Alxander, the Development of Economic doctrin: An Introductory
Survey (revised By Alan Thomposon, 2nd ed. Longman group Limited
Oser, Jacob, The Evolution of Economic Thought, 2nde.
Jajela, H.L., history of Economic thought, 4th ed., Vikas publishing House
Pvt.LTd, New Delhi, India
Roll, Eric, A History of Economic thoughts, Prentice-Hall, New York, USA