1 The Field of Economic History
1. Give a deÖnition of economic history. How does Fogel ("The Limits of Quantitative Methods in History") answer the question "Should quantitative/economic approaches be used in historical scholarship?" Describe one way in which he justiÖes his answer.
2 Macroeconomic Measurement in Economic History
1. Kuznets used two methods to estimate GNP, both a "components" and an "indicator" method where both gave very similar results. Balke & Gordon ("The Estimation of Prewar Gross National Product") and Romer ("The Prewar Business Cycle Reconsidered") each use one of the methods to correct the Kuznets series, and they reach very di§erent conclusions. Which method does Romer use to correct the GNP series and how does she correct it (be speciÖc)? Which method do Balke and Gordon use to correct the GNP series and how do they correct it (be speciÖc)? Using a discussion of the methodological di§erences between a "components" and "indicator" method, explain how Romer and Balke and Gordon could reach very di§erent conclusions while Kuznets used both methods and obtained the same results (be as speciÖc as you can). Is one method better than the other? Justify your answer.
2. Describe two ways in which Davisí series for Industrial Production is di§erent than the existing series (be as speciÖc as you can). Using the index, does Davis Önd that business cycle volatility changed before and after the Civil War? [Hint: this is a di§erent issue than the volatility question considered by Romer.] What measure of business cycle severity does Davis use to make his case? [Hint: it is not the standard deviation of deviations from trend.]
3 Labor and Education
1. Rosenbloom ("One Market or Many") argues that real wages will be equalized in an integrated labor market. What regression does Rosenbloom estimate to describe di§erences in real wages between cities [no equations needed, but you do need to deÖne the variables used]?
Rosenbloom says that demand plays a primary role in explaining the real wage gaps he estimates. What evidence does he use to support that contention, and how is it consistent with a demand explanation?
2. Goldin notes that the high school movement was unevenly distributed the United States. What years in American history describe the "high school movement"? What areas of the country led the high school movement and what speciÖc reasons does Goldin note for their leadership? Were regional leaders in the high school movement also regional leaders in the coeducation movement? Why or why not?
3. How have the returns to education and inequality evolved over the twentieth century, what has been the trend in each? If the returns to education reáect supply and demand for skill, how has the trend in supply been related to the returns to skill over the twentieth century? How has the trend in demand been related to returns to skill over the twentieth century? Give speciÖc examples from readings and lecture to justify your answer.