MEMORANDUM

Cournot, Walras, Edgeworth, and a few others. Thus the course should not be mathematics
taught to economists but rather on the “mathematical theory of economics.” 200
But why did Schumpeter take this initiative? The reason was undoubtedly
Schumpeter’s deep involvement in the founding of the Econometric Society, a purpose of
which was to promote mathematics within economics. Some would even say it was the
purpose. 201 The Econometric Society was founded in December 1930; during 1931 the
Council of the Society invited a list of about 175 names as charter members of the Society.
Most of the careful approval of names on the list was done by the unofficial troika of the
Council, namely Irving Fisher, Schumpeter and Ragnar Frisch. The Harvard economics
department was not known for having any person with mathematical skills. When the
troika in the summer of 1931 discussed by letter possible charter members from Harvard
each of them had found one but only one, name to propose from the economics department.
Fisher’s candidate was Thomas N. Carver, Schumpeter proposed Frank W. Taussig, while
Frisch suggested John D. Black. After noting the outcome the two younger men yielded in
deference to Fisher, who was exasperated at the thought of having no charter member from
the Harvard economics department, and they put both Carver and Taussig on the list. 202
Leontief was, as mentioned above, informed shortly before he left Europe in August 1931
that had been elected as charter member.
Hence, Schumpeter’s initiative was meant to remedy the situation with regard to
mathematics in the teaching of economics. The Committee proposed to start already from
the fall term 1933. A course titled “Introduction to the Mathematical Treatment of
Economic Theory” was offered as half-course to be given by Schumpeter “and other
members of the department”. The same course was offered again in 1934 but accompanied
by another half-course titled “Mathematical Economics” to be given by E.B. Wilson. From
the third year Schumpeter’s course was taken over by Leontief, who had assisted
Schumpeter the previous years. 203 Schumpeter thus saw the need to promote mathematics
in economics at Harvard. Did it work? Solow observed the terrain in 1941and asserted in a
retrospective article that, “[t]he learning of mathematics was frowned upon by the Harvard
economics department.” 204
200 http://www.irwincollier.com/harvard-mathematical-economics-1933-1937/ and Swedberg (1991,
p.23).
201 See Bjerkholt (2017 forthcoming).
202 See Bjerkholt (1998, p.41). Harvard had, however, an outstanding charter member in Edwin
Bidwell Wilson, professor at Harvard but not in the economics department.
203 See http://www.irwincollier.com/harvard-mathematical-economics-1933-1937/
204 Solow (1998, p.300). Solow added: “In 1945, Wassily was teaching the first-year graduate
course in economic theory, as well as a more advanced graduate course in mathematical economics.
These were…the only courses at Harvard in which economics was treated rigorously.”
86