Department of Ecnonomics
University of California
Berkeley, CA 94720-3880
January 2006 Economic History Field Exam
Please answer one question from Part A, one question from Part B, and one question from Part C
(three questions in all). Remember that a premium will be placed on the legibility of
handwriting when your professors grade your answers.
Part A
1. Sociologists who study the British Industrial Revolution typically say that it started in 1840.
Historians of technology like David Landes typically say that it started in 1740. Now Greg Clark
has just published an article in the Journal of Political Economy saying that the key date is 1640.
Why do these groups have such divergent views? Why is it important (or is it important) to adopt
one rather than the other date for the industrial revolution?
2. How, in the course of economic history, has it been possible to have large-scale long-distance
trade without an overarching system of property rights and courts to settle contract disputes?
How can we have trade without law?
Part B
1. The Great Depression of the 1930s is a topic that continues to generate extensive research.
Are there aspects of the analysis of this crucial event where you feel the evidence is relatively
solid? Describe them and explain why you find the evidence convincing. What are the areas
where additional evidence and analysis are most needed? Again, describe how the existing
analysis is lacking and explain the type of additional work that is needed.
2. Friedman and Schwartz’s A Monetary History of the United States has been described as one
of the finest books in economic history and macroeconomics. Yet, almost any scholarly work
can be improved upon. If Friedman and Schwartz were willing to embark upon a major revision,
what aspects of the book would you encourage them to change? Be as specific and substantive
as possible.
Part C
1. Financial market imperfections are often cited as a key factor in short-run fluctuations in the
United States from the late 1800s to today. Do you think this emphasis is appropriate? What is
the evidence that financial market imperfections have been important? Be sure to discuss the
role of financial market imperfections both as an independent source of shocks and as a
propagation mechanism for other disturbances affecting the economy.
2. A recent working paper argues that one important reason for the remarkable stability of the
U.S. economy over the past twenty years is financial innovation and financial deregulation. One
