IN THE FALL OF 1942, as the Allied and Axis nations marshalled their forces for decisive battles at Guadalcanal, El Alamein, and Stalingrad, Joseph A. Schumpeter's Capitalism, Socialism, and Democracy (CSD) was published. Perceived by Schumpeter at the time as a little book of essays somewhat in the nature of a potboiler,' it distilled for the intelligent lay reader almost forty years' thought, observation, and research (1942, p. ix) by the Austrian economist-statesman-banker turned Harvard don. Fifty years later, it remains relevant. In particular, it brought into the main stream of economic discourse the question of what market structures were most favorable to technological change and hence economic growth. Both in the United States and abroad, policy debates over that issue persist. Schumpeter's conjectures on market structure, the work by economists to extend them, and the continuing policy puzzles are the main focus of this anniversay essay. II. The Challenge

E BEGAN to conceptualize average total cost functions during the early decades of the twentieth century. But a century before, a German music publishing firm calculated and used in its internal decision making output-dependent average cost estimates for two methods of printing sheet music. This note describes that early experience and juxtaposes against it the relatively late emergence of the ATC curve in the formal literature of economics.

Economists were among the many scholars uprooted following Hitler's rise to power in 1933. This article reviews a series of books edited by Harald Hagemann and others which provide extensive biographical information on 314 German-speaking economists whose professional opportunities were shattered by Nazi policies. It evaluates the impact of the massive emigration on economic research and teaching in Germany and Austria and in the nations to which most of the economists emigrated. An analysis of 1966-70 data reveals that the emigres' cited publication counts were equivalent to the citations of three leading U.S. economics departments.