Gustav Cohn

Gustav Cohn (12 December 1840 – 17 September 1919) was a prominent German economist, particularly known for his work on transportation economics (especially railways), public finance, and his systematic treatise System der Nationalökonomie . He was associated with the younger German Historical School, emphasizing empirical research, historical context, and the ethical dimensions of economic policy.

Gustav Cohn was born in Marienwerder, West Prussia (now Kwidzyn, Poland). He came from a Jewish merchant family. He studied at the universities of Berlin and Leipzig, where he was influenced by leading figures of the German Historical School, including Wilhelm Roscher. He received his doctorate from the University of Leipzig in 1863 with a dissertation on banking. After further studies in England, where he observed British economic institutions and practices, he completed his habilitation in Heidelberg in 1869.

Cohn's academic career saw him hold several prestigious positions:

• He began as a Privatdozent at the University of Heidelberg (1869–1872).
• He then served as a professor at the Riga Polytechnic (1872–1873) in Latvia (then part of the Russian Empire).
• From 1873 to 1884, he was Professor of Political Economy at the Swiss Federal Polytechnic in Zurich (now ETH Zurich). During his time in Switzerland, he gained practical insights into railway management and policy, which heavily influenced his later work.
• In 1884, he was appointed Professor of Political Economy at the University of Göttingen, a position he held until his retirement in 1918. This was one of the leading chairs in economics in Germany, and it was here that he produced much of his most influential work, including his System der Nationalökonomie .

Cohn was a respected teacher and actively participated in public debates on economic policy.

Gustav Cohn's work spanned several key areas of economic inquiry, characterized by a blend of theoretical analysis, empirical observation, and a concern for practical policy implications.

1. Transportation Economics (Railways):

   • Cohn is perhaps best known for his extensive research on railways. His time in Switzerland, with its complex railway system and debates over public versus private ownership, provided him with rich material.
   • His major work in this area, Untersuchungen über die Englische Eisenbahnpolitik (Studies on English Railway Policy, 2 vols., 1874–1875), was a detailed historical and analytical study.
   • He later published Die Englische Eisenbahnpolitik der letzten zehn Jahre (English Railway Policy of the Last Ten Years, 1883).
   • Cohn analyzed issues such as tariff setting, competition and monopoly in railways, the economic impact of railway development, and the role of the state in railway ownership and regulation. He generally favored state ownership or strong state control of railways, viewing them as crucial public infrastructure with characteristics of natural monopolies.

2. Public Finance (Finanzwissenschaft):

   • The second volume of his System der Nationalökonomie was dedicated to Finanzwissenschaft (Public Finance, 1889). This was a comprehensive treatise on the principles of taxation, government expenditure, and public debt.
   • He emphasized the ethical and social justice aspects of taxation, advocating for progressive taxation based on the ability-to-pay principle.
   • Cohn analyzed the economic effects of different types of taxes and discussed the principles of sound fiscal management.

3. Systematic Political Economy:

   • His magnum opus was the three-volume System der Nationalökonomie (System of Political Economy):
     • Vol. 1: Grundlegung der Nationalökonomie (Foundations of Political Economy, 1885) – This volume laid out his general theoretical framework, discussing fundamental economic concepts, methodology, and the relationship between economics and other social sciences. It reflected the influence of the German Historical School in its emphasis on the historical and institutional context of economic life.
     • Vol. 2: Finanzwissenschaft (Public Finance, 1889) – As mentioned above.
     • Vol. 3: Nationalökonomie des Handels und des Verkehrswesens (Political Economy of Trade and Transportation, 1898) – This volume returned to his expertise in transportation, particularly railways, and also covered broader issues of domestic and international trade policy.

4. Ethical Considerations in Economics:

   • Consistent with the German Historical School, Cohn believed that economics could not be entirely value-free. He stressed the importance of ethical considerations in economic policy and the role of the state in promoting social welfare and justice.
   • He was critical of what he saw as the overly abstract and deductive approach of some classical and early neoclassical economists, arguing for an economics more grounded in empirical reality and historical understanding.

Gustav Cohn was a significant figure in German economics in the late 19th and early 20th centuries. His work on railways was pioneering and highly influential in policy debates in Germany and elsewhere. His System der Nationalökonomie was a major attempt to provide a comprehensive and systematic treatment of economics from a perspective aligned with the German Historical School. While some of his specific policy recommendations may be tied to his era, his emphasis on the empirical study of economic institutions, the importance of public infrastructure, and the ethical dimensions of economic policy continue to resonate.

• 1863: Ueber die heutige Gestalt des Bankwesens (On the Present Form of Banking) - Doctoral dissertation.
• 1869: Die Voraussetzungen der deutschen Münzreform (The Prerequisites for German Monetary Reform) - Habilitation thesis.
• 1874–1875: Untersuchungen über die Englische Eisenbahnpolitik (Studies on English Railway Policy). 2 volumes. Leipzig: Duncker & Humblot.
  • Vol. 1: Zur Geschichte der Englischen Eisenbahnpolitik (On the History of English Railway Policy).
  • Vol. 2: Zur heutigen Lage der Englischen Eisenbahnpolitik (On the Present Situation of English Railway Policy).
• 1883: Die Englische Eisenbahnpolitik der letzten zehn Jahre (1873–1883) (English Railway Policy of the Last Ten Years). Leipzig: Duncker & Humblot.
• 1885–1898: System der Nationalökonomie (System of Political Economy). Stuttgart: Ferdinand Enke.
  • Vol. 1 (1885): Grundlegung der Nationalökonomie (Foundations of Political Economy).
  • Vol. 2 (1889): Finanzwissenschaft (Public Finance).
  • Vol. 3 (1898): Nationalökonomie des Handels und des Verkehrswesens (Political Economy of Trade and Transportation).
• 1892: Ethik und Soziologie (Ethics and Sociology).
• 1900: Zur Politik des Deutschen Finanz-, Verkehrs- und Verwaltungswesens: Reden und Aufsätze (On the Politics of German Finance, Transportation, and Administration: Speeches and Essays). Stuttgart: Ferdinand Enke.
• Various articles and contributions to journals and collected volumes on economic policy, public finance, and transportation