| International Trade and Investment - Theory and Policy taught by Dan Nguyen, office: 03-031: Studiestræde 6. I will be posting class news and class notes weekly. You should check this website often. Please contact me if you have questions or find any errors. | |
| Class Syllabus | |
| Class News: 12. Dec: Vera found a typo in equation 14 of "simple melitz.pdf" and suggested a different way to express it to improve clarity. The latest version is 12. Dec. thanks Vera! 09. December. Thanks to Marie for sharp eyes finding another typo. I updated the simple Melitz.pdf to correct the typos. The latest version should have 09 December on the first page. 04. December. I updated the simple Melitz.pdf to correct some typos. The latest version should have 04 December on the first page. 02. December. I have hyperlinked the Melitz handout below. Just because I'm nice, here's a quick link. 27. Nov: Thursday's class is canceled. Be prepared to go over Hummels and Klenow (2005) on Tuesday. JOB OPPORTUNITY: APPLICATION DEADLINE IS WEDNESDAY, 26 NOV (Pay no attention to the deadline in the pdf). Email me if you are going to apply: MINISTRY OF FOREIGN AFFAIRS OF DENMARK REMINDER: Please remember to fill out the external evaluations on Absalon during week 48! 20 Nov. TODAY'S class will be in TRIN 116, Købmagergade 50 29. Oct: As mentioned in class yesterday, Thursday's class is canceled. In addition, the syllabus below has been amended to make the Davis and Weinstein 2001 paper optional. You may want to attend the Zeuthen Lectures this week. 27. Oct: Some students have reported having issues opening up the papers in the syllabus. I have not had any problems. If you cannot get the documents, please stop by my office. 20. Oct: Week 43 classes were mislabeled as being on the 22nd and 24th, instead of 21st and 23rd. The schedule has been corrected. As always, we meet Tuesdays and Thursdays. 01.Oct: Please fill out the course evaluation on Absalon so I can adjust the course appropriately. Also, you can win a 1000 DKK voucher for taking the eval. 01.Oct - 16.Oct: We do not have class during this period and will reconvene 22.October. 25.Sept.2008: Because I'm such a nice instructor, I have removed Chapter 4 from your required readings. No advance payment necessary. Unless otherwise specified below, Tuesday classes are in BISP 214 and Thursday classes are in HO2. Both begin at 14:00.
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Class Notes:
Please inform me of any mistakes in the notes.
For the 4, Dec lecture, we will be discussing the Melitz handout. Print it out. Lecture 18 notes Remember that P1-σ in section 4B of Anderson & VanWincoop (2003) should be Pσ-1. It is a typo. Lecture 17 NOTE 2 : I revised this over the weekend - Corrected a couple of typos (missing subscripts). Note: I've typed up the algebra at the end as it was a bit messy during lecture. Lecture 8 notes Corrected. I removed the last section since that was covered in lecture 9. Lecture 4 notes I was able to print this out in my office. If you have trouble with this document, you can pick up a copy in my office.
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Schedule of Topics and Readings:
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Week |
Classes (lecture hrs: room changes) |
Topic and Required Readings |
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36 |
2-Sept (2) 4-Sept (1) |
Introduction to International Trade, models, and undergraduate theory. The Continuum Ricardian Model
Feenstra: Chapter 1: Ricardian Model
Sections I-III of Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December. |
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37 |
9-Sept (2: room HO 3) 11-Sept (No Class) |
Finish The Continuum Ricardian Model. Start HO
Feenstra: Chapter 1: Two Good, Two Factor Model |
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38 |
16-Sept (2) 18-Sept (2) |
The Stolper-Samuelson Result and The Rybczynski Theorem.
Feenstra: Chapter 1 |
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39 |
23-Sept (2) 25-Sept (2)
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Heckscher-Ohlin-Vanek (HOV)
Feenstra: Chapter 2 |
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40 |
30-Sept (2) 02-Oct (No Class) |
Factors>Goods, Goods>Factors
Feenstra: Chapter 3 |
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41-42 |
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No classes (conference and fall break) |
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43 |
21-Oct (2) 23-Oct (1) |
Applications of HOV
Sections 1-3 of Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
Optional Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May |
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44 |
28-Oct (2)
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Testing HOV
Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December.
Optional: Donald R. Davis & David E. Weinstein, 2001. "An Account of Global Factor Trade," American Economic Review, American Economic Association, vol. 91(5), pages 1423-1453, December |
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45 |
04-Nov (2) 06-Nov (1) |
Gravity Equations
Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March
Hummels, David & Levinsohn, James, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 799-836, August |
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46 |
11-Nov (2) 13-Nov (2) |
Monopolistic Competition
Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December. |
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47 |
18-Nov (2) 20-Nov (2: TRIN 116, Købmagergade 57) |
Monopolistic Competition (Cont). Home Market Effect
Davis, Donald R. & Weinstein, David E., 1999. "Economic geography and regional production structure: An empirical investigation," European Economic Review, Elsevier, vol. 43(2), pages 379-407, February.
Keith Head & John Ries, 2001. "Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade," American Economic Review, American Economic Association, vol. 91(4), pages 858-876. |
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48 |
25-Nov (2) 27-Nov (1) |
Trade Costs
Feenstra Chapter 5
McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
Optional: Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January
Hummels, David, 2001. "Toward a Geography of Trade Costs," Purdue University |
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49 |
2-Dec (2) 4-Dec (1)
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The intensive and extensive margins of trade
Hummels and Klenow, “The Variety and Quality of Nation’s Exports” American Economic Review, 95 (2005) 704-723
Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, vol. 94(2), pages 150-154, May |
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50 |
9-Dec (2) 11-Dec (1) |
Firm Heterogeneity and Trade Failures
Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 266-295, February.
Nguyen (2008) Demand Uncertainty and Exporting Failures
Optional: Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November. |
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51 |
16-Dec(2) 18-Dec (Exam) |
Review Session Exam: Dec 18th, 9:00 – 13:00
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