Evaluation will be based o a midterm exam (40%), a final exam (40%) and problem sets (20%). Students can deregister from the course until the end of October.
The goal of the course is to make students familiar with the basic models and methods used in modern international trade at the graduate level.
The course will have a lecture structure.
No single textbook covers all topics adequately. Some useful references are:
Dixit, A.K. and V. Norman (1980): Theory of International Trade, Cambridge University Press. (DN)
Feenstra, R.C. (2004): Advanced International Trade: Theory and Evidence, Princeton University Press. (F)
Helpman, E. and P.R. Krugman (1985): Market Structure and Foreign Trade, MIT Press. (HK1)
Helpman, E. and P.R. Krugman (1989): Trade Policy and Market Structure, MIT Press. (HK2)
For an introductory treatment of the material -- too basic for the level of the course but adequate for getting the basic ideas:
Feenstra R.C, and A. Taylor (2008): International Economics, Worth Publishers.
Krugman, P.R. and M. Obstfeld (2007): International Economics, Addison-Wesley.
1) The Ricardian Model Relative Productivity Differences
F, Chapter 1
Dornbusch, R., S. Fischer and P. Samuelson (1977): Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods, American Economic Review, December.
2) The Heckscher-Ohlin Model Relative Factor Endowment Differences
F, Chapters 1-3
HK1, Chapter 1
Trefler, D. (1995): "The Case of Missing Trade and Other Mysteries," American Economic Review 85, 1029-1046.
3) Increasing Returns, New Trade Theory and the Gravity Equation
F, Chapter 5
HK1, Chapters 3, 6-9
Krugman, P.R. (1979): Increasing Returns, Monopolistic Competition, and International Trade, Journal of International Economics, November 9 (4), 469-479.
Krugman, P.R. (1980): Scale Economies, Product Differentiation, and the Pattern of Trade, American Economic Review 70, 950-959.
Trefler, D. (2004): "The Long and Short of the Canada-U.S. Free Trade Agreement," American Economics Review, 870-895.
4) Heterogeneous Firms and Trade
Melitz, Marc (2003): "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, vol. 71(6), 1695-1725.
5) Trade Policy & Trade Agreements
F, Chapters 6-8
HK2, Chapters 1, 6
Venables, A. (1987): "Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model", Economic Journal 97, 700-717.
Bagwell, K. and R. W. Staiger (1999), "An Economic Theory of GATT", American Economic Review 89, 215-48.