040168 KU International Economics (MA) (2024S)

[Topics not covered in class due to lack of time will not enter the exams.]

Gravity

Anderson, J.E., & E. van Wincoop (2003): “Gravity with Gravitas: A Solution to the Border Puzzle,” American Economic Review, 93(1), pp. 170-192

Technology and comparative advantage

Eaton, J., & S. Kortum (2002): “Technology, Geography, and Trade,” Econometrica, 70, 5, pp. 1741-1779

(OR) Obstfeld, M., & K. Rogoff (1996): Foundations of International Macroeconomics, MIT Press, pp. 235-243, 249-256

Increasing returns

Krugman, P.R. (1979): “Increasing Returns, Monopolistic Competition, and International Trade,” Journal of International Economics, November 9(4), pp. 469-479

Krugman, P.R. (1980): “Scale Economies, Product Differentiation, and the Pattern of Trade,” American Economic Review, 70, pp. 950-959

Krugman, P.R., & A.J. Venables (1995): “Globalization and the Inequality of Nations,” Quarterly Journal of Economics, 110(4), pp. 857-880

Firm heterogeneity

Melitz, M.J. (2003): “The Impact of Trade on Intra-industry Reallocations and Aggregate Industry Productivity,” Econometrica, 71, pp. 1695-1725

Melitz, M.J., & D. Trefler (2012): “Gains from Trade when Firms Matter,” Journal of Economic Perspectives, 26(2), pp. 91-118

Trade, technical progress and growth

Acemoglu, D. (2009): Introduction to Modern Economic Growth, Princeton University Press, sections 19.3-19.5

Krugman, P.R. (1987): “The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs. Thatcher: Notes on Trade in the Presence of Dynamic Scale Economies,” Journal of Development Economics, 27, pp. 41-55

Inter-temporal trade

Cuñat, A., & R. Zymek (2023): “Bilateral Trade Imbalances,” Review of Economic Studies, May, https://sites.google.com/site/alecunat/research

OR: pp. 1-35, 59-78, 161-164

Obstfeld, M., & K. Rogoff (2001): “The Six Major Puzzles in International Macroeconomics. Is There a Common Cause?” in B.S. Bernanke & K. Rogoff (eds.), NBER Macroeconomics Annual 2000, 15, section 3

Uncertainty and international capital markets

OR: pp. 269-282, 285-292, 300-315, 473-481

Obstfeld, M., & K. Rogoff (2001): “The Six Major Puzzles in International Macroeconomics. Is There a Common Cause?” in B.S. Bernanke & K. Rogoff (eds.), NBER Macroeconomics Annual 2000, 15, sections 4, 5

International capital market imperfections

Broner, F., & J. Ventura (2011): “Globalization and Risk Sharing,” Review of Economic Studies, 78

Broner, F., & J. Ventura (2016): “Rethinking the Effects of Financial Globalization,” Quarterly Journal of Economics, pp. 1497-1542

Broner, F., A. Martín & J. Ventura (2010): “Sovereign Risk and Secondary Markets,” American Economic Review, 100(4), pp. 1523-1555

Martín, A., & J. Ventura (2018): “The Macroeconomics of Rational Bubbles: A User’s Guide,” Annual Review of Economics, 10, pp. 505-539

OR: pp. 349-362, 363-369

International financial crises

Chang, R., & A. Velasco (2001): “A Model of Financial Crises in Emerging Markets,” Quarterly Journal of Economics, May, pp. 489-517

Jeanne, O., & A. Korinek (2010): “Excessive Volatility in Capital Flows: A Pigouvian Taxation Approach,” American Economic Review P&P, 100(2), pp. 403-407

Korinek, A., A. Roitman & C. Végh (2010): “Decoupling and Recoupling,” American Economic Review P&P, 100(2), pp. 393-397

Lorenzoni, G. (2014): “International Financial Crises,” in G. Gopinath, E. Helpman & K. Rogoff (eds.), Handbook of International Economics, 4, chapter 12, sections 1, 2

Morris, S., & H.S. Shin (1998): “Unique Equilibrium in a Model of Self-fulfilling Currency Attacks,” American Economic Review, 88, pp. 587-597

OR: pp. 634-638 and 648-653