Welcome to Econ-3613.
The learning objective of this course is for students to learn how trade affects prices and the allocation of resources across countries, and how nations may gain or lose from trade. To do this, we start from classical models of trade. We then study a standard trade model. We continue with contemporary trade models under increasing return to scale. And we conclude our survey by looking at the most recent models that describe firms’ export decisions and multinational production. We further examine selected trade policy instruments such as tariffs and quotas, and we study the welfare effects of such policies. To conclude this course, we examine a selected number of arguments for and against free trade. For more details, you may refer to the syllabus.
This course relies heavily on selected readings from a textbook by Steven Husted and Michael Melvin as well as a textbook by Paul Krugman, Maurice Obstfeld, and Marc Melitz. We also use another textbook by James Gerber. Towards the end of the lecture series, students are introduced to two other books: one by Elhanan Helpman and one by Pol Antras.
We begin this lecture series by exploring the current state of economic activities across different countries. This part of lecture is based on Chapter 1 in Husted and Melvin’s textbook.
- Few useful data resources:
We, then, continue with a survey of some analytical tools. This part of lecture is based on Chapter 2 in Husted and Melvin’s textbook.
The above-mentioned tools are useful in modeling international trade. We use those tools to survey two sets of models:
- Classical models: lecture presentations and some highlights
- This part of the lecture is based on Chapter 3 in Husted and Melvin’s textbook.
- Standard models: lecture presentations and some highlights
- This part of the lecture is based on Chapter 6 in Krugman, Obstfeld, and Melitz’s textbook.
We conclude with this article about Stolper-Samuelson theorem.
Given what we learned from classical and standard treatments of trade theory, we survey contemporary models:
- New trade model: lecture presentations and some highlights
- This part of the lecture is based on Chapter 7 in Krugman, Obstfeld, and Melitz’s textbook.
- New new trade model: lecture presentation and some highlights
We conclude this part with a survey of developments in multinational production. These concluding remarks are also based on Chapter 8 in Krugman, Obstfeld, and Melitz’s textbook.
The last part of this lecture series will focus on trade policy, including a brief survey of:
- Common commercial policy instruments
- Arguments for and against free trade
There are two exams, a midterm and a final. Previous exam samples include:
When it comes to final letter grade calculation, the exams have 80% weight. For a given student, 45% weight will be allocated to the exam with higher grade, and 35% weight will be allocated to the exam with lower grade. Your class participation grade contributes to the remaining of your final letter grade. For more, refer to the syllabus.