ECO-13101-003 (Monday, Wednesday 17:30-19:00, room RH101)
Syllabus and Itam calendar 2023
Other media: Charlie Rose's debate about NAFTA with James Goldsmith and Laura Tyson; Paul Krugman Prize Lecture; Russ Roberts on Smith, Ricardo, and Trade
Additional readings on international trade and pollution:
Arik Levinson (2009), “Technology, International Trade, and Pollution from US Manufacturing”
Melissa Dell, Benjamin Feigenberg, and Kensuke Teshima (2019) “The Violent Consequences of Trade-Induced Worker Displacement in Mexico”
Matilde Bombardini and Bingjing Li (2020), “Trade, pollution and mortality in China”
Shinsuke Tanaka, Kensuke Teshima, and Eric Verhoogen (2021), “North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling”
Readings for this course:
Week 1: Introduction to international trade and static optimization [handout1, handout2; KOM2012chp1 and chp2; readings:(1)(2)]
Week 2: Pure exchange model and the Ricardian model [handout3; KOM2012chp3; readings:(1)(2)]
Week 3: Ricardian model (cont) [handout3; KOM2012chp3; readings:(1)(2)]
Week 4: Implications and extensions of Ricardian model; understanding non-traded sectors [handout4; KOM2012chp3, F2003chp1; readings:(1)]
Week 5: The specific factors model [handout5; KOM2012-chp4, F2003chp3; readings:(1)(2)]
Week 6: Midterm 1 on the 13th September [study topics; additional questions; solutions; midterm 1]
Week 7: The Heckscher-Ohlin model [handout5, handout6; KOM2012chp5, F2003chp2: readings (1)(2)]
Week 8: Empirical evidence of classical trade models; gravity equations and Armington model [handout7;handout8, handout9; armington model matlab code; KOM2012chp2 and 6, F2003chp5; readings:(1),(2)]
Week 9: Inter/Intra sectoral trade; market power and increasing returns to scale [handout10; handout 11; KOMchp7, F2003chp5; readings:(1)(2)]
Week 10: Inter/Intra sectoral trade: the Krugman Model [handout10; handout 11; KOMchp7, F2003chp5; readings:(1)(2)]
Week 11: Extensions of the Krugman model [handout12; KOM2012chp7, F2003chp5; readings:(1)]
Week 12: Midterm 2 on the 25th October [study topics; additional question 1; additional questions 2; midterm2; solution]
Week 13: New new trade theory: Melitz Model [handout13; KOM2012chp7,8; readings:(1)(2)(3)]
Week 14: New new trade theory: Melitz Model (cont.) [handout13; KOM2012chp7,8; readings:(1)(2)(3)]
Week 15: Applications of Melitz Model [handout13; KOM2012chp7,8; readings:(1)(2)(3)]
Week 16: Midterm 3 on the 22th Novermber [additional questions]
Week 17: International trade policy, trade agreements, dumping and antidumping [handout14; KOM2012chp9/10; F2003chp7; readings:(1)(2)]; International chain values of production [handout15, handout16; readings:(1)(2)]
Practice exercises: assignment 1; assignment 2; assignment 3; assignment 4; assignment 5
Practice exams: practice midterm 1; exam 1; practice midterm 2; practice midterm 3; practice midterm 4; practice midterm 5; midterm 6; midterm 7; midterm 8; midterm 9; midterm 10; midterm 11; midter 12; exam 1; exam 2; exam 3; exam 4; exam 5; exam6; exam7; exam 8; exam 9; exam 10; multiple choice 1; multiple choice 2; multiple choice 3
Assignments: Homework 1 (due on the 5 November); homework 2 (deadline on the 3th December)
Grades: Exam1; Exam2; Exam3; Homeworks; Average; Final Letter grade