This is an advanced course in the theory of international trade. We will cover positive and normative aspects of standard and new trade theory, along with recent developments in the literature. Microeconomics (3010 or 4010) is required, and mathematical economics (4310) is recommended. A complete syllabus for the class is here. All lecture notes are in PDF format.
Lecture Notes
Topic 01: Course Outline
Topic 02: Scope of Trade Theory
Topic 03: Some Core Concepts
Topic 04: The Ricardian Model
Topic 05: Specific Factors (I)
Topic 06: Specific Factors (II)
Topic 07: Specific Factors (III)
Topic 08: Specific Factors (IV)
Topic 09: Factor Proportions (I)
Topic 10: Factor Proportions (II)
Topic 11: Factor Proportions (III)
Topic 12: The Gains from Trade
Topic 13: External Scale Economies
Topic 14: Reciprocal Dumping
Topic 15: Monopolistic Competition and Trade
Topic 16: Theory of Commercial Policy
Assignments
Assignment 1: Building a Ricardian Economy. Due Thursday September 28.
Assignment 2: Building a Specific Factors Economy. Due Thursday October 19.
Assignment 3: Building an HOS Economy. Due Thursday November 14.
Miscellaneous
GAMS program for maximizing a CES utility function subject to a budget constraint.
GAMS program for small open economy.
GAMS program for specific factors.
Announcements
August 18: First class is on Tuesday August 29 at 10:30 in Huntsman Hall 160. See you there.
November 22: Next week there will be no class on Tuesday. Your assignment is to read this (partially finished) paper and critique it in one page (things you liked, thing you didn't, things that aren't clear, and so on). Useful comments will definitely be acknowledged in the final version! On Thursday Reza has agreed to come to class to discuss the paper with you. Have a good Thanksgiving break.