Excel Models for International Trade Theory and Policy

Index
 
    Getting Started 
 
    Models
    
        General Equilibrium
    
            HOS Model (Single Economy), Live version           
            HOS Model (Single Economy)
            HOS Model (Two Economy)
            Specific Factors Model, Live version (NEW)
            Specific Factors Model
            HOS and Specific Factors Relationship** 
            HOS Model with Interventions, Live version           
            HOS Model with Interventions** 
          
        Partial Equilibrium
    
            Reciprocal Dumping (NEW)
            Basic (Small Country) Effects of Intervention (NEW)
            Tariffs vs Quotas with Monopoly 
            Customs Unions
            Simple Strategic Trade (NEW) 
 

    Topic List 
    
    Help
    
        Suitable Textbooks    
        Building a Model in Excel 
 
    References 

  
* Requires the Solver Add-in
** Requires the Solver Add-in and enabling macros for full functionality
 
Introduction
 
This site is intended for instructors of international trade theory at the undergraduate level who would like to introduce numerical simulations to the classroom. Students may also find the models and exercises useful. The site brings together a number of general and partial equilibrium numerical simulation models of various aspects of international trade theory and policy, all built in Excel and all using both tabular and graphical presentations. Some of the models have been previously described in published articles, and the site makes the underlying Excel sheets, along with extended exercises, more easily accessible. In other cases the models are all new (including two configurations of the specific factors model using Solver, 'live' versions of the HOS and specific factors models that do not require Solver and provide instant feedback, and a live version of the HOS model dealing with the theory of commercial policy). These Excel sheets are also made fully available, along with instructions for using them, and sets of exercises with explanations. We have also provided information on how models like those described here can be utilized as pedagogical devices, sample assignments, details on how the models are constructed, and references to key results. Like others, we have found numerical simulations in Excel to be a very useful tool in the undergraduate international trade classroom, and hope this site will encourage instructors to try out these resources.
 

Contacts
 
If you have feedback on the models, suggestions for how they can be used or modified, or suggestions for other models that would be useful, please e-mail:
 
John Gilbert, Department of Economics and Finance, Utah State University
Reza Oladi, Department of Applied Economics, Utah State University
 

Acknowledgements
 
Work on these models was funded in part through the Rocky Mountain Center for International Business Education and Research (RMCIBER), the Jon M. Huntsman School of Business at Utah State University, and the Vernon M. Buehler and MaRee C. Buehler Endowment. Thanks to Edward Tower for useful comments. This site is described in the Journal of Economic Education (Volume 42, Issue 1), and we also thank the referees for useful comments.