Course admin

We meet Tuesdays and Thursdays in SSB 107 from 930 to 1050am.

The syllabus can be found here.

Intro slides to the class covering administrative details are here.

Handbook providing an overview of many of the key issues in international and spatial: "World trade Evolution", 2019, edited by Lili Yan Ing and Miaojie Yu Download

Our Canvas website is here.

Problem set 1 is due on January 30th.

Course contents

Introduction to Empirical Trade: Gravity and the Armington Model (Slide Deck 1, Slide Deck 2)

Required Readings
Anderson: A Theoretical Foundation for the Gravity Equation, 1979, AER
Anderson, van Wincoop: Gravity with Gravitas: A Solution to the Border Puzzle, 2003, AER
Head, Mayer: Gravity Equations: Workhorse,Toolkit, and Cookbook, 2014, Handbook of International Economics
Optional Readings
Boehm, Levchenko, Pandalai-Nayar: The Long and Short (Run) of Trade Elasticities, 2022, AER

Quantitative Ricardian Models of Trade (Slide Deck)

Required Readings
Eaton, Kortum: Technology, Geography, and Trade, Econometrica, 2002
Bernard, Jensen, Eaton, Kortum: Plants and Productivity in International Trade, AER, 2003
Eaton, Kortum: Putting Ricardo to Work, JEP, 2012
Optional Readings
Dornbusch, Fischer, Samuelson: Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods, AER, 1977
Dekle, Eaton, Kortum: Unbalanced Trade, AER, 2007
Caliendo, Parro: Estimates of the Trade and Welfare Effects of NAFTA, ReStud, 2015
Chen, Goes, Muendler, Trottner: Dynamic Adjustment to Trade Shocks, 2023

New Trade Theory: Increasing Returns and Intra-industry trade (Slide Deck)

Readings
Krugman: Scale Economies, Product Differentiation, and the Pattern of Trade, AER, 1980
Melitz: The Impact of Trade on Intra-Industry Allocations and Aggregate Industry productivity, Econometrica, 2003
Bernard, Jensen, Redding, Schott: Firms in International Trade, JEP, 2007
Chaney: Distorted Gravity: The Intensive and Extensive Margins of International Trade, AER, 2008

Market Power (Slide Deck 1,Slide Deck 2, Slide Deck 3)

Required readings
de Loecker and Warzynski: Markups and Firm-level export status , 2012, AER
Atkeson and Burstein: Pricing-to-Market, Trade Costs, and International Relative Prices, 2008, AER
de Loecker and Syverson: An Industrial Organization Perspective on Productivity
Optional further readings
Amiti, Itskhoki, and Konings: International Shocks, Variable Markups and Domestic Prices , 2019, ReStud
Dingel and Tintelnot: Spatial Economics for Granular Settings, 2021
Edmond, Midrigan, and Xu: Competition, Markups, and the Gains from International Trade, 2015, AER
Gaubert and Itskhoki: Granular comparative advantage , 2020, JPE
Arkolakis, Costinot, Donaldson, and Rodriguez-Clare: The Elusive pro-competitive effects of trade, 2019, ReStud
Baqaee and Fahri: The Darwinian returns to scale, 2021, Working paper
Baqaee, Fahri, and Sangani: The Supply-Side Effects of Monetary Policy, 2021, Working paper
de Loecker, Eeckhout, and Unger: The rise of market power and the macroeconomic implications, QJE, 2020
Autor, Dorn, Katz, Patterson, van Reenen: The fall of the labor share and the rise of superstar firms, QJE, 2020
Trottner: Unbundling Market Power, 2023

Local Labor Market Effects (Slide Deck)

Required readings
Kovak: Regional Effects of Trade Reform: What is the Correct Measure of Liberalization?, AER, 2013
Autor, Dorn, and Hanson: The China Syndrome: Local Labor Market Effects of Import Competition in the United State , AER, 2013
Galle, Rodriguez-Clare, and Yi: Slicing the Pie: Quantifying the Aggregate and Distributional Effects of Trade , ReStud, 2022
Boryusak, Hull, and Javarel: Quasi-Experimental Shift-Share Research Designs , ReStud, 2021
Optional further readings
Caliendo, Dvorkin, and Parro: Trade and labor market dynamics: General equilirium analysis of the China trade shock, Econometrica, 2019
Goldsmith-Pinkham, Sorkin, and Swift: Bartik Instruments: What, When, Why, and How, AER, 2021
Adao, Arkolakis, and Esposito: Genereal equilibrium effects in space: Theory and Measurement , 2020, Working Paper
Kim and Vogel: Trade Shocks and Labor Market Adjustment , AER: Insights, 2021
Adao,Carillo, Costinot, Donaldson, Pomeranz: Imports, Exports, and Earnings Inequality: Measures of Exposure and Estimates of Incidence , QJE, 2022

Production Networks and Aggregate Fluctuations (Slide Deck)

Required readings
Carvalho, Tahbaz-Salehi: Production Networks: A primer, 2019, Ann. Rev. of Econ.
di Giovanni, Levchenko, Mejean: Firms, Destinations, and Aggregate Fluctuations, 2014, Econometrica
Carvalho, Nirei, Saito, Tahbaz-Salehi: Supply Chain Disruptions: Evidence from the Great East Japan Earthquake, QJE, 2021
Optional further readings
Gabaix: The granular origins of aggregate fluctuations, 2011, Econometrica
Carvalho and Gabaix: The great diversification and its undoing, 2013, AER
Acemoglu, Carvalho, Ozadaglar, Tahbaz-Salehi: The network origins of aggregate fluctuations, 2012, Econometrica
Barrot, Sauvagnat: Input specificty and the propagation of idiosyncratic shocks in production networks, 2016, QJE
Lim: Endogenous Production Networks and the Business Cycle, 2018, wp
Caliendo, Parro, Rossi-Hansberg, Sarte: The impact of regional and productivity changes on the U.S. economy, 2018, Restud
Baqaee and Fahri: The macroeconomic impact of microeconomic shocks: Beyond Hulten's Theorem, 2019, Econometrica
Alfaro, Garcia-Santana, Moral-Benito: On the Direct and Indirect Real Effects of Credit Supply Shocks, 2021, Journal of Financial Economics
Huremovic, Jimenez, Moral-Benito: Production and Financial Networks in Interplay: Crisis Evidence from Supplier-Costumer and Credit Registers, 2020