Current

Advanced macroeconomics II (Fridays, 11:00-14:00, room E8-0.35)

Syllabus
Readings:
- Week 1: The neoclassical growth model, value function iteration (handout 1; handout2)
- Week2: Log-linearization, rational expectation models, and Dynare (handout1; handout2; handout3)

Other media related to International Trade: Charlie Rose's debate about NAFTA with James Goldsmith and Laura Tyson; Paul Krugman Prize Lecture; Russ Roberts on Smith, Ricardo, and Trade
Readings for my part of this course:
- Week 1: Pure exchange and Ricardian models [handout1; handout2; chapter 3]; additional readings:
  - What Do Undergrads Need to Know About Trade?, Paul Krugman (1993)
  - Putting Ricardo to Work, Jonathan Eaton and Samuel Kortum (2012)
- Week 2: Implications and extensions of the Ricardian model, the specific factor model [handout1; handout2; handout3; chapter 3 and chapter 4]; additional readings:
  - Tariffs and the Distribution of Income: The Importance of Factor Specificity, Michael Mussa (1974)
  - Lecture video of Ronald Jones on the specific factor model and Trade theory
- Week 3: Trade gravity equations and the Armington model; Inter/Intra sectoral trade; market power and increasing returns to scale [handout1; handout2; handout3; Armington model matlab; chapter 2, chapter 7]
  - Krugman Nobel prize lecture
  - “Why Latin America is the world’s trade pipsqueak” The Economist article.
- Week 3: The Krugman model [handout1, handout2, handout3, exercises, chapter 7]
  - “Coming and going” The Economist article
  - “The Increasing Returns Revolution in Trade and Geography” Paul Krugman, 2009
- Week 4: The Melitz model [handout1, exercises, chapter 7 and 8]
Grades: Quiz1