jack rossbach

• Syllabus

Course Information

Time: 1:15-2:35PM Wed,Fri
Location: BA 214
Website: www.albany.edu/~rossbach/eco745

Office Hours: 3:00-4:00 PM Wed, BA 109B
Contact: jrossbach@albany.edu

Class Presentations

Lecture Notes & Slides

Lecture 1 Slides: Ricardian Model (Additional notes on DFS (1979))

Lecture 2 Slides: Tariff Wars and Spillovers in Ricardian Framework (Additional notes on learning-by-doing)

Lecture 3 Slides: Heckscher-Ohlin

Lecture 4 Slides: Dynamic Heckscher-Ohlin and Growth Accounting (Bajona and Kehoe (2010) slides , Tim Kehoe's notes on growth accounting)

Lecture 5 Slides: The Armington Framework and AGE Models

Lecture 6 Slides: Gravity

Lecture 7 Slides: Monopolistic Competition and Increasing Returns

Lecture 8 Slides: Monopolistic Competition with Heterogeneous Firms

Lecture 9 Slides: Heterogeneous Firms in International Trade

Lecture 10 Slides: Zeros and Granularity with Trade (Slides for Good Policy or Good Firms?)

Lecture 11 Slides: Monopolistic Competition with Heterogeneous Markups

Lecture 12 Slides: Multidimensional Ricardian Frameworks: Eaton-Kortum

Lecture 13 Slides: Technology, Geography, and Trade: Eaton-Kortum part 2

Lecture 14 Slides: Welfare in Gravity Models

Lecture 15 Slides: Extensive Margin Empirics (LTP Exercise Example + Notes)

Lecture 16 Slides: Asymmetric Trade Costs and International Income Differences

Lecture 17 Slides: Vertical Specialization in International Trade

Lecture 18 Slides: Distributional Effects of Trade

Lecture 19 Slides: Location Models; Free Trade Agreements

Problem Set 1 (Due Friday, September 18)

Problem Set 2 (Due Friday, Ocotber 9)

Problem Set 3 (Due Friday, November 13)

Data Sources

• Bilateral Trade Flows
• Comtrade: http://comtrade.un.org/ (personally prefer http://comtrade.un.org/db/dqQuickQuery.aspx)
• World Integrated Trade Solution (WITS): http://wits.worldbank.org/
• OECD's STAN Database for Structural Analysis: https://stats.oecd.org/Index.aspx?DataSetCode=BTDIXE
• Concordances: http://www.macalester.edu/research/economics/PAGE/HAVEMAN/Trade.Resources/TradeConcordances.html and http://unstats.un.org/unsd/cr/registry/regot.asp?Lg=1


• Bilateral Tariff and Gravity Data
• Trade Analysis and Information System (TRAINS), accessed through WITS: http://wits.worldbank.org/
• CEPII Gravity Dataset: http://www.cepii.fr/CEPII/en/bdd_modele/presentation.asp?id=8


• Country-level Data
• World Development Indicators: http://databank.worldbank.org/data/home.aspx
• OECD Databases: http://stats.oecd.org/ and http://www.oecd-ilibrary.org
• IMF's International Financial Statistics (IFS) and Other Databases: http://data.imf.org
• Penn World Table (PPP Data): http://www.rug.nl/research/ggdc/data/pwt/
• Total Economy Database (Hour Worked Data): https://www.conference-board.org/data/economydatabase/index.cfm?id=27762
• Integrated Public Use Microdata Series (IPUMS), International: https://international.ipums.org/international/


• Misc Data
• Wharton Research Data Service (WRDS): http://wrds.wharton.upenn.edu/ (Several databases that may be of interest, including information on stocks, bonds, and firm-level financials)
• World Bank Enterprise Surveys (firm level survey data): http://www.enterprisesurveys.org/data/survey-datasets
• World Input-Output Tables (WIOD): http://www.wiod.org/new_site/database/wiots.htm

References

Preliminaries: Ricardian Models and Applications
• Dornbusch, Fischer, and Samuelson (1977). "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods." American Economic Review. http://www.jstor.org/stable/1828066
• Young (1991). "Learning by Doing and the Dynamic Effect of International Trade." Quarterly Journal of Economics. http://www.jstor.org/stable/2937942
• Krugman (1981). "Trade, Accumulation, and Uneven Development." Journal of Development Economics. http://www.sciencedirect.com/science/article/pii/0304387881900262
• Opp (2010). "Tariff Wars in the Ricardian Model with a Continuum of Goods." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199609001342
• Samuelson (1952). "The Transfer Problem and Transport Costs: The Terms of Trade When Impediments are Absent." The Economic Journal. http://www.jstor.org/stable/2227005

Preliminaries: Heckscher-Ohlin Theory and Emperics
• Dornbusch, Fischer, and Samuelson (1980). "Heckscher-Ohlin Trade Theory with a Continuum of Goods." Quarterly Journal of Economics. http://www.jstor.org/stable/1885496
• Leamer (1995). "The Heckscher-Ohlin Model in Theory and Practice," Princeton Studies in International Economics 77. http://www.princeton.edu/~ies/IES_Studies/S77.pdf
• Bajona and Kehoe (2010). "Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model." Review of Economic Dynamics. http://www.sciencedirect.com/science/article/pii/S1094202510000219
• Ventura (1997). "Growth and Interdependence." Quarterly Journal of Economics. http://qje.oxfordjournals.org/content/112/1/57
• Grossman and Helpman (1994). "Protection for Sale." American Economic Review. http://www.jstor.org/stable/2118033
• Davis and Weinstein (2001). "An Account of Global Factor Trade." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.91.5.1423
• Leamer (1980) "The Leontief paradox, reconsidered." The Journal of Political Economy. http://www.jstor.org/stable/1831928
• Trefler (1993). "International Factor Price Differences: Leontief Was Right!" Journal of Political Economy. http://www.jstor.org/stable/2138568

Armington and AGE Models
• Armington (1969). "A Theory of Demand for Products Distinguished by Place of Production." IMF Staff Papers. http://www.jstor.org/stable/3866403
• Kehoe and Kehoe (1994). "Capturing NAFTA's Impact with Applied General Equilibrium Models." Federal Reserve Bank of Minneapolis Quarterly Review. https://www.minneapolisfed.org/research/qr/qr1822.pdf
• Kehoe and Kehoe (1994). "A Primer on Static Applied General Equilibrium Models." Federal Reserve Bank of Minneapolis Quarterly Review. https://www.minneapolisfed.org/research/qr/qr1821.pdf
• Kehoe (2005). "An Evaluation of the Performance of Applied General Equilibrium Models of the Impact of NAFTA." in Frontiers in Applied General Equilibrium Modeling: Essays in Honor of Herbert Scarf. http://www.econ.umn.edu/~tkehoe/papers/NAFTAevaluation.pdf
• Kehoe, Rossbach, and Ruhl (2015). "Using the New Products Margin to Predict the Industry-Level Impact of Trade Reform." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199615000586
• Cox and Harris (1985). "Trade Liberalization and Industrial Organization: Some Estimates for Canada." The Journal of Political Economy. http://www.jstor.org/stable/1830504

Gravity
• Head and Mayer (2013). "Gravity Equations: Workhorse, Toolkit, and Cookbook." in Handbook of International Economics. http://www.cepii.fr/PDF_PUB/wp/2013/wp2013-27.pdf
• McCallum (1995). "National Borders Matter: Canada-U.S. Regional Trade Patterns." American Economic Review. http://www.jstor.org/stable/2118191
• Anderson and van Wincoop (2003). "Gravity with Gravitas: A Solution to the Border Puzzle." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/000282803321455214
• Head, Mayer, and Ries (2010). "The Erosion of Colonial Trade Linkages after Independence." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199610000036
• Asturias and Petty (2013). "Endogeneous Transportation Costs." http://www.jasturias.com/wp-content/uploads/2015/01/EndTranspCostPaper_10_20_2013.pdf
• Chen and Novy (2011). "Gravity, Trade Integration, and Heterogeneity Across Industries." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199611000821
• Baier and Bergstrand (2007). "Do Free Trade Agreements Actually Increase Members' International Trade?" Journal of international Economics. http://www.sciencedirect.com/science/article/pii/S0022199606000596
• Santos Silva and Tenreyro (2006). "The Log of Gravity." The Review of Economics and Statistics. http://www.mitpressjournals.org/doi/pdfplus/10.1162/rest.88.4.641

Monopolistic Competition and Increasing Returns
• Dixit and Stiglitz (1977). "Monopolistic Competition and Optimum Product Diversity." American Economic Review. https://www.aeaweb.org/aer/top20/67.3.297-308.pdf
• Krugman (1980). "Scale Economies, Product Differentiation, and the Pattern of Trade." American Economic Review. https://www.aeaweb.org/aer/top20/70.5.950-959.pdf
• Krugman (1979). "Increasing Returns, Monopolistic Competition, and International Trade." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/0022199679900175
• Jaimovich and Floetotto (2008). "Firm Dynamics, Markup Variations, and the Business Cycle." Journal of Monetary Economics. http://www.sciencedirect.com/science/article/pii/S0304393208001207
• Krugman (1991). "Increasing Returns and Economic Geography." Journal of Political Economy. http://www.jstor.org/stable/2937739

Monopolistic Competition and Firm-level Heterogeneity
• Melitz (2003). "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity." Econometrica. http://www.jstor.org/stable/1555536
• Chaney (2008). "Distorted Gravity: Heterogeneous Firms, Market Structure and the Geography of International Trade." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.98.4.1707
• Hopenhayn (1992). "Entry, Exit, and Firm Dynamics in Long Run Equilibrium." Econometrica. http://www.jstor.org/stable/2951541

Firm Heterogeneity and the Extensive Margin
• Helpman, Melitz, and Rubinstein (2008). "Estimating Trade Flows: Trading Partners and Trading Values." Quarterly Journal of Economics. http://qje.oxfordjournals.org/content/123/2/441.short
• Bernard, Jensen, Redding, and Schott (2007). "Firms in International Trade." Journal of Economic Perspectives. https://www.aeaweb.org/articles.php?doi=10.1257/jep.21.3.105
• Eaton, Kortum, and Kramarz (2011). "An Anatomy of International Trade: Evidence From French Firms." Econometrica. http://onlinelibrary.wiley.com/doi/10.3982/ECTA8318/abstract
• Uy (2015). "Zeros and the Gains from Openness." http://timothyuy.weebly.com/uploads/2/5/9/1/2591989/zeros_and_the_gains_from_openness_%28main_paper%29.pdf

Granularity, Trade, and Aggregate Fluctuations
• Gabaix (2011). "The Granular Origins of Aggregate Fluctuations." Econometrica. http://onlinelibrary.wiley.com/doi/10.3982/ECTA8769/abstract
• di Giovanni and Levchenko (2012). "Country Size, International Trade, and Aggregate Fluctuations in Granular Economies." Journal of Political Economy. http://www.jstor.org/stable/pdfplus/10.1086/669161
• di Giovanni, Levchenko, and Mejean (2014). "Firms, Destinations, and Aggregate Fluctuations." Econometrica. Firms, Destinations, and Aggregate Fluctuations
• Rossbach (2015) "Good Policy or Good Firms? International Competition and Aggregate Growth in a Granular World." http://www.albany.edu/~rossbach/papers/GoodFirms/GoodFirms.pdf
• Easterly, Kremer, Pritchett, and Summers (1993). "Good Policy or Good Luck? Country Growth Performance and Temporary Shocks." Journal of Monetary Economics. http://www.sciencedirect.com/science/article/pii/030439329390026C

Heterogeneous Markups and Pro-Competitive Gains from Trade
• Melitz and Ottaviano (2008). "Market Size, Trade, and Productivity," The Review of Economic Studies. http://restud.oxfordjournals.org/content/75/1/295.abstract
• Ottaviano, Tabuchi, and Thisse (2002). "Market Size, Trade, and Productivity." International Economic Review. http://onlinelibrary.wiley.com/doi/10.1111/1468-2354.t01-1-00021/abstract
• Arkolakis, Costinot, Donaldson, and Rodriguez-Clare (2015). "The Elusive Pro-Competitive Effects of Trade." NBER Working Paper No 21370. http://www.nber.org/papers/w21370
• Asturias, Garcia-Santana, and Ramos (2015). "Competition and the Welfare Gains from Transportation Infrastructure: Evidence from the Golden Quadrilateral of India." http://www.jasturias.com/wp-content/uploads/2015/01/agpr_draft_2015_02_09_FINAL_SUB.pdf
• Atkeson and Burstein (2008). "Pricing-to-Market, Trade Costs, and International Relative Prices." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.98.5.1998
• Holmes, Hsu, and Lee (2014). "Allocative Efficiency, Mark-Ups, and the Welfare Gains from Trade." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S002219961400097X

Multidimensional Ricardian Models
• Eaton and Kortum (2002). "Technology, Geography, and Trade." Econometrica. http://www.jstor.org/stable/3082019
• French (2015). "The Composition of Trade Flows and the Aggregate Effects of Trade Barriers." http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2673265
• Bernard, Eaton, Jensen, and Kortum (2003). "Plants and Productivity in International Trade." https://www.aeaweb.org/articles.php?doi=10.1257/000282803769206296
• Caliendo and Parro (2015). "Estimates of the Trade and Welfare Effects of NAFTA." Review of Economic Studies. http://restud.oxfordjournals.org/content/82/1/1.abstract
• Costinot, Donaldson, and Komunjer (2012). "What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas." Review of Economic Studies. http://restud.oxfordjournals.org/content/79/2/581
• Costinot (2009). "An Elementary Theory of Comparative Advantage." Econometrica. http://onlinelibrary.wiley.com/doi/10.3982/ECTA7636/abstract
• Leromain and Orefice (2014). "New Revealed Comparative Advantage Index: Dataset and Empirical Distribution." International Econoimcs. http://www.sciencedirect.com/science/article/pii/S2110701714000158
• Alvarez and Lucas (2007). "General Equilibrium Analysis of the Eaton–Kortum Model of International Trade." Journal of Monetary Economics. http://www.sciencedirect.com/science/article/pii/S0304393206002169

Welfare in Gravity Models
• Arkolakis, Costinot, Rodriguez-Clare (2012). "New Trade Models, Same Old Gains?" https://www.aeaweb.org/articles.php?doi=10.1257/aer.102.1.94
• Brooks and Pujolas (2014). "Nonlinear Gravity." http://www3.nd.edu/~wbrooks/NonlinearGravity.pdf
• Simonovska and Waugh (2014). "Trade Models, Trade Elasticities, and the Gains from Trade." http://inasimonovska.weebly.com/uploads/1/3/2/5/1325220/diff_elas_submit.pdf
• Allen, Arkolakis, and Takahashi (2014). "Universal Gravity." https://dl.dropbox.com/s/653kjtrxiol9ut3/AAT%20-%20Universal%20Gravity%20-%20paper.pdf
• Adao, Costinot, and Donaldson (2015). "Nonparametric Counterfactual Predictions in Neoclassical Models of International Trade." https://dl.dropboxusercontent.com/u/2734209/Adao_Costinot_Donaldson_paper.pdf
• Waugh (2010). "International Trade and Income Differences." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.100.5.2093
• Ossa (Forthcoming). "Why Trade Matters After All." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199615001178

Extensive Margin Empirics
• Kehoe and Ruhl (2013). "How Important is the New Goods Margin in International Trade?" Journal of Political Economy. http://www.jstor.org/stable/info/10.1086/670272
• Kehoe, Rossbach, and Ruhl (2015). "Using the New Products Margin to Predict the Industry-Level Impact of Trade Reform." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199615000586
• Feenstra (1994). "New Product Varieties and the Measurement of International Prices." American Economic Review. http://www.jstor.org/stable/2117976
• Broda and Weinstein (2006). "Globalization and the Gains from Variety." Quarterly Journal of Economics. http://qje.oxfordjournals.org/content/121/2/541.short

International Fragmentation
• Helpman, Melitz, and Yeaple (2004). "Export Versus FDI with Heterogeneous Firms." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/000282804322970814
• Yi (2003). "Can Vertical Specialization Explain the Growth of World Trade?" Journal of Political Economy. http://www.jstor.org/stable/10.1086/344805
• Yi (2010). "Can Multistage Production Explain the Home Bias in Trade?" American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.100.1.364
• Hummels, Ishii, and Yi (2001). "The Nature and Growth of Vertical Specialization in World Trade." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199600000933
• Ramondo, Rappoport, and Ruhl (2015). "Intrafirm Trade and Vertical Fragmentation in U.S. Multinational Corporations." http://www.nber.org/papers/w21472
• Antras, Fort, Tintelnot (2014). "The Margins of Global Sourcing: Theory and Evidence from U.S. Firms" http://scholar.harvard.edu/antras/publications/margins-global-sourcing-theory-and-evidence-us-firms

Distributional Effects of Trade
• Helpman, Itskhoki, Redding (2010). "Inequality and Unemployment in a Global Economy." Econometrica. http://onlinelibrary.wiley.com/doi/10.3982/ECTA8640/abstract
• Goldberg and Pavcnik (2007). "Distributional Effects of Globalization in Developing Countries." Journal of Economic Literature. http://www.jstor.org/stable/27646747
• Bustos (2011). "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.101.1.304
• Verhoogen (2008). "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector." Quarterly Journal of Economics. http://qje.oxfordjournals.org/content/123/2/489.short
• Amiti and Davis (2012). "Trade, Firms, and Wages: Theory and Evidence." Review of Economic Studies. http://restud.oxfordjournals.org/content/79/1/1.short

Location Models
• Vogel (2008). "Spatial Competition with Heterogeneous Firms." Journal of Political Economy. http://www.jstor.org/stable/10.1086/589891
• Osborne and Pitchik (1987). "Equilibrium in Hotelling's Model of Spatial Competition." Econometrica. http://www.jstor.org/stable/1911035
• Perloff and Salop (1985). "Equilibrium with Product Differentiation." Review of Economic Studies. http://restud.oxfordjournals.org/content/52/1/107.short

Multilateral Trade Agreements
• Bagwell and Staiger (1999). "An Economic Theory of GATT." American Economic Review. https://www.aeaweb.org/articles.php?doi=10.1257/aer.89.1.215
• Bagwell and Staiger (2010). "The WTO: Theory and Practice." http://www.dartmouth.edu/~rstaiger/annurev.economics.102308.pdf
• Ossa (2011). "A “New Trade” Theory of GATT/WTO Negotiations." Journal of Political Economy. http://www.jstor.org/stable/10.1086/659371
• Baier and Bergstrand (2004). "Economic Determinants of Free Trade Agreements." Journal of International Economics. http://www.sciencedirect.com/science/article/pii/S0022199603000795

Graduate Trade Courses with Good Lecture Notes
• Treb Allen: https://sites.google.com/site/treballen/teaching/econ-460
• Timothy Kehoe: http://www.econ.umn.edu/~tkehoe/classes/8401-14.html
• Arnaud Costinot and Dave Donaldson: http://ocw.mit.edu/courses/economics/14-581-international-economics-i-spring-2013/lecture-notes/
• Klaus Desmet: http://www.eco.uc3m.es/~desmet/phdtrade.html
• Kim Ruhl: http://www.kimjruhl.com/international-economics-fall-2/