ECON 442: Quantitative Trade Models

Course Information

Time: 10:00–11:15am Sun, Tues
Location: 0A19 (eventually LA12)

Office: 0D25

Lecture Notes & Slides

Setting Up and Using R
This class will use DataCamp to support learning R (DataCamp Blurb)
RStudio: Download and install this (requires R)

Basics of R Programming
Understanding R Code Notes
Notes on Solving Systems of Equations with R (Newton's Method Examples, Solutions for Exercises)
Slides for In-Class Exercise

Basic Ricardian Models
Review of Graphical Ricardian Model
Formalization of Ricardian Model
Solving the Free Trade Equilibrium in Ricardian Model
Slides for Computing Autarky Equilibrium in R (Template R Code for Autarky; R Code for Autarky)
Free Trade Equilibrium Equations (Template R Code for 2X2 Case, Solution)

Trade Policy
Transfers and Default (Krugman on Transfers and ToT)
Partial Equilibrium versus General Equilibrium Models
Trade Costs and Many-Good Ricardian Models
Armington Trade Models

Data and Models
Gravity Regressions
(GravityData) Calibrating the Armington Model (GravityData2002; CalibrationData2002)
Winners and Losers from Trade
MultiDimensional Ricardian Models (Eaton-Kortum) (RScript for Frechet Distributions)

Data Sources