ECON 442: Quantitative Trade Models

Course Information

Time: 11:05AM-12:20PM Sun, Tues
Location: LA12

Office Hours: 1:45-2:45 PM Tues, 0D25

Changelog (Updated: Jan 22, 2017)

Lecture Notes & Slides

Solving Models Computationally
RStudio: Download and install this (requires R)
R-Fiddle: Use R online when you can't install RStudio
Notes on Solving Systems of Equations with R (Newton's Method Examples, Slides for In-Class Exercise)
General R Programming Notes
R Exercises and solutions (Rfiddle code for Q1, Q2, Q3)

Basic Ricardian Models
Review of Graphical Ricardian Model
Formalization of Ricardian Model
Solving the Ricardian Model Algebraically
Partial Equilibrium versus General Equilibrium Models
Slides for Computing Autarky Equilibrium in R (Template R Code for Autarky; R Code for Autarky)
Trade Costs and Many-Good Ricardian Models (Template R Code for 2X2 Case; R Code for 2X2 Case)
Derivations for Many-Good Ricardian Models

Trade Policy
Instruments of Trade Policy
Winners and Losers from Trade (Selection of Slides from Autor, Dorn, Hanson (2013) and Kondo (2015))
Trade and Environment
Links to China Syndrome Paper by Autor, Dorn, and Hanson (2013) and Trade Adjustment Assistance paper by Kondo (2017)
Evaluating Model Predictions for NAFTA
Kehoe&Kehoe (1994) Primer on AGE Models

Gravity Models
Gravity Regressions
Gravity Handbook by Head and Mayer (2013)
Multidimensional Ricardian Models (Eaton & Kortum (2002))
Asymmetric Trade Costs

Extra Material: If Have Time
Heckscher-Ohlin Model of Trade

Problem Set 2

Problem Set 2
Gravity Dataset for Problem 1
Stata Instructions for Problem 1 (Notes on Gravity Counterfactuals )
R Model Description for Problem 2 (Template R Code for Problem 2)
Instructions for Completing Least Traded Exercise in Excel
Data for Question 3 (Example Question for Question 3)
Just for fun: Stata code for calculating LTP margin, Stata LTP data, R-Code Snippet for LTP Exercise
Misc Tips for Problem Set 2
Merging Data: Stata code for Adding Tariffs to Gravity Dataset, Example of Merging with Directories (Merging Tips + More Tips)

Problem Set 1

Problem Set 1 (Tips for Problem Set 1)
R Code for Problem 1
Template R Code for Problem 2
Symmetric Solution for Problem 2
Krugman Textbook on Transfers and Terms of Trade Effects

Midterm Prep

Solutions to Practice Test (defining an equilibrium)
R Example Questions
Example Equilibrium Definition from Class


Worksheet 1 Handout
Worksheet 1 Solution
Worksheet 1 Discussion

Worksheet 2: Trade in Value Added and Welfare (solutions; Additional OECD Website Description)

Data Sources