Handbook

This course provides a theoretical analysis of international trade topics with references to empirical evidence. The course discusses a range of international trade models such as comparative advantage and monopolistic competition models, showing how technological differences, differences in resource endowments, and economies of scale determine trade patterns and income distribution. How these models perform in empirical tests will also be explored by discussing relevant empirical papers and using real data to analyse the models. The second part of the course will primarily focus on state-of-the-art heterogeneous firm models of trade and on developing empirical tools to analyse firm-level micro data and product-level trade data. The effects of various trade policy instruments on welfare will also be analysed.