In the Name of Allah

Sharif University of Technology

Department of Economics

Advanced Macroeconomics (Trade)- Reading List

Those with * are mandatory. Those with & are mandatory for their abstracts, introductions and conclusions. The rest are recommended readings.

  1. Introduction, Gravity Equation
  2. * [EK]: Chapters 1,2
  3. * "Inequality and Prices: Does China Benefit the Poor in America"
  4. Broda, Christian, and David E. Weinstein. "Globalization and the Gains from Variety." The Quarterly Journal of Economics 121, no. 2 (2006)
  5. Comparative Advantage (Ricardian, DFS & EK Models)
  6. * [EK]: Chapter 3.1.3
  7. * Dornbusch, R., S. Fischer, et al. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods." American Economic Review 67, no. 5 (1977): 823–39.
  8. [DN] pp. 65–79, and 94–6.
  9. & [F]: Chapters 1,2
  10. Eaton, J., and S. Kortum. "Technology, Geography and Trade." Econometrica 70, no. 5 (2002): 1741–79.
  11. Dornbusch, R., Stanley Fischer, and Paul A. Samuelson. "Heckscher-Ohlin Trade Theory with a Continuum of Goods." The Quarterly Journal of Economics 95, no. 2 (1980): 203–24.
  12. Eaton, J., and S. Kortum. "Putting Ricardo to Work." Journal of Economic Perspectives 26, no. 2 (2012): 65–90.
  13. Costinot, A., and D. Donaldson. "Ricardo's Theory of Comparative Advantage: Old Idea, New Evidence." American Economic Review Papers and Proceedings 102, no. 3 (2012): 453–58.
  14. Endowments Comparative Advantages (Heckscher Ohlin)
  15. * [DN] pp. 38–43, 86–7, and 102–6.
  16. * [F] pp. 31–41, 64–71, and 83–93.
  17. Morrow, Peter M. "Ricardian-Heckscher-Ohlin Comparative Advantage: Theory and Evidence." Journal of International Economics 82, no. 2 (2010): 137–51.
  18. Romalis, John. "Factor Proportions and the Structure of Commodity Trade." American Economic Review 94, no. 1 (2004): 67–97.
  19. Schott, Peter K. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production." American Economic Review 93, no. 3 (2003): 686–708.
  20. Harrigan, James. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model." American Economic Review 87, no. 4 (1997): 475–94. (NBER Working Paper no. 5722)
  21. Davis, and Weinstein. "The Factor Content of Trade." The Handbook of International Trade: Economic and Legal Analyses of Trade Policy and Institutions. Vol. 2. Edited by J. Choi and J. Harrigan. Wiley-Blackwell, 2005. ISBN: 9781405120623.
  22. Lorenzo Caliendo: On the Dynamics of the Heckscher-Ohlin Theory
  23. Tastes (Armington Model)
  24. * [EK]: Chapter 3.1.1
  25. Scale Economy (Krugman Model)
  26. * Krugman 1980: Scale Economies, Product Differentiation, and the Pattern of Trade
  27. * [EK]: Chapter 3.1.2
  28. & [K] Chapters 1, and 3.
  29. Firm Heterogeneity
  30. * Ahmadi, Saber, 2015 Master Thesis (Literature Review and Appendices)
  31. * Jabbari, Masoud, 2016,, Master Thesis(Literature Review and Appendices)
  32. * Heidari, Mostafa, 2014, Master Thesis
  33. * Melitz, M. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity." Econometrica 71, no. 6 (2003): 1695–725.
  34. * Chaney, T."Distorted Gravity: Heterogeneous Firms, Market Structure and the Geography of International Trade." (PDF) American Economic Review (2006).
  35. Bernard, Jensen, et al. "Firms in International Trade." Journal of Economic Perspectives 21, no. 3 (2007): 105–30.
  36. * [JK] Tybout. "Plant- and Firm-Level Evidence on "New" Trade Theories."
  37. Melitz, M., and S. Redding. "Heterogeneous Firms and Trade." NBER Working Paper No. 18652, 2012. (Handbook (2013))
  38. Pavcnik, Nina. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants." Review of Economic Studies 69, no. 1 (2002): 245–76.
  39. Bernard, Eaton, et. al. "Plants and Productivity in International Trade." American Economic Review 93, no. 4 (2003): 1268–90.
  40. Roberts, and Tybout. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs." American Economic Review 87, no. 4 (1997): 545–64.
  41. Redding Bernard jensonSchot 2007 Firms in International Trade
  42. Redding Bernard jensonSchot 2011 The Empirics of Firm Heterogeneity and International Trade
  43. Rodriguez Demidova 2011 The Simple Analytics of the Melitz Model in a Small Economy
  44. Bernard, Andrew B., and J. Bradford Jensen. "Exceptional Exporter Performance: Cause, Effect, or Both?" Journal of International Economics 47, no. 1 (1999): 1–25.
  45. Melitz, Marc, and GianmarcoOttaviano. "Market Size, Trade and Productivity." Review of Economic Studies 75, no. 1 (2008): 295–316.
  46. [JK] Tybout. "Plant- and Firm-Level Evidence on "New" Trade Theories."
  47. Tybout 2008 Firm-level Productivity Studies illusion and a solution
  48. Tybout QJE 1998 IS LEARNING BY EXPORTING IMPORTANT
  49. [EK]: Chapters 4,5,6
  50. Gains From Trade
  51. * Arkolakis 2010 New Trade Models, Same Old Gains
  52. Caliendo 2009 Estimates of the Trade and Welfare Effects of NAFTA
  53. Caliendo Feenstra 2015 TARIFF REDUCTIONS, ENTRY, AND WELFARE
  54. Feenstra 2006 NEW EVIDENCE ON THE GAINS FROM TRADE
  55. Ossa 2015 Why Trade Matters After All
  56. Alvarez, F., and R. Lucas. "General Equilibrium Analysis of the Eaton-Kortum Model of International Trade." Journal of Monetary Economics 54, no. 6 (2007): 1726–68.
  57. Growth and Trade
  58. * [EK]: Chapter 3.2
  59. Frankel, J., and D. Romer. "Does Trade Cause Growth?" American Economic Review 89, no. 3 (1999): 379–99.
  60. Atkeson Burstein 2011 Aggregate Implications of Innovation Policy
  61. Kehoe Ruhl 2010 Why Have Economic Reforms in Mexico Not Generated Growth
  62. KletteKortum 2004 Innovating Firms and Aggregate Innovation
  63. Lucas 2008_Ideas and Growth
  64. Romalis Market Access, Openness and Growth
  65. Sampson QJE 2016 Dynamic Selection An Idea Flows Theory of Entry, Trade, and Growth
  66. Wage Premium, Inequality and Trade
  67. * Goldberg & Pavnick 2007: Distributional Effects of Globalization in Developing Countries
  68. * Acemoglu, D., and D. Autor. "Skills, Tasks and Technologies: Implications for Employment and Earnings." Handbook of Labor Economics 4 (2011): 1043–171
  69. Harrigan 2011 SKILL BIASED HETEROGENEOUS FIRMS, TRADE LIBERALIZATION, AND
  70. Verhoogen 2008 TRADE, QUALITY UPGRADING, AND WAGE INEQUALITY
  71. Felbermayr Globalization and Labor Market Outcomes
  72. Acemoglu 2002 Directed Technical Change
  73. Acemoglu 2003 patterns-of-skill-premia
  74. Burstein Vogel 2010 Globalization, Technology, and the Skill Premium A Quantitative Analysis
  75. Unemployment and Trade
  76. * Pilvar, Hanifa, 1395, Master Thesis
  77. Helpman, E., O. Itskhoki, et al. "Inequality and Unemployment in a Global Economy." Econometrica 78, no. 4 (2010): 1239–83.
  78. Cosar 2010 Adjusting to Trade Liberalization Reallocation and Labor Market Policies
  79. Dix CarneiroEconometrica 2014 Trade Liberalization and Labor Market Dynamics
  80. ItskhokiHelpman Redding 2011 Trade and Labor Market Outcomes
  81. Trade and unemployment: what do the data say
  82. Wallack 2004 Trade liberalization and intersectoral labor movements
  83. Trade policy & Political Economy of Trade
  84. * [HKb] Chapter 2.
  85. * G., Grossman, and E. Helpman. "Protection for Sale." American Economic Review 84, no. 4 (1994): 833–50.
  86. [GR] Rodrik, D. "The Political Economy of Trade Policy."
  87. [BS] Chapter 2.
  88. Bagwell, Kyle, and R. W. Staiger. "An Economic Theory of GATT." American Economic Review 89, no. 1 (1999): 215–48.
  89. & Ossa 2014 AER
  90. [JK] Gawande, and Krishna. "The Political Economy of Trade Policy: Empirical Approaches."
  91. New Trade Models, Same Old Optimal Policies
  92. Broda et al, Optimal Tariff: the Evidence
  93. Trade policy under firm-level heterogeneity in a small economy

Textbooks:

  1. [EK]: Eaton & Kortum, Technology in the Global Economy: A Framework for Quantitative Analysis
  2. [JK]: Jones, Ron, and Peter Kenen. Handbook of International Economics. Vol. 1. North Holland, 1998. ISBN: 9780444704221
  3. [GR]: Grossman, Gene, and Ken Rogoff. Handbook of International Economics. Vol. 3. North Holland, 1997. ISBN: 9780444828644.
  4. [BS]: Bagwell, Kyle, and Robert W. Staiger. The Economics of the World Trading System. MIT Press, 2004. ISBN: 9780262524346
  5. [HIE]: Handbook of International Economics
  6. [DN]: Dixit, Avinash, and Victor Norman. Theory of International Trade. Cambridge University Press, 1980. ISBN: 9780521299695.
  7. [F]: Feenstra, Robert C. Advanced International Trade: Theory and Evidence. Princeton University Press, 2003. ISBN: 9780691114101.
  8. [HK1]: Helpman, Elhanan, and Paul Krugman.Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy. MIT Press, 1987. ISBN: 9780262580878
  9. [HK2]: Helpman, Elhanan, and Paul Krugman.Trade Policy and Market Structure. MIT Press, 1989. ISBN: 9780262580984
  10. [KOM]: Krugman, Paul, Maurice Obstfeld, and Marc Melitz.International Economics: Theory and Policy. 9th ed. Addison-Wesley, 2011. ISBN: 9780132146654
  11. [K] P. Krugman, Rethinking International Trade, MIT Press, 1990

More references: