Documente Academic
Documente Profesional
Documente Cultură
Treb Allen
January 3, 2018
Plan for the day
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
Outline
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
What is this course?
I International Trade (Econ 39).
What is this course?
I International Trade (Econ 39).
I Goals of the course:
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
1.4 All in 10 weeks!
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
1.4 All in 10 weeks!
2. Use these theories to:
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
1.4 All in 10 weeks!
2. Use these theories to:
2.1 Analyze consequences of international trade and
implications of globalization.
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
1.4 All in 10 weeks!
2. Use these theories to:
2.1 Analyze consequences of international trade and
implications of globalization.
2.2 Assess recent policy debates.
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
1.4 All in 10 weeks!
2. Use these theories to:
2.1 Analyze consequences of international trade and
implications of globalization.
2.2 Assess recent policy debates.
2.3 Bring the models to the data.
What is this course?
I International Trade (Econ 39).
I Goals of the course:
1. Introduce students to a number of theories of
international trade:
1.1 200 years of theory
1.2 3 Nobel Prizes (since 1970)
1.3 ≥1 Nobel Prize to come (probably).
1.4 All in 10 weeks!
2. Use these theories to:
2.1 Analyze consequences of international trade and
implications of globalization.
2.2 Assess recent policy debates.
2.3 Bring the models to the data.
I This will be fundamentally a theoretical course, but the
theories have real world applications!
Who am I?
?
What should you know?
I Prerequisites: Econ 1.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
I Production possibility sets.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
I Production possibility sets.
I Consumer surplus.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
I Production possibility sets.
I Consumer surplus.
I Etc.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
I Production possibility sets.
I Consumer surplus.
I Etc.
I Calculus, while helpful, is not essential.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
I Production possibility sets.
I Consumer surplus.
I Etc.
I Calculus, while helpful, is not essential.
I Lectures (and exams) will be a combination of diagrams
and math.
What should you know?
I Prerequisites: Econ 1.
I The course is meant for economics majors, so you should
be familiar with:
I Indifference curves.
I Production possibility sets.
I Consumer surplus.
I Etc.
I Calculus, while helpful, is not essential.
I Lectures (and exams) will be a combination of diagrams
and math.
I The goal is to gain an understanding of the mechanisms
at work rather than formally prove results.
Text book
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
Grading: Overview
I Assignments:
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
I Problem Sets (10%)
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
I Problem Sets (10%)
I Class Participation (10%)
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
I Problem Sets (10%)
I Class Participation (10%)
I Bad news:
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
I Problem Sets (10%)
I Class Participation (10%)
I Bad news:
I “The final letter grade will be based on your relative
performance in accordance with departmental
recommendations” (Median grade: B+)
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
I Problem Sets (10%)
I Class Participation (10%)
I Bad news:
I “The final letter grade will be based on your relative
performance in accordance with departmental
recommendations” (Median grade: B+)
I Good news:
Grading: Overview
I Assignments:
I Two in-class midterms (25% each)
I Final Exam (30%)
I Problem Sets (10%)
I Class Participation (10%)
I Bad news:
I “The final letter grade will be based on your relative
performance in accordance with departmental
recommendations” (Median grade: B+)
I Good news:
I The final exam is take home and open note.
Midterms
I Midterm #1: Thursday January 25.
Midterms
I Midterm #1: Thursday January 25.
I In class.
Midterms
I Midterm #1: Thursday January 25.
I In class.
I In class.
I Rules
Midterms
I Midterm #1: Thursday January 25.
I In class.
I Rules
I Closed book.
Midterms
I Midterm #1: Thursday January 25.
I In class.
I Rules
I Closed book.
I In class.
I Rules
I Closed book.
I Open book.
Final Exam
I Open book.
I [Answer questionnaire]
Class participation
I We will be playing daily games to encourage class
participation.
I [Answer questionnaire]
I [Answer questionnaire]
I [Answer questionnaire]
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
Class attendance
I No cell phones.
Technology
I No cell phones.
I Do not cheat.
Academic dishonesty
I Do not cheat.
I Do not cheat.
I Do not cheat.
I In the long run, much better to flunk the exam than get
caught cheating.
Academic dishonesty
I Do not cheat.
I In the long run, much better to flunk the exam than get
caught cheating.
I Do not cheat.
Outline
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
Part I: Comparative Advantage
I Week #2: Start with the basics: Ricardian model
Part I: Comparative Advantage
I Week #2: Start with the basics: Ricardian model
I 200 years old (1817).
Part I: Comparative Advantage
I Week #2: Start with the basics: Ricardian model
I 200 years old (1817).
I Simple model (2 countries, 2 goods, 1 factor of
production)...
Part I: Comparative Advantage
I Week #2: Start with the basics: Ricardian model
I 200 years old (1817).
I Simple model (2 countries, 2 goods, 1 factor of
production)...
I ...All the more striking for its important implications.
Part I: Comparative Advantage
I Week #2: Start with the basics: Ricardian model
I 200 years old (1817).
I Simple model (2 countries, 2 goods, 1 factor of
production)...
I ...All the more striking for its important implications.
I “Thousands of important and intelligent men have never
been able to grasp the doctrine for themselves or to
believe it after it was explained to them.”
Part I: Comparative Advantage
I Week #2: Start with the basics: Ricardian model
I 200 years old (1817).
I Simple model (2 countries, 2 goods, 1 factor of
production)...
I ...All the more striking for its important implications.
I “Thousands of important and intelligent men have never
been able to grasp the doctrine for themselves or to
believe it after it was explained to them.”
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
I I am teaching you so that I can repair the fence the dog
chewed.
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
I I am teaching you so that I can repair the fence the dog
chewed.
I [Class question]: What makes countries (or people) trade?
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
I I am teaching you so that I can repair the fence the dog
chewed.
I [Class question]: What makes countries (or people) trade?
I Typical theoretical answers:
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
I I am teaching you so that I can repair the fence the dog
chewed.
I [Class question]: What makes countries (or people) trade?
I Typical theoretical answers:
I Different skill sets (with countries, we call them
“technologies”).
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
I I am teaching you so that I can repair the fence the dog
chewed.
I [Class question]: What makes countries (or people) trade?
I Typical theoretical answers:
I Different skill sets (with countries, we call them
“technologies”).
I Different endowments.
Why do people trade?
I [Class question]: What are some ways which you have
traded today?
I Possible answers:
I Trading your (or your parent’s) current or future
earnings for my teaching.
I I am teaching you so that I can repair the fence the dog
chewed.
I [Class question]: What makes countries (or people) trade?
I Typical theoretical answers:
I Different skill sets (with countries, we call them
“technologies”).
I Different endowments.
I Produce different things.
Why study trade?
.5
.4
Exports / GDP
.3
.2
.1
Importance of trade over time
6 7 9
Log GDP per capita
5 8
Economic growth over time
Syllabus
Introduction
Grading
Additional policies
Overview of the class
Preliminaries
Why study trade?
An introduction to modeling
An introduction to economic models
I Trade models are general equilibrium models.
An introduction to economic models
I Trade models are general equilibrium models.
I An equilibrium concept.
Exogenous model parameters
I These are the parts of the model that you are interested
in watching change when you change the exogenous
model parameters.
An equilibrium concept