Quantitative Trade Models

3 Credits · Level: Graduate, Undergraduate

This course will cover theoretical and quantitative aspects of international trade. The goal of the semester will be to learn how to solve modern trade models computationally and calibrate them using data in order to perform counterfactuals. We will start by reviewing Ricardian and (briefly) Heckscher-Ohlin theories of trade before moving on to more modern models featuring monopolistic competition and firm-level heterogeneity. We will review the gravity literature, familiarize ourselves with datasources for international trade flows, and discuss international trade agreements and optimal trade policy.