Universität Passau

General information

Course number 37010
Semester WiSe 15/16
Current number of participants 81
Home institute Lehrstuhl für International Economics
Courses type Lecture in category Teaching
First date Tue., 20.10.2015 18:00 - 20:00 Uhr, Room: (HK 14b) SR 017
Solid knowledge in microeconomics is required.
Feenstra and Taylor: ‘International Trade’, Worth Publishers, 2nd edition. (The textbook ‘International Economics’ by the same authors has the same content.)
Dornbusch, R., S. Fischer and P. A. Samuelson (1977). “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods.” The American Economic Review, 67(5): 823-839.
Eaton, J., and S. Kortum (2002). “Technology, Geography, and Trade.” Econometrica, 70: 1741-1779.
Krugman, P. (1980). “Scale Economies, Product Differentiation, and the Pattern of Trade.” The American Economic Review, 70(5): 950-959.
Melitz, M. J. (2003). “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity.” Econometrica, 71: 1695-1725.
James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, vol. 93(1), pages 170-192, March.
ECTS points

Fields of study


This course will be held in English.

This course is primarily designed for students in the first term of the master program. It intends to bring students with different backgrounds (e.g. with and without training in International Economics) on the same level playing field. The course provides a broad overview over the main topics and models in international trade.
At the same time it intends to provide students with a good formal training in solving general equilibrium models. To this end, we will go into the algebraic details of the Ricardian model and the Krugman (1980) model. We will take sufficient time for this so that students with different backgrounds can get to the necessary level.
As for the other chapters, the focus will be on graphical analysis and intuition.
This course will be an excellent foundation for more advanced courses in the fields of International Trade and Globalization and also contains useful training for more advanced students.

Course outline:
1. Trade in the Global Economy
2. Trade and Technology: the Ricardian Model of Trade
3. Critical Assessment of the Ricardian Model of Trade
4. Modern Ricardian Trade Models: Dornbush/Fischer/Samuelson and Eaton/Kortum
5. Application: Trade in the Global Recession
6. Increasing Returns to Scale and Monopolistic Competition: Krugman (1980)
7. Firm Heterogeneity in International Trade
8. Empirics of International Trade: the Gravity Equation