Course Description

440.665 - International Trade (Open Economy Micro)

The first part of the course examines the causes of trade, the sources of the gains from trade, and the domestic and international distribution of those gains. In addition, it introduces the politico-economic causes of trade policy and addresses the theory and empirics of trade and growth. The second part examines in detail the instruments and consequences of trade policy, namely tariffs and quantitative restrictions, and their modern manifestation as anti-dumping and safeguard measures. The causes and consequences of trade policy, too, are linked to contemporary empirical evidence. Prerequisites: 440.601 Microeconomic Theory and Policy; 440.602 Macroeconomic Theory and Policy. Corequisite: 440.606 Econometrics.