Syllabus

Title
1741 Specialization: International Economics
Instructors
Univ.Prof. Dr. Harald Badinger, Dr. Birgit Elisabeth Meyer, MSc.
Type
PI
Weekly hours
3
Language of instruction
Englisch
Registration
09/14/20 to 09/22/20
Registration via LPIS
Notes to the course
Subject(s) Master Programs
Dates
Day Date Time Room
Monday 10/05/20 10:30 AM - 02:30 PM D4.0.144
Monday 10/12/20 10:30 AM - 02:30 PM Online-Einheit
Monday 10/19/20 10:30 AM - 02:30 PM D4.0.144
Monday 11/02/20 10:30 AM - 02:30 PM Online-Einheit
Monday 11/09/20 10:30 AM - 02:30 PM Online-Einheit
Monday 11/16/20 10:30 AM - 02:30 PM Online-Einheit
Monday 11/23/20 10:30 AM - 02:30 PM Online-Einheit
Monday 11/30/20 10:30 AM - 02:30 PM Online-Einheit
Monday 12/07/20 10:30 AM - 02:30 PM Online-Einheit
Monday 12/14/20 10:30 AM - 02:30 PM Online-Einheit
Monday 12/21/20 10:30 AM - 02:30 PM Online-Einheit
Monday 01/11/21 10:30 AM - 02:30 PM Online-Einheit
Monday 01/18/21 10:30 AM - 02:30 PM Online-Einheit
Monday 01/25/21 10:30 AM - 02:30 PM Online-Einheit
Procedure for the course when limited activity on campus

The mode we propose corresponds to the rotation mode insofar as we provide that the student groups are present alternately in the lecture hall. It specifies the rotation mode in more detail, since we provide for the students who are not in the lecture room that they take part in the course units remotely and synchronously (we are not asking them to learn the material covered in the unit in self-study).

Please create access to Microsoft Teams before the first lesson. Microsoft Teams is used flexibly, either at the lecturer's desk in the lecture room (or - if it is not allowed to enter the lecture rooms - in the home office). The screen of the lecturer's desk is shared between the students in the lecture room and those at home. For the students in the lecture room, the lecturer's PC projects onto the whiteboard; students at home need their own laptop (tablet), with which MS-Teams can share the screen. The sound is transmitted from the lecture room via a microphone to the students in the home office. (It is not intended / necessary to film the lecturer.)

The course takes place synchronously; it is not intended to record the units for asynchronous use.

If you are not subject to travel restrictions, attendance is mandatory (either in the lecture room or remotely via MS-Teams) on specified dates. Please expect that – most likely – you will have to be present in the lecture room every second meeting. Depending on the Corona situation, the meetings with physical attendance will be announced shortly before the course begins. Please note that this mode is very flexible and the presence in the lecture room can vary between 0% - 100%.

Only if you are subject to travel restrictions can you take part in the course in remote mode.

Contents

The first part focuses on models of international trade theory, dealing with the causes and consequences of trade and trade policy under perfect and imperfect competition. The second part, involving student presentations, deals with selected topics and contemporary issues (e.g., monetary systems, optimal currency areas, the Euro, financial crises, sovereign default).

Learning outcomes

After this class students should have a sound knowledge of the main theories of international trade and exchange rate determination, understand their empirical implications, and beable to apply them to real worldissues and questions of economic policy relevance. The main part of the course focuses on models of international trade theory, dealing with the causes and consequences of trade and trade policy under perfect and imperfect competition.

Attendance requirements

Attendance is compulsory. Students can be absent during 2 units, beyond that a confirmation of severe reasons for absence is requested.

Students cannot be deregistered from the course after archieving accomplishments in one of the course's components.

Teaching/learning method(s)

Lectures, Exercises, Tests, Student Presentations

Assessment

Mid-term test (units 1-4; 60 minutes; 35%), final test (units 6-9; 60 minutes; 35%), one presentation (10%) and two home assignments (each 10%). A positive joint mid-term and
final test (50% threshold of total points) and a positive presentation are required for passing the class. There will be one retake exam at the end of term covering all units for those who
failed.


Presentations: at the end of the units 2-5 and 7-9: students present articles from magazines (e.g., The Economist) of their choice (related to international economics), 5-10 min. For each
presentation there will be assigned discussants and an open discussion.

Readings
1 Author: Feenstra, R.
Title:

Advanced International Trade


Publisher: Princeton, Princeton University Press
Year: 2004
Type: Book
2 Author: Markusen, J.R., Melvin, J.R., Kaempfer, W.H., and Maskus. K.E.
Title:

International Trade: Theory and Evidence


Publisher: New York et al., MacGraw-Hill
Year: 1995
Type: Book
3 Author: MacDonald, R.
Title:

Exchange Rate Economics: Theory and Evidence


Publisher: London, Routledge
Year: 2007
Type: Book
4 Author: Dixit, A. and Norman, V.
Title:

Theory of International Trade: A Dual, General Equilibrium Approach


Publisher: Cambridge et al., Cambridge University Press
Year: 2002
Type: Book
5 Author: Helpman, E.
Title:

Understanding Global Trade


Publisher: Harvard, Harvard University Press
Year: 2011
Type: Book
6 Author: Helpman, E. and Krugman, P.
Title:

Market Structure and Foreign Trade


Publisher: Cambridge, MIT Press
Year: 1985
Type: Book
7 Author: Markusen, J.
Title:

Multinational Firms and the Theory of International Trade


Publisher: Cambridge Mass., MIT Press
Year: 2002
Type: Book
8 Author: Gandolfo, G.
Title:

International Finance and Open Economy Macroeconomics


Publisher: NewYork, Springer
Year: 2002
Type: Book
Prerequisites for participation and waiting lists

During the registration period, students will be placed on a first-come, first-serve basis. Once registration closes, more seats will be made available. Students from the waiting list will then be placed based on their cohort. Students from an older cohort will be placed before students from younger cohorts. If you are registered, but do not intend to take the class, we ask you to deregister during the registration period. There is no guarantee for a seat in this lecture!

Please show up in the first lecture to secure your place. (If you are not able to attend the first lecture, please notify us before hand.) Vacant spots might be offered to students on the waiting list (attending the first lecture).

Recommended previous knowledge and skills

Good knowledge of microeconomics, macroeconomics, mathematics; knowledge in econometrics is helpful.


Tipp: As introductory easy reading, we recommend chapter 1-6, Feenstra and Taylor (2017): International Economics, New York: Worth Publishers.

Availability of lecturer(s)
Unit details
Unit Date Contents
1

Introduction;

International Accounts, Balance of Payment

2

Exchange Rates; No-Arbitrage Conditions

3

Microeconomic Foundations I:

GE in Closed and Open Economies

4

Microeconomic Foundations II:

Gains from Trade

5

Productivity Differences and Trade:

Ricardo Model

6

Mid-Term Test

7

Endowment Differences and Trade

Heckscher-Ohlin Model, Specific Factor Model

8

Imperfect Competition and Trade

Monopolistic Competition, Heterogeneous Firms

9

Trade Policy, Tariffs, Quotas under Perfect and Imperfect Competition

10

Final Test

Last edited: 2020-10-04



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