Ec 876 Syl 12
Ec 876 Syl 12
Ec 876 Syl 12
The course has three objectives. One objective is to cover aspects of international
trade policy, a set of topics that are important in international trade theory
literacy. This objective comprises the first three sections of the reading list.
Other topics covered are important too, but perhaps not so widely agreed on as
important.
The third and most important objective of this course is to begin to learn how to
do original research. We will approach reading and expositing articles and
chapters looking to see why the topic was significant, how successful was the
modeling, how convincing or intuitive were the results, where the next research
line might go. A theme of much of the course is thinking of international
economics as an outcome of the interaction of economic and political processes.
Students will be expected to work through the assigned reading before the class
period in which it is discussed. The * readings are required.
The course grade for the first half will be based on a midterm exam,and a paper.
The paper will be a critical review of a paper selected from the trade policy
reading list; with a class presentation is to be based on that critical review.
Optimally it will contain original work either extending the model or building
something entirely new. More detailed instructions will be given in class. The
grade for the second half of the class will be based on two assignments. The first
will be an expanded critical review paper, where you will be asked to discuss at
least two different approaches to financial crises. The second assignment will be
a written paper and a class presentation of an original research idea.
Grading:
Midterm exam: 25%
Each paper / assignment 25%
READING LIST
Multilateral Frameworks:
*Bagwell, K. and R. Staiger, The Economics of the World Trading Systerm, ch. 2, chs.
4-6.
K. Bagwell and R. Staiger, “An Economic Theory of GATT,” American Economic
Review 89:1, March 1999, pp. 215-48.
Enforcement
*R. Staiger and K. Bagwell, “A Theory of Managed Trade”, American Economic
Review 80:4, September 1990, pp. 779-795.
R. Staiger and G. Tabellini, “Do GATT Rules Help Governments Make Domestic
Commitments?” Economics and Politics 11:2, July 1999, pp. 109-144.
G. Maggi, “The Role of Multilateral Institutions in International Trade
Cooperation,” American Economic Review 89:1, March 1999, pp. 190-214.
H. Horn, G. Maggi and R. Staiger, (2010), “Trade Agreements as Endogenously
Incomplete Contracts”, American Economic Review,100, 394-419.
G. Maggi and R. Staiger, (2011), “The Role of Dispute Settlement Procedures in
International Trade Agreements”, Quarterly Journal of Economics, 126, 475-
515.
Allen, F., Carletti, E., & Marquez, R. (2011). Credit market competition and
capital regulation. Review of Financial Studies, 24(4), 983-1018.
Almunia, M., Benetrix, A., Eichengreen, B., O'Rourke, K. H., & Rua, G. (2010).
From great depression to great credit crisis: Similarities, differences and
lessons. Economic Policy, (62), 219-52, 259-65.
Barkbu, B., Eichengreen, B., & Mody, A. (2011). International financial crises and
the multilateral response: What the historical record shows. National Bureau
of Economic Research, Inc, NBER Working Papers). NBER Working Paper
Series, w17361 ([URL:http://www.nber.org/papers/w17361.pdf] URL)
Caballero, R. J., Hoshi, T., & Kashyap, A. K. (2008). Zombie lending and
depressed restructuring in japan. American Economic Review, 98(5), 1943-
1977.
Caballero, R. J., & Panageas, S. (2008). Hedging sudden stops and precautionary
contractions. Journal of Development Economics, 85(1-2), 28-57.
Caballero, R. J., & Simsek, A. (2009). Fire sales in a model of complexity. National
Bureau of Economic Research, Inc, NBER Working Papers). NBER Working
Paper Series, w15479 ([URL:http://www.nber.org/papers/w15479.pdf]
URL)
Caballero, R. J. (2010). The "other" imbalance and the financial crisis. National
Bureau of Economic Research, Inc, NBER Working Papers). NBER Working
Paper Series, w15636 ([URL:http://www.nber.org/papers/w15636.pdf]
URL)
Caballero, R. J. (2010). Sudden financial arrest. IMF Economic Review, 58(1), 6-36.
Eichengreen, B., & Dincer, N. (2011). Who should supervise? the structure of
bank supervision and the performance of the financial system. National
Bureau of Economic Research, Inc, NBER Working Papers). NBER Working
Paper Series, w17401 ([URL:http://www.nber.org/papers/w17401.pdf]
URL)
Geanakoplos, J., & Pedersen, L. H. (2011). Monitoring leverage. Cowles
Foundation for Research in Economics, Yale University, Cowles Foundation
Discussion Papers). , 18.
([URL:http://cowles.econ.yale.edu/P/cd/d18a/d1838.pdf] URL)
Geanakoplos, J. (2010). Solving the present crisis and managing the leverage
cycle. Federal Reserve Bank of New York Economic Policy Review, 16(1),
101-131.
Gorton, G., & Metrick, A. (2010). Regulating the shadow banking system.
Brookings Papers on Economic Activity, , 261-297.
Hanson, S. G., Kashyap, A. K., & Stein, J. C. (2011). A macroprudential approach
to financial regulation. Journal of Economic Perspectives, 25(1), 3-28.
Obstfeld, M., Shambaugh, J. C., & Taylor, A. M. (2010). Financial stability, the
trilemma, and international reserves. American Economic Journal:
Macroeconomics, 2(2), 57-94.
Obstfeld, M. (2010). The immoderate world economy. Journal of International
Money and Finance, 29(4), 603-614.
Obstfeld, M., & National Bureau of, E. R. (2011). International liquidity the fiscal
dimension. Cambridge, Mass.: National Bureau of Economic Research.
Rose, A. K., & Spiegel, M. M. (2011). Cross-country causes and consequences of
the crisis: An update. European Economic Review, 55(3), 309-324.
Rose, A. K., & Spiegel, M. M. (2011). Dollar illiquidity and central bank swap
arrangements during the global financial crisis. National Bureau of
Economic Research, Inc, NBER Working Papers). NBER Working Paper
Series, w17359 ([URL:http://www.nber.org/papers/w17359.pdf] URL)
Shleifer, A., & Vishny, R. (2011). Fire sales in finance and macroeconomics.
Journal of Economic Perspectives, 25(1), 29-48.
Stein, J. C. (2011). Monetary policy as financial-stability regulation. National
Bureau of Economic Research, Inc, NBER Working Papers). NBER Working
Paper Series, w16883 ([URL:http://www.nber.org/papers/w16883.pdf]
URL)