Scheda insegnamento

Anno Accademico 2022/2023

Conoscenze e abilità da conseguire

The aim of the class is to enable students to go through advanced topics in international economic integration. Mainstream recent theoretical and empirical contributions on trade will be presented. Specific emphasis will be devoted to trade policies, income distribution and welfare effects of trade restrictions, trade and environment, geographic agglomeration. The last section of the lectures will dwell on social choices and/or political economy of trade.


Prerequisites: Knowledge of International Economics (to the equivalent of 25751), and of Data Analysis (to the equivalent of 77953) are strongly recommended. Students are expected to have previous knowledge of some software for statistical computing, such as Stata or R.

A) Space, trade and agglomeration

Introduction to some stylized facts [Slides]

The Dixit-Stiglitz model of monopolistic competition [Slides]

Trade, agglomeration and market size [Slides]

The Core-Periphery model (Krugman) [Slides]

The gravity equations of trade. Trade flows in a generalized CES Armington model. The fixed effect gravity estimator. The ratio gravity estimator. [Slides]

Economic geography and international inequality (Redding-Venables) [Slides]

The costs of remoteness: Evidence from German division and reunification (Redding-Sturm) [Slides]

B) Trade models under production heterogeneity with an application to Purchasing Power Parity

Trade and gravity with production heterogeneity. Perfect competition (Eaton-Kortum). [Slides]

Purchasing Power Parity (PPP) and international relative prices. Definition of PPP. A long-run exchange rate model based on PPP.

Understanding failures of PPP in reality. Pricing-to-market, trade costs, and international relative prices (Atkeson-Burnstein).

C) Economic and political consequences of trade shocks

The China trade shock in the USElectoral consequences of rising trade exposure (Autor et al). [Slides]



Allen T., Arkolakis C. (2016) Elements of Advanced International Trade, Yale University. Online manuscript

Combes P.-P., Mayer T., Thisse J.-F. (2008) Economic Geography: The Integration of Regions and Nations, Princeton University Press. ISBN: 978-0-691-13942-5. Three copies of this textbook are available at the Central Library Roberto Ruffilli (two copies are available for borrowing, the other is not).

Another useful textbook is: Fujita M., Krugman P., Venables A.J. (1999) The spatial economy: cities, regions and international trade, MIT Press. ISBN: 978-0-262-56147-1. A copy of this textbook is available at the Central Library Roberto Ruffilli.

Compulsory papers readings

Atkeson A., Burstein A. (2008) Pricing-to-Market, Trade Costs, and International Relative Prices. American Economic Review, 98, 1998-2031.

Autor D., Dorn D., Hanson G., Majlesi K. (2020) Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure. American Economic Review, 110, 3139-3183.

Eaton J., Kortum S. (2002) Technology, Geography, and Trade, Econometrica, 70, 1741-1779.

Redding S., Sturm D. (2008) The Costs of Remoteness: Evidence from German Division and Reunification, American Economic Review, 98, 1766-1797.

Redding S., Venables A.J. (2004) Economic Geography and International Inequality, Journal of International Economics, 62, 53-82.

Supplementary readings

Economic Sciences Nobel Prize Committee (2008) Trade and Geography - Economies of Scale, Differentiated Products and Transport Costs, Royal Swedish Academy of Sciences. Online scientific background.

Metodi didattici

On-campus teaching with full set of video prerecorded lectures made available on the Microsoft Stream platform. Please visit the dedicated website.

Modalità di verifica e valutazione dell'apprendimento

The exam consists of two sections, A (theory) and B (empirics). Students need to answer to two out of three questions from section A, and to the question in section B. Previous exam questions are available for students at this link.

In case of a positive final mark the student has the right to renege on the mark only once.

Strumenti a supporto della didattica

Lecture Notes are created with Microsoft OneNote and are immediately shared with students.

Video recorded lectures are available on the Microsoft Stream platform. Please visit the dedicated website.

Orario di ricevimento

Consulta il sito web di Gaetano Alfredo Minerva