Understanding Trade Policy

Professor: Douglas Nelson

Office: Tilton 108 (Murphy Institute), Phone: 865-5317

Office Hours: Tuesday and Thursday, 3:30-5:30

Phone: 865-5317

email: dnelson@tulane.edu

The world trading system is in crisis. These days, it can seem as if the four horsemen of the apocalypse have been loosed on the earth: war (in Europe and potentially in Asia, with nuclear powers); famine (environmental collapse); plague (pandemic disease); and death. All have been associated with international trade. In this course we seek to understand just those associations and the national and international attempts to respond to them. In the first part of the course, we develop a simple, robust model of the national economy that will provide a framework of the rest of the course. We will then open that economy to international trade and develop a framework for the analysis of policy. After a brief review of the core national and international institutions involved in the management of trade, the remainder of the course will focus on the way national security and environmental concerns affect and are affected by international trade.

Prerequisites: This is a 4000-level economics course, so I expect that you have had at least intermediate microeconomics. In the first half of the course, we will be using geometry extensively and a bit of high school algebra. The geometry we will use is not fancy, but the geometric argument can be a bit involved. In lecture, I will also occasionally use a bit of basic, differential calculus. I will not expect you to use calculus on exams, but I will expect you to try to follow the material. Thus, I expect a bit of sophistication in your evaluation of such argument. The payoff from this effort is that you will develop a very powerful framework for evaluating policy (in particular, in this course, trade policy as it relates to national security and environmental policy)

Evaluation: Your performance in this course will be evaluated on the basis of 5 homework assignments (worth 20 points), 2 examinations (worth 100 points each); and 2 short papers (worth 50 points each). To receive an A, you must earn at least 90 percent of the points available. To pass the course you must earn at least 60 percent of the points available. Grades between these limits will be determined on the basis of your performance relative to that of the class as a whole.

Readings for the course will be drawn from:

A (large) number of articles online and on Canvas.

Homework. The syllabus that follows this course description lists the reading that you are expected to have done for the lecture on the listed date. Homework assignments will be distributed in class the week before it is due. Homework is due on or before the first class in which that material is discussed. Late homework will not be accepted, and will receive a score of 0. The percent of total available homework credit will be taken as your homework score. For example, if you answer 90% of the homework questions correctly, your homework score is 90.

Examination format. Both exams will have the following format: about 40% short answer questions and about 60% essays. In general there will be more questions of both types than must be answered, so you will have some choice (though there is often one mandatory question which everyone must answer). Exams must be written in blue books, which you must supply.

Policy on examinations. The midterm exam will be given on 26 April (in class). Unless you have a standard university accepted excuse for missing the exam (e.g. health with standard university form), you must take the exam at its scheduled time. The final examination will only be given on the scheduled date:13 December, 8:00-11:00 am (there will be no exceptions so do not make travel plans that conflict with this).

Additional Exam and Homework Information: Exams will be returned in class, homework must be picked up at my office. Exam answer keys will be available from my webpage.

Short papers. There will be two short papers, one due in each of the substantive (i.e. environment and national security) parts of the course. The papers should be 5-7 pages long and should discuss the relevant reading for that section and evaluate some central aspect of its discussion. Note: “evaluate” means that you must identify some central aspect of the books analysis, explain why you think this aspect is interesting/important, and present your evaluation of the author’s position (note that you must make an argument, simply asserting your agreement or disagreement will not be sufficient for a passing grade). The reaction papers are due in class on the first date scheduled for discussion of the readings (24 October and 7 December), late papers will not be accepted and will earn a grade of zero.

Some Good Advice (At No Extra Charge): First, keep current with the reading. Not only will that maximize your homework grades, but it will allow you to make the most of lecture. Second, do the homework. This is virtually free credit, and it will improve your performance on exams as well. Third, ask questions in class. If you read something and it is unclear and then it is unclear during lecture, ask about it. Your classmates will probably thank you. This is one of the few ways, before an exam, that I can gauge how the material is getting across. Fourth, come see me during my office hours. This is another opportunity to get clarification and help on material about which you are unclear. But don’t wait until the last minute, by then it is usually too late.

Some Good Advice (At No Extra Charge):

First, keep current with the reading. Not only will that maximize your homework grades, but it will allow you to make the most of lecture.

Second, do the homework. This is virtually free credit, and it will improve your performance on exams as well.

Third, ask questions in class. If you read something and it is unclear and then it is unclear during lecture, ask about it. Your classmates will probably thank you. This is one of the few ways, before an exam, that I can gauge how the material is getting across.

Fourth, come see me during my office hours. This is another opportunity to get clarification and help on material about which you are unclear. But don’t wait until the last minute, by then it is usually too late.

SACS-Related Material

I am aware that Tulane students are able to read a standard university syllabus and determine the content of the course and its relation to the major and the individual student’s course of study. However, the administration of Tulane University, along with the Southern Association of Colleges and Schools (SACS–which “accredits” primary and secondary schools as well as all varieties of 2 and 4 year undergraduate programs [with very little in the way of adjustment in rubrics, metrics, etc.]), has determined that you require additional information. I collect this material in a separate section so that you can refer to it, or discard it, as you consider appropriate.

STUDENT OBJECTIVES/OUTCOMES: By the end of the course, the student should be able to think, speak, and write fluently and competently about the ideas and issues covered in the course (as reflected in the course description and the syllabus). The student should have a solid understanding of the political and economic significance of ideas and concepts in the analysis of trade and trade policy, with particular reference to environmental and national security policy. The student should be able to formulate critical views concerning these issues and respond fluently and competently to questions concerning these views.

1. Students analyze basic general equilibrium theory in the evaluation of significant policy objectives.

2. Students will analyze, interpret, and discuss core issues of trade policy.

3. Students will analyze, interpret and discuss the links between trade and policy objectives like national security and the environment.

4. Students will appraise, evaluate, and appreciate the values and consequences of these issues.

ADA/Accessibility Statement

Tulane University is committed to offering classes that are accessible. If you anticipate or encounter disability-related barriers in a course, please contact the Goldman Center for Student Accessibility to establish reasonable accommodations. If approved by Goldman, make arrangements with me as soon as possible to discuss your accommodations so that they may be implemented in a timely fashion. I will never ask for medical documentation from you to support potential accommodation needs. Goldman Center contact information: Email: goldman@tulane.edu; Phone (504) 862-8433; Website: accessibility.tulane.edu

Code of Academic Conduct

The Code of Academic Conduct applies to all undergraduate students, full-time and part-time, in Tulane University. Tulane University expects and requires behavior compatible with its high standards of scholarship. By accepting admission to the university, a student accepts its regulations (i.e., Code of Academic Conduct and Code of Student Conduct) and acknowledges the right of the university to take disciplinary action, including suspension or expulsion, for conduct judged unsatisfactory or disruptive.

Unless I indicate differently on instructions, all assignments and exams are to be completed individually and without any study aid, including textbooks, class notes, or online sites. If you have any question about whether a resource is acceptable, you must ask the instructor rather than assume.

Welcoming Community Statement

Tulane’s core value of “welcoming community” means that we cultivate classrooms and other learning spaces where students, faculty, and staff across the broadest array of backgrounds, experiences, and perspectives can thrive and reach their full potential. In this classroom, we encourage and empower you to participate in building this supportive environment for every member of our community, which requires practicing humility when engaging across differences and acknowledging the perspectives of people who may have divergent or similar viewpoints. Please read the expectations set forth in the Tulane University Student Code of Conduct & Antidiscrimination Statement.

Emergency Preparedness & Response:(REQUIRED by University Policy as stated here)

EMERGENCY NOTIFICATIONS: TU ALERT	SEVERE WEATHER
In the event of a campus emergency, Tulane University will notify students, faculty, and staff by email, text, and/or phone call. You were automatically enrolled in this system when you enrolled at the university. Check your contact information annually in Gibson Online to confirm its accuracy.	§ Follow all TU Alerts and outdoor warning sirens § Seek shelter indoors until the severe weather threat has passed and an all-clear message is given § Do not use elevators § Do not attempt to travel outside if weather is severe Monitor the Tulane Emergency website (tulane.edu/emergency/) for university-wide closures during a severe weather event
ACTIVE SHOOTER / VIOLENT ATTACKER	EVERBRIDGE APP
RUN – run away from or avoid the affected area, if possible HIDE – go into the nearest room that can be locked, turn out the lights, and remain hidden until all-clear message is given through TU ALERT FIGHT – do not attempt this option, except as a last resort § For more information or to schedule a training, visit emergencyprep.tulane.edu	§ Download the Everbridge app from the App Store or Google Play store § The Report feature allows you to silently and discreetly communicate with TUPD dispatchers § The SOS button allows you to notify TUPD if you need help § The Safe Corridor button serves as a virtual escort and allows you to send check-in notifications to TUPD

From: Tulane Office of Emergency Preparedness and Response

Religious accommodation policy

Per Tulane’s religious accommodation policy as stated at the bottom Tulane’s academic calendar, I will make every reasonable effort to ensure that students are able to observe religious holidays without jeopardizing their ability to fulfill their academic obligations. Excused absences do not relieve the student from the responsibility for any course work required during the period of absence. Students should notify me within the first two weeks of the semester about their intent to observe any holidays that fall on a class day or on the day of the final exam.

Econ 4970 SYLLABUS Spring 2026

Topic I: Introduction (This will be lecture material)

13 January: Course Introduction
15 January: Very Brief Review of Microeconomics
20 & 22 January: Introducing the Basic GE Model
- (Not required) Chacholiades (1978). “Chapter 4. Opportunity Cost”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 85-128.
- (Not required) Chacholiades (1978). “Chapter 5. Community Indifference and Comparative Advantage”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 129-147.

Topic II: Some Economics of International Trade

27 & 29 January: Foundations of Trade (Technology, Endowments & Tastes)
- Vousden (1990). “Chapter 1: Basic International Trade Theory”. The Economics of Trade Protection. New York: Cambridge University Press. pp. 3-24. [Canvas]
- Bhagwati, Panagariya and Srinivasan (1998). “Chapter 5: Model and Analytic Relationships under the Heckscher-Ohlin Theory”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 53-77. [Canvas]
- (Not required) Chacholiades (1978). “Chapter 6. International Equilibrium”. International Trade Theory and Policy. New York: McGraw-Hill. New York: McGraw-Hill. (only part A), pp. 156-171, on Canvas.
3 & 5 February: Consequences of Trade, 1: The Gains from Trade
- Bhagwati, Panagariya and Srinivasan (1998). “Chapter 18: Gains from Trade”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 265-279. [Canvas]
- Costinot and Rodríguez-Clare. (2018). “The US Gains from Trade: Valuation Using the Demand for Foreign Factor Services.” Journal of Economic Perspectives, V.32-#2, 3-24.
- Feenstra (2018). “Alternative Sources of the Gains from International Trade: Variety, Creative Destruction, and Markups.” Journal of Economic Perspectives, V.32-#2, 25-46.
- Bai and Stumpner (2019). “Estimating US Consumer Gains from Chinese Imports.” American Economic Review: Insights V.1-#2: 209–224.
- Singh (2010). “Does International Trade Cause Economic Growth? A Survey.” The World Economy. V.33-#11: 1517-1564.
- (Not required) Chacholiades (1978). “Chapter 16. The Gains from International Trade”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 416-438.
10 & 12 February: Consequences of Trade, 2: Winners, Losers & Politics
- Autor (2018). “Trade and Labor Markets: Lessons from China’s Rise”. IZA World of Labor; 2018: 431.
- Fort, Pierce and Schott (2018). “New Perspectives on the Decline of US Manufacturing Employment.” Journal of Economic Perspectives, V.32-#2, 47-72.
- Autor, Dorn, Hanson and Majlesi (2020). “Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure.” American Economic Review, V.110-#10, 3139–83.
- Supplementary Reading: Mutz (2021). Winners and Losers: The Psychology of Foreign Trade. Princeton, New Jersey: Princeton University Press.
- Supplementary Reading: WTO (2017) Trade, Technology & Jobs (World Trade Report 2017)

Tulane Mardi Gras break: 16-17 February

19 & 24 February: Firms in Trade (Heterogeneity & Global Value Chains)
- Bernard, Jensen, Redding and Schott (2007): “Firms in International Trade”. The Journal of Economics Perspectives; V.21-#3, pp. 105-130.
- Melitz and Trefler (2012), ‘Gains from Trade when Firms Matter’, The Journal of Economic Perspectives, V.26-#2, pp. 91-118.
- Timmer, et al. (2014). “Slicing up Global Value Chains”. The Journal of Economic Perspectives, V.28-#2, pp. 99-118.
- Hale, Hobijn, Nechio, and Wilson (2019). “How Much Do We Spend on Imports?“. Federal Reserve Bank of San Francisco Economic Letter, 2019-01.
- Antràs (2021). “De-Globalisation? Global Value Chains in the Post-Covid-19 Age,” in E.C.B. ed Central Banks in a Shifting World. Frankfurt: European Central Bank, 28-80. [Canvas]
- Baldwin and Freeman (2022). “Risks and Global Supply Chains: What We Know and What We Need to Know“. Annual Review of Economics, V.14-#1, 153-180.
(Optional) Extending the Basic Model, 1: Unemployment & Monopolistic Competition
- Davidson and Matusz (2011). “Trade and Labour Markets.” In Bernhofen, Falvey, Greenaway & Kreickemeier, eds. Palgrave Handbook of International Trade. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, pp. 391-422.
- Krugman (1989). “Industrial Organization and International Trade.” In Schmalensee & Willig, eds. Handbook of Industrial Organization, Amsterdam: Elsevier, 1179-223.
- Francois and Nelson (2002). “A Geometry of Specialisation.” Economic Journal, V.112-#481: 649-678.
- Eaton and Kortum (2012). “Putting Ricardo to Work.” The Journal of Economic Perspectives, V.26-#2, 65-89.

Midterm Exam: 26 February

Topic III: Trade Policy and the Theory of Economic Policy

3 & 5 March: Trade Policy Instruments in the Basic Model
- Feenstra (1992). “How Costly Is Protectionism?”. Journal of Economic Perspectives, V.6-#3, pp. 159-178.
- Bhagwati, Panagariya and Srinivasan (1998). “Chapter 12: Tariffs and Trade Equilibrium”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 203-219. [Canvas]
- (Not required) Chacholiades (1978). “Chapter 17. Import & Export Taxes: The Case of the Small Country”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 441-462.
- (Not required) Chacholiades (1978). “Chapter 18. Import & Export Taxes: The Case of the Large Country”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 463-484.
- (Not required) Chacholiades (1978). “Chapter 19. Trade Taxes & Welfare”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 485-499.
10 & 12 March: The Theory of Economic Policy, 1: The Basic Framework
- Johnson (1965). “Optimal Trade Intervention in the Presence of Domestic Distortions”. Baldwin, et al. Trade, Growth & The Balance of Payments. Chicago: Rand-McNally, pp. 3-34. [Canvas]
- Hoekman & Nelson (2020). “Rethinking International Subsidy Rules”. The World Economy; V.43-#12, pp. 3104-3132.
- Bhagwati (1968). “The Theory and Practice of Commercial Policy: Departures from Unified Exchange Rates,” Special Papers in International Economics, #8, pp. 1-41.
- (Not required) Bhagwati, Panagariya and Srinivasan (1998). “Chapter 28: Noneconomic Objectives”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 351-367. [Canvas]
- (Not required) Chacholiades (1978). “Chapter 20. Domestic Distortions”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 500-524.
- (Not required) Chacholiades (1978). “Chapter 21. Infant Industry Argument and Noneconomic Objectives”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 525-541.
17 & 19 March: The Theory of Economic Policy, 2: Trade Wars, Terms-of-Trade Externalities, etc.
- Dixit (1987). “Strategic Aspects of Trade Policy,” in Bewley ed Advances in Economic Theory: Fifth World Congress. Cambridge, UK: Cambridge University Press, 329-62. [Canvas, read only 329-336]
- Amiti, Redding and Weinstein (2019). “The Impact of the 2018 Tariffs on Prices and Welfare“. Journal of Economic Perspectives, V.33-#4, pp. 187-210.
- Bekkers, Francois, Nelson & Rojas-Romagosa (2021). “Trade Wars: Nobody Expects the Spanish Inquisition“. in Hoekman & Zedillo (eds.). Trade in the 21st Century: Back to the Past?. Washington, DC: Brookings Institutions, pp. 183-208.
- Fajgelbaum and Khandelwal (2022). “The Economic Impacts of the US–China Trade War.” Annual Review of Economics, V14: 205-228.
- Caliendo and F. Parro (2023). “Lessons from US–China Trade Relations.” Annual Review of Economics, V.15: 513-547.
- (Not required) Bhagwati, Panagariya and Srinivasan (1998). “Chapter 21: Monopoly Power in Trade”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 289-299. [Canvas]
- (Optional reading) Evenett & Fritz (2018). Brazen Unilateralism: The US-China Tariff War in Perspective (23rd Annual Trade Alert Report).
- (Optional Reading) Bagwell and Staiger (2010). “The World Trade Organization: Theory and Practice.” Annual Review of Economics, V.2-#1, 223-56.

Tulane Spring Break, 21-29 March

31 March & 2 April: Adjusting to Trade Shocks
- Corden, W. Max (1986). “Policies Towards Market Disturbance,” in R. H. Snape ed Issues in World Trade Policy: GATT at the Crossroads. New York: St. Martins, 121-39. [Canvas]
- Davidson and Matusz (2000). “Globalization and Labour-Market Adjustment: How Fast and at What Cost?” Oxford Review of Economic Policy 16, no. 3: 42-56.
- Kim and Pelc (2021). “How Responsive Is Trade Adjustment Assistance?”. Political Science Research and Methods, V.9-#4, 889-98.

Topic V: Trade & the Environment

7 April: How Does International Trade Affect the Environment?
- Levinson (2023). “Are Developed Countries Outsourcing Pollution?” Journal of Economic Perspectives, V.37-#3, 87-110.
- Copeland, Shapiro and Taylor (2022). “Globalization and the Environment,” in Gopinath, Helpman and Rogoff eds, Handbook of International Economics. Elsevier, 61-146.
- Fernández-Amador, Francois and Tomberger (2016). “Carbon Dioxide Emissions and International Trade at the Turn of the Millennium.” Ecological Economics, V.125, 14-26.
- Bhagwati, Panagariya and Srinivasan (1998). “Chapter 22: External Economies”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 301-311. [Canvas]
9 April: Trade Policy Analysis for the Environment
- Clausing and Wolfram (2023). “Carbon Border Adjustments, Climate Clubs, and Subsidy Races When Climate Policies Vary.” Journal of Economic Perspectives, V.37-#3, 137-62.
- Hoekman, Francois & Nelson, “Trade and Sustainable Development: Non-Economic Objectives in the Theory of Economic Policy,” 2023. World Trade Review, V.22-#3/4, pp. 463-473.
14 April: WTO Rules and the Environment
- Rubini, Luca (2012). “Ain’t Wastin’ Time No More: Subsidies for Renewable Energy, the SCM Agreement, Policy Space, and Law Reform.” Journal of International Economic Law, V.15-#2, 525-79.
- Nelson & Puccio (2021). “Nihil novi sub sole. The need for rethinking WTO and green subsidies in light of United States – Renewable Energy“. World Trade Review, V.20-#4, pp. 491-508.

Topic VI: Trade & National Security

16 April: How Does International Trade Affect National Security?
- Copeland (1996). “Economic Interdependence and War: A Theory of Trade Expectations.” International Security, V.20-#4, 5-41.
- Morelli and Sonno (2017). “On Economic Interdependence and War.” Journal of Economic Literature, V.55-#3, 1084-97.
- Cohen (2020). “Nations and Markets.” Journal of International Economic Law, V.23-#4, 793-815.
21 April: Trade Policy Analysis for National Security
- Srinivasan (1987). “The National Defense Argument for Government Intervention in Foreign Trade,” in R. Stern ed U.S. Trade Policies in a Changing World Economy. Cambridge, MA: MIT Press, 337-63. [Canvas]
23 April: WTO Rules and National Security
- Heath (2020). “The New National Security Challenge to the Economic Order.” The Yale Law Journal, V.129-#4, 1020-98.
- Claussen (2020). “Trade’s Security Exceptionalism.” Stanford Law Review, V.72-#5, 1097-164.
- Hoekman, Mavroidis & Nelson (2023). “Geopolitical Competition, Globalization and WTO Reform“. The World Economy, V.46-#5, pp. 1163-1188.

Topic VII: Dealing with the Apocalypse

28 April: Everything, Everywhere, All At Once
- Francois, Hoekman & Nelson (2025). “On Organizing Markets for Critical Goods”

(Optional) Topic VIII: The International System for Trade Policy

The Institutional Environment of Trade Policy
- Ruggie (1982). “International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order.” International Organization, V.36-#2, 379-415.
- Baldwin (2016). “The World Trade Organization and the Future of Multilateralism.” Journal of Economic Perspectives, V.30-#1, 95-116.
- Maggi and Ossa (2021). “The Political Economy of Deep Integration.” Annual Review of Economics, V.13-#1, 19-38.

Unilateral, Plurilateral (and?) or Multilateral
- Hoekman and Mavroidis (2015). “WTO ‘À La Carte’ or ‘Menu Du Jour’? Assessing the Case for More Plurilateral Agreements.” European Journal of International Law, V.26-#2, 319-43.
- Hoekman and Sabel (2019). “Open Plurilateral Agreements, International Regulatory Cooperation and the WTO.” Global Policy, V.10-#3, 297-312.
- Bown, Chad P. (2017). “Mega-Regional Trade Agreements and the Future of the WTO.” Global Policy, V.8-#1, 107-12.

Econ 4970 Understanding Trade Policy

Understanding Trade Policy

Some Good Advice (At No Extra Charge):

ADA/Accessibility Statement

Code of Academic Conduct

Welcoming Community Statement

Religious accommodation policy

Econ 4970 SYLLABUS Spring 2026

Topic I: Introduction (This will be lecture material)

13 January: Course Introduction

15 January: Very Brief Review of Microeconomics

20 & 22 January: Introducing the Basic GE Model

(Not required) Chacholiades (1978). “Chapter 4. Opportunity Cost”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 85-128.

(Not required) Chacholiades (1978). “Chapter 5. Community Indifference and Comparative Advantage”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 129-147.

Topic II: Some Economics of International Trade

27 & 29 January: Foundations of Trade (Technology, Endowments & Tastes)

Vousden (1990). “Chapter 1: Basic International Trade Theory”. The Economics of Trade Protection. New York: Cambridge University Press. pp. 3-24. [Canvas]

Bhagwati, Panagariya and Srinivasan (1998). “Chapter 5: Model and Analytic Relationships under the Heckscher-Ohlin Theory”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 53-77. [Canvas]

(Not required) Chacholiades (1978). “Chapter 6. International Equilibrium”. International Trade Theory and Policy. New York: McGraw-Hill. New York: McGraw-Hill. (only part A), pp. 156-171, on Canvas.

3 & 5 February: Consequences of Trade, 1: The Gains from Trade

Bhagwati, Panagariya and Srinivasan (1998). “Chapter 18: Gains from Trade”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 265-279. [Canvas]

Costinot and Rodríguez-Clare. (2018). “The US Gains from Trade: Valuation Using the Demand for Foreign Factor Services.” Journal of Economic Perspectives, V.32-#2, 3-24.

Feenstra (2018). “Alternative Sources of the Gains from International Trade: Variety, Creative Destruction, and Markups.” Journal of Economic Perspectives, V.32-#2, 25-46.

Bai and Stumpner (2019). “Estimating US Consumer Gains from Chinese Imports.” American Economic Review: Insights V.1-#2: 209–224.

Singh (2010). “Does International Trade Cause Economic Growth? A Survey.” The World Economy. V.33-#11: 1517-1564.

(Not required) Chacholiades (1978). “Chapter 16. The Gains from International Trade”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 416-438.

10 & 12 February: Consequences of Trade, 2: Winners, Losers & Politics

Autor (2018). “Trade and Labor Markets: Lessons from China’s Rise”. IZA World of Labor; 2018: 431.

Fort, Pierce and Schott (2018). “New Perspectives on the Decline of US Manufacturing Employment.” Journal of Economic Perspectives, V.32-#2, 47-72.

Autor, Dorn, Hanson and Majlesi (2020). “Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure.” American Economic Review, V.110-#10, 3139–83.

Supplementary Reading: Mutz (2021). Winners and Losers: The Psychology of Foreign Trade. Princeton, New Jersey: Princeton University Press.

Supplementary Reading: WTO (2017) Trade, Technology & Jobs (World Trade Report 2017)

Tulane Mardi Gras break: 16-17 February

19 & 24 February: Firms in Trade (Heterogeneity & Global Value Chains)

Bernard, Jensen, Redding and Schott (2007): “Firms in International Trade”. The Journal of Economics Perspectives; V.21-#3, pp. 105-130.

Melitz and Trefler (2012), ‘Gains from Trade when Firms Matter’, The Journal of Economic Perspectives, V.26-#2, pp. 91-118.

Timmer, et al. (2014). “Slicing up Global Value Chains”. The Journal of Economic Perspectives, V.28-#2, pp. 99-118.

Hale, Hobijn, Nechio, and Wilson (2019). “How Much Do We Spend on Imports?“. Federal Reserve Bank of San Francisco Economic Letter, 2019-01.

Antràs (2021). “De-Globalisation? Global Value Chains in the Post-Covid-19 Age,” in E.C.B. ed Central Banks in a Shifting World. Frankfurt: European Central Bank, 28-80. [Canvas]

Baldwin and Freeman (2022). “Risks and Global Supply Chains: What We Know and What We Need to Know“. Annual Review of Economics, V.14-#1, 153-180.

(Optional) Extending the Basic Model, 1: Unemployment & Monopolistic Competition

Davidson and Matusz (2011). “Trade and Labour Markets.” In Bernhofen, Falvey, Greenaway & Kreickemeier, eds. Palgrave Handbook of International Trade. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, pp. 391-422.

Krugman (1989). “Industrial Organization and International Trade.” In Schmalensee & Willig, eds. Handbook of Industrial Organization, Amsterdam: Elsevier, 1179-223.

Francois and Nelson (2002). “A Geometry of Specialisation.” Economic Journal, V.112-#481: 649-678.

Eaton and Kortum (2012). “Putting Ricardo to Work.” The Journal of Economic Perspectives, V.26-#2, 65-89.

Midterm Exam: 26 February

Topic III: Trade Policy and the Theory of Economic Policy

3 & 5 March: Trade Policy Instruments in the Basic Model

Feenstra (1992). “How Costly Is Protectionism?”. Journal of Economic Perspectives, V.6-#3, pp. 159-178.

Bhagwati, Panagariya and Srinivasan (1998). “Chapter 12: Tariffs and Trade Equilibrium”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 203-219. [Canvas]

(Not required) Chacholiades (1978). “Chapter 17. Import & Export Taxes: The Case of the Small Country”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 441-462.

(Not required) Chacholiades (1978). “Chapter 18. Import & Export Taxes: The Case of the Large Country”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 463-484.

(Not required) Chacholiades (1978). “Chapter 19. Trade Taxes & Welfare”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 485-499.

10 & 12 March: The Theory of Economic Policy, 1: The Basic Framework

Johnson (1965). “Optimal Trade Intervention in the Presence of Domestic Distortions”. Baldwin, et al. Trade, Growth & The Balance of Payments. Chicago: Rand-McNally, pp. 3-34. [Canvas]

Hoekman & Nelson (2020). “Rethinking International Subsidy Rules”. The World Economy; V.43-#12, pp. 3104-3132.

Bhagwati (1968). “The Theory and Practice of Commercial Policy: Departures from Unified Exchange Rates,” Special Papers in International Economics, #8, pp. 1-41.

(Not required) Bhagwati, Panagariya and Srinivasan (1998). “Chapter 28: Noneconomic Objectives”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 351-367. [Canvas]

(Not required) Chacholiades (1978). “Chapter 20. Domestic Distortions”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 500-524.

(Not required) Chacholiades (1978). “Chapter 21. Infant Industry Argument and Noneconomic Objectives”. International Trade Theory and Policy. New York: McGraw-Hill. pp. 525-541.

17 & 19 March: The Theory of Economic Policy, 2: Trade Wars, Terms-of-Trade Externalities, etc.

Dixit (1987). “Strategic Aspects of Trade Policy,” in Bewley ed Advances in Economic Theory: Fifth World Congress. Cambridge, UK: Cambridge University Press, 329-62. [Canvas, read only 329-336]

Amiti, Redding and Weinstein (2019). “The Impact of the 2018 Tariffs on Prices and Welfare“. Journal of Economic Perspectives, V.33-#4, pp. 187-210.

Bekkers, Francois, Nelson & Rojas-Romagosa (2021). “Trade Wars: Nobody Expects the Spanish Inquisition“. in Hoekman & Zedillo (eds.). Trade in the 21st Century: Back to the Past?. Washington, DC: Brookings Institutions, pp. 183-208.

Fajgelbaum and Khandelwal (2022). “The Economic Impacts of the US–China Trade War.” Annual Review of Economics, V14: 205-228.

Caliendo and F. Parro (2023). “Lessons from US–China Trade Relations.” Annual Review of Economics, V.15: 513-547.

(Not required) Bhagwati, Panagariya and Srinivasan (1998). “Chapter 21: Monopoly Power in Trade”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 289-299. [Canvas]

(Optional reading) Evenett & Fritz (2018). Brazen Unilateralism: The US-China Tariff War in Perspective (23rd Annual Trade Alert Report).

(Optional Reading) Bagwell and Staiger (2010). “The World Trade Organization: Theory and Practice.” Annual Review of Economics, V.2-#1, 223-56.

Tulane Spring Break, 21-29 March

31 March & 2 April: Adjusting to Trade Shocks

Corden, W. Max (1986). “Policies Towards Market Disturbance,” in R. H. Snape ed Issues in World Trade Policy: GATT at the Crossroads. New York: St. Martins, 121-39. [Canvas]

Davidson and Matusz (2000). “Globalization and Labour-Market Adjustment: How Fast and at What Cost?” Oxford Review of Economic Policy 16, no. 3: 42-56.

Kim and Pelc (2021). “How Responsive Is Trade Adjustment Assistance?”. Political Science Research and Methods, V.9-#4, 889-98.

Topic V: Trade & the Environment

7 April: How Does International Trade Affect the Environment?

Levinson (2023). “Are Developed Countries Outsourcing Pollution?” Journal of Economic Perspectives, V.37-#3, 87-110.

Copeland, Shapiro and Taylor (2022). “Globalization and the Environment,” in Gopinath, Helpman and Rogoff eds, Handbook of International Economics. Elsevier, 61-146.

Fernández-Amador, Francois and Tomberger (2016). “Carbon Dioxide Emissions and International Trade at the Turn of the Millennium.” Ecological Economics, V.125, 14-26.

Bhagwati, Panagariya and Srinivasan (1998). “Chapter 22: External Economies”. Lectures on International Trade. Cambridge, Mass.: MIT Press. pp. 301-311. [Canvas]