DOCSLIB.ORG

Applied Econometrics for International Economics Course Syllabus

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Applied Econometrics for International Economics Course Syllabus Applied Econometrics for International Economics Course Syllabus Instructor: Olga Popova, Ph.D. candidate, CERGE-EI, Prague E-mail: [email protected] Office hours: chair 212, Wed 17.00-18.30 or by appointment Class time and classroom Lectures: Fri, 19.30-21.00, room 317 (the room is subject to change); Thu, 19.30-21.00, room 425; Seminars: Mon, 12.20-13.50, computer class Language of Instruction: English Prerequisites: Basic Econometrics, Applied Econometrics for Macroeconomics, International Economics Course description: This course serves as the part in the Econometrics sequence and builds on the knowledge received in theoretical courses in International Economics. The aim of the course is to introduce the methodology used in applied empirical research within International Economics and review the current state of theory and empirical work. Lectures will be accompanied with practical exercise sessions to assure the understanding of theoretical concepts and provide guidance for using these concepts in applied research. Grading: The grade for the course is based on midterm exam (35%), non-cumulative final exam (35%), and two homework assignments (30%). Final grades for the course are relative: a student’s grade is based on the comparison of his performance with the performance of other students. Midterm and final are written closed book, closed notes exams. There will be no possibility to make up a midterm exam. Violation of academic honesty during exams (including the use of unauthorized materials, receiving and/or providing unauthorized help from/to other students) would result in a failing grade for the exam. Homework assignments will contain empirical and theoretical parts. Students may work at home assignments alone or in a group of up to three people, but everyone has to hand in his own solution. Please write the names of the members of your group at the homework. The first homework is due to midterm exam, the second one is due to final exam. For the first homework late submissions are acceptable; however for each day of delay 10 points (of total 100 points for the homework) will be subtracted from your homework score. No late submissions are acceptable for the second homework. Course outline (subject to change with prior notification): Lecture 1. Using empirical methods in international economics: time series models o Introduction to the course: review of topics to be covered. o Estimation of the ARMA models of time series. Box-Jenkins Methodology. Simple extensions of the ARMA model. (Enders, ch.2.2, 2.4, 2.8, 7.2; Kocenda, ch. 1.6, 3.1). Lecture 2. Modeling exchange rate volatility: ARCH, GARCH. Identification. Estimation. Extensions. BDS test. (Enders, ch.3; Kocenda, ch. 3.7). Exercise session 1 (computer class) based on Lectures 1-2. Introduction to TSP and Eviews. Estimation of ARMA models and applying Box-Jenkins methodology. Estimation of ARCH models. First Homework assignment due to Midterm. Lecture 3. Use of forecasting methods in international economics. Basic principles of forecasting. Types of forecasting. Models of forecasting. (Enders, ch. 2.9; Hamilton, ch. 4; Ramanathan, ch. 11) 1 Lecture 4. Empirical papers on forecasting. Combining forecasts. Testing accuracy of forecasts. Krkoska and Teksoz (2005, 2006), Fischer and Harvey (1999) Lecture 5. International Parity Conditions. Types of parity conditions. Empirical tests and evidence. (Wang, ch.3; Chowdhry, Roll and Xia (2005); Dutton and Strauss (1997)) Lecture 6. Exchange rate pass-through. Definition of concept. Empirical evidence. Banik and Biswas (2007); Coricelli, Jazbec, and Masten (2006); Ghosh and Rajan (2009). Midterm Exam (covers the first part of the course) Exercise session 2 (computer class) based on Lectures 3-6. Applying forecasting methods. Testing parity conditions. Exchange rate pass-through: paper replication. Second Homework assignment due to Final exam. Lecture 7. Balassa-Samuelson effect. Definition. Underlying assumptions. Consequences. Empirical evidence. (Egert (2002), Mihaljek and Klau (2003)). Lecture 8. International Trade: some extra empirical applications. Trade and environment. Trade and growth. Empirical assessment of comparative advantage gains. Antweiler, Copeland and Scott (2001); Bernhofen and Brown (2005); Frankel and Romer (1999). Lecture 9. The Heckscher-Ohlin-Vanek Model. Short theoretical description. Approaches to testing the model. (Feenstra, ch.2; Krugman, ch.4; Davis and Weinstein (2001), Trefler (1995)). Lecture 10. Gravity Equation. Definition of concept. Types of gravity equation. Empirical Applications. Approaches to testing gravity equation. (Feenstra, ch.5; Anderson and van Wincoop (2003); Babetskaia-Kukharchuk and Maurel (2004); Bergstrand (1985); Evenett and Kellner (2002); Badinger (2008). Exercise session 3 (computer class) based on Lectures 7-10. Balassa-Samuelson effect: paper replication. Testing HOV model using STATA. Estimation of gravity equation. Final exam (covers the second part of the course). Readings: There is no principal textbook for the course. The course content is based on selected topics from textbooks and complemented by journal articles. Supplementary Textbooks: Enders, W. (2004). Applied Econometric Time Series, 2nd ed., John Wiley & Sons, Inc. Feenstra, R. (2004). Advanced International Trade: Theory and Evidence. Princeton University Press. Hamilton, J. (1994). Time Series Analysis, Princeton University Press. Kocenda, E., Cerny, A. (2007). Elements of Time Series Econometrics: An Applied Approach. Karolinum Press. Krugman, P. and Obstfeld, M. (2003). International Economics: Theory and Policy, 6th Edition, Addison-Wesley. Ramanathan, R. (1998). Introductory Econometrics with Applications, 4th ed., Harcourt Brace College Publishers. Wang, P. (2005). The Economics of Foreign Exchange and Global Finance. Springer. Recommended articles (subject to change with prior notification): Forecasting Fischer, I. and N. Harvey (1999). Combining Forecasts: What Information Do Judges Need to Outperform the Simple Average? International Journal of Forecasting. July 1999; 15(3): 227-246. 2 Krkoska L., Teksoz, U. (2005). Accuracy of growth forecasts for transition countries: Assessing ten years of EBRD forecasting, EBRD Working Paper 94. Krkoska L., Teksoz, U. (2006). Forecasting inflation for transition countries: How accurate are the EBRD forecasts? EBRD Working Paper 98. International Parity Conditions Chowdhry, B., Roll, R., Xia, Y. (2005). Extracting Inflation from Stock Returns to Test Purchasing Power Parity, The American Economic Review, 95(1), 255-276. Dutton, M., Strauss, J. (1997). Cointegration Tests of Purchasing Power Parity: the Impact of Non-traded Goods. The Journal of International Morn T and Finance,16(3), 433-444. Pass-through Banik, N., Biswas, B. (2007). Exchange Rate Pass-Through in the U.S. Automobile Market: A Cointegration Approach. The International Review of Economics and Finance, 16, 223–236. Coricelli, F., Jazbec, B., Masten, I. (2006). Exchange Rate Pass-Through in EMU Acceding Countries: Empirical Analysis and Policy Implications, The Journal of Banking & Finance, 30, 1375–1391. Ghosh, A., Rajan, R. (2009). Exchange Rate Pass-Through in Korea and Thailand: Trends and Determinants. Japan and the World Economy, 21, 55–70. HOV model Davis, D., Weinstein, D. (2001). An Account of Global Factor Trade, The American Economic Review, 91, 1423- 1453. Trefler, D. (1995). The Case of the Missing Trade and Other Mysteries, The American Economic Review, 85, 1029-46. BS Effect Egert, B. (2002). Estimating the Impact of the Balassa-Samuelson Effect on Inflation and the Real Exchange Rate during the Transition. Economic Systems, 26, 1-66. Mihaljek, D., Klau, M. (2003). The Balassa-Samuelson Effect in Central Europe: a Disaggregated Analysis. BIS Working Paper #143. Gravity Equation Anderson, J., van Wincoop, E. (2003). Gravity with Gravitas: A Solution to the Border Puzzle. The American Economic Review, 93(1), 170-192. Babetskaia-Kukharchuk, O., Maurel, M. (2004). Russia’s Accession to the WTO: the Potential for Trade Increase. The Journal of Comparative Economics, 32, 680-699. Badinger, H. (2008). Trade Policy and Productivity. The European Economic Review, 52, 867–891. Bergstrand, J. (1985). The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence. The Review of Economics and Statistics, 67(3), 474-481. Evenett, S., Keller, W. (2002). On Theories Explaining the Success of the Gravity Equation. The Journal of Political Economy, 110(2), 281-316. Trade Antweiler, W., Copeland, B., Scott, M. (2001). Is Free Trade Good for the Environment? The American Economic Review, 91(4), 877-908. Bernhofen, D., Brown, J. (2005). An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan. The American Economic Review, 95(1), 208-225. Frankel, J., Romer, D. (1999). Does Trade Cause Growth? The American Economic Review, 89(3), 379-399. 3.
Load more

Recommended publications
  • Uncertainty and Hyperinflation: European Inflation Dynamics After World War I
    FEDERAL RESERVE BANK OF SAN FRANCISCO WORKING PAPER SERIES Uncertainty and Hyperinflation: European Inflation Dynamics after World War I Jose A. Lopez Federal Reserve Bank of San Francisco Kris James Mitchener Santa Clara University CAGE, CEPR, CES-ifo & NBER June 2018 Working Paper 2018-06 https://www.frbsf.org/economic-research/publications/working-papers/2018/06/ Suggested citation: Lopez, Jose A., Kris James Mitchener. 2018. “Uncertainty and Hyperinflation: European Inflation Dynamics after World War I,” Federal Reserve Bank of San Francisco Working Paper 2018-06. https://doi.org/10.24148/wp2018-06 The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. Uncertainty and Hyperinflation: European Inflation Dynamics after World War I Jose A. Lopez Federal Reserve Bank of San Francisco Kris James Mitchener Santa Clara University CAGE, CEPR, CES-ifo & NBER* May 9, 2018 ABSTRACT. Fiscal deficits, elevated debt-to-GDP ratios, and high inflation rates suggest hyperinflation could have potentially emerged in many European countries after World War I. We demonstrate that economic policy uncertainty was instrumental in pushing a subset of European countries into hyperinflation shortly after the end of the war. Germany, Austria, Poland, and Hungary (GAPH) suffered from frequent uncertainty shocks – and correspondingly high levels of uncertainty – caused by protracted political negotiations over reparations payments, the apportionment of the Austro-Hungarian debt, and border disputes. In contrast, other European countries exhibited lower levels of measured uncertainty between 1919 and 1925, allowing them more capacity with which to implement credible commitments to their fiscal and monetary policies.
    [Show full text]
  • The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers
    Pursuit - The Journal of Undergraduate Research at The University of Tennessee Volume 9 Issue 1 Article 7 July 2019 The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers Jenna Demeter The University of Tennessee, Knoxville, [email protected] Follow this and additional works at: https://trace.tennessee.edu/pursuit Part of the Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Economic History Commons, Gender and Sexuality Commons, Growth and Development Commons, Income Distribution Commons, Industrial Organization Commons, Inequality and Stratification Commons, International and Comparative Labor Relations Commons, International Economics Commons, International Relations Commons, International Trade Law Commons, Labor and Employment Law Commons, Labor Economics Commons, Latin American Studies Commons, Law and Economics Commons, Macroeconomics Commons, Political Economy Commons, Politics and Social Change Commons, Public Economics Commons, Regional Economics Commons, Rural Sociology Commons, Unions Commons, and the Work, Economy and Organizations Commons Recommended Citation Demeter, Jenna (2019) "The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers," Pursuit - The Journal of Undergraduate Research at The University of Tennessee: Vol. 9 : Iss. 1 , Article 7. Available at: https://trace.tennessee.edu/pursuit/vol9/iss1/7 This Article is brought to you for free and open access by
    [Show full text]
  • Study Abroad for Economic Majors PSU Allows Students to Participate
    Study Abroad for Economic Majors PSU allows students to participate in any study abroad program that is good for them – the following are only suggestions. Short Term: PSU short term faculty-led programs change from year to year. Keep an eye out for posters and announcements in your classes to learn about short term faculty led programs. K-State and KU and other universities’ short term study abroad programs are open to PSU students. These also change from year to year. Summer Programs available through PSU’s affiliate organizations: (deadline to apply – March 1st for summer abroad): API – most courses taught in English – http://www.apistudyabroad.com/ • England – London: Introductory Macroeconomics, Essential Statistics for Economics and Econometrics, Intermediate Macroeconomics, Introduction to Econometrics, Public Finance, Development Economics, International Economics IFSA Butler – most courses taught in English – www.ifsa-butler.org • England – Cambridge: Introduction to Finance and Methods of Quantitative Analysis, Financial Markets and Institutions • England – Sussex: Global Economic Issues, Introduction to Development Economics, Corporate Finance - Financial Strategic Planning GlobaLinks – most courses taught in English – globalinksabroad.org • Australia – Adelaide: East Asian Economies II, Sports Economics III, Semester Programs: (deadline to apply October 1st for spring abroad, March 1st for fall abroad): Exchange Partner Universities: Finland: University of Oulu – http://www.oulu.fi/english/studentexchange/studying Classes
    [Show full text]
  • Models of International Economics - Giancarlo Gandolfo
    MATHEMATICAL MODELS IN ECONOMICS –- Vol. II – Models of International Economics - Giancarlo Gandolfo MODELS OF INTERNATIONAL ECONOMICS Giancarlo Gandolfo Sapienza University of Rome, Italy, and Accademia Nazionale dei Lincei, Rome Keywords: Absorption, balance of payments, comparative cost, factor endowments, flow approaches, Heckscher-Ohlin model, international finance, international trade, international monetary economics, intertemporal approach, non tariff barriers, open economy macroeconomics, optimum tariff, political economy of protectionism, Ricardo, stock approaches, tariffs, trade policy, Walras’ law. Contents 1. Introduction 2. Models of International Trade 2.1. The Orthodox Theory 2.2. Generalizations 2.3. Trade Policy 2.4. The New Theories 2.5. Further Developments 3. Models of International Monetary Economics 3.1. The Basic Models 3.2. Stock Approaches 3.3. The Intertemporal Model 3.4. Models of the Exchange Rate 3.5. Currency Crises and Other Problems Acknowledgements Glossary Bibliography Biographical Sketch Summary The importance of international economics is increasing, owing to the increasing openness of UNESCOthe single national economic system– s:EOLSS on average, at the world level more than 28% of national income is spent on foreign commodities and services. A feature of current international exchanges with respect to those of the past is that exchanges of financial assets have been growing much more rapidly than exchanges of commodities. Moreover, theseSAMPLE financial exchanges, once an cillaryCHAPTERS to commodity trade, have taken on an autonomous importance and are far greater than the value of exchanges of commodities. This situation is also reflected in the theoretical models, which -once mostly concerned with the theory of commercial flows- have had to cope with the theory of financial and macroeconomic flows in an open macroeconomy.
    [Show full text]
  • Hyperinflation in Venezuela
    POLICY BRIEF recovery can be possible without first stabilizing the explo- 19-13 Hyperinflation sive price level. Doing so will require changing the country’s fiscal and monetary regimes. in Venezuela: A Since late 2018, authorities have been trying to control the price spiral by cutting back on fiscal expenditures, contracting Stabilization domestic credit, and implementing new exchange rate poli- cies. As a result, inflation initially receded from its extreme Handbook levels, albeit to a very high and potentially unstable 30 percent a month. But independent estimates suggest that prices went Gonzalo Huertas out of control again in mid-July 2019, reaching weekly rates September 2019 of 10 percent, placing the economy back in hyperinflation territory. Instability was also reflected in the premium on Gonzalo Huertas was research analyst at the Peterson Institute foreign currency in the black market, which also increased for International Economics. He worked with C. Fred Bergsten in July after a period of relative calm in previous months. Senior Fellow Olivier Blanchard on macroeconomic theory This Policy Brief describes a feasible stabilization plan and policy. Before joining the Institute, Huertas worked as a researcher at Harvard University for President Emeritus and for Venezuela’s extreme inflation. It places the country’s Charles W. Eliot Professor Lawrence H. Summers, producing problems in context by outlining the economics behind work on fiscal policy, and for Minos A. Zombanakis Professor Carmen Reinhart, focusing on exchange rate interventions. hyperinflations: how they develop, how they disrupt the normal functioning of economies, and how other countries Author’s Note: I am grateful to Adam Posen, Olivier Blanchard, across history have designed policies to overcome them.
    [Show full text]
  • Oecd Development Centre
    OECD DEVELOPMENT CENTRE Working Paper No. 16 (Formerly Technical Paper No. 16) COMPARATIVE ADVANTAGE: THEORY AND APPLICATION TO DEVELOPING COUNTRY AGRICULTURE by Ian Goldin Research programme on: Changing Comparative Advantage in Food and Agriculture June 1990 TABLE OF CONTENTS SUMMARY . 9 PREFACE . 11 INTRODUCTION . 13 PART ONE . 14 COMPARATIVE ADVANTAGE: THE THEORY . 14 The Theory of Comparative Advantage . 14 Testing the theory . 15 The Theory and Agriculture . 16 PART TWO . 19 COMPETITIVE ADVANTAGE: THE PRACTICE . 19 Costs and Prices . 19 Land, Labour and Capital . 20 Joint Products . 22 Cost Studies . 22 Engineering Cost Studies . 23 Revealed Comparative Advantage . 25 Trade Liberalisation Simulations . 26 Domestic Resource Cost Analysis . 29 PART THREE . 32 COMPARATIVE ADVANTAGE AND DEVELOPING COUNTRY AGRICULTURE . 32 Comparative Advantage and Economic Growth . 32 Conclusion . 33 NOTES . 35 BIBLIOGRAPHICAL REFERENCES . 36 7 SUMMARY This paper investigates the application of the principle of comparative advantage to policy analysis and policy formulation. It is concerned with both the theory and the measurement of comparative advantage. Despite its central role in economics, the theory is found to be at an impasse, with its usefulness confined mainly to the illustration of economic principles which in practice are not borne out by the evidence. The considerable methodological problems associated with the measurement of comparative advantage are highlighted in the paper. Attempts to derive indicators of comparative advantage, such as those associated with "revealed comparative advantage", "direct resource cost", "production cost" and "trade liberalisation" studies are reviewed. These methods are enlightening, but are unable to provide general perspectives which allow an analysis of dynamic comparative advantage.
    [Show full text]
  • Policy Challenges from Closer International Trade and Financial Integration: Dealing with Economic Shocks and Spillovers
    OECD Economic Outlook, Volume 2018 Issue 1 © OECD 2018 Chapter 2 POLICY CHALLENGES FROM CLOSER INTERNATIONAL TRADE AND FINANCIAL INTEGRATION: DEALING WITH ECONOMIC SHOCKS AND SPILLOVERS 49 2. POLICY CHALLENGES FROM CLOSER INTERNATIONAL TRADE AND FINANCIAL INTEGRATION: DEALING... Introduction and summary Global economic integration has been a powerful driver of increased economic efficiency and improved living standards around the world, and has contributed to sizeable economic gains in emerging market economies (EMEs). In spite of these gains, enhanced integration has also raised concerns about the costs it has imposed on vulnerable groups and its potential impact on inequality in advanced economies. These issues have been analysed extensively by the OECD, with a comprehensive review provided in the Key Issues Paper for the 2018 Ministerial Council Meeting (OECD, 2018e). This chapter focuses on particular consequences of deeper global economic integration: the impact of closer trade and financial linkages on the propagation of economic shocks and on the transmission channels and effectiveness of macroeconomic policies. The main findings reported in the chapter can be summarised as follows: ● Closer trade and financial integration since the mid-1990s has made economies more dependent on developments abroad. Trade intensity has increased, helped by the expansion of global value chains (GVCs), and cross-border asset and liabilities have risen considerably relative to GDP. Integration is particularly apparent in financial markets, with a common global factor increasingly determining domestic equity and government bond prices. Global factors tend to have a smaller impact on economic growth and inflation than on financial variables. Large economies or regions remain relatively closed, despite increased openness in recent decades.
    [Show full text]
  • Trade Theory and Trade Facts∗
    Federal Reserve Bank of Minneapolis Research Department Staff Report 284 March 2001 (First version October 1999) Trade Theory and Trade Facts∗ Raphael Bergoeing ILADES-Georgetown University, Universidad Alberto Hurtado Timothy J. Kehoe University of Minnesota and Federal Reserve Bank of Minneapolis ABSTRACT This paper quantitatively tests the “new trade theory” based on product differentiation, increasing returns, and imperfect competition. We employ a standard model, which allows both changes in the distribution of income among industrialized countries, emphasized by Helpman and Krugman (1985), and nonhomothetic preferences, emphasized by Markusen (1986), to effect trade directions and volumes. In addition, we generalize the model to allow changes in relative prices to have large effects. We test the model by calibrating it to 1990 data and then “backcasting” to 1961 to see what changes in crucial variables between 1961 and 1990 are predicted by the theory. The results show that, although the model is capable of explaining much of the increased concentration of trade among industrialized countries, it is not capable of explaining the enormous increase in the ratio of trade to income. Our analysis suggests that it is policy changes, rather than the elements emphasized in the new trade theory, that have been the most significant determinants of the increase in trade volume. ∗ c 2001, Raphael Bergoeing and Timothy J. Kehoe. This paper grew out of the Bergoeing’s 1996 Ph.D. thesis at° the University of Minnesota. The authors thank the McKnight Foundation and the National Science Foundation for financial support. Useful comments and suggestions have been provided by participants in numerous seminars and conferences, especially Caroline Betts, Harold Cole, Barbara Craig, Patrick Kehoe, David Hummels, Robert Lucas, Moshe Syrquin, Nancy Stokey, and Jaume Ventura.
    [Show full text]
  • New Trade Theories and Developing Countries: Policy and Technological Implications
    New Trade Theories and Developing Countries: Policy and Technological Implications By Samuel Wangwe UNU/INTECH Working Paper No. 7 June 1993 CONTENTS 1. Background 1 2. Trade Theory and Policy Options 3 2.1 Introduction 3 2.2 Conventional Trade Theory: Essence and Relevance 5 2.3 Critics and Extensions within the Conventional Framework 6 2.4 Critics Outside the Neoclassical Framework: Introducing 11 the Dynamics of Firm Capabilities and Technological Change 3. Relevance and Policy Implications for Developing Countries 14 3.1 Narrowing the Technology Gap 14 3.2 North-South Negotiations 17 3.3 Changing Views on the Role of TNCs? 18 3.4 South-South Trade and Investments 19 3.5 Dynamics of Firm Level Capabilities and Implications 20 on Competitiveness 3.6 Role of Government Policy 21 4. Conclusion 25 Endnotes 26 References 27 iii iv 1. BACKGROUND In recent years discussions of development strategy in developing countries have empha- sised the importance of restructuring the supply side of the economy so that it is more competitive internationally. Such discussions usually stress the necessity to change the price structures associated with import substituting strategies by a return to the market. Critics who may well accept the limitations of import substitution strategies, nevertheless often question whether relative price policies are a sufficient basis for export-orientation. One such line of criticism points to the need for supportive policies - often of an interventionist type - to ensure technological dynamism: for without technological change, the maintenance of international competitiveness is, of course put at risk - or will come to depend on holding down real wages or even reducing them in the face of increasingly efficient foreign competitors.
    [Show full text]
  • RCEP), Will Refocus East Asia’S Business School (IBS) and Economic Ties in the Region Itself
    WORKING PAPER 20-9 East Asia Decouples from the United States: Trade War, COVID-19, and East Asia’s New Trade Blocs Peter A. Petri and Michael G. Plummer June 2020 ABSTRACT The deepening US-China trade war and nationalist reactions to the COVID-19 Peter A. Petri, visiting fellow pandemic are reshaping global economic relationships. Alongside these at the Peterson Institute for International Economics, is developments, two new megaregional trade agreements, the Comprehensive the Carl J. Shapiro Professor and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the of International Finance at the Brandeis International Regional Comprehensive Economic Partnership (RCEP), will refocus East Asia’s Business School (IBS) and economic ties in the region itself. The new accords are moving forward without nonresident senior fellow at the United States and India, once seen as critical partners in the CPTPP and the Brookings Institution. He was the founding dean RCEP, respectively. Using a computable general equilibrium model, we show of IBS and has published that the agreements will raise global national incomes in 2030 by an annual widely on Asia-Pacific $147 billion and $186 billion, respectively. They will yield especially large benefits economic relations. Michael G. Plummer is director of for China, Japan, and South Korea and losses for the United States and India. SAIS Europe and the Eni These effects are simulated both in a business-as-before-Trump environment Professor of International and in the context of a sustained US-China trade war. The effects were simulated Economics at Johns Hopkins University, as before the COVID-19 shock but seem increasingly likely in the wake of the well as nonresident senior pandemic.
    [Show full text]
  • Neoclassical Economics and Development
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Lund University Publications - Student Papers Lund University STVK02 Department of Political Science Tutor: Martin Hall Neoclassical Economics and Development A critical review of the convergence hypothesis Heidar Nouri Abstract This paper aims to critically review scientific purports by neoclassical economics, in particular when it comes to international development politics. Strive for global unified economies conceptualized through the convergence theorem and its extensional implementation through Washington consensus is the main goal of liberal ideology. Moreover market friendly reforms and policies are promoted and practically imposed by transnational institution such as IMF and World Bank on the host countries. This paper adheres to the postmodern critical methodology since it aims to illustrate the prevalent epistemological structures and their shortages. Reviewing the convergence literature I find three overall perspectives that constitute layers of this vision. First of all is positive economics thus possibility of value-free knowledge acquisition through empirical accumulation and reductionism as well as rationalization. Second is the narrow definition of concept of development in a pure economic sense. Third is the flawed view that Washington consensus policies are the cause of convergence in international markets rather than its reason. Furthermore the ideological undertones represented by assumptions leaning toward individualism and market are downplayed in order to enhance the superior scientific aspect. Even if the ideological weight of assumptions is neglected, the trends neoclassical economics has generated are discussed in ideological terms especially by Marxist camp, for instance commodity fetishism. Therefore I find an ideological treatment of the issue is inevitable.
    [Show full text]
  • IB Economics HL Study Guide
    S T U D Y G UID E HL www.ib.academy IB Academy Economics Study Guide Available on learn.ib.academy Author: Joule Painter Contributing Authors: William van Leeuwenkamp, Lotte Muller, Carlijn Straathof Design Typesetting Special thanks: Andjela Triˇckovi´c This work may be shared digitally and in printed form, but it may not be changed and then redistributed in any form. Copyright © 2018, IB Academy Version: EcoHL.1.2.181211 This work is published under the Creative Commons BY-NC-ND 4.0 International License. To view a copy of this license, visit creativecommons.org/licenses/by-nc-nd/4.0 This work may not used for commercial purposes other than by IB Academy, or parties directly licenced by IB Academy. If you acquired this guide by paying for it, or if you have received this guide as part of a paid service or product, directly or indirectly, we kindly ask that you contact us immediately. Laan van Puntenburg 2a ib.academy 3511ER, Utrecht [email protected] The Netherlands +31 (0) 30 4300 430 TABLE OF CONTENTS Introduction 5 1. Microeconomics 7 – Demand and supply – Externalities – Government intervention – The theory of the firm – Market structures – Price discrimination 2. Macroeconomics 51 – Overall economic activity – Aggregate demand and aggregate supply – Macroeconomic objectives – Government Intervention 3. International Economics 77 – Trade – Exchange rates – The balance of payments – Terms of trade 4. Development Economics 93 – Economic development – Measuring development – Contributions and barriers to development – Evaluation of development policies 5. Definitions 105 – Microeconomics – Macroeconomics – International Economics – Development Economics 6. Abbreviations 125 7. Essay guide 129 – Time Management – Understanding the question – Essay writing style – Worked example 3 TABLE OF CONTENTS 4 INTRODUCTION The foundations of economics Before we start this course, we must first look at the foundations of economics.
    [Show full text]