4th Trade Policy Course

1) Basic introduction to the idea of Gravity

2) Micro-foundations (Anderson and van Wincoop 2003) and the role of relative trade costs

3) Relevant Trade data

4) Estimation of simple (cross-sectional gravity equation) in Stata

5) Gravity with tariffs

6) Estimating ad-valorem tariff equivalents of non-tariff barriers using gravity

7) The problem of unobserved trade costs/endogeneity of trade policy variables

8) Short introduction to Panel Data Econometrics (Fixed effects versus Random Effects)

9) Estimating gravity using Panel Data techniques

10) The issue of zero trade flows: Theoretical background and empirical implementation

11) Heteroskedasticity and the PPML estimator

12) Yotov’s solution to the distance puzzle and the role of intranational trade

13) Outlook: General equilibrium Analysis using Gravity