Handbook of International Economics

Contributors

Introduction to the Series

Preface

1: Heterogeneous Firms and Trade

1 Introduction

2 Empirical Evidence

3 General Setup

4 Closed Economy Equilibrium

5 Open Economy with Trade Costs

6 Quantitative Predictions

7 Factor Abundance and Heterogeneity

8 Trade and Market Size

9 Endogenous Firm Productivity

10 Factor Markets

11 Conclusion

References

2: Multinational Firms and the Structure of International Trade

1 Introduction

2 Stylized Facts

3 Benchmark Model: An Extended Krugman (1980) Model

4 The Proximity-Concentration Hypothesis

5 Vertical Expansion

6 MultiCountry Models

7 Multinational Firm Boundaries

8 Conclusion

References

3: Gravity Equations: Workhorse,Toolkit, and Cookbook

1 Introduction

2 Micro-Foundations for Gravity Equations

3 Theory-Consistent Estimation

4 Gravity Estimates of Policy Impacts

5 Frontiers of Gravity Research

6 Directions for Future Research

7 Conclusion

References

4: Trade Theory with Numbers: Quantifying the Consequences of Globalization

1 Introduction

2 Getting Started

3 Beyond Armington

4 Evaluating Trade Policy

5 Numbers We Can Believe In?

6 “Micro” versus “Macro” Numbers

7 Life Without Gravity

8 Concluding Remarks

References

5: Domestic Institutions as a Source of Comparative Advantage

1 Introduction

2 Contracting and Property-Right Institutions: Impacts on Comparative Advantage

3 Informal Institutions and their Impacts on Comparative Advantage

4 Policies and the Indirect Impacts of Institutions on Comparative Advantage

5 The Impact of Trade and Comparative Advantage on Domestic Institutions

6 Conclusion

References

6: International Trade Agreements

1 Introduction

2 The Motives for Trade Agreements

3 The Design of Trade Agreements

4 Regional Trade Agreements

5 Conclusion

References

7: International Prices and Exchange Rates

1 Introduction

2 Empirical Evidence

3 A Simple Framework to Interpret Empirical Findings

4 Models with Desired Variable Markups

5 Other Models of Incomplete Pass-through

6 Industry Equilibrium

7 General Equilibrium

8 Conclusion

9 Appendix

References

8: Exchange Rates and Interest Parity

1 Exchange Rates and Interest Parity

2 Monetary Sticky-Price Models of Exchange Rates

3 Empirical Studies of Exchange Rates

4 Ex Ante Excess Returns and the Uncovered Interest Parity Puzzle

5 Conclusions

References

9: Assessing International Efficiency

1 Introduction

2 A Methodology for Assessing International Efficiency

3 Assessing Long-Run Efficiency

4 Assessing Efficiency in International Business Cycles

5 Conclusion

6 Appendix: Proof of Proposition 1

References

10: External Adjustment, Global Imbalances, Valuation Effects

1 Introduction

2 Stylized Facts

3 Long-Term Capital Flows in the Neoclassical Growth Model

4 Models of Global Imbalances

5 External Balance Sheets, Valuation Effects, and Adjustment

6 The International Monetary and Financial System

7 Conclusion

References

11: Sovereign Debt

1 Introduction: Conceptual Issues

2 Empirical Facts

3 A Benchmark Framework

4 Richer Notions of “Default”

5 Self-fulfilling Debt Crises

6 Incomplete-Market Models and their Quantitative Implementation

7 Concluding Remarks

References

12: International Financial Crises

1 Introduction

2 Fiscal-Monetary Imbalances

3 Overvaluation, Unemployment, and Multiple Equilibria

4 Financial Flows, Sudden Stops, and Balance Sheet Effects

5 Spread Spirals and Rollover Crises

6 Sources of Fragility

7 Concluding Remarks

References

Index