Advanced Topics 2 LVA: 239112 Summer 2014 Univ Prof Dr Joseph Francois secretary: anita.pointner@jku.at direct: joseph.francois@jku.at

http://i4ide.org/people/~francois/students/239112.htm www.i4ide.org/francois

Course Overview: This seminar covers recent frontier research topics in international economics. This includes a focus on the economics of global crisis, including both the Great Depression of the 1930s and the Great Recession of 2008-2009. The impact of the global economy on the structure of production, and in household inequality, is also examined, as well as formation of trade policy, and the economics of the eurozone crisis.

Assignments and grading: The seminar is organized around student presentations of (pre)published research papers. Sessions are organized around student presentations. Each student group has 20 minutes to present a paper, followed by another student group assigned 5 minutes to discuss the paper. Each set of 2 presentations is followed by 10 minutes of general discussion, led by the students who presented the papers. There are two sets of student presentations per session (2 papers x 2 = 4 papers) along with a short break. At the end of the term, each student will also submits a paper summarizing three of the papers from their group topic. Alternatively, this can be a review of literature on a topic of interest in the development of the thesis.

grading: 60% assigned paper presentations, 30% original paper, 10% participation

guidelines for paper: The paper should be approximately 10 pages, 1.5 spacing.

Preliminary presentation schedule

17 March	Macroeconomics of Crisis I Presentation: Group A discussion: Group G paper (2)	Macroeconomics of Crisis II Presentation: Group E discussion: Group D paper (4)
31 March	Crisis in the Eurozone I Presentation: Group F Discussion: Group C paper (15)	Crisis in the Eurozone II Presentation: Group D discussion: Group B paper (13)
EASTER BREAK
12 May	Supply Chains and Global Production I Presentation: Group B Discussion: Group E paper (17)	Supply Chains and Global Production II Presentation: Group G Discussion: Group A paper (19)
26 May	Offshoring and Jobs I Presentation: Group C Discussion: Group A paper (8)	Offshoring and Jobs II Presentation: Group E Discussion: Group F paper (7)
9  June	INDIVIDUAL PAPERS DUE

GROUPS

Group A: Feilhauer, C;  Klausegger, N. ; Sezer, C.; Willert, BA

Group B: Hermanseder, S.; Mchomvu, G.; Scherle, J.

Group C: Azarova, V.; Röbl, C.; Voigt, J., Elkasevic, M.

Group D: Ben Salah, K.; Kurkova, D.; Mineva, T.;

Group E: Hemetsberger, M.; Mittermayr, M.; Muggenhumer, G.; Rieger, S.

Group F: Bok, D.; Mohr, F.X.; Roider, M.

Group G: Reschmeier, W.A.; Wegmaier, M.; Wilschke, M.T.

TOPICS

The Macroeconomics of Global Crisis

(1) "International Aspects of the Great Depression and the Crisis of 2007: similarities, differences, and lessons" R. Grossman and C. Meissner, Oxford Review of Economic Policy, 26(3): 318-338, 2010.

(2) Lane, Philip R., and Gian Maria Milesi-Ferretti. "The cross-country incidence of the global crisis." IMF Economic Review 59.1 (2011): 77-110.

(3) "The First Global Recession in Decades" J. Imbs, IMF Economic Review, 58(2), 2010.

(4) Acemoglu, Daron, et al. "The network origins of aggregate fluctuations."Econometrica 80.5 (2012): 1977-2016.

Fragmentation of Production

(5) Offshoring of routine tasks and (de)industrialization: Threat or opportunity -- and for whom?
F. Robert-Nicoud, Journal of Urban Economics, 62(2008): 517-535.

(6) Offshoring, Trade in Tasks and Occupational Specificty of Human Capital M. Ritter, working paper 2008.

(7) Harrison, Ann, and Margaret McMillan. "Offshoring jobs? Multinationals and US manufacturing employment." Review of Economics and Statistics 93.3 (2011): 857-875.

(8) Becker, Sascha O., Karolina Ekholm, and Marc-Andreas Muendler. "Offshoring and the onshore composition of tasks and skills." Journal of International Economics 90.1 (2013): 91-106.

Trade Collapse in the Global Crisis

(9) Gawande, Kishore, Bernard Hoekman, and Yue Cui. "Global Supply Chains and Trade Policy Responses to the 2008 Crisis." The World Bank Economic Review(2014): lht040.

(10) "Trade Barriers and the Collapse of World Trade During the Great Depression" J.B. Madsen, Southern Economic Journal 67(4), 848-868.

(11) Ahn, JaeBin, Mary Amiti, and David E. Weinstein. "Trade finance and the great trade collapse." The American Economic Review 101.3 (2011): 298-302.

(12) Levchenko, Andrei A., Logan T. Lewis, and Linda L. Tesar. "The collapse of international trade during the 2008–09 crisis: in search of the smoking gun." IMF Economic Review 58.2 (2010): 214-253.

Crisis in the Eurozone

(13) Reis, Ricardo. The Portuguese slump and crash and the Euro crisis. No. w19288. National Bureau of Economic Research, 2013.

(14) Obstfeld, Maurice. CEPR DP9415 "Finance at Center Stage: Some Lessons of the Euro Crisis." (2013).

(15) Lane, Philip R. "The European sovereign debt crisis." The Journal of Economic Perspectives 26.3 (2012): 49-67.

(16) Polito, Vito, and Michael R. Wickens. CEPR DP9521 "How the Euro Crisis Evolved and How to Avoid Another: EMU, Fiscal Policy and Credit Ratings." (2013).

Supply Chains and Global Production

(17) Johnson, Robert C., and Guillermo Noguera. "Accounting for intermediates: Production sharing and trade in value added." Journal of International Economics86.2 (2012): 224-236.

(18) "The Factor Content of Trade: Time Series Evidence"
N. Foster, R. Stehrer, M. Timmer, and G. de Vries, wiiw (Vienna) working paper, 2011.

(19) "Relocating the Value Chain: Offshoring and Agglomeration in the Global Economy" R. Baldwin and A. Venables, NBER working paper 2010.

(20) "Services Linkages and the Value Added Content of Trade" J. Francois, M.Mancihn, and P. JKU Linz and World Bank working paper 2013.

Trade Policy Formation

(21) Gawande, By Kishore, Pravin Krishna, and Marcelo Olarreaga. "Lobbying Competition Over Trade Policy*." International Economic Review 53.1 (2012): 115-132.

(22) Bombardini, Matilde, and Francesco Trebbi. "Competition and political organization: Together or alone in lobbying for trade policy?." Journal of International Economics 87.1 (2012): 18-26.

(23) Francois, J. and D. Nelson, "Political Support for Trade Policy in the European Union," European Journal of Political Economy, 2014 (forthcoming).

[24]Trefler, D. “Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy,” Journal of Political Economy, vol 101(1), February 1993: 138-160.

Networks and International Trade

[25] Rauch, J.E. (2001), "Business and Social Networks in International Trade," Journal of Economic Literature, Vol. 39, No. 4 (Dec., 2001), pp. 1177-1203.

[26] L.De Benedictis and L.Tajoli (2011), "The World Trade Network," World Economy, 1417-1454.

[27] Krautheim, Sebastian. "Heterogeneous firms, exporter networks and the effect of distance on international trade." Journal of International Economics 87.1 (2012): 27-35.

[28 ]Chaney, Thomas. The network structure of international trade. No. w16753. National Bureau of Economic Research, 2011.