EC421
International Economics
This information is for the 2022/23 session.
Teacher responsible
Dr Thomas Sampson
Dr Dimitry Mukhin
Availability
This course is available on the MSc in Econometrics and Mathematical Economics, MSc in Economics and MSc in Economics (2 Year Programme). This course is available with permission as an outside option to students on other programmes where regulations permit.
Pre-requisites
Students must have completed Introductory Course in Mathematics and Statistics (EC400).
In exceptional circumstances, students may take this course without EC400 provided they meet the necessary requirements and have received approval from the course conveners (via a face to face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information (econ.msc@lse.ac.uk) regarding entry to this course.
Course content
A graduate course in international economics consisting of i) the fundamentals of trade theory and its application to policy and ii) international macroeconomics.
Trade: Comparative advantage and the gains from trade. Theories of comparative advantage. Factor endowments, the international location of production, and patterns of international trade. Empirical tests of trade models. Trade and the labour market. Intra-industry trade. Firm heterogeneity and selection into trade. Foreign direct investment. General equilibrium trade policy.
International macroeconomics: Intertemporal trade and the current account balance. Dynamics of small open economies. The real exchange rate and the terms of trade. Uncertainty and international financial markets. Monetary model of exchange rate determination: flexible and sticky prices. Introduction to currency crises models.
Teaching
20 hours of lectures and 10 hours of seminars in the MT. 20 hours of lectures and 9 hours of seminars in the LT. 1 hour of seminars in the ST.
There will be a reading week in Week 6 of LT only (no lectures or classes that week).
This course is delivered through a combination of classes and lectures totalling a minimum of 60 hours across Michaelmas Term, Lent Term and Summer Term.
Formative coursework
Two marked assignments per term.
Indicative reading
A full reading list will be distributed at the beginning of the course. Some important items are: R Feenstra, Advanced International Trade: Theory and Evidence, Princeton, 2004; A Dixit & V Norman, Theory of International Trade, Cambridge, 1980; E Helpman & P Krugman, Market Structure and Foreign Trade, MIT, 1985; M Obstfeld & K Rogoff, Foundations of International Macroeconomics, MIT Press, 1996.
Assessment
Exam (50%, duration: 2 hours, reading time: 15 minutes) in the summer exam period.
Essay (50%, 6000 words) in the ST.
Key facts
Department: Economics
Total students 2021/22: 11
Average class size 2021/22: 9
Controlled access 2021/22: Yes
Lecture capture used 2021/22: Yes (MT & LT)
Value: One Unit
Course selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.