Econometrics with Trade Applications

Lecturer:  Robert J R Elliott and Nicholas J Horsewood

The first two components coincide with those for Econometrics.

The third is training in the analysis of economic data and the interpretation of econometric results.  It consists of two parts.  The first reviews the literature on the testing of trade theories. Included are testing Neoclassical Trade Theory: Ricardo, Leontief and HOV model; geography, agglomeration and regional inequality; international trade and heterogenous firms; trade and the environment.  The second part deals with applications to international financial markets.  Included here are the efficient markets hypothesis, tests of efficiency in the spot and forward exchange markets, the forward exchange rate unbiasedness hypothesis, and international parity conditions.


A 1-hour multiple-choice test in January (15%), computer exercises (25%) and a 3-hour written examination (60%)