{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ330_midterm_review

Econ330_midterm_review - Test#1 Study Guide These are...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Test #1 Study Guide These are the essential concepts and ideas that I expect you to be familiar with for the test. Be sure to also think about how these concepts are related to each other. ECONOMIC THEORIES of TRADE Ricardian model (one factor) Assumptions and set ­up What are the gains from trade? How do changes in the parameters of the model affect outcomes? Smoot Hawley as a “test” of the model Hecksher ­Ohlin model (two factors, two goods) Assumptions and set ­up Resource allocation in the economy What are the gains from trade? Income distribution How do changes in the parameters of the model affect outcomes? Empirical implications for preferences over trade Magee analysis as a “test” of the model Specific factors model (three factors, one mobile and two fixed) Assumptions and set ­up Resource allocation in the economy What are the gains from trade? Income distribution How do changes in the parameters of the model affect outcomes? Preferences of economic actors over trade policy Magee analysis as a “test” of the model Concepts: Opportunity cost Comparative advantage Unit labor requirement Production possibility frontier Absolute advantage Factor abundance Factor intensity Stolper ­Samuelson theorem Heckscher ­Ohlin theorem Diminishing marginal returns POLITICAL THEORIES of TRADE Direct democracy (Mayer and elections) Median voter theorem (Black’s theorem) Heckscher ­Ohlin model with an endogenous tariff Does democracy imply that social welfare will be maximized? (Why?) Specific factors model with an election Collective action problems Weaknesses of the Mayer account Lobbying by special interest groups (Grossman and Helpman) Incentives of policymakers in a representative democracy Economic structure Political structure Politically ­optimal tariffs Distributional implications Evidence to support the model Weaknesses of the Grossman and Helpman model Party ideolody (Dutt and Mitra; Milner and Judkins) Assumptions and set ­up of economy and political structure Dutt and Mitra on policy choices: Theoretical impact of political ideology on tariff choices How do they test their theory? What evidence do they find? Key conclusions Party discipline (McGillivray) Assumptions and set ­up of basic majoritarian model High versus low discipline Marginal versus safe districts Concentrated versus dispersed industries Milner and Judkins on party platforms: Theoretical impact of political ideology on party platforms How do they test their theory? What evidence do they find? Key conclusions How does the level of discipline/marginality/dispersion affect industry protection? How does she test her theory? What evidence does she find? Key conclusions ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern