1.12 — New Trade Theory II — Class Content

Meeting Date

Thursday, March 2, 2023

Upcoming Assignment

Problem Set 2 (1.9-1.12) is due by 11:59 PM Thursday March 9 on Blackboard Assignments.


Today, we begin New Trade Theory.


  • Chapter 6.4 in Feenstra & Taylor

We will cover 6.1-6.2 next class.

I also strongly suggest you consume Paul Krugman’s 2008 Economics Nobel Prize address in some format. There is a video, his slides, and his written lecture posted there. I will be drawing from some of that today.

Primary Sources Mentioned:


Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. The lower button will allow you to download a PDF version of the slides.


You can type h to see a special list of viewing options, and type o for an outline view of all the slides.

I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!


Download as PDF


Problem Set 2 Due Thursday February 23

Problem Set 2 (1.1-1.8) is due by 11:59 PM Thursday February 23 on Blackboard Assignments.