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Syllabus: Quantitative Spatial General Equilibrium Models

Introduction

This course is a paper discussion course. In the first three weeks, we will go through the basics of quantitative spatial economics step by step in details using one example and get students know how to implement it with some homeworks. In week 10 to 12, we will introduce spatial models with goods trade and in dynamic settings. Then, in each of the other weeks, students in groups are required to present two papers. We will focus more on latest quantitative studies in spatial economics. These papers will be technically intensive. Students taking this course are expected to have a solid first year macro, micro, and econometrics background. It would be better if they have learned quantitative skills on international trade and DSGE models.

 

Content

Week 1: Introduction to Models in Spatial Economics (I)

What is quantitative spatial general equilibrium model, how to implement it

A thorough investigation of Fang et al (2024): Model building

 

Week 2 and 3: Introduction to Models in Spatial Economics (II)

What is quantitative spatial general equilibrium model, how to implement it

A thorough investigation of Fang et al (2024): Estimation, Calibration, Counterfactual

Slides for the first three weeks: Quantitative Spatial Lecture I

 

Week 4: From Theoretical to Quantitative

Paper Report:

  1. Eaton and Kortum (2002) Technology, Geography and Trade

  2. Allen and Arkolakis (2014) Trade and the Topography of the Spatial Economy

 

Week 5: Spillover and Agglomeration

Paper Report:

  1. Duranton and Puga (2020) The Economics of Urban Density

  2. Ahlfeldt et al (2015) The Economics of Density: Evidence from the Berlin Wall

 

Week 6: Spatial Economics in China (I)

Paper Report:

  1. Tombe and Zhu (2019) Trade, Migration, and Productivity: A Quantitative Analysis of China

  2. Fan et al (2018) The Alibaba Effect: Spatial Consumption Inequality and the Welfare Gains from e-Commerce

 

Week 7: Spatial Economics in China (II)

Paper Report:

  1. Huang and Zhang (2024) School Restrictions, Migration and Peer Effects: A Spatial Equilibrium Analysis of Children's Human Capital in China

  2. Fan and Li (2023) Skill-Biased Imports, Skill Acquisition, and Migration

 

Week 8: Granular Issues

Paper Report:

  1. Silva and Tenreyro (2006) The Log of Gravity

  2. Dingel and Tintelnot (2021) Spatial Economics for Granular Settings

 

Week 9: Path Dependence

Paper Report:

  1. Bleakley and Lin (2012) Portage and Path Dependence

  2. Allen and Donaldson (2018) The Geography of Path Dependence

 

Week 10: Spatial Equilibrium with Trade (I)

  1. Eaton and Kortum(2002) Technology, Geography and Trade

  2. Caliendo and Parro (2015) Estimates of the Trade and Welfare Effects of NAFTA

 

Week 11: Dynamic Spatial Equilibrium (I)​

  1. Caliendo, Dvorkin and Parro (2019) Trade and Labor Market Dynamics: General Equilibrium Analysis of the China Trade Shock

Week 12: Dynamic Spatial Equilibrium (II)​

  1. Kleinman, Liu, and Redding (2023) Dynamic Spatial General Equilibrium

Slides for week 10-12: Quantitative Spatial Lecture II

 

Week 13: Infrastructure

Paper Report:

  1. Miyauchi, Nakajima, and Redding (2022) The Economics of Spatial Mobility: Theory and Evidence Using Smartphone Data

  2. Ma and Tang (2024) The Distributional Impacts of Transportation Networks in China

 

Week 14: Other Topics (Back up)

  1. Fajgelbaum and Gaubert (2020) Optimal Spatial Policies, Geography, and Sorting

  2. Donaldson (2018) Railroads of the Raj: Estimating the Impact of Transportation Infrastructure

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