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GTAP University (GTAP-U): 2019 GTAP Firm Heterogeneity (GTAP-HET) Course

2019 GTAP Firm Heterogeneity (GTAP-HET) Course

"Applied Policy Analysis with Advanced Trade Theories"

General Information
Dates: October 7 - November 17, 2019
Location: GTAP-HET is delivered fully online. There is no onsite component to this course.
Offered by: Center for Global Trade Analysis, Purdue University
Course Content
The GTAP-HET Course is a hands-on, fully-online course developed to provide professional economists and Masters/PhD students with the tools and skills necessary to use advanced trade theories in trade policy analysis. During the course, participants will:
  • learn about the Melitz model of heterogenous firms, viewed as a more general version of the Krugman model of monopolistic competition, and Armington model with perfect competition;
  • develop skills to use the GTAP Firm Heterogeneity (GTAP-HET) Model where Armington, Krugman, and Melitz models are nested in the GTAP computable general equilibrium framework;
  • conduct trade policy experiments and interpret simulation results using the GTAP-HET Model in team-based research projects.
The GTAP-HET Course is delivered fully online and is designed to target four specific learning methods: READ, LISTEN, DO, and DISCUSS. where participants are expected to:
  • READ the assigned papers to have a solid background in firm heterogeneity theory,
  • LISTEN to the video lectures that highlight the theory and estimation in firm heterogeneity models as well as how to implement them in GTAP,
  • DO the assignments and research projects to develop the hands-on experience required for applying the learned material in policy analysis,
  • DISCUSS the new material and related questions on the bulletin board with course participants.
Content Overview
  • Week 1 - "Getting Started"
    • Participants download and familiarize themselves with the course website, material, and software
  • Week 2 - "Introduction to Firm Heterogeneity"
    • New economic behavior introduced in the Melitz model
    • Differences across Armington, Krugman, and Melitz models
  • Week 3 - "Firm Heterogeneity in GTAP"
    • Supply-side and demand-side changes in GTAP to implement firm heterogeneity
    • New and modified equations in the code
    • Simulation exercises with a stylized GTAP-HET Model
  • Week 4 - "Data and Parameter Needs in GTAP-HET"
    • Methods of estimation/calibration of key parameters in GTAP-HET
  • Week 5 - "Group Research Project"
    • Replication of simulation results with a tariff cut scenario in a 2x3 stylized GTAP-HET model based on Akgul et al. (2016)
    • Extension/analysis of the Akgul et al. (2016) simulation OR extension/analysis using a different data/aggregation
  • Week 6 - "Wrap-Up and Evaluation"
    • Final discussions and course evaluation

Time Commitment
Participants should expect to spend approximately 10-12 hours/week on this course.
Course Graduates
8 individuals from 4 different countries completed the 2019 GTAP-HET Course.

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Center for Global Trade Analysis
Department of Agricultural Economics
Purdue University
403 West State Street
West Lafayette, Indiana 47907-2056 USA

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