This paper formalizes in a fully-rational model the popular idea that politicians perceive an electoral cost in adopting costly reforms with future benefits and reconciles it with the evidence that reformist governments are not punished by voters. To do so, it proposes a model of elections where...

We study the effects of offshoring on wages, welfare and inequality through its impact on technology. To this end, we introduce directed technical change into a model of task-based production and offshoring. A unique final good is produced by combining a skilled and an unskilled intermediate...