This paper analyzes a dynamic, Ricardian model of international trade in which relative differences in technology are endogenously determined by investments in innovation by competitive firms. It considers the impact of these investments on trade patterns and the effect of trade patterns on...

This short paper reconsiders the popular result that the lower the probability of getting reelected, the stronger the incumbent politicians incentive to follow short-sighted, inefficient policies. The set-up is a general equilibrium model of endogenous growth and optimal fiscal policy, in which...