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Rational atrophy : the US steel industry

Author: Aaron Tornell; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©1997.
Series: Working paper series (National Bureau of Economic Research), working paper no. 6084.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Abstract: During the seventies and eighties the US steel industry received trade protection. However, these rents were not used to improve competitiveness. Instead, they were reflected in higher wages and a greater share of profits invested in sectors not related to steel. Moreover, the steel industry failed to adopt technological innovations on a timely basis and was displaced by the minimills. We rationalize these  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Aaron Tornell; National Bureau of Economic Research.
OCLC Number: 70068031
Notes: "July 1997."
Description: 1 online resource (37, [14] pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 6084.
Responsibility: Aaron Tornell.

Abstract:

Abstract: During the seventies and eighties the US steel industry received trade protection. However, these rents were not used to improve competitiveness. Instead, they were reflected in higher wages and a greater share of profits invested in sectors not related to steel. Moreover, the steel industry failed to adopt technological innovations on a timely basis and was displaced by the minimills. We rationalize these puzzling outcomes using a dynamic game between workers and firms.

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