@techreport{NBERw6084,
 title = "Rational Atrophy: The US Steel Industry",
 author = "Aaron Tornell",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "6084",
 year = "1997",
 month = "July",
 URL = "http://www.nber.org/papers/w6084",
 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.},
}