TY  - JOUR
AU  - Tornell,Aaron
TI  - Rational Atrophy: The US Steel Industry
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6084
PY  - 1997
Y2  - July 1997
UR  - http://www.nber.org/papers/w6084
L1  - http://www.nber.org/papers/w6084.pdf
N1  - Author contact info:
Aaron Tornell
Department of Economics
UCLA
405 Hilgard Ave, Bunche Hall #8283
Los Angeles, CA  90095-1477
Tel: 310/794-1686
Fax: 310/825-9528
E-Mail: tornell@econ.ucla.edu
AB  - 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.
ER  -