Reallocation and technology: Evidence from the US steel industry

Journal Article (Journal Article)

We measure the impact of a drastic new technology for producing steel the minimillon industry-wide productivity in the US steel industry, using unique plant-level data between 1963 and 2002. The sharp increase in the industry's productivity is linked to this new technology through two distinct mechanisms: (i ) the mere displacement of the older technology (vertically integrated producers) was responsible for a third of the increase in the industry's productivity, and (ii ) increased competition, due the minimill expansion, drove a productivity resurgence at the surviving vertical integrated producers and, consequently, the productivity of the industry as a whole.

Full Text

Duke Authors

Cited Authors

  • Collard-Wexler, A; De Loecker, J

Published Date

  • January 1, 2015

Published In

Volume / Issue

  • 105 / 1

Start / End Page

  • 131 - 171

International Standard Serial Number (ISSN)

  • 0002-8282

Digital Object Identifier (DOI)

  • 10.1257/aer.20130090

Citation Source

  • Scopus