MINING SURPLUS: MODELING JAMES A. SCHMITZ'S LINK BETWEEN COMPETITION AND PRODUCTIVITY

Jeremy Greenwood and David Weiss

International Economic Review, 2018, vol. 59, issue 3, 1015-1034

Abstract: James A. Schmitz documents, in a well‐known case study (Journal of Political Economy 113 (2005), 582–625), a dramatic rise in productivity in the American and Canadian iron‐ore industry following an increase in competition from Brazil. Prior to the increased competition, the industry was not competitive. Economic profits were divided between business and unions. Schmitz attributes the increase in productivity to a change in work practices in the industry, as old negotiated union work rules were abandoned or modified. This research formalizes a mechanism through which a rise in competition can lead to increased productivity in the iron‐ore industry.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/iere.12295

Related works:
Working Paper: Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity (2017)
Working Paper: Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity (2013)
Working Paper: Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:iecrev:v:59:y:2018:i:3:p:1015-1034

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Michael O'Riordan and Dirk Krueger

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().