| This dissertation examines models of short-run labor demand, short run production behavior, and pricing decisions as applied to the U.S. coal industry. The models are drawn from many authors--Frank Brechling, R. J. Ball, E. B. A. St Cyr, Ray C. Fair, Charles C. Holt, Franco Modigliani, John F. Muth, Herbert A. Simon, David A. Belsley, Chikashi Moriguchi, Otto Eckstein, Gary Fromm, David Wyss, and William D. Nordhaus. The study examines the theoretical foundations of the models. Annual anthracite and bituminous coal data are used to estimate each model to find which best describes the events in the coal industry. The author argues that the areas of inquiry should be viewed as a joint problem. Four systems of equations are formed. They are estimated using two stage least squares. The results are compared with the single equation (ordinary least squares) estimation results. Simulations of the estimated systems are run. Finally, the author forms his own system in an attempt to better model the industry and to test various propositions.;The results indicate that the coal industry is less competitive than might at first be thought. There is evidence that employers hold excess labor services over most of the business cycle. Labor market monopsony does not appear to exist. Demand is found to be price inelastic in the short-run. |
