----------------- HES POSTING ----------------- 
 
To Michael Perelman, 
 
I would agree that the convergence problem is likely to be more  
difficult when dealing with longer-lived capital goods.  But, I would  
note that the "life" of a capital good is often a matter of  
technological or some other kind of obsolescence, rather than just  
the wearing-out of the capital good, per se.   
 
Thus, for the entrepreneur, the problem may be connected with  
scale and ease of exit.  Convergence is harder when investing in  
large-scale capital goods that one cannot easily dispose of.   
 
Barkley Rosser 
 
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