----------------- 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 ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]