----------------- HES POSTING ----------------- Roger, I am not certain, but I suspect that it was Irving Fisher who first formalized the neoclassical idea that the rate of interest arises out of a marginal equation between subjective time preference and capital productivity, in which the latter includes such things as the rate of improvement of aging wine and the natural growth rate of forests. Fisher said cut forests when their growth rate equals the (real) interest rate, a solution incorrect as Faustmann had shown more than half a century earlier in German. Barkley Rosser ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]