ABSTRACT
An economic examination of the charges of widespread waste of timber resources necessitates a careful consideration of what constitutes waste. In short, waste and efficiency are not absolute concepts measured by energy input and output; they must be considered in the context of the relative economic scarcity at the time when decisions were made. In the context of economic theory and in light of historical data, the allegations of waste and inefficiency have little credibility. The evidence on Great Lakes timber production during the late nineteenth century presents no justification for the political management of lumber-producing lands. The allegation that firms operated under a delusion that timber stands were inexhaustible requires a consideration of the information and the incentives timberland owners and managers had about present and future supplies and demands. Moreover, allegations that firms failed to adequately conserve timber for the future fail to consider the economics of resource allocation over time.
