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Law Of Rent
The law of rent states that the rent of a land site is equal to the economic advantage obtained by using the site in its most productive use, relative to the advantage obtained by using marginal (i.e., the best rent-free) land for the same purpose, given the same inputs of labor and capital. Description The law of rent was formulated by David Ricardo around 1809, and presented in its most developed form in his magnum opus, ''On the Principles of Political Economy and Taxation''. This is the origin of the term "Ricardian rent". Ricardo's formulation of the law was the first clear exposition of the source and magnitude of rent. John Stuart Mill called it the "" of economics. Ricardo formulated this law based on the principles put forth by Adam Smith in ''Wealth of Nations''. "The rent of land, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Advantage
In an economic model, agents have a comparative advantage over others in producing a particular good if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade. Comparative advantage describes the economic reality of the work gains from trade for individuals, firms, or nations, which arise from differences in their factor endowments or technological progress. (The absolute advantage, comparing output per time (labor efficiency) or per quantity of input material (monetary efficiency), is generally considered more intuitive, but less accurate — as long as the opportunity costs of producing goods across countries vary, productive trade is possible.) David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country's workers are more efficient at producing ''every'' single good than workers in other countries. H ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Von Thünen Rent
The term ''von'' () is used in German language surnames either as a nobiliary particle indicating a noble patrilineality, or as a simple preposition used by commoners that means ''of'' or ''from''. Nobility directories like the ''Almanach de Gotha'' often abbreviate the noble term ''von'' to ''v.'' In medieval or early modern names, the ''von'' particle was at times added to commoners' names; thus, ''Hans von Duisburg'' meant "Hans from he city ofDuisburg". This meaning is preserved in Swiss toponymic surnames and in the Dutch or Afrikaans ''van'', which is a cognate of ''von'' but does not indicate nobility. Usage Germany and Austria The abolition of the monarchies in Germany and Austria in 1919 meant that neither state has a privileged nobility, and both have exclusively republican governments. In Germany, this means that legally ''von'' simply became an ordinary part of the surnames of the people who used it. There are no longer any legal privileges or constraints assoc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Von Thünen Rent
The term ''von'' () is used in German language surnames either as a nobiliary particle indicating a noble patrilineality, or as a simple preposition used by commoners that means ''of'' or ''from''. Nobility directories like the ''Almanach de Gotha'' often abbreviate the noble term ''von'' to ''v.'' In medieval or early modern names, the ''von'' particle was at times added to commoners' names; thus, ''Hans von Duisburg'' meant "Hans from he city ofDuisburg". This meaning is preserved in Swiss toponymic surnames and in the Dutch or Afrikaans ''van'', which is a cognate of ''von'' but does not indicate nobility. Usage Germany and Austria The abolition of the monarchies in Germany and Austria in 1919 meant that neither state has a privileged nobility, and both have exclusively republican governments. In Germany, this means that legally ''von'' simply became an ordinary part of the surnames of the people who used it. There are no longer any legal privileges or constraints assoc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Schumpeterian Rent
Schumpeterian rents are earned by innovators and occur during the period of time between the introduction of an innovation and its successful diffusion. It is expected that successful innovations, in time, will be imitated, but until that occurs, the innovator will earn Schumpeterian rents. They were named after economist Joseph Schumpeter, who saw profits made by businesses as resulting from the development of new processes which disturb economic equilibrium, temporarily raising revenues above their resource costs. This type of profit is also called ''entrepreneurial rent''. Schumpeterian rent is seen as a form of economic rent, although Schumpeterian rent may be seen as an incentive towards greater economic efficiency. Karl Marx In Marxian economics, the equivalent to Schumpeterian rent is the ''extra surplus value'' that is extracted from the laborer during the rise of ''local productivity'', meaning the development of the productive forces through innovation owned by the res ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rack-rent
Rack-rent denotes two different concepts: # an excessive rent. # the full rent of a property, including both land and improvements if it were subject to an immediate open-market rental review. The second definition is equivalent to the economic rent of the land plus interest on capital improvements plus depreciation and maintenance—the normal market rent of a property—and is not inherently excessive. Also, this may be different from the rent actually being received. Historically, rack-rent has often been a term of protest used to denote an unjustly excessive rent (the word "rack" evoking the medieval torture device), usually one paid by a tenant farmer. The two conceptions of rack-rent both apply when excessive rent is obtained by threat of eviction resulting in uncompensated dispossession of improvements the tenant himself has made. I.e., by charging rack-rent, the landowner unjustly uses his power over the land to effectively confiscate wages, in addition to merely charging ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Iron Law Of Wages
The iron law of wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker. The theory was first named by Ferdinand Lassalle in the mid-nineteenth century. Karl Marx and Friedrich Engels attribute the doctrine to Lassalle (notably in Marx's 1875 ''Critique of the Gotha Program''), the idea to Thomas Malthus's ''An Essay on the Principle of Population,'' and the terminology to Goethe's "great, eternal iron laws" in '' Das Göttliche''. It was coined in reference to the views of classical economists such as David Ricardo's law of rent, and the competing population theory of Thomas Malthus. It held that the market price of labor (which tends toward the minimum required for the subsistence of the laborers) would always, or almost always, reduce as the working population increased and vice versa. Ricardo believed that this happened only under particular conditions. Lassalle Acc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Henry George
Henry George (September 2, 1839 – October 29, 1897) was an American political economist and journalist. His writing was immensely popular in 19th-century America and sparked several reform movements of the Progressive Era. He inspired the economic philosophy known as Georgism, the belief that people should own the value they produce themselves, but that the economic value of land (including natural resources) should belong equally to all members of society. George famously argued that a single tax on land values would create a more productive and just society. His most famous work, ''Progress and Poverty'' (1879), sold millions of copies worldwide. The treatise investigates the paradox of increasing inequality and poverty amid economic and technological progress, the business cycle with its cyclic nature of industrialized economies, and the use of rent capture such as land value tax and other anti-monopoly reforms as a remedy for these and other social problems. Other works by ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Georgism
Georgism, also called in modern times Geoism, and known historically as the single tax movement, is an economic ideology holding that, although people should own the value they produce themselves, the economic rent derived from land—including from all natural resources, the commons, and urban locations—should belong equally to all members of society. Developed from the writings of American economist and social reformer Henry George, the Georgist paradigm seeks solutions to social and ecological problems, based on principles of land rights and public finance which attempt to integrate economic efficiency with social justice. Georgism is concerned with the distribution of economic rent caused by land ownership, natural monopolies, pollution rights, and control of the commons, including title of ownership for natural resources and other contrived privileges (e.g. intellectual property). Any natural resource which is inherently limited in supply can generate economic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Rent
In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities (e.g., patents). In the moral economy of neoclassical economics, economic rent includes income gained by labor or state beneficiaries of other "contrived" (assuming the market is natural, and does not come about by state and social contrivance) exclusivity, such as labor guilds and unofficial corruption. Overview In the moral economy of the economics tradition broadly, economic rent is opposed to producer surplus, or normal profit, both of which are theorized to involve productive human action. Economic rent is also independent of opportunity cost, unlike e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Differential And Absolute Ground Rent
Differential may refer to: Mathematics * Differential (mathematics) comprises multiple related meanings of the word, both in calculus and differential geometry, such as an infinitesimal change in the value of a function * Differential algebra * Differential calculus ** Differential of a function, represents a change in the linearization of a function *** Total differential is its generalization for functions of multiple variables ** Differential (infinitesimal) (e.g. ''dx'', ''dy'', ''dt'' etc.) are interpreted as infinitesimals ** Differential topology * Differential (pushforward) The total derivative of a map between manifolds. * Differential exponent, an exponent in the factorisation of the different ideal * Differential geometry, exterior differential, or exterior derivative, is a generalization to differential forms of the notion of differential of a function on a differentiable manifold * Differential (coboundary), in homological algebra and algebraic topology, one of t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Factor Of Production
In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, goods and services. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function. There are four ''basic'' resources or factors of production: land, labour, capital and entrepreneur (or enterprise). The factors are also frequently labeled "producer goods or services" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods". There are two types of factors: ''primary'' and ''secondary''. The previously mentioned primary factors are land, labour and capital. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour, and capital. The primary factors facilitate production but neither becomes part of the product (as with raw materials) nor becomes significantly t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Political Economy
Political economy is the study of how economic systems (e.g. markets and national economies) and political systems (e.g. law, institutions, government) are linked. Widely studied phenomena within the discipline are systems such as labour markets and financial markets, as well as phenomena such as growth, distribution, inequality, and trade, and how these are shaped by institutions, laws, and government policy. Originating in the 16th century, it is the precursor to the modern discipline of economics. Political economy in its modern form is considered an interdisciplinary field, drawing on theory from both political science and modern economics. Political economy originated within 16th century western moral philosophy, with theoretical works exploring the administration of states' wealth; "political" signifying the Greek word '' polity'' and "economy" signifying the Greek word '; household management. The earliest works of political economy are usually attributed to t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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