economic rent

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economic rent

  1. payments (in money or in kind) made to the owner or controller of property for its use. Historically, in preindustrial societies, rent paid and received for LAND has been of major importance, e.g. under the FEUDAL MODE OF PRODUCTION. In MARXIAN ECONOMICS, with reference to situations where rent for land is levied in a context in which market relations exist, two main forms of rent are recognized:
    1. absolute rent, the basic level of rent; and
    2. differential rent, the extra rent obtained from land of higher than average productivity (not including any return on additional CAPITAL invested in improving the land).

    Debate has existed (e.g. Hindess and Hirst, 1975) as to whether taxes on peasant production levied by the state constitute a fundamentally different MODE OF PRODUCTION (see also ASIATIC MODE OF PRODUCTION) from the forms of rent' that emerged in Western Europe, or whether the ‘tax-rent’ couple constitute a single mode of production. For some Marxists, the attraction of the latter view is that the idea of a single developmental sequence of modes of production can be preserved.

  2. (ECONOMICS) rent or quasi-rent, any payment, or part payment, made for a FACTOR OF PRODUCTION, including human labour, which derives from an absolute shortage of supply (e.g. the fixed supply of land, inherent limitations in the supply of ‘talent’, outstanding musical or sporting abilities). Compare FUNCTIONALIST THEORY OF SOCIAL STRATIFICATION.

economic rent

That rent on a property which is sufficient to pay all costs of operation, maintenance, and payment of mortgages (but not utilities and services).
References in periodicals archive ?
This decision had a substantial effect on the development of the industry and, not incidentally, on the distribution of economic rents.
The estimates presented in this paper cast doubt on the conclusion that minimum wage jobs offer economic rents to all workers.
Thus, the organ shortage, which has worsened considerably in recent years, creates economic rents that, under the existing prohibition on organ sales, can only be captured by hospitals entering the transplant industry.
I propose a straightforward definition of entrepreneurship: the process by which individuals acquire ownership (property rights) in the economic rents of their creation.
This pioneering strategy involves high risk, but also involves low competition in the early stage of the market leading to substantial expected economic rents.
Progressivism, focusing on economic and social regulation, created new economic rents for which different groups of people would compete against one another, accentuating the already-existent ethnic divides.
The authors described the conditions under which adopting a loosely enforced regulatory structure in the early years of the Macao gaming market may have been an optimal design to generate more economic rents for both operators and regulators/government.
Even though economic rents are considerable, cement is one of the most polluting industries, the study said, explaining that 5 percent of the world's total emission of greenhouse gases is caused by cement production.
The first section of this article covers the relationship between unions, the rule of law, and economic rents from the origin of the union movement through the changing patterns of the three phases of its growth cycle as measured by membership.
Depending upon how stringent the cap, the real investment risk is that much of the economic rents from rising oil prices may be diverted from shareholders of oil producers to owners of much-sought-after emissions credits.
Political power is often useful both in obtaining economic rents and in preventing encroachment on those rents by outsiders.
Acemoglu and Robinson (2006) stress that new technologies and improvements in institutions are often blocked due to the fear of losing power, not the economic rents.

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