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 ?
Given that economic rent and renting apartments are both legitimate, it would be strange if seeking out these things would be at all problematic.
For the Rent averages, the current and previous prices of a sampled housing unit are its current and previous economic rents, of course.
level stated rent, with the same present value as the economic rent, of
This isn't what the media are talking about when they rage against the economic rents being received by greedy bankers on Wall Street.
On the other hand, Ben Amour noted that the Competition Council will address the issue of economic rent in a workshop, expected to take place on the 21th of April in Rabat preparing for the international debate about competition that will take place from the 14th to 17th of December in Tangier.
Its main features affecting economic rent are new technologies in methods and equipment, changes in the size and scope of operational units and insecurity of the market environment.
The other competing firms will have to produce at a high cost and the difference between the unit cost of production of competing firms and the lowest unit cost of production of the firms possessing these scarce resources result in economic rent known as 'Ricardian rent'.
Many proponents of no gain at issue acknowledge the possibility of economic rent, but question whether it can be reliably measured.
In tax appeal cases, the appraiser is required to determine the economic rent or income for the property which may be higher or lower than the actual rent.
12) The argument essentially is that if the economic rent returns from innovation are restricted to primary markets, and competition eliminates such returns in aftermarkets, then the incentive to innovate will be reduced.
Only when needed did the state transfer economic rent to certain firms in exchange for political support, which resulted in a few privileged LEs (initially relying on emigre capital from the Mainland).
Economic rent can take the form of licensing fees for the radio spectrum, interest on a savings account, dividends from a stock, or the capital gain from selling a home or vacant lot.

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