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 ?
When a large portion of economic activity is in the form of exports, the home state is able to capture the economic rents from foreign visitors, while exporting many of the negative externalities when the visitors return home.
S,i]) and economic rents for the units (i) in the segment in the current month ([ER.
Why shouldn't the true economic rent be taxed away, as Henry George suggested?
Simultaneously, Myanmar's military regime has long bought loyalty in various ways, primarily by creating a privileged "state within a state" inside the military itself, but also by dispensing access to economic rents among the business conglomerates that have recently played a prominent role in the country's economy.
Because such inefficiency is a potential source of economic rents, increased competition could reduce teacher pay.
The RBV suggests moreover, that resources enable the generation of economic rents and quasi-rents and name four characteristics of resources essential for gaining sustainable competitive advantage, e.
A majority of scholars agree with the explanation of RBV through Ricardian rents and emphasize that heterogeneity of resources are the primary cause of economic rents (Peteraf, 1993; Barney, 1991).
Some developers are seeing the potential in what were traditionally viewed as secondary locations such as the Black Country and Staffordshire - and tenants are following suit with lower labour costs and good labour supply and economic rents at a discount to the prime rents of circa pounds 1 per sq ft.
However, as Guriev and Rachinsky (2005) argue, many Russian oligarchs favoured further institutional reform in the rule of law and in private property rights to protect their economic rents from the autocratic government.
increased price reduces market demand and increases market supply, which reduces price, causing capital and rivals to enter markets earning economic rents, which drives prices down and economic rents out of the market) dominate disequilibrating positive feedback effects triggered by innovation.
Firms that earn positive or zero economic rents can persist indefinitely, and firms that earn negative economic rents can persist temporarily until they deplete their resource stocks, but firms that persistently earn negative economic rents cannot persist indefinitely .
By continuously acquiring and developing resources and capabilities, a firm can achieve a sustainable competitive advantage that yields economic rents.

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