Re: Economic Rent As Sum of Externalities

On Thu, 31 May 2007 00:58:49 +0000, Dan in Philly wrote:

<royls@xxxxxxxxx> wrote in message ...
On 30 May 2007 08:04:23 -0700, "James A. Bowery" wrote:

<snip>

Seems to me we can separate two kinds of rent. Owning a piece of land in its
original state (good farmland, a mountain pass) would yield the usual
definition of rent, and raises the issue of fairness (how did people get
ownership in the first place?)

But if you look at a city, an empty lot in a nice neighborhood is worth a
lot of money. Clearly the increased value is caused by the surroundings,
which I suppose is an externality.
Trying to figure out who is responsible for the increased value would be
difficult.

Dan in Philly

The same issue presents itself in either case. And as I said "It is
axiomatic that natural resources have NO COST. The stuff simply
exists." And it matters not why someone will be willing to pay his hard
earned labor for the exclusive use of a plot. Every nickle paid (less
the cost of enforcing tenure) is "economic rent".

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org

.

Relevant Pages

  • Re: Is this an allowable deduction?
    ... or that the rental income is more than the ... They both cost the same new, ... Suppose you were to buy a flat to rent out. ... appliance or similar, I think I will go for the WTA route, to receive ...
    (uk.business.accountancy)
  • Re: Is this an allowable deduction?
    ... or that the rental income is more than the ... They both cost the same new, ... Suppose you were to buy a flat to rent out. ... then you deduct utilities and council tax to arrive ...
    (uk.business.accountancy)
  • Re: engineers report on surveillance, privacy and social trust.....
    ... the impact of technology on privacy; ... I think a rental value should be put on personal information, ... name and address should cost £2 to rent. ... After all, people rent cars, and pneumatic drills, and tennis racquets. ...
    (uk.politics.misc)
  • Re: Dow 8000 is Rock Hard!
    ... phil scott wrote: ... PPT, manipulation, whereever it is 8000 is the wall! ... My mini ware house hosers have *raised my rent again...but not the ... I realize your frustrated with the cost of storage. ...
    (misc.invest.stocks)
  • Re: per capita GDP numbers : bogus?
    ... >>> to get a decent job, and temporary jobs aren't paying ... > high cost of living, ... HAS dramatically increased is land rent and ... cost of higher education. ...
    (sci.econ)