economic rent meaning
Noun: economic rent
- The return derived from cultivated land in excess of that derived from the poorest land cultivated under similar conditions
Derived forms: economic rents
Encyclopedia: 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).
A payment for the services of an economic resource which is not necessary as an incentive for its production. Unimproved land, which is valuable purely on account of its location, commands a rent based on its value to the user. Nobody had to be paid to make it, so rent paid to a landlord is economic rent. In the case of land which has been improved, however, for example by drainage, part of the rent is a necessary incentive for the improvements. If landlords knew that no rent could be charged, the land would not be improved. People with special abilities may receive some element of economic rent, but it is hard to distinguish this from a return on the time and effort that leading baritones or barristers put into their specialized training.
- it is a very blunt instrument to use as device to extract economic rents from the exploitation of a resource.
- rent economic or pure economic rent
- analysis on the mechanism of sustained economic rents creation is strategic management
- pure economic rent
- 2 we choose the maximum sustainable yield as the management objective; we choose the maximum sustainable economic rent as the management objective in