In this article we will discuss about:- 1. Introduction to the Ricardian Theory of Rent 2. Assumptions of the Ricardian Theory of Rent 3. Explanation and Illustration 4. Criticisms. Introduction to the Ricardian Theory of Rent: David Ricardo, an English classical economist, propounded a theory to explain the origin and nature of economic rent. He defined rent as "that portion [...]
In this article we will discuss about:- 1. Definition of Economic Rent 2. The Division of Total (Factor) Incomes 3. Determinants of the Division. Definition of Economic Rent: In economics rent refers to producer's surplus. It is different from contract or commercial rent, which refers to the price paid to hire something, such as a machine or a piece of [...]
The following article will guide you about how there can be a rent element in the remuneration of any factor. Also learn about the definition of rent. Rent Element in All Factor Incomes: Ricardo restricted his theory of rent to the income from land only. In his opinion, rent of land arises owing to the fixed supply of land and [...]