Rent Theory

Johannes Jäger

Land rent refers to the payment of a tribute to a landowner. As an institution or social relation, it regulates the use of land. Because the total sum of capitalized future rent payments constitutes the land price, land rent has an impact on the distribution of income between different classes or groups in society. In classical political economy, it was a crucial concept for understanding the relative income of landlords, capitalists, and workers. In current debates, land rent is used to explain the location of productive activities as well as the spatial segregation of different social groups within the urban and regional context. In general, land rent is crucial to the explanation of spatial development and its articulation with economic and social processes. The main concern of the classical economists was to understand the overall dynamics of economic accumulation and growth and to explain the distribution of income among different ...

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