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Questions tagged [rent]

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If land value taxes should be estimated at highest and best use, wouldn't that mean that planning/zoning gain would not be captured?

According to Dwyer (2014), a land value tax should be based on the highest and best use. I interpret this as not taking into account the permissible use, meaning that people owning land in a zone that ...
Victor Nielsen's user avatar
1 vote
1 answer
69 views

Why is land considered fixed if the supply of land for a particular use is not fixed?

There is a very strong consensus that the supply of land is fixed or perfectly inelastic. However, I found this article by Wyatt (1994) that contests this view: To begin with, the conventional wisdom ...
Victor Nielsen's user avatar
3 votes
4 answers
177 views

Who bears the burden of a land value tax over the long-term?

EDIT: I’m not sure if “burden” implies I’m talking about incidence on sellers/buyers but I’m not; I’m just asking about who bears the cost of the tax (as in which people - current owners, future ...
Monkle's user avatar
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1 vote
1 answer
78 views

Why is economic rent not seen as a market failure?

Economic rent seems to be behind rising inequality and stagnating growth (Stiglitz, 2016) arguing that a wealth residual explaining both declining capital and labour shares in national income is ...
Victor Nielsen's user avatar
1 vote
1 answer
60 views

Why use Zillow data rather than just BLS rental data?

Housing/Shelter costs constitute around a third of inflation. I've noticed though in many reports people cite official BLS rent inflation data as well as rent data from Zillow and other such sources. ...
cel's user avatar
  • 11
4 votes
2 answers
58 views

Market failure in the provision of facilities for people with disabilities

In the US, I believe it is a statutory requirement that all places are accessible for people with disabilities. However, if it were not for this statutory requirement, I would imagine that accessible ...
Cola's user avatar
  • 335
0 votes
0 answers
57 views

Real-world examples of rent-seeking games

In rent-seeking games, players use costly effort to compete for a reward. The objective function of player $i$ may be \begin{align} \pi_i(x_i) = \frac{x_i}{\sum_{j=1}^nx_j}R - c_ix_i, \end{align} ...
arni's user avatar
  • 101
0 votes
0 answers
20 views

Forcible Depreciation as Rent Seeking

Suppose that there are two firms making widgets. Spacely Sprockets spends €100M per year on non-labor inputs, of which €20M is depreciation on equipment and €80M is on raw materials. They spend €50M ...
Lucky's user avatar
  • 101
5 votes
3 answers
2k views

What is the difference between economic rent and economic profit?

I've been having a hard time understanding the distinction between economic rent and economic profit. As far as I understand it, the terms mean as follows: Economic rent is any revenue received by ...
Mark Morales II's user avatar
1 vote
0 answers
28 views

What's the name of that research that drew the conclusion that rent prices are increasing because people work more from home?

If you have other articles on the field, please share. Thank you
BlackNinja's user avatar
1 vote
0 answers
66 views

What is the effect on shelter prices of raising interest rates?

In the UK, a rise in rates causes a rise in mortgage repayments. It can lead to landlords raising rents due to margin pressure, if their mortgage is not fixed or is close to the end of its fixed ...
Luke Puplett's user avatar