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8

Because the supply of land is essentially fixed, land rents depend on what tenants are prepared to pay, That doesn't make any sense. If more people want to live in a particular place, rents will increase. And if rents increase, then obviously tenants are prepared to pay more. If they aren't willing to pay increased rents, then they don't really ...


3

Existence of rent has nothing to do with whether market is competitive or not. First there are different definitions of rent. As explained in the Palgrave dictionary of economics (Alchian 2017): Rent’ is the payment for use of a resource, whether it be land, labour, equipment, ideas, or even money. The term is often restricted to payment for use of land or ...


3

There's the theory, and there's the reality. Let's say there's an across-the-board rent tax of \$100 per property. The theory is that if landlords could just arbitrarily increase rent by \$100, they would've done it already. They haven't, therefore they can't. The reality is that if every landlord in the city increases rent by \$100 at the same time and ...


3

The true answer is of course it depends. What it depends on is how you define sustainability. In a natural resources context, with weak sustainability, soil quality is a capital asset, just as a fish stock, a forest or an oil field. Given that we have manure and fertilizer I would argue that it is a renewable resource (until we run out of phosphate perhaps ...


3

The video has a transcript with the references. The \$0.25B figure is obtained from here (after adjusting for inflation). Unfortunately, the author does not provide a source for the \$1.2B figure. However, there are estimates of the value of land elsewhere. For example, here. Their estimates on a map: These estimates consider the value of land only, ...


2

It is important to distinguish between a) the total stock of building land, much of which may be already built upon, and b) that (usually small) part of the stock on which new building takes place in a particular period. A simple way to include building land within an aggregate production function for a period would be to focus on (b) as an input which, in ...


2

Land would fit into production functions or many economic models the same/similar way as other factors of production. An example of general Cobb-Douglas function with land would be: $$Y(K,L,T) = A K^{\alpha}L^{\beta}T^{1-\alpha-\beta}$$ Where $K$ is capital, $L$ labor, and $T$ land. Into most economic models land can be integrated rather easily as the ...


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Because of population growth, savings, and technological innovation the stock of capital and augmented labor are growing over time. These forces raise the marginal product of land. Unlike capital, the supply of land is fixed. This means that the supply of land can't increase in response to the rising marginal product. Investors have to be indifferent between ...


2

We could argue about some of your assumptions, but that would lead to unnecessary opinion-based discussion. In a (perfectly) competitive market everyone is a price taker. This is not the case here. Therefore, it is not a perfectly competitive market. However, before this is taken as a reason to radically restructure society and property rights, you should ...


1

While it’s true that firms can pay other firms for land or capital (and in fact firms can pay another firms for entrepreneurship - you can hire consulting firms, and there are also firms that ‘borrow’ workers to other firms). All firms are in the end owned by some household. Even if legally you can have both physical and legal persons (i.e. limited company ...


1

In practical terms the leaseholder will need a certain degree of certainty over her future rent payments on the lease to be able to make the investment. That’s why leaseholds often have long durations (in Germany typically 99 years). At the end of the lease the buildings become property of the freeholder. Depending on the jurisdiction the freeholder may have ...


1

The correct answer is that it does not. It goes to zero as tax rate increases to infinity. The reason for that is that the rent derived from land (assuming away any necessary land maintenance) can be thought of as a windfall gain. As a result all incidence of burden from such tax must fall on the holder of the land. Already If the tax is equal or above 100% ...


1

Supply response causes a change in prices, the incidence which is shared between the producer and the consumer. As land is defined as everything not supplied by human effort, thus perfectly inelastic, there is no supply response so the incidence of a LVT falls only on the landowner. In practice the value of land is the difference in productivity/average ...


1

Though these are only educated guesses (contract law is not my forte) I'd suppose that there might be a few reasons why this is: It's best able to handle the competing interests of the parties involved. Historically, the US Federal Government was more willing to grant public lands to railroads (particularly in the little-settled west). However, due to ...


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