Land Rent Theory Research Articles

Tourism-induced land acquisition in protected areas: Land rent dynamics and state monopoly rent around the Wulingyuan world heritage site in China

Tension between nature conservation, green grabbing, land acquisition for tourism, and value grabbing highlight a significant yet understudied area: the underlying land rent mechanisms and the state's role in driving green land acquisition for tourism. Using Marxian land rent theory, we explored how ‘state monopoly rent’ is produced by tourism-induced green land acquisition and the consequent displacement and resettlement of communities in and around the Wulingyuan World Heritage. State actors actively acquired land and land use rights for tourism development to maximise the rent gap despite, and perhaps because of, national nature conservation priorities and restrictions. State actors are a key player in the political economy of tourism by directly capitalizing on potential land rent in China.

Marxist Rent Theory and Its Applications in Developing Countries

The conceptual tools of Marxist rent theory, such as absolute and monopoly rent, need clarification. The institution of landed property, alone, is not responsible for absolute rent. The Marxist theory of land rent continues to apply under two contemporary conditions: (1) the agrarian stagnation in developing countries such as India and (2) the urban rents and property prices. Most owner-cultivators in developing countries could be earning negative rents. Furthermore, differential rents and monopoly rents — fueled by speculation and state policies — explain movements in urban rent and property prices if the organic composition of capital is similar across sectors.

Land rent theory and rent research of digital platform enterprises

Marxist land rent theory has unveiled the nature and source of land rent, providing the rationale for discussing the distribution of total social products among wages, profits, and land rents. This paper has systematically summarized the development of Marxist land rent theory and its application in the field of digital platform research by constructing the mathematical-political economic model on this basis, we divide digital platform enterprises' revenues obtained into average profit, differential rent, and monopoly rent, and then discuss the source and impact of each part of the revenues respectively. Our study finds that: First, digital platform enterprises need to obtain average profit to compensate for the investment in providing digital space, products, and services, satisfying the fundamental requirement for an equal amount of capital to obtain an equal amount of profit. Second, on the premise of improving production efficiency, digital platform enterprises transfer surplus-profit from the general productive departments in the form of differential rent, whereas having no influence on the average profit of the general productive department. Third, digital platform enterprises can redistribute social revenues by collecting monopoly rent, and the excessive expansion of the scale of monopoly rent will inevitably squeeze the average profit of the general productive department, affecting the requirements of capital accumulation for reproduction on an extended scale and the proportional relationship between departments in social reproduction. Therefore, in order to guide the healthy development of digital platform enterprises, we should meticulously examine the role of digital platform enterprises from the change of overall social-economic efficiency, understand the nature of different types of rents, and evaluate the dynamic impact of digital platform enterprises' overall revenues on the change of the whole society's average profit rate.

Singapore's Imminent Expiration of Land Leases: From Growth and Equality to Discontent and Inequality?

AbstractHaila described Singapore as a laboratory for a social scientist given the multiple ways land is used, managed or treated as a source of public revenue. Phang explains how housing has given the bottom 50 per cent of households, wealth equating to the level advocated in Piketty's ‘ideal society’. As fixed‐term leases expire, people who own apartments on public land will see their values fall to zero. Inequality will return, challenging the otherwise stable polity. Using both qualitative and quantitative methods, this paper explores how and why this unique land regime was created, and expose how theoretically inconsistent policies and their ad hoc, pragmatic application has created several rent leakages to a minority of the population who continue to hold freehold land. It offers some alternative strategies better informed by land rent theory, that might be adopted to preserve the benefits enjoyed for now.

MONETARY VALUATION OF AGRICULTURAL LANDS IN THE CONTEXT OF FORMING ECONOMIC RELATIONS IN THE AGRICULTURAL SECTOR OF UKRAINE

Introduction. The basis of the assessment of the market value of agricultural land is the theory of land rent or excess income generated during the use of land for obtaining the agricultural products. In turn, this income is determined not only by the natural conditions and quality of the land, but also by the prices of the products produced. It is also determined by the quantity, demand and supply of agricultural products in the sales markets, the level of wages and other costs in agricultural production, as well as the prevailing rate of interest on capital and the established rate of profit in agriculture. Methods. To solve the set research tasks, a complex of general scientific research methods was used: abstract and logical (when forming principles, theoretical generalizations and conclusions); monographic (study of scientific works on the regularities of the formation and development of land relations, research on the processes of formation, formation and development of land relations in Ukraine); hypotheses (determining the characteristics of land as a commodity and the specifics of the process of formation of the land market in Ukraine); statistical, method of synthesis and economic analysis, calculation (research of effectiveness and organization of land use in the agricultural sector); specification and formalization (development of approaches for determining the price of agricultural land plots). The results. A scientific approach to the reproduction of land resources in agricultural enterprises is proposed, which is based on a complex of organizational and economic tools of socially responsible management of activities, in particular: calculation of land tax and rent based on the adjustment of the value of agricultural land, creation of a corresponding special fund, motivation of agricultural producers to apply organic fertilizers, which will help increase the fertility of agricultural lands. Discussion. In the post-war period, the problem of monetary valuation of agricultural lands will significantly worsen, which will be caused by the revival of agricultural production in the corporate sector of the agrarian economy. In connection with this, there is a need to use the cost method of price formation, and as the main article, in our opinion; the costs will be related to the reclamation and demining of agricultural land. Keywords: monetary assessment, agricultural land, method, fertility, price.

David Ricardo – recognized leader in classical political economy (to the 250th anniversary of his birth)

Introduction. David Ricardo is a very prominent figure in the history of economic thought. He is a recognized leader in classical political economy and a reputable financier in both Britain and Europe in the first half of the XIX century. He is rightly considered one of the creators of the labor theory of value, he has brought it to its logical conclusion. The scientist made a significant contribution to the development of a scientific method for studying economic phenomena.Purpose of the research is to generalize the economic views of a prominent scientist on economic phenomena and processes, the action of economic laws that ensure the balance of a market economy and the basic principles of economic liberalism; analyze the Ricardo’s views on the laws of social wealth distribution between three classes of society and the impact of the existing distribution of income on the growth of wealth.Methods. The methodological basis of the study are such general scientific methods as analysis, synthesis, induction and deduction, which were used to assess the views, conclusions and recommendations of the scientist to ensure market equilibrium and increase the material wealth of society; historical – to understand the essence of the evolution of existing views on the labor theory of value, the theory of money and land rent; combining the abstract method with quantitative analysis to determine the quantitative characteristics of economic phenomena; positive and normative – to study the main and distinctive features in the views of representatives of classical political economy.Results. It has been researched the David Ricardo’s scientific work and it has been established that he was a prominent representative of classical political economy, a follower and at the same time an opponent of certain theoretical positions of Adam Smith. It was found that the most important ideas of economic theory have been reflected in his labor theory of value, the theory of capital and money, the theory of income distribution, tax theory and the theory of comparative advantage in international trade. It was established that the scientist had made a significant contribution to the development of the scientific method of research, in particular, by introducing the method of convergence from the abstract to the concrete and widespread use of the method of scientific deduction. According to the scientist, the subject of political economy should be the study of the laws of distribution of income between classes of society in the form of rents, profits and wages. D. Ricardo made a significant contribution to the justification of free trade policy in the international sphere, the importance and profitability of foreign trade for countries.Discussion. The prospect for further research is a deeper and more detailed analysis of the methods used by the scientist in the study of economic phenomena and processes. This will allow assessing the Ricardo’s contribution to the formation and development of economics more objective.

Urban Land Monetization-Driven Land Use Orientations: An Insight from Land Lease Prices in Addis Ababa

Urban land leasing is a land monetization strategy that was introduced in 1991 by the contemporary regime. Since then, urban center slum demolitions and their replacement by high-end commercial buildings and urban peripheral low-cost residential condominium expansions have been common occurrences in Addis Ababa. Land rentiers quote extreme land prices at the city center and relatively low prices towards the periphery. Therefore, it has been hypothesized that urban land supply and land prices are determinant factors for urban land use orientations, which have pushed low-end groups towards the periphery. Therefore, based on a lens of land rent theory, 1524 land lease prices and 1038 randomly selected land parcels using Google Earth were used to evaluate locational trends in land prices and land use orientations, respectively. This study revealed that there are significant variabilities between government benchmark land prices and actual quoted land prices. Because of the high rent gaps at the city center, significant land price quotations were recorded, and this overlaps with the urban center slum demolitions and slum resident resettlements at low-cost residential condominiums in the urban periphery. In the first 5 km from the urban economic center, land prices show a declining trend towards the periphery. The central business district is dominated by slums partially under demolition and high-end commercial buildings, while the periphery is dominated by high-rise low-cost residential condominiums. Therefore, the distance from the city center was found to be an explanatory factor of urban land prices. The contributions of other urban utilities to land prices, such as access to transportation routes, could be a future research area.

Class monopoly rent and the urban sustainability fix in Seattle's South Lake Union District

The paper contributes to the recent renaissance in Marxian land rent theory by examining the dynamics of rent in the context of contemporary urban sustainability policies and practices. It specifically examines the ways in which landowners, developers, and the local state work together to pursue class monopoly rent through a variety of policies and practices normally treated as separate, such as tax-increment financing, discursive-branding, urban growth boundaries, business improvement districts, and transfer of development rights. We implicate each of these practices as fundamentally linked insofar as they function as strategies for myriad invested actors in collaboratively pursuing class monopoly rent. In the process, we present a heuristic tool to conceptualize how these policies converge to the benefit of myriad rent seekers in the context of Seattle's rapidly redeveloping South Lake Union District. The study peels back the discursive and ostensibly progressive façade of urban sustainability to reveal a collaborative network of landowners, developers, and state actors whose goal is to increase rents. The multi-scalar dynamic of class monopoly rent is revealed as a constitutive feature of an urban sustainability fix embedded within wider processes of uneven neoliberal urbanization.

House Price Model Based on Land Rent Theory

House Price Model Based on Land Rent Theory

Evaluation of agricultural land: theoretical aspects

Purpose – the currently existing market prices for land in the republic, various types of payment for it on a single methodological basis are considered. Methods – analysis and synthesis, a systematic approach, logical, in order to ensure the rational use and protection of land, protect the rights of owners, land users and tenants, create an objective basis for setting land prices, land tax and rent. Results – the author states that in Kazakhstan market prices for land have not yet been formed, and the mechanism of payment for it does not stimulate the rational use of land resources. There is an obvious need to improve the economic mechanism for regulating land relations, reflecting differences in the quality of soils, depending on natural and artificial fertility, natural and climatic conditions of a certain area, location of land plots that affect such important indicators as gross production, gross and net income, profit. It has been justified that the economic assessment of the land value, i.e. determination of the comparative land value as a means of production in agriculture, contributes to the development of financial instruments of land and property policy of the country, region, stimulation of investment and the development of entrepreneurship. Conclusions – the value of a land plot should be determined taking into account all expected income and benefits from its use. In this sense, the evaluation of agricultural land in market conditions is the identification with the income they generate, which is based on the theory of land rent.

RETRACTED: Agricultural operation mode selection and development mechanism in ecological fragile areas under the background of china’s rural revitalization

Ecological civilization construction and rural revitalization is a strategic decision made by the central government to solve the problems of ecological protection and rural sustainable poverty alleviation. At present, the dominant agricultural operation modes in China can be roughly divided into three types: family farm mode, agricultural enterprise mode and cooperative mode. Practice has proved that different agricultural operation modes have different effects. In ecological fragile areas, how to adopt agricultural operation modes can not only promote agricultural prosperity and increase farmers' income, but also protect the ecological environment and promote the coordinated development of ecology and economy needs further analysis. Based on the current rural revitalization strategy and ecological protection background, this paper analyzes the operation mechanism of agricultural operation mode from the principal-agent and ecological land rent theory, and analyzes the development dimensions of advantageous agriculture of various modes. On the basis of rural and farmers, this paper provides references for the selection of agricultural operation mode in different regions. There are many factors that need to be considered in the choice of agricultural operation mode in ecological fragile area. In the future, each region should conduct analysis and treatment according to its own actual situation.

Assessing whether the best land is cultivated first: A quantile analysis.

Classical land rent theories imply that the best land is cultivated first. This principle forms the basis of many land-use studies, but empirical evidence remains limited, especially on a global scale. In this paper, we estimate the effects of agricultural suitability and market accessibility on the spatial allocation of cultivated areas at a 30 arc-min resolution in 15 world regions. Our results show that both determinants often have a significant positive effect on the cropland fraction, but with large variations in strength across regions. Based on a quantile analysis, we find that agricultural suitability is the dominant driver of cropland allocation in North America, Middle East and North Africa and Eastern Europe, whereas market accessibility shows a stronger effect in other regions, such as Western Africa. In some regions, such as South and Central America, both determinants have a limited effect on cropland fraction. Comparison of high versus low quantile regression coefficients shows that, in most regions, densely cropped areas are more sensitive to agricultural suitability and market accessibility than sparsely cropped areas.

Debate sobre a teoria da renda da terra no contexto agrícola, urbano e atual no Brasil

Resumo Este artigo apresenta o debate sobre a teoria da renda da terra, partindo do caso agrícola, passando pela teoria da renda do solo urbano, abordando suas modalidades e magnitudes à luz da teoria do valor. A renda capitalizada no preço do solo condensa um fundo de valor social cuja magnitude se expressa em função de variáveis macroeconômicas pela sua capacidade de interferir direta ou indiretamente nos salários e lucros. Essa abordagem teórica permite concluir sobre os efeitos econômicos do projeto de lei, em tramitação, que permite a aquisição das terras municipais pelo capital estrangeiro no Brasil.

Class monopoly rent, property relations, and Portland's homeless crisis

ABSTRACT This study deepens our understanding of the political-economic drivers of contemporary homelessness by bringing scholarly literature on land rent theory and the political economy of homelessness into closer dialogue. We interrogate the tactics in which the actors that comprise urban growth machines collaboratively work to control the spatiality of the homeless as a means of preserving their investments in urban space. In the process, we hypothesize that it is not just the mobilization of property toward rent-enhancement that both produces and spatially manages homeless populations, but in the neoliberal era, it is specifically the mobilization of property toward one particular category of rent: class monopoly rent. Based on a case study of Portland, USA, the study illustrates the conceptual value of this category of rent in illuminating the specific economic relationships that have underpinned the past four decades of homelessness in urban America, and concludes by discussing implications for policy.

СУЧАСНІ УМОВИ РОЗВИТОКУ ЗЕМЕЛЬНИХ ВІДНОСИН ТА ІПОТЕЧНОГО КРЕДИТУВАННЯ АГРАРНИХ ПІДПРИЄМСТВ

У статті досліджено розвиток земельних відносин, запровадження ринку землі сільськогосподарського призначення та іпотечного кредитування сільськогосподарських підприємств у контексті сучасних умов. В Україні обґрунтовано побудову систему іпотечного кредитування, що поєднує елементи однорівневої та дворівневої моделей. Доведено, що невід’ємною складовою частиною фінансового обслуговування суб’єктів господарювання в Україні повинна стати розгалужена мережа спеціалізованих державних і недержавних іпотечних структур. Центральною ланкою системи земельно-іпотечного кредитування повинен стати Державний акціонерний земельний (іпотечний) банк. Таким чином, заходи щодо підвищення ефективності використання земель сільськогосподарського призначення повинні проводитися в комплексі з удосконаленням фінансово-кредитного механізму.

Educational Differential Land Rent of School Distinct Housing and the Effect of Unequal Educational Opportunities

School district housing plays an important role in the assignment of elementary education resources in China. In the past 20 years, the price of school district housing has risen much higher than that of ordinary housing, which has aroused a great concern of the society. It is not only a theoretical problem, but also a practical problem needs to be solved. The existing research mainly focuses on the empirical analysis of measuring the premium of school district housing, while the theoretical research is relatively less, and the effect of school district housing has not been paid enough attention.This paper addresses to the above problems. In our theoretical analysis, based on the perspective of political economy, we introduce the theory of differential land rent, put forward the concept of “educational differential land rent”. We find out that the generation of school district housing premium follows this path: The imbalanced government investment in education causes the difference among schools; when school enrollment is combined with property rights, the excess profits of human capital in the future turns into the educational differential land rent; the rent affects the land price, and ultimately leads to the premium of school district housing. The effect of school district housing premium is reflected in: The family background affects the decision-making of the payment of the educational differential land rent, which leads to unequal educational opportunities.In our mathematical model, we find that the core factors affecting the payment of educational differential land rent are the family wealth and the expected return of education. When the government inclines educational investment to key schools, the educational differential land rent will increase, the competition on school district housing purchase will intensify, and the income inequality among the next generation will be worse.In our empirical study, we use data from China Family Panel Studies（CFPS） to measure the educational differential land rent. We find that the key school district housing has a higher educational differential land rent, and this rent has a significant positive impact on the school district housing price; family wealth has a significant positive impact on the payment of educational differential land rent. Therefore, the government should incline educational investment to ordinary schools, and expand the supply of education, so as to promote more equitable educational opportunities.The academic value of this paper could be concluded in three aspects: First, it studies the problem of school district housing in China from the perspective of political economy, analyzes the causes of the school district housing premium, and develops the theory of differential land rent. Second, it makes a systematic study on the problem of school district housing, and finds that the family background will lead to unequal educational opportunities through the path of educational differential land rent. Third, based on the micro database, we introduce family characteristics into the regression model, and calculate the educational differential land rent.

Appropriating rent from greenfield affordable housing: developer practices in Johannesburg

‘Affordable housing’ for Johannesburg’s growing middle class is a developmentalist imperative and potentially lucrative market. However, few greenfield developers have found this market profitable. Fundamental to those who have, is control over land and its development. This paper puts heterodox urban land rent theory to work vis-à-vis the logics and practices of these developers. I illustrate how greenfield affordable housing developers work to (re)produce differential and monopoly rents in this context. Differential rents rely on investing in cheap land produced through the city’s racialised geography, and controlling land’s development through vertical integration, dynamic negotiations with local government and development finance institutions, and steering money and people into developments. Monopoly rents rely on the power of developers to act together as a class to secure land, give the appearance of competition and lobby the state in their interests. This power is built through racialised control over land and long personal connections. It is also consolidated by the state’s own land development bureaucracy and preference for ‘mega’ developments and recognisable developers. Together, these developer strategies to accrue differential and monopoly rents demonstrate their active role in the everyday making of land and housing markets. They also demand extensions of heterodox urban land rent theory: first, a more articulated understanding of how class monopoly power over land is built through race, and second, a more contingent analysis of capital’s relations to other actors and institutions, especially the state.

Class Monopoly Rent and the Redevelopment of Portland's Pearl District

AbstractThis study examines the role of class monopoly rent in shaping the spatial form and pattern of urban redevelopment processes in the contemporary neoliberal city. Since an initial flourishing literature during the 1970s and 1980s, urban land rent theory has fallen from the analytic radar of critical urban studies since the early 1990s, with the influence of class monopoly rent often considered an aberration of how capitalist real estate markets normally operate, if not rejected. Consequently, class monopoly rent has never been systematically elaborated. Based on an empirical analysis of Portland's Pearl District, this study suggests that the influence of class monopoly rent in contemporary processes of urban redevelopment is far more pervasive than often recognised, representing a “standard institutional practice” that is endemic (rather than aberrational) to the working of neoliberal urban governing regimes, and embeds in the social and physical landscape in a multiplicity of ways.

Absolutna renta gruntowa – ujęcie retrospektywne i współczesne

W artykule Autorzy nawiązują do teorii renty gruntowej ze szczególnym uwzględnieniem renty absolutnej, co do istnienia, której w ekonomii nie ma zgodności. Celem rozważań jest ocena, jak współcześnie kształtuje się renta z tytułu rzadkości ziemi rolniczej w warunkach aktualnych tendencji na rynku ziemi w Unii Europejskiej i dylematów w tym zakresie. Podjęto się przy tym weryfikacji tezy, że konieczne jest odmienne podejście do absolutnej renty z ziemi, uzależniając ją od struktury obszarowej i własnościowej czy celów produkcyjnych gospodarstw rolnych. Obserwowane prawidłowości mogą jednak ulegać zmianom w wyniku wprowadzania lub zwiększania ograniczeń obrotu nieruchomościami rolnymi unormowanych prawem europejskim lub poszczególnych państw członkowskich UE, jak i postulowanych instrumentów wspólnej polityki rolnej.

Mr. Ricardo's Theory of Land Rent

The top award for research given by the American Real Estate Society is the David Ricardo Medal, and 2017 is the 200th anniversary of the publication of The Principles of Political Economy and Taxa...