Land rent

Depending on the operational efficiency entrepreneurs are more or less income.This, in turn, affects the relationship between the owners and users of the resources, and the value of the resources themselves on the market.

land rent - is an economic category, provides for the regulation of relations between entrepreneurs, using the land and the landowner.Outwardly, this category is a pay-per-use.At the same time it is part of the cost of the product obtained by owner.

On the economic side of the land is always a direct factor of production or is used for placement of production facilities, residential and office premises, as well as transport and other communication systems.At the same time it does not belong to the category freely reproducible production factors.

Today, land resources are of great importance.In today's world non-reproducible factor of production is the whole natural environment, is transformed under conditions conducive to the reproduction of the world economy in general.However, as experts note, the natural environment is just beginning to be applied in real economic relations affecting the reproduction of both public and separate capital.

main feature of market relations associated with the use of land as a limited, non-replicated the natural factor is the rent of land.

pricing in agriculture has distinctive features.They are mainly related to the rigidities, limited supply of land.It is these special offers distinguish income from the natural resources of the profits, interest and wages.

Land rent occupies a special position in economic science.This is largely due to the fact that for a long period of agriculture is the main economic sector.

Different authors theory of land rent is treated differently.

According to Marxist doctrine, this type of income is a converted form of surplus value together with interest, profits and wages.Surface land rent is a charge for the territory, which could create the impression that the area itself and generates income.This doctrine of the economic value of labor denies this, pointing out that the value is created only by living labor.Land rent is thus formed of unpaid surplus labor of agricultural workers.Part of the surplus value produced by entrepreneurs tenant territory, they paid the owners of this territory.

According to the theory of production factors and the marginal productivity of the concept of rent is defined as the remuneration received by the owner of the land or other natural resources, which corresponds to the marginal productivity of factors.

One of the interpretations defines these payments as no independent income, but as a percentage of the loan for a fixed capital, which is embedded in the rented sector.

According to the theory of the Physiocrats rent is a pure natural product, the only really gets income society.

According to another doctrine, that payment is considered to be unfair income.For example, in America criticisms against rent payments took the form of a motion for the introduction of the single tax.It should be noted that this movement has been generated by the book "Progress and Poverty" G. George and obtained considerable support in the late 19th century.