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Price markups and firms' Tobin's Q ratios are widely believed to have been increasing in the past several decades. Various models for the calculation of price markups have been developed, each relying on the historically held definition of the ratio of price to marginal cost; however, all of these have methodological drawbacks, and some of the results they have produced have been poorly reflective of the near past wider macroeconomic experience. This paper defines a new approach for the definition and measurement of markup pricing, and it also avoids some of the issues surrounding the marginal cost approaches by using the measure of economic rent and the capital asset pricing model. The results show limited markup pricing for the UK's FTSE 100 companies (2018–2023), but that certain real estate, technology/media and financial services/equity investment firms have enjoyed higher price markup levels. An analysis of the business models of these firms is used to qualitatively propose explanations for such markups. This work offers formal proof that that the expected price markup is equal to Tobin's Q and finds that the empiric market level of markup is near equivalent to the market Tobin's Q; the differences between the markup and Tobin's Q at the level of the firm are equally assessed. This work challenges the general consensus that price markups are above one and have been increasing; it may also aid policy makers with respect to taxation policy and regulatory measures, as well as the financial management of firms in decisions concerning capital deployment and portfolio management. The method merits expansion to wider data sets, as well as to those from outside of the UK. [ABSTRACT FROM AUTHOR]

The basis of rent has progressively shifted from valuing material goods which are subject to classical supply and demand forces to valuing more intangible sources of scarcity that impact the value state of abstract goods or experiences. In order to quantify the value ascribed to this new abstract asset class in this paper, we propose a new type of rent called Art-Rent. In this work, we describe Art-Rent in classical price, cost, and income (PCI) terms and use the subject of determining value of abstract painting as a test case. In order to quantify Art-Rent, we subject the total value calculation of abstract art to three models of PCI assessment. We determined that art is systematically undervalued and propose that Art-Rent can be factored into calculations for any commodity which holds any abstract recurring future value to the consumer. [ABSTRACT FROM AUTHOR]

The Australian economy has performed well compared with comparable countries over the last three decades only if we average the excellent performance in the 1990s and the poor performance over the past decade. Real wages over the past decade have stagnated—to an extent without historical parallel. We cannot understand the economy's underperformance without recognising the increasing claims of economic rents on national income. Correction of weaknesses requires coordination of many policy instruments including measures to reduce the prevalence of rents (competition policy and regulation of oligopoly where competition is not feasible or inefficient) and changes in taxation arrangements to shift the burden of business taxation from firms in competitive activities to firms relying heavily on economic rents. [ABSTRACT FROM AUTHOR]

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This article develops the concept of housing market 'rentierization' to describe the shift in the treatment of housing away from its use as a consumption good to an asset from which economic rent can be extracted. Rentierization encompasses, but goes beyond, the 'financialisation of housing' that has been the focus of attention in the recent political economy of housing literature as it involves changes across land and housing market policy, fiscal-policy as well as financial policy spheres. We examine Australia as a canonical example of rentierization, conducting a historical case study that examines the returns to land and housing over the 20th century and trace its roots to developments that preceded the financial liberalization of the 1980s, including the privatization of public housing in the 1960s and 70s. [ABSTRACT FROM AUTHOR]

One of the most basic criteria in documenting rangeland use prospects is the recognition of byproducts and their economic appraisal. The current study was conducted to assess the economic indices of exploiting byproduct production in Shahindej, Northwest Iran. For this purpose, 24 by-product-generating species were selected in 114 locations that belong to 49 rangeland units. The total expected value of 24 by-product generating species yield and forage production was calculated at 44.22 USD ha−1. The results of this study showed that the sustainability of natural resources depends on the effective participation and empowerment of local communities. Furthermore, by-product exploitation contributes significantly to the local economy and employment while also reducing grazing intensity. Overall, the findings of this study show that by-product earnings should be considered in range management schemes and comprehensive natural-area management. [ABSTRACT FROM AUTHOR]

It is not easy to perform a numerical simulation of the path to a steady state in dynamic economic growth models in which households behave by generating rational expectations. It is much easier, however, if households are assumed to behave according to a procedure based on the maximum degree of comfortability (MDC), where MDC indicates the state at which a household feels most comfortable with its combination of income and assets. In this paper, I simulate how economic inequality increases in democratic countries under the supposition that households behave according to the MDC-based procedure. The results indicate that high levels of economic inequality can be generated and even increase in a democracy. As causes, I postulate households' misunderstandings of the economic situation, a government against certain groups in the economy, or an upward trend in temporary rent incomes. I then present a criterion for establishing the socially acceptable level of economic inequality and point out a practical shortfall arising from the inability to distinguish temporary economic rents. [ABSTRACT FROM AUTHOR]

A method for measuring rents has practical relevance for society in terms of improving competition, regulation, and taxation. This paper proposes a new way to measure rents for business corporations and at country-level: a method related to a cash flow tax (CFT). Theory, method and a proof of concept are presented and discussed. Publicly available data is used to validate the method, revealing that it yields a better indication of rents and rent-seeking compared to markup, profit, and free cash flow (FCF). [ABSTRACT FROM AUTHOR]

There is increasing consensus that modern capitalist economies suffer from excessive rent extraction in both financial and real economy sectors. However, scholars have yet to develop a coherent analytical framework for identifying the common characteristics of modern economic rents. In particular, there has been little attention paid to distinguishing 'good' rents—key to innovation and growth—from 'bad' forms which contribute to economic stagnation and inequalities of wealth and income. This paper takes some first steps in this direction. We first review the existing rent theory most pertinent to this distinction, including classical political economy, the early twentieth century institutionalists, neoclassical perspectives and Keynes's analysis of financial rentiers. Secondly, we map and conceptualise some key stylised features of modern rents, drawing on descriptive empirical evidence. We then identify the key questions that these developments raise for rent theory, elaborating a new research and policy agenda. [ABSTRACT FROM AUTHOR]

Despite apparent efficiency concerns, the use of agricultural insurance as a policy tool has surged in rural China. Its use offers a natural experiment to assess both economic theory of property rights and agricultural policy effectiveness, and to revisit the rent dissipation model that was originally developed to explain the role of property rights in unsustainable fisheries harvest decisions. We focus on evidence of resource overpricing behavior in the context of subsidized agricultural insurance, including evidence of a theoretically-expected increasing rent pattern. Our results reinforce the importance of transactions costs as a driver of economic inefficiency and highlight the role of social costs as an important factor to explicitly consider when designing agricultural policy. In particular, when employing the formal policy mechanism of rural agricultural insurance, we suggest that informal risk-bearing arrangements can be leveraged to reduce social costs behind apparent overpricing behavior and increase land users' welfare consistent with intended policy goals. [ABSTRACT FROM AUTHOR]

Balancing out uneven regional development and territorial disparities is an urgent task. Solving it requires considering the geo-economic features of various parts of Russia’s spatially structured territory. This study aims to describe trends in the economic space transformation and structural changes in the economies of the North-Western Federal District. Exploring the economic space transformation, the paper draws on economic theory and geography, the concepts of cluster and power generation cycles, regional economics and other theories. It presents the results of the institutional and economic research of income capitalization and the role of the institutional factor, along with regional gross value added (GVA) analysis by activity types. The study investigates the movement of capital (rent) in the economic space. There are several noticeable trends: the Arkhangelsk and Murmansk regions, the Komi and Karelia Republics have diversified their economies by developing manufacturing and mining, while the Murmansk and Pskov regions did that by stimulating agriculture. Regional factors generating rent at significant transaction costs are found to be affected by institutional factors. The paper concludes that structural changes in the economy of the Russian north-west regions are wavelike in nature. The indexes of regional GVA and industrial market development point to the existence of a transition zone between the structural phases of the wave, with the transition mostly taking place in 2014. The trigger for the second phase of the wave, along with new structural changes, was international sanctions and growing confrontation reducing capital outflow and contributing to further structural changes in the regional economy.

Societal Impact Statement The Fourth Industrial Revolution is underway. Controversy surrounds the choice of modality for access to genetic resources and the fair and equitable sharing of benefits arising from their utilization, as established in the third objective of the Convention on Biological Diversity. The modality chosen by the Conference of the Parties should promote conservation and sustainable use of genetic resources, which are the first and second objectives of the convention. “Bounded openness over natural information” achieves all three objectives by aligning incentives between users and Providers. With philanthropic support, the modality can also be applied to unpublished traditional knowledge, which would enhance food security. Summary Several international agreements have provisions for “access to genetic resources” and “fair and equitable sharing of benefits arising from [their] utilization” (ABS). The optimal modality has proven elusive for the United Nations Convention on Biological Diversity (CBD) and Nagoya Protocol (NP). Such failure need not be so. We embrace reductionism and partition genetic resources into tangible and intangible attributes and classify the latter as natural or artificial information. The economics of information justifies “rents,” which is the difference between what is paid and what would have been paid in a competitive market. Fairness and equity imply protection for natural information equal to that of artificial information. Bilateralism eliminates rents through competition and renders royalties infinitesimal, thus defeating ABS. The proposed Global Multilateral Benefit‐Sharing Mechanism (GMBSM) could capture rents and distribute royalty income proportional to habitat for terrestrial species, and to CO2 reductions for marine species and wild relatives of crops. Alignment of incentives for conservation would facilitate transition to half‐Earth. Domesticated species require stronger incentives for conservation than do nondomesticated species. The Multilateral System (MLS) of The International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) should be expanded. Enclosure of traditional knowledge not yet in public domain through a benefit‐sharing mechanism could incentivize communities to deposit samples into the CGIAR Genebanks and resume seed exchange, which is essential for food security. A robust modality of ABS for the CBD, NP, ITPGRFA and other agreements is “bounded openness.”

Background and objectives: Despite implementing rangeland plans, several reports on unfavorable condition of rangeland management are published. This indicates that the pressure on the rangeland is higher than their capacity. Their exploitation did not comply with the scale of its production and not equal to the scientific criteria (Mohamadi et al., 2007). Therefore, the description of the services of rangeland management plans should be revised. During the rangeland's technical evaluation and issuing livestock grazing license, it paid special attention to the number of herders and suitable rangeland area required by each herder. It is believed that determining the optimal number of livestock is the most important management decision in the production and economy of pastoral units. This decision is very complex and depends on different criteria. Recognizing the costs and revenues of pastoral units for short and long-term planning of rangeland manager and government sectors is important in the basic use and maintenance of rangeland ecosystems. Methodology: Evaluation and economic analysis of tiaditional rangeland-based livestock husbandry in pastoral units of Sahand rangelands was the aim of tire stitdy. Through stiatified random sampling method 45 pastoral units were selected. Finally, the economic evaluation questionnaire was randomly completed by 205 utilizers. Expenses and incomes and Net present value and Cost-benefit ratios of tiaditional animal husbandry in pastoral units of Sahand rangelands were exttacted using questionnaire information. Also, economic rent and expected value from the perspective of Livestock Husbandry and forage production for the mentioned rangelands were calculated. The economic rent is the annual economic profit obtained from selling one product per unit area. Economic rent is calculated by subtracting explicit and hidden costs from the gross income and dividing the resulting value by the surface area. the expected value of each hectare of the investigated rangeland in terms of rangeland-based animal husbandry was determined by dividing the value of the economic rent by the Real discount rate. For calculations related to the economic justification of tiaditional livestock husbandry in pastoral units of Sahand rangelands, two indices of net present value of profit (NPV) and benefit to cost ratio (BCR) have been used. In the following equation, t is the useful life of the livestock husbandry period, B and C are the profit and cost of livestock husbandry in each year, i is the discount rate and n is the number of years. Results: Results showed that the utilizers of pastoral units of Sahand rangelands have an average of 85.19 hectares of rangelands and the average number of livestock for each utilizer in these rangelands is 277. Annually, each utilizer in traditional livestock spends 1994.14 million rials, most of which is related to the supply of feed and manual feeding of livestock. The total income of each operator during the year was an average of 2697.38 million rials, the major part of which is related to the sale of livestock. Economic benefit per utilizer in summer rangelands is 1704.38 million Rials. hr the winter sector, the economic loss was estimated at 539.10 million Rials per utilizer. The economic rent of exploiting the pastoral units of Sahand rangelands for animal husbandry was estimated at 8.26 million Rials per hectare and the expected value of these rangelands was 1.53 million Rials per hectare. According to the results of economic justification; hn the scenario with a discount rate of 14%, there is 2.712 million Rials and in the scenario with a discount rate of 18%, there is an economic loss of 2.928 million Rials per utilizer. The Costbenefit ratio in the scenario with a discount rate of 14% was 0.79 and in the scenario with a discount rate of 18% was estimated 0.76, which indicates the economic loss of rangeland-based livestock husbandry units in the pastoral units of Sahand rangelands. Conclusion: Financial analysis of Traditional Rangeland-based Livestock Husbandry units can provide tie necessary information and guidance to the country's rangeland managers and can also be used in the planning and macroeconomic policies of the country as well as the management of Rangeland-based Livestocks order to achieve the desired economic profitability and reduce livestock pressure on rangelands, the priority of the bureau of Rangeland Affairs should be the preparation of economic rangeland management plans. To achieve this, it is necessary to reduce the costs of livestock breeding by using new technologies and to make rangeland management as an economic activity by using multi-purpose use of rangelands. Cheaper rangeland management, empowerment of rangeland owners and increasing their welfare are the three basic preconditions for economic rangeland management and prevention of rangeland destruction. [ABSTRACT FROM AUTHOR]

Despite apparent efficiency concerns, the use of agricultural insurance as a policy tool has surged in rural China. Its use offers a natural experiment to assess both economic theory of property rights and agricultural policy effectiveness, and to revisit the rent dissipation model that was originally developed to explain the role of property rights in unsustainable fisheries harvest decisions. We focus on evidence of resource overpricing behavior in the context of subsidized agricultural insurance, including evidence of a theoretically-expected increasing rent pattern. Our results reinforce the importance of transactions costs as a driver of economic inefficiency and highlight the role of social costs as an important factor to explicitly consider when designing agricultural policy. In particular, when employing the formal policy mechanism of rural agricultural insurance, we suggest that informal risk-bearing arrangements can be leveraged to reduce social costs behind apparent overpricing behavior and increase land users’ welfare consistent with intended policy goals.

Societal Impact Statement The Fourth Industrial Revolution is underway. Controversy surrounds the choice of modality for access to genetic resources and the fair and equitable sharing of benefits arising from their utilization, as established in the third objective of the Convention on Biological Diversity. The modality chosen by the Conference of the Parties should promote conservation and sustainable use of genetic resources, which are the first and second objectives of the convention. "Bounded openness over natural information" achieves all three objectives by aligning incentives between users and Providers. With philanthropic support, the modality can also be applied to unpublished traditional knowledge, which would enhance food security. Summary: Several international agreements have provisions for "access to genetic resources" and "fair and equitable sharing of benefits arising from [their] utilization" (ABS). The optimal modality has proven elusive for the United Nations Convention on Biological Diversity (CBD) and Nagoya Protocol (NP). Such failure need not be so. We embrace reductionism and partition genetic resources into tangible and intangible attributes and classify the latter as natural or artificial information. The economics of information justifies "rents," which is the difference between what is paid and what would have been paid in a competitive market. Fairness and equity imply protection for natural information equal to that of artificial information. Bilateralism eliminates rents through competition and renders royalties infinitesimal, thus defeating ABS. The proposed Global Multilateral Benefit‐Sharing Mechanism (GMBSM) could capture rents and distribute royalty income proportional to habitat for terrestrial species, and to CO2 reductions for marine species and wild relatives of crops. Alignment of incentives for conservation would facilitate transition to half‐Earth. Domesticated species require stronger incentives for conservation than do nondomesticated species. The Multilateral System (MLS) of The International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) should be expanded. Enclosure of traditional knowledge not yet in public domain through a benefit‐sharing mechanism could incentivize communities to deposit samples into the CGIAR Genebanks and resume seed exchange, which is essential for food security. A robust modality of ABS for the CBD, NP, ITPGRFA and other agreements is "bounded openness." [ABSTRACT FROM AUTHOR]

The concept of economic rent is a prominent theoretical anchor for many sociologists studying distributional inequalities. However, its normative assumptions and implications have been undertheorized, leaving its connection to the reasons why we might object to economic rents unclear. In this article, I scrutinize economic rents through the two dominant egalitarian frameworks in political philosophy: luck egalitarianism and relational egalitarianism. I find that rents as typically conceptualized--as deviations from a competitive market outcome--fail to align with either normative framework, operating in some cases orthogonally to their concerns but mostly contradictory to them. Ultimately, economic rents provide an anti-egalitarian distributional metric, the perfectly competitive market, to pursue the egalitarian aim of eliminating structural advantages. The concept thereby fails to capture the way that distributional inequalities are normatively problematic or even what constitutes inequality in the first place. I conclude by using relational egalitarianism as a starting point for better grounding the concept of economic rent. [ABSTRACT FROM AUTHOR]

All business entities, regardless of their form of ownership, must obey established rules, when paying for the right to use licenses for inventions, renting films, publishing books, products, patents, innovations. The calculation of the amount of payment is carried out in accordance with the bilateral agreement. Calculating royalties, based on profits earned by an enterprise, has certain disadvantages. Many of the most diverse factors affect the volume of profit. The author’s approach and the method of determining the value of royalties for the development of mineral resources have been explained in the article. Their basis consists of: determining the value of economic rent as a result of the extraction and sale of mineral resources; ensuring, that mining companies receive income on their production capital at a level not lower than the average for the country’s economy as a whole.

Certain silvicultural operations enhance the flow of ecosystem services derived from forestlands. Monetary estimates of an increased flow of such services that can impact forest management decisions are generally lacking. Here we use a growth-and-yield model to estimate physical changes in water yield and assign monetary values to these changes under different regimes of forest thinning and planting density in a loblolly pine (Pinus taeda L.) stand located in South Georgia. The model is expanded to develop corresponding measures of water yield and net present value per each management scenario. Results show an expected inverse relationship between average annual water yield and economic rent. Further, the marginal costs associated with producing an extra liter of water (per unit area) decrease as thinning intensifies and planting density declines (US$1.35/kL to US$0.72/kL under a site index of 18.3 m and US$1.20/kL to US$0.66/kL, assuming a site index of 21.3 m) relative to our baseline scenario. We emphasize that a landowner's profits may be negatively affected by the provision of improved water yield downstream as it competes with timber extraction. Monetary payments are needed to encourage the net production of water from existing loblolly pine stands in South Georgia, United States. [ABSTRACT FROM AUTHOR]

This paper argues that the housing affordability and wealth inequality crises facing advanced economies are driven by the emergence of a feedback cycle between finance and landed property. The cycle has been created by the increasing policy preference for private home ownership coupled with the liberalization of bank credit and accompanying financial innovation. Under such conditions, landed property becomes both the most attractive form of collateral for the banking system and the most desirable form of financial asset for households and investors. The housing–finance cycle emerged in Anglo-Saxon economies in the 1980s but has since spread to most advanced economies. Demand-side reforms, more than the supply-side reforms that dominate policy discussion, are required to break this cycle. Two reforms are discussed: (a) structural and institutional reforms to banking systems, including central banks; and (b) land policy reforms targeted at reducing the potential for rent extraction and speculative profits from property ownership. [ABSTRACT FROM AUTHOR]

All over the world, probability-based flood protection designs are the ones most commonly used. Different return-period design floods are standard criteria for designing structural measures. Recently, risk-based flood management has received a significant appraisal, but the fixed return period is still the de facto standard for flood management designs due to the absence of a robust framework for risk-based flood management. The objective of this paper is to discuss the economics and criteria of project appraisal, as well as to recommend the most suitable approach for a risk-based project feasibility evaluation. When it comes to flood management, decision-makers, who are generally politicians, have to prioritize the allocation of resources to different civic welfare projects. This research provides a connection between engineering, economics, and management. Taking account of socioeconomic and environmental constraints, several measures can be employed in a floodplain. The Kaldor–Hicks compensation principle provides the basis for a risk-based feasibility analysis. Floods should be managed in a way that reduces the damage from minimum investments to ensure maximum output from floodplain land use. Specifically, marginal losses due to flood damage and the expense of flood management must be minimized. This point of minimum expenses is known as the "optimum risk point" or "optimal state". This optimal state can be estimated using a risk-based assessment. Internal rate of return, net present value, and benefit–cost ratio are indicators that describe the feasibility of a project. However, considering expected annual damage is strongly recommended for flood management to ensure a simultaneous envisage of the performance of land-use practices and flood measures. Flood management ratios can be used to describe the current ratio of expected annual damage to the expected annual damage at the optimal risk point. Further development of the approach may replace probability-based standards at the national level. [ABSTRACT FROM AUTHOR]

How and why are some firms, such as Ryanair, able to consistently record industry‐leading profitability that sustains a competitive advantage over their rivals? Human resource management (HRM) plays a critical role in four widely recognised profit‐generating mechanisms, albeit not always in ways predicted by mainstream strategic HRM. Studies of HRM → performance grounded in the resource‐based view of the firm invariably focus on the human resources already controlled by the firm—specifically, resources that are rare, inimitable, non‐substitutable and can be exploited through organisation—rather than strategic factor markets where firms acquire their human resources. In doing so, these studies overlook the industrial relations and wider institutional context that might variously promote, permit or preclude particular HR policies and practices. It is only when different profit‐generating mechanisms, either in isolation or combination, are activated under the auspicious conditions of a particular time and place that HRM contributes to sustained competitive advantage. [ABSTRACT FROM AUTHOR]

In the debate on global justice, proposals to tax natural resources in order to reduce global poverty and fund other worthwhile objectives have attracted scholarly attention and controversy. In this article, I argue that this debate can be advanced by more clearly focusing on natural resource rents rather than resources themselves or the undifferentiated stream of benefits they generate. I argue that taxes on natural resource rents cannot be reasonably rejected by either side in this debate, and that the arguments typically used to resist distributive claims to natural resources either have no relevance when it comes to rents, or actually support such taxes. [ABSTRACT FROM AUTHOR]

The authors of the article have found that the vast majority of scientists, who study the rental relation problems in the economies of the post-Soviet countries adhere to the opinion on the validity of combining existing types of rent into two large groups by resources: natural and economic rents. Based on the results of the study, it is proposed to consider natural rent as a form of economic rent. Given the essence and economic nature of rent, and considering the need for its accounting representation, it is established that economic rent should be classified with a division into forms (absolute, differential of the 1st and 2nd kind, monopoly), types (natural and other resource rents) and subtypes based on the “way of using the rental resource”, “industry of formation”. The obtained scientific results will allow to consider the main provisions of the sustainable development concept and can be used as a basis for improving the theory and methodology, as well as the development of the organization and accounting methods for economic rent. The regulation of rental relations in the business sector determines the search for ways to reflect rent in accounting and management reporting, however, the solution to this problem is significantly hindered by the complexity of identifying and evaluating rent. Another problem is that today there is some inconsistency between the concept of "rent" and other derivative concepts, in particular, such as: "ground rent", "economic rent". Against the background of the existing scientific discussion on streamlining the essential differences between these concepts, the debate continues and the validity of the allocation of other types of rent, as well as the feasibility of introducing into the scientific circulation such concepts as “quasi-rent” and “anti-rent”. The authors have proposed to reflect in the enterprise accounting the economic rent according to its forms and types based on the resources used in economic activity. The proposed classification allows to consider the main provisions of the sustainable development concept and can be used as a basis for improving the theory and methodology, as well as the development of the organization and accounting methods for economic rent

This paper studies the role of middlemen in open-access fisheries and how the organization of the supply chains affects resource exploitation and the level and distribution of economic rent. Imperfect competition among middlemen can help ensure that fish stocks are not depleted, which is typically the case in open-access fisheries with competitive markets. Middlemen with market power can also induce higher economic rent for the supply chain in total, but these rents mainly benefit the middlemen. The supply chains of inshore anchovy and offshore skipjack tuna fisheries in Vietnam are used as empirical examples. The analysis shows that in the anchovy supply chain, the middlemen have insignificant market power and the stock is being overexploited. In the skipjack tuna supply chain, the middlemen have oligopsony power and the stock is higher than the level that produces maximum sustainable yield. [ABSTRACT FROM AUTHOR]

Two distinct causal mechanisms--resource-picking and capability-building--have been proposed in the strategic management literature about how firms create economic rents. Under the resource-picking mechanism, managers gather information and analyses to outsmart the resource market in picking resources, similar to the way that a mutual fund manager tries to outsmart the stock market in picking stocks. Under the capability-building mechanism, managers design and construct organizational systems to enhance the productivity of whatever resources the firm acquires. These two rent-creation mechanisms are certainly not mutually exclusive, and it is likely that firms generally use both of them. It is therefore important to consider the interaction between these two rent-creation mechanisms. Do they complement each other? Or are they substitutes for each other? In other words, do they enhance each other's value, or detract from each other's value? Answering these questions is a necessary precondition to understanding how firms should allocate their time and effort between these two rent-creation mechanisms. The present paper develops a basic theoretical model to address these questions, and derives testable hypotheses from the model. The model predicts that the two rent-creation mechanisms are complementary in some circumstances but substitutes in others. [ABSTRACT FROM AUTHOR]

The paper addresses the influence of various types of taxes on changes in differential (Ricardian) land rent, and the economic performance of agricultural producers. Labour and capital taxes lead to higher prices for agricultural products, causing a decrease in consumer demand and lower income for agricultural producers (mostly utilizing marginal land). A polynomial single-product model has been used to demonstrate that reducing the tax burden on agricultural producers - specifically taxes on labour and capital - will result in increases in differential land rents on the average and relatively better plots, and/or the emergence of the rent on the marginal land. Thus, substituting labour and capital taxes for land/property taxes reduces the overall tax burden of agricultural producers on marginal lands.