Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238147 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 2020-13
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
Abstract: 
This paper develops a simple theoretical model to analyze Marx's theory of ground rent. Using the model, I demonstrate two important results. First, if we take capital as exogenous, then total ground-rent can be decomposed into the three components: differential rent of the first variety (DRI), differential rent of the second variety (DRII), and absolute rent (AR). Second, if we endogenize capital outlays using profit-maximizing behaviour of capitalist farmers, then absolute rent becomes zero. Thus, under reasonable behavioural assumptions about landlords and capitalist farmers, there will be no absolute rent in a capitalist economy.
Subjects: 
ground rent
differential rent
absolute rent
JEL: 
B51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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