Thirteen Types of Rent in the Globalized World
Scarcity rent was already identified and analyzed by Ricardo, but the concept of solidarity rent is the present authors’ innovation; then further sub-categories are introduced in this chapter. The rent-based interpretation of the importance of the natural resource sector is further generalized in this chapter. As Nicholas Kaldor and János Kornai have contended for decades, perfect competition exists only in economic textbooks. In reality, markets are oligopolistic not only in agriculture, in the extracting industries (as Ricardo thought), but also in the manufacturing and service sectors, too. The most efficient firms have always harness higher than average profits through larger mark-ups, or using this book’s own terminology: they collect scarcity rent.
KeywordsScarcity rent Solidarity rent Oligopolies Intellectual property rights Occupational licenses Minimum wages Pay-as-you-go pensions Trade unions
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