Ricardian Rents

In the eighteenth century, the Physiocrats gave land a special status in the economy. It was, according to François Quesnay, the only productive input. All wealth came from the land. Adam Smith and A. R. Turgot did not entirely side with the Physiocrats on that point and saw industry (e.g., Smith’s pin factory) also as a source of wealth. But land kept a special status in the writings of many classical economists, including David Ricardo. He was concerned, among other things, with explaining the earnings that accrue to different groups in society and understanding the impact of land appropriation on...