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economic rent
(redirected from Scarcity rent)

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.03 sec.
Economic Rents
1. Profits in excess of what the market would otherwise command. A company can receive economic rents if it is a monopoly, or if it is part of a cartel. See also: Rent-seeking behavior.

2. The amount of money the owner of a property can reasonably demand in order to rent that property.

economic rent
The rent reasonably to be anticipated in the marketplace as opposed to the actual rent.For an investor familiar with economic rents in an area,there are usually many opportunities to buy properties at values based on contract rents,and then raise the rents and realize immediate growth in equity and the ability to refinance for amounts in excess of the original purchase price. Also called market rent.


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2) What mattered was whether policies created scarcity rents and whether the government received the rents and used them to lower other distortionary taxes.
Even if capital costs were trivial and one would not need rents to cover them, capacity constraints would bind during the time it takes to build the plants, producing scarcity rents until new plants are built.
This scarcity rent is the value of Z' permits, area 2 + 3 in Figure 1.
 
 
 
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