Neoclassical Paretian Rent
Neoclassical economics extends the concept of rent to include factors other than natural resource rents. But the labeling of this version of "rent" may be somewhat opportunistic or simply incorrect in that Vilfredo Pareto, the economist for whom this kind of rent was named, may or may not have proffered any conceptual formulation of rent.
- "The excess earnings over the amount necessary to keep the factor in its current occupation"
- "The difference between what a factor of production is paid and how much it would need to be paid to remain in its current use"
- "A return over and above opportunity costs, or the normal return necessary to keep a resource in its current use"
Read more about this topic: Economic Rent
Famous quotes containing the word rent:
“The arbitrary division of one’s life into weeks and days and hours seemed, on the whole, useless. There was but one day for the men, and that was pay day, and one for the women, and that was rent day. As for the children, every day was theirs, just as it should be in every corner of the world.”
—Alice Caldwell Rice (1870–1942)