Tag Archives: rent

Figure 1: Order of Rentability Varying with Relative Markups1.0 Introduction Ownership is not productive, as Joan Robinson informs us. But, at least under competitive conditions one might hope, more productive assets earn their owners more than less productive assets. And this applies to scarce skills as well. But none of this is necessarily true, either. This article presents a numerical example in which, among scarce lands, rent per acre is higher on more fertile land only when...

1.0 Introduction I have decided that this previous post is inadequate. If intensive rent exists on some type of land, the system of equations for prices of production cannot include a process that only partially cultivates some other type of land producing the agricultural commodity. So to form an example with both intensive and extensive rent, I need the technology to specify the possibility of cultivating at least three types of land. I might as well include markup pricing so as to...

Figure 1: Wage Curves For A Fluke Case1.0 Introduction This post examines perturbations around a fluke case in a model of intensive rent. The model illustrates an analysis of prices and the choice of technique in which the quantity of commodites produced matters. Yet the level and composition of net output are taken as given, independent of any variation, for example, from their dependence on distribution and relative prices. The model also illustrates a case in which prices of production...

Figure 1: A Part of a Parameter Space This post revisits my numerical examples in which I demonstrate the possibility of the reswitching of the order of fertility and of the reswitching of the order of rentability. Each of those posts presents a numeric example. In each, different ranges of the coefficients of production a0,2 and a1,2 are considered. This post combines those ranges, while still not considering the full parameter space, even for the slice for these coefficients. In the...

Figure 1: Wage and Rent Curves for a Numeric Example1.0 Introduction This post continues, with some repitition, my exposition of a model of extensive and intensive rent. In the example, the cost-minimizing technique is non-unique at a low enough wage or rate of profits. One cost-minimizing technique, Epsilon, illustrates a case of extensive rent. The other cost-minimizing technique, Iota, illustrates a case with both extensive and intensive rent. In this technique, a kind of absolute rent...

This post continues the treatment of this model. A number of conditions must be satisfied by quantity flows and prices to allow the economy to undergo smooth reproduction. The net output of each produced commodity meets the requirements for use: (B - A) q = d The amount of each quality of land that is farmed cannot exceed the available quantity: C q ≤ t A vector is greater than or equal to another if each element of the vector is greater or equal to the corresponding element...

Figure 1: Wage Curves and Rent for an Example of Extensive Rent I more-or-less have a draft research article in five posts: post 1 post 2 post 3 post 4 post 5. I suggest that the current post can replace the fourth post. It is a variant on on this post. The analysis of the choice of technique in models of extensive rent can be based on the construction of wage curves, even though the outer envelope does not represent the cost-minimizing technique. The orders of fertility and rentability...

Table 3: Model Parameters and Variables Parameter or VariableDescriptionnThe number of produced commodities, with n > 1.kThe number of types of land, with k > 1.mThe number of processes available for producing corn on land, with m > k.a0A row vector of labor coefficients containing n + m - 1 elements. The element a0, j; j = 1, 2, ..., n + m - 1; is the person-years of labor needed to run the th process at a unit level.AA n x (n + m - 1) matrix. The element ai,j; i = 1, 2, ..., n; j...

This post begins the presentation of an example in which extensive and intensive rent can both arise. I do not consider external intensive rent or joint production in general. Kurz and Salvadori (1995), in section 2.2 of Chapter 10, have a more general model that includes external extensive rent and joint production. It does not allow for more than one agricultural commodity, although they treat that in problems, with examples from the literature. Perhaps developing this example will help...

Figure 1: An Example of the Reswitching of the Order of Fertility1.0 Introduction Nobody has ever pointed out the possibility highlighted by this post, as far as I know. This post can be contrasted with this one. Talk of "switch points" and "reswitching" for the wage curves on the left pane in Figure 1 above is, arguably, an abuse of terminology. Quantity flows do not change around the switch points. The same lands are fully farmed, and the same land that is partially farmed has the same...