TAILIEUCHUNG - Luận án kinh tế - "Human and action" - Chapter 22

XXII. THE NONHUMAN ORIGINAL FACTORS OF PRODUCTION 1. General Observations Concerning the Theory of Rent In the frame of Ricardian economics the idea of rent was an attempt at a treatment of those problems which modern economics approaches by means of marginal-utility analysis. | XXII. THE NONHUMAN ORIGINAL FACTORS OF PRODUCTION 1. General Observations Concerning the Theory of Rent In the frame of Ricardian economics the idea of rent was an attempt at a treatment of those problems which modern economics approaches by means of marginal-utility Ricardo s theory appears rather unsatisfactory when judged from the point of view of present-day insight there is no doubt that the method of the subjective-value theory is far superior. Yet the renown of the rent theory is well deserved the care bestowed upon its initiation and perfection brought forth fine fruits. There is no reason for the history of economic thought to feel ashamed of the rent The fact that land of different quality and fertility . yielding different returns per unit of input is valued differently does not pose any special problem to modern economics. As far as Ricardo s theory refers to the gradation in the valuation and appraisement of pieces of land it is completely comprehended in the modern theory of the prices of factors of production. It is not the content of the rent theory that is objectionable but the exceptional position assigned to it in the complex of the economic system. Differential rent is a general phenomenon and is not limited to the determination of the prices of land. The sophisticated distinction between rents and quasirents is spurious. Land and the services it renders are dealt with in the same way as other factors of production and their services. Control of a better tool yields rent when compared with the returns of less suitable tools which must be utilized on account of the insufficient supply of more suitable ones. The abler and more zealous worker earns a rent when compared with the wages earned by his less skillful and less industrious competitors. The problems which the rent concept was designed to solve were for the most part generated by the employment of inappropriate terms. The general 1. It was says Fetter Encyclopaedia of

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