On Minimum Rents: Part 2, A Modern Interpretation

Alan W. Evans
Additional contact information
Alan W. Evans: Centre for Spatial and Real Estate Economics, Faculty of Urban and Regional Studies, The University of Reading, Whiteknights, (PO Box 219), Reading, Berkshire, RG6 2AW, UK, a.w.evans@reading.ac.uk

Urban Studies, 1999, vol. 36, issue 13, 2305-2315

Abstract: The idea that there might be some minimum rent below which a land-owner would not let to any tenant was put forward by Marx, but with little supporting argument. In this paper, it is shown that the modern concepts and analysis of transaction costs and monitoring costs can explain why such a minimum rent might exist. Further, that risk and uncertainty, coupled with the fact that tenancies are usually for some years, also provide an explanation for the reluctance of land- and property-owners to let at minimal rents. Some empirical evidence is cited, particularly the substantial rents which have to be paid to lay telecommunication cables across private land.

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1080/0042098992430 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:36:y:1999:i:13:p:2305-2315

DOI: 10.1080/0042098992430

Access Statistics for this article

More articles in Urban Studies from Urban Studies Journal Limited
Bibliographic data for series maintained by SAGE Publications ().