Growth and Rents in the Real Economy

Edward Nell
Additional contact information
Edward Nell: New School

Chapter Chapter 3 in Henry George and How Growth in Real Estate Contributes to Inequality and Financial Instability, 2019, pp 27-33 from Palgrave Macmillan

Abstract: Abstract Settlement and growth are explored in more detail and the processes driving up rents are modeled mathematically. Net aggregate product is increased each period by growth, and at the same time rents are driven up each period. Total land value is the capitalized value of rents capitalized at the long-term rate of interest, usually very close to the rate of growth. The formula derived here allows for growth to drive rents strongly or weakly, and for the growth rate to differ from the interest rate; but it nevertheless shows that George’s insight was well founded.

Keywords: Land value; Economic growth; Settlement; Consumption; Investment (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:psochp:978-3-030-18663-0_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030186630

DOI: 10.1007/978-3-030-18663-0_3

Access Statistics for this chapter

More chapters in Palgrave Studies on Henry George for the 21st Century from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().