ECONOMIC RENT Definition & Meaning

economic rent

noun

the return on a productive resource, as land or labor, that is greater than the amount necessary to keep the resource producing or on a product in excess of what would have been the return except for some unique factor.

economic rent

noun

economics a payment to a factor of production (land, labour, or capital) in excess of that needed to keep it in its present use
(in Britain) the rent of a dwelling based on recouping the costs of providing it plus a profit sufficient to motivate the landlord to let it

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�y��vlog History and Origins

Origin of economic rent¹

First recorded in 1885–90

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Example Sentences

Examples have not been reviewed.

Kyle Pomerleau, a senior fellow at the American Enterprise Institute, said the approach would be better than a wealth tax at taxing the extraordinary returns investors receive because of what are known as economic rents.

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Companies with valuable monopolies typically force higher prices from customers, a.k.a. “economic rents.”

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A key means of doing so is through the legal power of patents, and the monopoly-like profits — or what some experts call unearned economic rents — they guarantee.

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The theory is that “economic rents” enable companies to enjoy excess profits by using legal or other regulatory tools to keep competitors at bay.

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These economic rents have the effect of transferring wealth from apartment renters and those seeking to purchase homes to landlords.

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