Journal Files A.A.S
Economic Rent (return above opportunity cost from natural limits to supply)
|
S |
S |
P |
| Inelastic Supply of land close
to center of econ. activity. Plus Econ. of Scale in creating centers of economic activity. |
Market (Factor ownership of land not
an issue, but right to rent is)
1. Anti-trust (competition) Administration 1. Rent Control at op. cost (Allow some rent to be earned to be
sure opportunity costs are covered.) 2. Tax some of the rent 3. Build new town. Hard to develop at large scale (similar to introducing a wholly new computer operating system.) |
1. Rent still earned (above op. cost) Price rations fixed supply. 1. Excess demand requires non-price rationing. No effect on supply or maintenance of buildings. Less distortion of public land use planning & investments. 2. No effect on supply.... 3. New town successful. |
| IUG land uses between farm and development for urban uses. Residential users like to retain some farms. | 4. Subsidize farmer to stay 5. Deny access to sewer and water 6. Public purchase of development. right. |
4. Won't be sufficient to prevent exit
when prices rise sufficiently. 5. Reduce sprawl. 6. Not enough public money to make much headway against large rents that owner see coming. |
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