Chapter 2 The nature of land rent and land value capture
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The classical economy regards rent as a regular payment for the use of land, as well as a specific historical social institution (the latter was particularly emphasized by Marx), which regulates the relationship between landowner and capitalist or producer (Jaèger, 2003). British classical political economist William Petty made a pioneering contribution to the theory of rent and developed a theory of value. Petty argued that all things ought to be valued by two natural denominations: land and labour. The natural rent of a land is the excess of what a labourer produces on it in a year over what he eats himself and trades for necessities (Petty, 1662). A representative of the French physiocratic school, Turgot, published his best-known work, Reflections on the Formation and Distribution of Wealth (Turgot, [1766] 2012). It argues that the surplus of agriculture products is generated from the special kind of natural productivity that is the natural gift of ‘pure products’.

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