The term 'rent' is an
unfortunate one. Its meanings in Economics differ from the ordinary usage. In
the every day speech, the term, rent is applied to the periodic payments made
regularly for the hire of a particular asset.
The theory of economic rent was first propounded by the English Classical
Economist David Ricardo (1773 -1823). David Ricardo in his book. "Principles of
Political Economy and Taxation", defined rent as that:
The modern economists like Pareto, Mrs. Joan Robinson, Boulding, Sligler,
Shepherd, have tried to simplify and generalize the Ricardian theory of rent.
There is a controversy in the Ricardian theory of rent whether rent enters
into the price of the produce or not. Ricardo is of the view that rent does not
form a part of the price of agricultural production. It is the result of price.
The concept of quasi-rent owes its origin to Dr. Alfred Marshall.
is of the opinion that:
Economic progress has a close
bearing on rent. Economic progress can take the form of: