May 5, 2015

What you always wanted to know about rent and profit

Comment on 'Bob Solow, Matt Rognlie, Paul Romer, Mason Gaffney, the economic statisticians and rent incomes’


As it happens, the interconnection between profit, distributed profit, ‘rent’ and land ownership has already been untangled by Constructive Heterodoxy under the title Essentials of Constructive Heterodoxy: Institutions.

The correct rent theory is part of the new heterodox curriculum.

Why should anybody wait for Bob Solow, Matt Rognlie, Paul Romer, Mason Gaffney ‘to take steps in the right direction’ (as orthodox economists they are irrecoverably over the cliff)? The real message is that Heterodoxy has already settled the question.*

Egmont Kakarot-Handtke

*See also the working paper When Ricardo Saw Profit, He Called It Rent: On the Vice of Parochial Realism at SSRN