Chapter 14 Land And Rent,黄新飞 International Business School SunYat Sen University,2,Rent as Return to Fixed Factors,The price of using a piece of land for a period of time is called rent or, pure economic rent. Rent is the payment of the use of factors of production that are fixed in supply.,3,Fixed Land Must Work for whatever it can earn,R,L,D,D,S,S,Perfectly inelastic supply characterizes the case of rent. We run up the SS curve to the factor demand curve to determine rent.,4,Rent of land (dollars per year),Quantity of land,S,D,D,400 300 200 100 0,Q,In economics, we say that the landlord bears the burden of the tax.,S,E,E,L,D,D,5,Taxing Land,A tax on fixed land leaves prices paid by users unchanged at E but reduces rent retained by landowners to E,R,L,D,D,S,S,100,200,300,0,E,6,The Single Tax Movement,That is precisely the conclusion reached by someone a continent away in a similar situation. That person was the journalist Henry George, the time and place was 19th-century America, and the debate was over the so-called single tax movement.“ A tax on pure economic rent leads to no allocative inefficiency or dead weight loss,7,Basic Concepts,Capital (or capital goods) consists of those durable produced goods that are in turn used as productive input for further production. There are three major categories of capital goods: structures, equipment, and inventories of inputs and outputs.,8,Price and Rentals on Capital Goods,Price of capital goods denotes the price of capital goods bought and sold in capital-goods markets. Payments for temporary use of capital goods called rentals.,9,The Rate of Return on Capital,The rate of return on capital denotes the net dollar per year for every dollar of invested capital.,10,课堂测试,14世纪的欧洲，鼠疫的流行在短短几年内夺去了大约三分之一人口的生命。这个被称为黑死病的事件为检验我们刚刚提出了一个可怕的自然实验。你认为工人攒到的工资和土地所有者的租金有什么变动呢？,11,Financial Assets and Interest Rate,Financial assets include Cash, and those assets that can be converted to cash in a reasonably short period of time. The interest rate is the price for borrowing money for period of time, usually expressed as a percentage of the principal (本金) per year.,12,Nominal and Real Interest Rate,The nominal interest rate measures the yield in dollars per year per dollar investment. The real interest rate is the nominal rate of interest, adjusted for compounding, minus the inflation rate.,13,The Relation of Real Interest Rate and Nominal Rate,Let r the real interest；i the nominal interest rate； be the inflation rate：,14,Interest Rates on Selected Finanical Instruments,15,Present Value of Assets,The present value is the dollar value today of a stream of income over time.,16,Present Value t years from now,17,General Formula for Present Value,Present Value of an Asset,19,Present Value for Perpetuties,Perpetuity pays N each year from now to eternity, We can calculate present value：,20,课堂测试,请判断以下观点是否正确： 如果投资1单位资本的净现值为正，则为了利润最大化目标的企业投资这一单位的资本 利率越高，资本需求量越大；资本需求的增加会导致利率的提高 对于不可再生性自然资源，如果下一年度预期价格的现值高于本年度的价格，则企业会选择下一年出售该资源而不是在本年度就出售。,21,Profits and Determinants of Profits,Acting to Maximize Present Value Determinants of Profits: profits as implicit returns profits as reward for risk bearing Profits as reward for innovation,22,The Theories of Capital and Interest,Investment is a roundabout （迂回）production behavior Investments today yield consumption,Per capita consumption,time,present,future,23,课堂测试,资本的需求曲线反映着利率与资本需求量之间的反向关系；资本供给反映着利率和资本供给量之间的正向关系。请解释资本需求曲线和资本供给曲线的移动因素是什么？,24,Short-Run Equilibrium,In the short run ,the economy has inherited a given stock of capital from past,D,D,S,S,Rate of return and interest rate,Stock of Capital,E,25,Long Run Equilibrium of Capital Market,In the long-run stock of capital comes at the real interest rate where the value of assets that people want to hold exactly matches the amount of capital that firms want for production,D,D,S,S,S,S,S,S,E,Rate of return and interest rate,Stock of Capital,26,Applications of Classical Capital Theory,Taxes and Inflation Technological Disturbance Uncertainty Expectations,27,Real Rate of Return,28,课堂测试,一厂商在完全竞争的产品和要素市场上从事经营。生产函数为A=48*L0.5*K0.5。产品的价格为50元，年工资为14400元，单位资本价格80元。在短期内，资本为固定要素，该厂商拥有3600单位的资本： （1）在短期，计算劳动需求曲线的表达式；工人的均衡雇佣量；短期均衡时厂商对劳动的点需求弹性；利润 （2）长期，设产品价格和劳动的工资保持不变，厂商的行业具有成本递增性质，资本价格随着行业扩张而上升，请问，资本的长期均衡价格以及雇佣的工人数量。,29,Valedictory Thoughts On Factor Prices, Efficiency and Distribution,Competitive factor markets promote efficiency Capital markets balance saving and investment Governments can reduce inequality without impairing efficiency.,Inputs, Production, Outputs, and Consumption Form the Circular Flow of Economic Life,