Evans – On Monopoly Rent

Class monopoly
Here the class of landowners own all the land, and the rent of the land is monopoly rent.

Site monopoly
The site owned by a landowner can be distinguished from all others. Follows that the owner
monopolizes that site and derives a monopoly rent from it.

Marxian monopoly rent

The product of an area of land is specific to that land, for example a particular wine, and where the
producers face a downward sloping demand curve for that product. Landowners can then act
monopolistically by fixing rents and limiting the amount of wine that is produced so ensuring higher
rents.
- Differential rent: arises from the differences between locations and pieces of land
- Absolute rent: arises because landlords would not let out their land below a certain
minimum.
- Monopoly rent: being the surplus over the two arising from ‘an independent monopoly price
for the products of the land itself’.

The most important reason why the term monopoly rent persists in what we call ‘site monopoly’ is
that there is no standard price for a piece of land.

Ricardian case
The land on which the vines grow has no alternative use. In some circumstances, in this Ricardian
case, the existence of a downward sloping demand curve may make no difference, so that the rent
charged is the same as if the land were owned by a large number of competing landlords.

Theoretically, it is possible that land could be left vacant to increase the rent obtained for the rent,
but not for monopolistic reasons.
Ricardian case requires that the land has no alternative use, which is extremely unrealistic

Monopoly rents may exist, over and above differential rents. These monopoly rents may be obtained
by the landlord if there is a downward sloping demand curve for the use or uses of the land. Finally,
shown is that monopoly rents do exist, in planned shopping centers, at least
Urban economics an introduction Chapter 9 ‘land market’ – Evans
Most important reason why urban change will affect land use occurs because governments intervene
through planning controls to determine land use independently of the market. Secondly, speculation
of land prices. Thirdly, the assumption that land is always used by the activity willing to pay the
highest current rent ignores the fact that changes in land use depend upon changes in the use of
buildings and often in the buildings themselves. Here also comes the cost of redevelopment into play
because the prices of redevelopment can be higher than the possible value of any new development.
Fourthly, the occupiers of land may be unwilling to displace themselves, or to be displaced, for any
new use without some compensation for the upheaval. Fifthly, the ownership of land will affect the
rate of development. Finally, the redevelopment of land may require the acquisition of several
contiguous sites.

- Speculating is not necessarily harmful

The economic effect of the relationships between prices, price changes, and the time taken to sell a
property, is that the amount of property ‘on the market’ at any one time is likely to be inversely
related to rate of change of prices.

Static theory of land rent assumes that land is freely transferred into the use which gives the highest
returns. A reason for delays why this is not the cause is the pattern of ownership. The owners and/or
occupiers of land may be unwilling to transfer it without being compensated for doing so.

The rent of agricultural land will generally be determined by its profitability in agricultural use.
Tenants will be unwilling to move. Therefore, landlords may attempt to obtain higher rents from the
tenants since the price for which they could sell the land, its opportunity cost, is now higher. Three
possible solutions:
1) Security of tenure for tenants and fair rent legislation which holds rents down to the level
prevailing elsewhere would mean that no tenant would leave before he wished to.
2) Lack of security of tenure but a willingness to pay higher rents by tenants would result in the
same amount of land being sold for development by landlords at the same price as if they
were owner-occupiers.
3) Lack of security of tenure coupled with an unwillingness to pay higher rents, either for
personal, social, or political reasons, would results in considerably more land being brought
forward than in the other cases.
Concluded is that the land market does not necessarily always work smoothly and efficiently to
ensure that each piece of land is used by the activity which could pay the highest current rent. In part
this may be because of intervention of central and local government through planning controls. The
owners of land may be unwilling to sell at the price they are offered either because they think the
market value is higher or because the price, though fair, would not compensate them for the costs
and disruption of moving. The costs of demolishing the existing buildings, clearing the site, and
building anew may also delay redevelopment. Where the costs of demolition and clearance are high,
but because of the decline of an area, the rents obtainable are low, it may be more profitable to an
owner to leave the site derelict rather than redevelop. The ownership and tenancy of land may also
delay redevelopment; in particular tenants with security of tenure and benefiting from rent controls
would be extremely reluctant to move to make way for any more economic use of the land. And the
dispersed ownership of large sites may delay their development on a large scale necessitating the
use of powers of compulsory purchase.

The right of a city – David Harvey

He argues that urbanization has played a particularly active role, alongside such phenomena as
military expenditures, in absorbing the surplus product that capitalists perpetually produce in their
search for profits

ChatGPT Summary

"The Right to the City" is a concept that was popularized by the urban geographer and Marxist
theorist David Harvey. In his influential 2008 article titled "The Right to the City," Harvey discusses
the idea of the city as a site of struggle and negotiation between different social groups and classes.
He argues that cities are not just physical spaces, but also social constructs that reflect the broader
dynamics of power, politics, and capitalism.

Harvey emphasizes that urbanization is a crucial aspect of modern capitalism, as cities serve as
centers of economic activity, cultural production, and political power. However, he also points out
that this urbanization process often leads to inequality, displacement, and the marginalization of
certain groups, particularly the poor and marginalized communities.

The concept of the "right to the city" suggests that urban inhabitants, regardless of their
socioeconomic status, should have the collective right to shape and transform the city according to
their needs and desires. Harvey sees this as a counterbalance to the tendencies of urban
development driven solely by profit motives, where urban spaces are transformed to benefit the
interests of the wealthy elite.

Harvey argues that achieving the right to the city requires not just access to physical space, but also
access to decision-making processes and the ability to actively participate in urban planning and
governance. He calls for a more democratic and inclusive approach to urban development, where
citizens have the power to influence how their cities are built and organized.

Overall, Harvey's concept of the right to the city critiques the way urbanization under capitalism can
lead to social injustices and advocates for a more equitable and participatory urban environment
that empowers all residents to have a say in shaping the future of their cities.
Land Value determination in an emerging market: empirical evidence from
China – Bao, H.
Abstract:
The key results are that pricing behavior in general follows the traditional expected variables as
determined by size, planning use, location, and other neighborhood characteristics. However, we
also find that land prices are associated with buyer characteristics; for example, foreign investors pay
less than local investors.

Zoning regulation and planning restrictions are also determining factors of land value. Empirical
evidence suggest that land use types can claim a price premium in land. Also it has been shown that
density controls reduce the price of industrial and that government regulation of rent also influence
the estimation of land value function.

In conclusion we find land values in China are determined by both market and non-market elements.
It is very encouraging to see an effective land market in force. Land users determine the price to pay
based on the characteristics of the land and its surrounding environment. The government is also
able to use the similar information to determine the reserve price for tenders and public auctions. Of
course, some unique factors should also be considered when determining the land value in China.
Our conclusion is the land market in China is still an emerging market