A Contribution to the Theory of Differential Rent

DR.hwp

Based on the concept of three kinds of space, a proposition is derived that two theories of DR are needed for rent theory to be consistent with Marx's value theory: that is, DR in space I, and that in space II. And for DR in space I, the point is made to base the source of DR on the surplus-profit belonging to spatial dimension, which is by nature different from the surplus-profit arising on temporal dimension. Finally a reformulation is proposed to uniquely determine DR II, and further proved the proposition, the necessary and sufficient relation between DR I and DR II, that is DR I <=> DR II.

  No theory is developed regarding DR in space II. This theory is important especially if we want to get a firm foundation for urban rent. With regard to urban rent what is done in this paper is only to clear away confusions(confusing space I and II). But I think the clarification is vital for the meaningful first step towards exploring urban rent.