economic rent

noun

1. the return on a productive resource, as land or labor, that is greater than the amount necessary to keep the resource producing or on a product in excess of what would have been the return except for some unique factor.

economic rent

noun

1. economics a payment to a factor of production (land, labour, or capital) in excess of that needed to keep it in its present use
2. (in Britain) the rent of a dwelling based on recouping the costs of providing it plus a profit sufficient to motivate the landlord to let it

Word History and Origins

Origin of economic rent¹

First recorded in 1885–90

Example Sentences

Kyle Pomerleau, a senior fellow at the American Enterprise Institute, said the approach would be better than a wealth tax at taxing the extraordinary returns investors receive because of what are known as economic rents.

From New York Times

Companies with valuable monopolies typically force higher prices from customers, a.k.a. “economic rents.”

From Washington Post

A key means of doing so is through the legal power of patents, and the monopoly-like profits — or what some experts call unearned economic rents — they guarantee.

From Salon

The theory is that “economic rents” enable companies to enjoy excess profits by using legal or other regulatory tools to keep competitors at bay.

From New York Times

These economic rents have the effect of transferring wealth from apartment renters and those seeking to purchase homes to landlords.

From New York Times