Ilia Farahani
Senior lecturer
Land rent, capital, rate of profit : A critique of Harvey’s model of urban land rent
Author
Summary, in English
It is argued that the SMLR suffers from the following theory-data anomalies: 1) above and beyond a monopoly pricing mechanism, the model offers limited analytical tools for empirical research on rent rates, ceilings, and magnitudes; 2) the model offers inadequate economic mechanisms for macro-level patterns of rent creation and appropriation; 3) it offers an inadequate explanation for the historical contingency of macro and micro-level rent creation and appropriation; 4) it breaks with its structural starting points and does not offer a consistently endogenous structural analysis of rent creation and appropriation.
In analyzing the relation between the rate of profit in manufacturing and construction sectors determining land rent, the TILR explains the source of rent with reference to fluctuations of profit rates rather than the monopoly pricing mechanism (the SMLR’s crucial method). The TILR argues that long-term national (economic) structures, indicated by the falling rate of manufacturing (and aggregate) profit, determine the rate and ceiling of rent. The TILR improves on the SMLR by incorporating alternative analytical tools to measure and explain rent rates, ceilings, and magnitudes and resolves its theory-data anomalies by bringing in the concept of absolute rent, logically dismissed by Harvey and Harvey-inspired urban economic geographers. The concept of absolute rent is inconsistent with core assumptions of the SMLR’s underlying theory of monopolistic competition, which relies on exogenous barriers to the free movement of capital to explain excess rates of return. That hinders the SMLR from incorporating the TILR’s resolutions to the anomalies without inflicting further theoretical tensions. The TILR is rooted in an alternative interpretation of Marx’s economic theory recently revived and advanced by Anwar Shaikh as the theory of turbulent competition. This theory allows the TILR to consistently incorporate the concept of absolute rent, integrate national economic trends and local economic relations, and provide a consistently endogenous structural explanation of rent creation and appropriation.
Department/s
- Department of Human Geography
Publishing year
2021
Language
English
Full text
- Available as PDF - 14 MB
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Document type
Dissertation
Publisher
Lund University
Topic
- Social and Economic Geography
- Human Geography
Keywords
- Urban Land Rent
- Capitalist Urbanization
- Rate of Profit
- Absolute Rent
- Spatial Monopoly Model of Land Rent
- Turbulent Inter-Sectoral Model of Land Rent
- David Harvey
- Urban Economic Geography
- Urban Land Rent
- Capitalist Urbanization
- Rate of Profit
- Absolute Rent
- Spatial Monopoly Model of Land Rent
- Turbulent Inter-Sectoral Model of Land Rent
- David Harvey
- Urban Economic Geography
Status
Published
Supervisor
- Eric Clark
- Turaj Faran
ISBN/ISSN/Other
- ISBN: 978-91-7895-947-1
- ISBN: 978-91-7895-948-8
Defence date
23 September 2021
Defence time
13:00
Defence place
Världen, Geocentrum I, Sölvegatan 10, Lund
Opponent
- Jamie Gough (Dr.)