Political Economy of Land Economics. The Ghosts of Natural Resource Economics Past Wednesday, January 18. Thomas Hobbes (1588-1679). Thomas Hobbes. Each of us is motivated to act in such ways as we believe will relieve our discomfort, preserve and promote our own well-being.
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Political Economy of Land Economics
The Ghosts of Natural Resource Economics Past
Wednesday, January 18
This Contract of Society was the foundation of the Contract of Government, under which all political power is a trust for the benefit of the people, and the people themselves are at once the creators and beneficiaries of that trust. The State is based on a contract between ruler and subjects, who give him power only so that their own welfare is increased and their property protected in a way not possible in the State of Nature, where it may be taken away by unprincipled forces.
Ownership of land is essentially nonproductive
Returns to land ownership are unearned
Secure, individual ownership might lead to improvements
Q = f( L, K)
L = labor
K = capital
Wages – returns to labor
Profit – returns to capital
Rent – returns to land (natural capital)
The value of a product is determined by the amount of labor used to produce it.
Assignment for Monday Jan. 24 –
Read Field Chapter 2, “Natural Resources and the Economy”