Economic Effects
The value of the land (and many other macro-economic quantities too) can be expressed using two independent concepts:
- The value, or, strictly speaking, the price, of a particular site of land is what a fair exchange brings in terms of money during an agreed trade or transaction between two parties, one of whom is the landowner. (This definition is conditional on no LVT being applied, because when it does apply, the exchange value is affected.)
- The land value of the site is also directly related to its demandable ground-rent, which is its potential for use in either production or residential capacities. The capitalization of this rent gives the land value too. Land which is not useful has no value and is called marginal land, as explained by British economist David Ricardo in 1816.
Read more about this topic: Land Value Tax
Famous quotes containing the words economic and/or effects:
“Society’s double behavioral standard for women and for men is, in fact, a more effective deterrent than economic discrimination because it is more insidious, less tangible. Economic disadvantages involve ascertainable amounts, but the very nature of societal value judgments makes them harder to define, their effects harder to relate.”
—Anne Tucker (b. 1945)
“If I had any doubts at all about the justice of my dislike for Shakespeare, that doubt vanished completely. What a crude, immoral, vulgar, and senseless work Hamlet is. The whole thing is based on pagan vengeance; the only aim is to gather together as many effects as possible; there is no rhyme or reason about it.”
—Leo Tolstoy (1828–1910)