Renteffekt
Renteffekt is a term used in economics to describe how rents—unearned or supra-normal returns—affect prices, income distribution, and incentives. The effect occurs when a portion of total surplus is captured as rents by owners of scarce resources, monopolists, landlords, or beneficiaries of policy measures, rather than by productive firms through pricing that reflects marginal costs.
Contexts where renteffekter are discussed include monopoly rents, resource rents, and land rents, as well as
The presence of renteffekter can distort incentives and lead to rent-seeking behavior, where firms or individuals
Examples commonly discussed include monopoly rents granted by patent protections, increases in urban land values due
See also: rent-seeking, monopoly rent, resource rent, land value, tax incidence, welfare economics.