Marx's ground rent theory is based on the inheritance and criticism of David Ricard's ground rent theory. The gains that landowners derive from land include not only the benefits of the separate land ownership component, but also the combined benefits of factors of production, such as labour. The net income of land refers to the income brought about by the land itself, that is, the land rent in the usual sense. For landowners, ground rent is the corresponding cost of transferring land use rights. "Wherever you go, pay ground rent for the use of the land." In his theory, Marx divided ground rent into absolute ground rent, differential ground rent and monopoly ground rent. Absolute ground rent refers to the land rent that must be paid regardless of any kind of land, and differential ground rent refers to the excess profit that needs to be paid to lease a better land; Monopoly ground rent refers to the monopoly profit formed by the natural superior natural conditions of land. Under such a theory, the land price is equivalent to the interest earned by depositing such monetary capital as land in a bank, i.e. the income earned from the lease of the land. Can be expressed as: land price - ground rent / interest rate.
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