
As long as the value of various resources differs through their varied uses, the concept of “rent” can be deduced from the concept of land rent. This rent equals “income.” That said, when no exclusive right exists to the rent, regardless of whether naturally or artificially generated, the phenomenon of “rent dissipation” exists. Rent dissipation emerges when the price, quantity, or entry in a state of market equilibrium by the government is regulated. In this situation, economic entities create exclusive rights to the dissipated rent through voluntary contracts, which is called rent keeping—a way to reduce rent dissipation efficiently and fairly. However, for government powers to exclusively grab dissipated rent is, in general, inefficient and unfair.
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