Rent and Price: “Alternative Use” and “Scarcity Value”

Abstract

I. The “alternative use” idea, 119. — A value or price notion, 120. — Assumes distinct land-use groups and margins, 121. — II. Its alternative-utility aspect, 121. — Not significant as a long-time factor, 122. — Limited significance as a short-time factor, 123. — Classification of land utilities, 124. — III. The alternative-supply aspect, 126. — Limitations, general and particular, 126. — Costs, 127. — Return to value view-point and net utility, 128. — Effect of unequal wealth distribution, 129. — IV. The relation of “alternative uses” to rent, 130. — Not causal or determinative, 130. — Some practical considerations, 131. — V. Mill's treatment of “scarcity value” and rent, 132. — Overlooks the significance of the intensive margin, 135. — Loose use of terms, 137.