Mapping Modern Economic Rents

This research project is led by the UCL Institute for Innovation and Public Purpose (UCL IIPP).
Explore all IIPP research projects here. 

Dates of the project: 2019

The Challenge 

Modern capitalist systems are increasingly dominated by economic rent – unearned income derived from market power, monopoly, or control over scarce assets – especially across the financial, insurance, real estate (FIRE) sectors and tech giants. Despite growing consensus around the harmful effects of rent extraction, including suppressed innovation, inequality, and financial instability, mainstream economic frameworks and policies continue to overlook its systemic impact.  

Our Approach 

This research aims to bring rent back to the centre of economic theory and policymaking through a three-phase process: 

1. Theoretical Development: We begin by reviewing neoclassical and heterodox theories of rent and propose a new framework that distinguishes between entrepreneurial (value-creating) and exploitative (value-extracting) rents.
2. Empirical Mapping: We identify and categorise hidden forms of rent in the modern economy, such as:

• Land-based value capture from collective investment
• Rent from credit creation and financial asset circulation
• Network monopolies in the digital economy
• Price-gouging in sectors with inelastic demand (e.g., housing, pharmaceuticals)

3. Policy Design: We develop proposals for national accounting, regulatory, fiscal, and monetary policy reforms aimed at reducing rent extraction and promoting equitable, productive growth. 

Why This Matters 

Unchecked rent extraction distorts incentives across the economy, hampers innovation, drives inequality, and undermines long-term economic resilience. By reshaping how rents are understood and measured, this project seeks to lay the foundation for policies that rein in exploitative rents and foster sustainable, inclusive value creation. 

Resources 

Video: Theorising and mapping modern economic rents
Speaker: Giorgos Gouzoulis.
Description: Giorgos Gouzoulis presents his IIPP working paper Theorising and mapping modern economic rents as part of the IIPP Seminar Series 2020–21.

Video: W3 academic lecture - Josh Ryan-Collins: Economic rent, land and housing
Speaker: Josh Ryan-Collins.
Description: Week 3 of the Rethinking Capitalism module explores economic rent, land, and housing - key issues often overlooked in mainstream economics but central to public policy today.

Related Projects

Algorithmic Attention Rents

Funder 

This project is funded by Thirty Percy Foundation.

This research project is led by the UCL Institute for Innovation and Public Purpose (UCL IIPP).
Explore all IIPP research projects here.