(DP 1989-03) The Effect of Ricardian Rent on Macroeconomic Performance

Abstract

A macroeconomic, instead of microeconomic, analysis of the role of rent carried out in this study. In the sphere of production, a Ricardian process of rent generation, as formalized by Pasinetti, is utilized. Rent extraction induces supply-side declines. Attemps to overcome economic slowdown through Keynesian-type demand inducement brings the economy closer to its foreign exchange constraint.