ABSTRACT
This chapter focuses on theoretical questions bearing on ground rent. It seeks to demonstrate through an exposition of Karl Marx's views that although it is generally asserted that in relation to differential rent Marx follows D. Ricardo, in reality it would be equally true to say that he follows Adam Smith. The chapter deals with the theory of absolute rent, Marx "flirts" with the classical theoretical system. The analysis by the classic theorists of political economy of the size of the surplus value turned on two factors. Firstly on differences in fertility and location between different tracts of land. Secondly on differences in the amount of capital invested in those different tracts. According to the Smithian, Ricardian and Marxian approach with the increase in population, demand for agricultural product tends continually to exceed supply, and in any case exceeds the supply available from the most fertile and favourably-situated lands.
