Land as an asset. Land price

In a market economy, land, like any other income-generating good, is a commodity. Land is bought and sold. Economically developed countries purchase and sale of land usually does not exceed 3%. Since the supply of land is fixed, the price of land, as well as rent, are entirely determined by the demand for land. Land price- the price of ownership of a plot of land.

The peculiarity of land as a commodity is that it is not the land itself that is bought, but the income that it brings. In other words, the right to receive regular income for an indefinite period of time is purchased. Owner land plot intends to receive from the sale of a plot of land such an amount that, by placing it in a bank, one can receive income in the form of interest equal to the rent. Ground rent- this is the price of land services. Ground rent determines the price of land. The higher the rent from the services of a piece of land, the higher the price of land. The price of land is determined by capitalizing rent.

Capitalization of a production factor consists of assessing its value in the event that a decision is made to purchase it, that is, the entrepreneur makes it his own asset. Capitalization allows us to establish the relationship between the income of a factor of production and its price as an object of property. Capitalized value of annuity- the total value of all future rental payments that a given piece of land is capable of producing. Thus, the price of land is equal to the amount of money that, if deposited in the bank, the former owner of the land would receive a similar interest on the invested capital. The price of land is calculated as follows:

P N = R / i

where P N is the price of land; R - annual rent; i- loan interest rate.

The formula shows that the price of land will rise if the amount of rent increases, and fall if the interest rate increases.

Capital- a stock of tangible and intangible assets used productively to generate income. In other words, capital is any resource created for the purpose of producing more economic goods.

There are physical (material capital) and human capital.

Physical capital- durable property (buildings, machinery, equipment) used by the company in its activities. Distinguish between fixed and circulating physical capital.

Main capital - real durable assets, the value of which is transferred to the product in parts over a number of production periods (buildings, structures, machinery, equipment, vehicles, etc.).

Working capital - real assets, the value of which is completely transferred to the cost of the new product and returned in cash to the entrepreneur when the product is sold in each cycle (raw materials, fuel, materials, semi-finished products).

Human capital- physical and mental capacity person acquired through education or practical experience; a measure of a person's embodied ability to generate income. In other words, human capital is a special type of labor resources. Therefore, capital in the factor market means material factors and capital goods.

Another aspect of capital is related to its monetary form. Money capital is the common denominator to which the value of capital in the form of any asset is reduced. In monetary terms, the value of both physical and human capital can be calculated. Capital embodied in the means of production is called real capital.

Money capital, or capital in monetary form, represents investment resources. Money capital itself is not an economic resource; it cannot be used directly in production, but it can be used to purchase factors of production.

Historically the first economic types capital became merchant and usurer capital, which appeared long before the capitalist economy.

Merchant's capital acted as an intermediary in the process of commodity exchange at the stage of simple commodity production.

Usury capital brought income in the form of interest from the provision of cash loans. These forms of capital contributed to the concentration in one hand of significant monetary and material values.

The emergence of a new type public relations occurred due to the arrival of capital in industry.

Industrial capital- capital operating in any sphere of material and intangible production, carrying out a complete circuit in its movement and taking on a special functional form at each stage. This applies not only to industry, but also to agriculture, transport, services and other sectors of the economy.

Capital begins to move in the form of money. On cash machines, machinery, equipment, production and storage facilities, i.e., means of production, as well as labor, are purchased. The first stage of capital movement is the transformation of money capital into productive capital. Then the production process begins, during which the goods purchased by the capitalist are consumed and goods and services are created. At the second stage of capital movement, productive capital is transformed into commodity capital. The sale of produced goods and services brings the owner of capital a certain amount of money. Thus, the third stage of capital movement involves the transformation of commodity capital into money capital. These are the three stages that industrial capital passes through in its movement.

Circulation of capital- three stages of capital movement and its sequential transformation from one form to another.

The development of capitalist relations led to a kind of specialization and division of labor and the allocation within the framework of industrial capital, first of all, of trade and loan capital.

Trading capital - an isolated part of industrial capital operating in the sphere of commodity circulation. Commercial capital operates in monetary and commodity forms and goes through two stages of circulation. This type capital is exclusively engaged in organizing trade in order to obtain trade profit, which is the difference between the purchase and sale price of a product.

Loan capital- an isolated part of industrial capital, loaned out and bringing income to the owner in the form of interest. Temporarily available funds are accumulated in the form of loan capital.

Today, the bulk of loan capital is concentrated in various financial and credit institutions - banks, funds, insurance companies, etc.

Bank capital- capital invested in a banking enterprise by bankers or bank shareholders.

Based on the formation of monopolistic associations in industry and banking in the 19th-20th centuries. financial capital was formed.

Financial capital- large banking capital merged with large industrial capital. On the one hand, banks, by providing loans to industrial enterprises or buying their shares, find themselves closely connected with the activities of these firms, in other words, with the activities of industrial capital. On the other hand, industrial capital influences banks through the purchase of their shares and the creation of their own financial structures. Financial capital is the basis for the existence of financial and industrial groups, including both industrial enterprises and banks, trading and transport companies, etc. Its product is the financial oligarchy - a small layer of the richest owners who have a significant influence on the economy and politics. For example, in the late 1990s. in Russia, about 6-7 financial and industrial groups controlled more than 50% of Russia's national wealth.

And in terms of areas of functioning - production (industrial), trade, financial (loan).

Among the theories of capital and profit, the most famous are the labor theory, the theory of abstinence, and the theory of capital as a good that generates income.

Capital as an economic resource is divided into real and capital. Therefore, it is advisable to first consider capital as a whole, especially its concept and theories, then real and financial capital separately.

The concept and essence of capital

The desire to explain the essence and significance of capital was demonstrated by representatives of all major schools and areas of economic science. This is evident even from the titles of many works. Let us mention, in particular, “Capital” by K. Marx, “Capital and Profit” by E. Böhm-Bawerk, “The Nature of Capital and Profit” by I. Fischer, “Cost and Capital” by J. Hicks.

Essence, types and forms of capital

Capital - this is the sum of goods in the form of material, intellectual and financial means used in order to produce more goods.

Narrower definitions are also common. According to the accounting definition, capital refers to all the assets of a company. According to economic definition, capital is divided into two types - real, i.e. in material and intellectual form, and , i.e. in the form of money and valuable papers. Increasingly, a third type is being identified - human capital, which is formed as a result of investments in the education and health of the workforce.

Real capital (real assets, non-financial assets) is divided into fixed and working capital(Fig. 17.1). Fixed capital usually includes property that has been in use for more than one year. In Russia, fixed capital is called fixed assets.

Only material ones should be classified as real working capital, i.e. productive reserves, work in progress, inventories finished products and goods for resale. This is the economic definition of working capital.

Rice. 17.1. Real capital structure

If we add to the material current assets funds in settlements with suppliers and customers (i.e., loans and installment payments to customers, and deferred expenses, i.e. advances to suppliers), cash in the enterprise’s cash register and expenses for wages, then we get working capital (working capital, or current assets) by accounting definition.

Real capital generates income in the form of profit. She may be in different options: profit of the company, royalties of the owner of intellectual capital (for example, the owner of a patent), etc.

Financial capital (financial assets, less often capital assets) consists of and. It is born of needs. Financial capital generates income in the form of profit (from stocks) and interest (from bonds, bank accounts and deposits, loans). Financial capital provided on loan is called .

Theories of capital

Theories of capital have a long history.

A. Smith characterized capital only as accumulated stock of things or money. D. Ricardo already interpreted it as a material supply - a means of production. A stick and a stone in the hands of a primitive man seemed to him to be the same element of capital as machines and factories.

The Ricardian approach to capital as a stock of means of production is reflected in statistics national wealth a number of countries, including Russia. Thus, domestic statistics include fixed assets, working capital, and household property (durable consumer goods). In 2003, the Federal State Statistics Service of Russia estimated the country's national wealth at 35 trillion rubles. It consisted of 82% of fixed assets, 7% of material current assets, and 11% of household property.

Unlike its predecessors K. Marx approached capital as a category of social character. He argued that capital is a self-increasing value that gives rise to the so-called surplus value. Moreover, he considered only the labor of hired workers to be the creator of the increase in value (surplus value). Therefore, Marx believed that capital is, first of all, certain attitude between different strata of society, especially between wage workers and capitalists.

Among the interpretations of capital, mention should be made of the so-called abstinence theory. One of its founders was the English economist of Nassau William Senior (1790-1864). He viewed labor as the “sacrifice” of the worker who loses his leisure and peace, and capital as the “sacrifice” of the capitalist who refrains from using all his property for personal consumption and converts a significant part of it into capital.

On this basis, the postulate was put forward that the benefits of the present are of greater value than the benefits of the future. And therefore, the one who invests his funds in economic activity, deprives himself of the opportunity to realize part of his wealth today, sacrifices his today's interests for the sake of the future. Such sacrifice deserves reward in the form of profit and interest.

According to the American economist Irving Fisher (1867-1947), capital is what generates a flow of services that turn into a flow of income. The more the services of a particular capital are valued, the higher the income. Therefore, the amount of capital must be assessed based on the amount of income received from it. So, if renting an apartment brings its owner $5,000 annually, and in a reliable bank he can receive 10% per annum on money deposited in a fixed-term account, then real price apartment is $50,000. After all, this is exactly the amount that needs to be deposited in the bank at 10% per annum in order to receive $5,000 annually.

The concept of capital proposed by Fisher is the most common in economics.

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A form of existence of capital other than commodity, derivative and monetary, which can be transferred instead of itself, circulate on the market as a commodity and generate income.

Industrial capital is the only form of existence of capital in which the function of capital is not only the appropriation of surplus value or. Therefore, it is industrial capital that determines the capitalist nature of production; the existence of industrial capital includes a class contradiction between capitalists and wage workers. To the extent that it masters social production, a revolution takes place in technology and public organization the labor process, and at the same time in the economic and historical your society. Other types of capital that existed before it among the patterns of social production that have become a thing of the past or are tending to decline are not only subordinate to it and not only undergo corresponding changes in the mechanism of their functions, but also move henceforth only on the basis of industrial capital, and therefore live and die, stand and fall along with this foundation. Money capital and commodity capital, since they act with their functions along with industrial capital, as carriers of special branches of entrepreneurship, are only those that have achieved independence due to social division labor and one-sidedly developed types of existence of various functional forms that industrial capital either accepts or discards in the sphere of circulation.

Industrial capital is the only form of existence of capital in which the function of capital is not only the appropriation of surplus value or surplus product, but also their creation. Therefore, it is industrial capital that determines the capitalist nature of production; the existence of industrial capital involves a class contradiction between capitalists and wage workers. To the extent that he masters social production, a revolution takes place in technology and the social organization of the labor process, and at the same time in the economic-historical type of society. Other types of capital that existed before it among the structures of social production that have become a thing of the past or are tending to decline are not only subordinate to it and not only undergo corresponding changes in the mechanism of their functions, but also move henceforth only on the basis of industrial capital, therefore live and die, stand and fall together with this foundation. Money capital and commodity capital, since they with their functions act along with industrial capital, as carriers of special branches of entrepreneurship, are only those that have achieved independence as a result of the social division of labor and are one-sidedly developed types of existence of various functional forms that industrial capital either accepts or discards in the sphere appeals.

A security is a form of existence of capital that circulates on the market as a commodity and generates income, while the owner does not have the capital itself in commodity or monetary form, but has all the rights to it recorded in the security. In a legal sense, securities include documents reflecting property relations.

Securities are a form of existence of capital. It differs from the productive, commodity and monetary forms. Capital in the form of a security can be transferred, circulate on the market as a commodity, replace money in transactions and, most importantly, generate income. The owner of the security does not have the capital itself, but has all the rights to it, recorded in the form of a security.

Economic science considers a security a form of existence of capital, different from its commodity, productive and monetary forms, which can be transferred instead of itself, circulate on the market as a commodity and generate income.

Securities are documentary obligations regarding the exchange of financial resources between contracting parties; they are a form of existence of capital that can be transferred, rotate on their own market and generate income.

Since both money and goods are modern conditions essence different shapes existence of capital, then with economic point In view of this, a security is a form of existence of capital, different from its commodity, productive and monetary forms, which can be transferred instead of itself, circulate on the market as a commodity and generate income. In this case, the owner of the capital does not have the capital itself, but has all the rights to it, recorded in the form of a security.

Thus in all these cases the time of production of the advanced capital consists of two periods: the first period in which the capital is in the process of labor; the second period in which the form of existence of capital - the form of an unfinished product - is exposed to influence natural processes without being in the process of labor. The matter does not change at all because both of these periods can partially intersect, wedge one into the other. The working period and the production period do not coincide here. The production period is longer than the working period. But only at the end of the period of production the product is ready, mature and, therefore, can be transformed from the form of productive capital into the form of commodity capital. According to the duration of that part of production time that does not constitute working time, the period of capital turnover is lengthened.

Thus, in all these cases, the time of production of the advanced capital consists of two periods: the first period, during which the capital is in the process of labor; and from the second period, during which the form of existence of capital - the form of an as yet unfinished product - is exposed to natural processes, without being in the process of labor. The matter does not change at all if both of these periods sometimes intersect and wedge one into the other. The working period and the production period do not coincide here.

Thus, in all these cases, the time of production of the advanced capital consists of two periods: the first period during which the capital is in the process of labor; n from the second period, during which the form of existence of capital - the form of an unfinished product - is exposed to natural processes, without being in the process of labor. The matter does not change at all if both of these periods sometimes intersect and wedge one into the other. The working period and the production period do not coincide here.

Capital. Forms of capital.

Capital- a stock of tangible and intangible assets used productively to generate income. In other words, capital is any resource created for the purpose of producing more economic goods.

There are physical (material capital) and human capital.

Physical capital- durable property (buildings, machinery, equipment) used by the company in its activities. Distinguish between fixed and circulating physical capital.

Main capital - real durable assets, the value of which is transferred to the product in parts over a number of production periods (buildings, structures, machinery, equipment, vehicles, etc.).

Human capital- physical and mental abilities of a person acquired through education or practical experience; a measure of a person's embodied ability to generate income. In other words, human capital is a special type of labor resources. Therefore, capital in the factor market means material factors and capital goods.

Historically, the first economic types of capital were merchant and usurer capital, which appeared long before the capitalist economy.

Merchant's capital acted as an intermediary in the process of commodity exchange at the stage of simple commodity production.

The emergence of a new type of social relations occurred thanks to the arrival of capital in industry.

Industrial capital- capital functioning in any sphere of material and intangible production, carrying out a complete circuit in its movement and taking on a special functional form at each stage. Applies not only to industry, but also to agriculture, transport, services and other sectors of the economy.

Capital begins to move in the form of money. Cash is used to purchase machines, machinery, equipment, production and storage facilities, i.e., means of production, as well as labor. The first stage of capital movement is the transformation of money capital into productive capital. Then the production process begins, during which the goods purchased by the capitalist are consumed and goods and services are created. At the second stage of capital movement, productive capital is transformed into commodity capital. The sale of produced goods and services brings the owner of capital a certain amount of money. Thus, the third stage of capital movement involves the transformation of commodity capital into money capital. These are the three stages that industrial capital passes through in its movement.

Circulation of capital- three stages of capital movement and its sequential transformation from one form to another.

The development of capitalist relations led to a kind of specialization and division of labor and the allocation within the framework of industrial capital, first of all, of trade and loan capital.

Trading capital- an isolated part of industrial capital operating in the sphere of commodity circulation. Commercial capital operates in monetary and commodity forms and goes through two stages of circulation. This type of capital is exclusively engaged in organizing trade in order to obtain trading profit, which is the difference between the purchase and sale price of a product.

Loan capital- an isolated part of industrial capital, loaned out and bringing income to the owner in the form of interest. Temporarily available funds are accumulated in the form of loan capital.

Today, the bulk of loan capital is concentrated in various financial and credit institutions - banks, funds, insurance companies, etc.

Bank capital- capital invested in a banking enterprise by bankers or bank shareholders.

Based on the formation of monopolistic associations in industry and banking in the 19th-20th centuries. financial capital was formed.

Capital - This is the sum of goods in the form of material, intellectual and financial assets used as a resource in order to produce more goods.

Narrower definitions are also common. According to the accounting definition, capital refers to all the assets of a company. According to economic definition, capital is divided into two types - real, i.e. in material and intellectual form, and financial, i.e. in the form of money and securities. Increasingly, a third type is being identified - human capital, which is formed as a result of investments in the education and health of the workforce.

Real capital (real assets, non-financial assets) is divided into fixed and working capital (Fig. 17.1). Fixed capital usually includes property that has been in use for more than one year. In Russia, fixed capital is called fixed assets.

Real working capital should include only tangible working capital, i.e. manufacturing inventories, work in progress, finished goods inventories and goods for resale. This is the economic definition of working capital.

Real capital structure

If we add funds in settlements with suppliers and customers to material current assets (accounts receivable, i.e. loans and installment payments to customers, and deferred expenses, i.e. advances to suppliers), cash in the enterprise’s cash register and wage expenses , then we get working capital(working capital, or current assets) by accounting definition.

Real capital generates income in the form of profit. It can be in different versions: profit of the company, royalty of the owner of intellectual capital (for example, the owner of a patent), etc.

Financial capital (financial assets, less often capital assets) consists of money and securities. It is generated by the needs of economic circulation. Financial capital generates income in the form of profit (from stocks) and interest (from bonds, bank accounts and deposits, loans). Financial capital provided on loan is called loan.

Production costs

Cost, value, price

Cost price- the initial cost of the costs incurred by the enterprise for the production of a unit of product.

Price- cash equivalent of all types of costs including some types of variable costs.

Price- the market equivalent of the generally accepted cost of the product offered.

Production costs- these are expenses, monetary expenditures that must be made to create a product. For an enterprise (firm), they act as payment for acquired factors of production.

Private and public costs

Costs can be viewed from different perspectives. If they are examined from the point of view of an individual firm (individual producer), we are talking about private costs. If costs are analyzed from the point of view of society as a whole, then external effects arise and, as a consequence, the need to take into account social costs.

Let us clarify the concept of external effects. In market conditions, there arise between seller and buyer special relationship purchase and sale. At the same time, relationships arise that are not mediated by the commodity form, but have a direct impact on people’s well-being (positive and negative external effects). An example of positive external effects is expenses for R&D or training of specialists; an example of a negative external effect is compensation for damage from environmental pollution.

Social and private costs coincide only if there are no external effects, or if their total effect is equal to zero.

Social costs = Private costs + Externalities