FIXED CAPITAL IN AGRICULTURE: RICHARD JONES’S CRITIQUE OF RICARDO’S THEORY OF RENT

Abstract

Richard Jones’s 1831 critique of David Ricardo’s theory of rent is generally viewed as ill-founded. The present paper shows that Jones’s Essay on the Distribution of Wealth contains an important analytical insight: Jones noticed that Ricardo’s treatment of agricultural improvements was seriously incomplete, because it failed to accommodate the historically important case of agricultural improvements that involve the use of fixed capital. More generally, it is suggested that Jones was correct in pointing out that Ricardo had not properly taken into account fixed capital in his analysis of rent and of agricultural improvements.