Land in Economic Theory

Land, capital (including human and physical) and labor are factors of production, essential inputs enabling producers to organize production. Land, cultivable land, can be allocated to farms producing food, or real estate in towns and cities providing housing and shelter for habitation. In modern times, as population increased while land remained fixed, land acquired a premium, in the form of rent, a return or revenue, accruing to the landowner. At the same time, land, as an asset, can be sold in the real market according to laws of supply and demand. It all began in Europe, wrapped up in the transition from the religion of Popes to the new ideology of capitalism, and the first cycle of globalization, colonization in the rest of the world, focused on pursuit of wealth on a global scale.