The Henry George theorem states that, under certain conditions, an increase in government spending on public goods raises the aggregate land rent in the affected area by at least as much as the amount spent, so that the value generated by the last unit of public investment equals or exceeds its own cost. It is named for the nineteenth century political economist Henry George, whose writing argued for a tax on land value, and the theorem is treated as a formal complement to that broader argument.
Facts
Statementa public service will increase land rent enough that, if the increase in land rent is collected as public revenue, this revenue will be sufficient to pay for the service 1 Classification
Statement FormCharacterization Theorem 1 Connections
Sources
1. The Henry George Theorem - Progress and Poverty Institute
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a public service will increase land rent enough that, if the increase in land rent is collected as public revenue, this revenue will be sufficient to pay for the service
Henry George theorem (Wikipedia)
In Group: Economic Theory, Lead sectionQuote, In Group: Economic Theory, Lead section
The theory is named for 19th-century U.S. political economist and activist Henry George.
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