A method for measuring rents.

This article presents a novel method for measuring economic rents—defined as revenues exceeding normal returns due to possession of scarce or exclusive assets—at the firm and country levels, based on surplus cash flow related to a cash flow tax (CFT). Unlike traditional proxies such as markup or accounting profit, this approach fully accounts for operational costs, investment expenses, and a normal return on investment, using cash flow data to provide a more accurate indication of rents and rent-seeking. Empirical illustrations include Apple Inc., Johnson & Johnson, General Motors, and U.S. national accounts, showing varying rent levels across firms, industries, and over time. The method's relevance lies in its potential to inform policy on competition, regulation, and taxation by enabling clearer identification and measurement of rents in non-financial corporations.