A method for measuring rents

A method for measuring rents has practical relevance for society in terms of improving competition, regulation, and taxation. This paper proposes a new way to measure rents for business corporations and at country-level: a method related to a cash flow tax (CFT). Theory, method and a proof of concept are presented and discussed. Publicly available data is used to validate the method, revealing that it yields a better indication of rents and rent-seeking compared to markup, profit, and free cash flow (FCF).