An Axiomatic Approach to Cost Allocation for Public Investment
- 1 April 1974
- journal article
- Published by SAGE Publications in Public Finance Quarterly
- Vol. 2 (2) , 236-250
- https://doi.org/10.1177/109114217400200205
Abstract
A previously presented charge scheme for public investments is derived here from a set of axioms. It is argued that these axioms embody a definition of equity in allocating the costs of a public facility and could serve as a constitution which would be agreed on by users of a public facility. Consideration is also given to optimality properties of the charge scheme in encouraging the formation of coalitions to undertake joint investments.Keywords
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