ABSTRACT
Assume that the public investment project is a claim x in X and, as in Arrow and Lind’s, that there is a large number of tax payers, each of whom participates in a ‘marginal’ share (or infinitesimal unit) of the project. Then, every individual i evaluates a ‘unit’ participation at her marginal willingness to pay ðwÞ, where the discount factors ðm1; ::;mI Þ are computed at the status-quo equilibrium income y ¼ ðy1; ::; yI Þ.
