ABSTRACT
This chapter discusses a display of the distribution of project benefits to selected groups that incorporates the results of applying the publicly chosen property rights called for in the previous chapters. The most obvious variable influencing distribution is the project design that determines the beneficiaries of the project's direct output. The output of state enterprise is sold in the market, and some other products are financed in part by user fees. The conventional prescription of first-best welfare economic theory is that all products should be priced at marginal cost even when produced under decreasing cost to scale. Some projects reduce the cost of an input into a private production process. The cost of some projects such as highways, urban mass transit, and water resource development is shared by different levels of government in the United States, as well as between general taxes and user fees.
