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ECONOMIC GROWTH CENTER - Yale University
www.econ.yale.edu1 Introduction and motivation The standard way to finance highways leading to new land developments is with general public funds, to be recovered via increased property taxes.2 One problem with this approach, is that the increase in tax receipts takes place after the road is built (and the land developed and sold to new owners), thereby leaving ample
ECONOMIC GROWTH CENTER YALE UNIVERSITY
www.econ.yale.edu1 Introduction Effectively identifying the appropriate recipients for aid programs is critical in order to max-imize social impact with scarce resources.