Financing infrastructure over time

This paper investigates the problem of financing infrastructure over time w hen the number of users also changes. The problem is confronted in many fas t-growing communities that need to coordinate the timing of infrastructure and development, yet still achieve economics of scale where they exist. The temporal free-rider problem is defined, whereby the group that finances th e construction at a given time is not identical with the group that uses it , The continuous recovery method, which effectively establishes a property rights framework, for infrastructure. is described. Continuous recovery ena bles existing residents to be appropriately compensated by new residents, i ndependent of the number of now residents who ultimately arrive. The system is illustrated and compared with practice in a case that uses a noncontinu ous cost recovery system.