Our paper has considered possible justifications for compensation in the specific context of the Airline Deregulation Act of 1978. While the concept of severance pay for dislocations caused by deregulation is consistent with all of the pro-compensation rationales discussed in Section 4, specific...

Our analysis has incorporated important comparative strengths and weaknesses of public vs. private finance of collective goods. However, we have abstracted from other factors relevant to the comparison. For example, while allowing taxes to deviate from benefits, it was assumed that such taxes...