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... 3 THEORY AND LAW OF AIRPORT REVENUE DIVERSION By Paul Stephen Dempsey, Tomlinson Professor of Law, McGill University1 I INTRODUCTION Harvard economist John Kenneth Galbraith observed, "In all countries the economic system depends on and develops from the State financing of highways, airports, postal services and urban infrastructure of the most diverse and essential sort."2 Traditionally, many national governments have provided infrastructure services that were too complex and expensive for the local authorities to provide.

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