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Alfred E. Kahn

Alfred Edward Kahn was an American economist and political advisor who specialized in regulation and deregulation. He was an important influence in the deregulation of the airline and energy industries. Commonly known as the "Father of Airline Deregulation," he chaired the Civil Aeronautics Board during the period when it ended its regulation of the airline industry, paving the way for low-cost airlines, from People Express to Southwest Airlines.

Biography
Kahn was born in Paterson, New Jersey, on October 17, 1917, to parents Jacob and Bertha Kahn. His father, a Russian Jewish immigrant, worked in a silk mill. Kahn graduated from high school at 15 and New York University at 18, summa cum laude (highest average in his graduating class). He earned his doctorate in economics from Yale University in 1942 after graduate study at NYU and the University of Missouri. Before World War II, he also worked for policy research organizations and government agencies in Washington, including the Brookings Institution and the antitrust division of the U.S. Justice Department. After serving in the United States Army, he became Chairman of the Department of Economics at Ripon College. He moved to Cornell University in 1947, where he served as chairman emeritus of the Department of Economics (a position he held for the rest of his life), as a member of the Board of Trustees of the university and as Dean of the College of Arts and Sciences. In 1974, he became chairman of the New York Public Service Commission, and later served as Chairman of the Civil Aeronautics Board, Advisor to the President on Inflation under Jimmy Carter, and Chairman of the Council on Wage and Price Stability, Carter's "inflation czar," until 1980. While serving under Carter, Kahn became known for his blunt and sometimes politically damaging comments. Convinced that certain administration policies would lead to a depression, but having been chided for using the term, he began saying that the economy would "become a banana." After banana producers objected, he changed his euphemism to "kumquat". Professor Kahn died of cancer in Ithaca, New York at the age of 93, on December 27, 2010. ==Work in deregulation==
Work in deregulation
Kahn's strong advocacy of deregulation stemmed largely from his understanding as an economist of marginal-cost theory. In his time at the New York Public Service Commission he was instrumental in using marginal costs to help price electricity and telecommunications services; this was novel at the time but is routinely performed today. While serving as Chairman of the Civil Aeronautics Board (CAB), which regulated commercial airline fares, in 1977–1978, Kahn (a self-described "good liberal Democrat") oversaw the deregulation of commercial air fares. As one analyst put it, Kahn "set to work with … other progressives" including Senator Edward Kennedy, future Supreme Court Justice Stephen Breyer, and consumer advocate Ralph Nader to "dismantle anti-consumer cartels that had been sustained by government regulation." In an interview with USA Today, he said he wished he could have deregulated the telecommunications industry. He served as an expert witness in many regulatory matters, particularly in issues regarding flat rate pricing for telecommunications, marginal costing in both telecommunications and electricity, and net neutrality. After his death, The Economist wrote: :And though, being an economist, he could not help muttering about the imperfection of societies and systems and the absurdity of predictions — and though, being an inveterate puncturer of himself, he would demand a paternity test if anyone called him the father of the deregulated world — his adventures with airlines led on to the freeing of the trucking, telecoms and power industries, and heralded the Thatcherite and Reaganite revolutions. ==Published works==
Published works
Kahn was the author of numerous books, including The Economics of Regulation: Principles and Institutions, Lessons from Deregulation: Telecommunications and Airlines After the Crunch, Whom the Gods Would Destroy, or How Not to Deregulate, Letting Go: Deregulating the Process of Deregulation, and Great Britain in the World Economy. Kahn also authored many articles, and was for many years a commentator on PBS's The Nightly Business Report. Besides his love for numbers, Kahn also loved words, and "hated to see them misused." Even after his death, he was acknowledged as "a champion of plain English...an economist who could do without 'herein' and 'therein'." ==Awards==
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