SEMAINE D'ÉTUDE SUR LE RUIE DE L’ANALYSE ECONOMETRIQUE ETC. 1027
CONCLUDING REMARKS
The purpose of this paper was simply to confront squarely
a basic problem in economic planning for regional development
— the problem of an appropriate spatial organization of plan-
ning — and other governmental functions, and of the appro-
priate spatial allocation of decision-making authority. Because
this fundamental question has been avoided by econometricians
and regional scientists in the past we have been able to present
only simple « reasonable » hypotheses. Admittedly, these hy-
pothese are weak, and their empirical testing will lead quickly
to new, superior hypotheses. Yet, these hypotheses represent
the best that can be culled from the existing voluminous, but
rigorless, literature. It is hoped that their presentation will
provoke major research effort and contributions to this area.
In closing, it may be mentioned that once empirical testing
has been conducted and a number of hypotheses established as
valid, it should be possible to estimate decision-making cost
differentials for each type of organization, firm, or industry.
With such cost differentials on hand, it would then be possible
to broaden location analysis in order to embrace the decision-
making function. Such broadening would involve essentially
the comparison of the decision-making cost differential with the
transport cost differential, labor cost differential, and other
cost differentials considered as relevant in a location investiga-
tion of an organization. The necessary extension of location
theory based upon substitution points can easily be achieved.
Finally, with a superior classification of organizations, firms or
industries as national, regional and local, it would become pos-
sible to introduce the decision-making function, at least in part,
into one or more of the channels of synthesis of regional techni-
ques which have been described elsewhere (?°),. For example
{(¥) SEE W. Isarp, et al., Methods of Regional Analysis, M.I.T. Press
Cambridge, Massachusetts. 1960. Chapter *2
«1 Isard - pag.
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