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 planning
 — and other governmental functions, and of the appropriate
 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 hypothese
 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 decisionmaking
 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 investigation
 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 possible
 to introduce the decision-making function, at least in part,
into one or more of the channels of synthesis of regional techniques
 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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