ABSTRACT
This chapter surveys critically the evidence on the effects and efficiency of policy obtained largely, but not wholly, through the construction of empirical models and the application of quantitative techniques. It examines the effects of regional policy on the assisted areas and the effects of regional policy on non-assisted areas and discusses the opportunity costs of regional policy. The chapter highlights some of the implications of the assessment for the formulation and operation of regional policy. It argues that the growth in regional policy evaluation studies in Western Europe provided an opportunity to reopen the debate concerning the economic case for regional policy in mixed market economies. Many of the assisted firms have been expanding firms, although there are indications that this is the product of a greater cyclical sensitivity rather than superior growth performance.
