ABSTRACT

There are two generic features of the long-term evolution of regions. The first is persistence in structures, which is revealed by the stable pattern of city-size distributions and spatial hierarchies (Beckmann, 1958; Gabaix, 1999; Gabaix and Ioannides, 2004). The second is durability and persistence in change processes, which manifest itself in that evolution and change tend to follow a predictable path governed by initial conditions (Glaeser et al., 1995). We focus, in this chapter, on what the latter type of change processes imply for regional policy. Our contribution addresses the general policy issue of the focus and potential for regional policy (Johansson et al., 2002). The chapter is conceptual and our arguments are based on theoretical discussions substantiated with empirical examples and illustrations.