5. REGIONAL AND INTERREGIONAL MODELS

My comments in the introduction to this article lamented the lack of a microeconomic theory of the regional and interregional economy. It was also pointed out in the introduction that the theory of city systems currently pioneered by urban economists [80, 82] could eventually form the basis of an adequate interregional theory. Another source of inspiration and theoretical insight for regional and interregional models ought to come from “applied general equilibrium analysis” which in recent years has found many topics of economic policy application with major reliance on numerical computation techniques. A collection of such articles appears in the volume edited by Scarf and Shoven [147]. In one of these articles, ...

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