Impact analysis of economic policy is a subject which is gaining in-
creasing interest in both theoretical and applied economic research. Two
main reasons for the growing interest can be distinguished. First, the
situation of the government's finances is making it more than ever
necessary to assess critically the effects of the instruments used to
pursue public policy goals. Secondly, because of the economic stagnation
government will be increasingly appealed to for support. Impact
analysis, however, is hampered by three major problems: methodological
deficiencies, lack of econometric approaches which have been adapted to
the specific conditions of this kind of analysis and data availability.
The present book deals with these problems in the context of regional
economic policy. However, the main findings are broadly applicable in
various other fields. This book is primarily oriented towards those who
have a practical interest. Therefore, attention is mostly paid to the
practical aspects of the methodology and the measurements methods.
Furthermore, the methodologi- cal and econometric parts are supplemented
by two extensive case studies. - Three people have contributed
constructive criticisms and suggestions on some chapters of the book:
Peter Nijkamp, Theo Dijkstra and Manfred Fischer. I am very grateful for
their support. They, of course, share no blame for any deficiences in
the present form of the book. I also gratefully acknowledge the
assistance of Harry Barkema and Marja Schuring with the computations.
