Abstract
We derive an RG flow equation that is satisfied by the regularized partition function for noncritical strings in background fields. The flow refers to change in the position of a ``boundary'' in the liouville direction. The boundary is required to regularize the ultraviolet divergences in the partition function coming from integration over world-sheets of arbitrarily small area. From the point of view of the target space effective gravitational action that the partition function evaluates on-shell, the boundary regularizes {\it infrared} divergences coming from the infinite volume of the liouville direction. The RG flow equation that we obtain looks very much like the Hamilton-Jacobi constraint equation that an on-shell gauge-fixed gravitational action must satisfy.
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