Regional Planning in a Mixed Economy

Abstract

Like many other countries, the United States is facing numerous major problems related to the location of economic activity. These difficulties may be broken down into two principal categories: those of large urban agglomerations and those relating to regional disparities in income and economic opportunity. Most metropolitan area problems-slums, public transportation deficiencies, air pollution, lack of parks and recreation facilities, traffic tie-ups, etc.-are a consequence of urban congestion. On the other hand, regions characterized by relative economic stagnation' tend to be outside the influence spheres of large cities. In response to these phenomena increasing pressure has been brought to bear on the central government to render relevant assistance. A major aid project under federal auspices has already been inaugurated for Appalachia and large-scale assistance to metropolitan areas will be forthcoming soon. From an opportunity cost viewpoint it is apparent that such programs have significant consequences for the nature and location of economic activity in general; it is desirable, therefore, that urban and regional development be considered within a unified framework of analysis.2 Moreover, the relevance of both the market mechanism and