In the literature on measuring of the effects of regional policy four methodological problems can be distinguished: First, handling the multidimensional nature of the regional profile; second, separation of policy effects from autonomous developments; third, comparison of different policy instruments; and fourth, handling theoretical constructs and measurement errors. In this paper a linear structural equation model is formulated that overcomes these problems. The paper concludes with a case study of the situation in Holland during the period 1974–1975.
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