This paper reviews regional economics research of recent years under the three categories of theory, methods, and policy. The theoretical topics analyzed include spatial prices, location, regional growth, and spatial diffusion. The methods section focusses on the five most popular techniques: economic base, regional input-output, regional econometric models, shift-share, and the gravity model. Policy issues discussed include the efficiency vs. equity trade-off, the case for subsidized migration, the relative merits of subsidies of capital, labor, and infrastructure, growth centers, and regional policy evaluation. It is suggested that many of the unresolved questions in regional economics spill over disciplinary boundaries and require the interdisciplinary skills of the regional scientist rather than those of the mainstream economist.
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