SHAPING PLACE - INSTITUTIONAL BEHAVIORS AND THEIR MOTIVATION - A REPLY

Institutional economics and its focus on differential power as the fac tor shaping economic-outcomes provides a powerful tool for examining i nequalities. This paper applies institutional economics perspectives t o increasing the understanding of forces that create and sustain spati al inequality in urban areas. A need for more detailed and focused att ention to the ideological and conceptual bases for allocating investme nt across space is identified. The author argues that observation of a ctual practice without such examination of motive is insufficient for the design of interventions that will reduce spatial inequality and it s negative consequences.