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This paper presents the theoretical basis for an approach to neighbourhood evaluation. It is based upon three theories. The first two: Bronfenbrenner's ecology of human development approach, and the transactional world view, as presented by Altman and colleagues, enable us to cope with the complexity of residential neighbourhoods, and provide the principles on which we base the proposed approach. The third theory is the naturalistic inquiry paradigm, whose principles and operational guidelines we consider to be the most appropriate for the realization of these principles. The characteristics of the proposed evaluation approach include: an open-ended approach; resident participation; an inclusive and focused approach; an inductive spatial definition; a multi-faceted methodological approach; the use of diverse units of analysis; and the case-study method of reporting.
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