If the guiding principle of the Clinton administration is indeed "new values for a new generation," how will this be reflected in U.S.-Japanese relations? Convinced that no true solution to U.S.-Japanese frictions can be achieved without tracing these frictions back to their origin, Ryuzo Sato here draws on a binational experience that spans three decades in both the Japanese and American business and academic communities to do just that.

This edition of Sato's 20-year-old work illustrates his contribution to economics. Under the heading "transformation and invariance", the book deals with a number of topics in economic theory, from production functions to the general recoverability problem of optimal dynamic behaviour.

This important volume collects together eighteen major essays written by Ryuzo Sato over the last thirty years in the area of growth theory and technical change. After an autobiographical introduction describing Professor Sato's intellectual and personal development, the book presents his early pioneering work on growth models and the relevance of fiscal policy and time in these models. Later essays focus on the application of optimal control theory to growth theory, his work on endogenous growth, endogenous technical change and the development of 'Sato-Beckmann neutrality'. This landmark book will be welcomed by researchers, teachers and students interested in technical change and progress.