Preface. Contributing Authors. Section I: Economic Theory and Methodology. 1. One Way to Measure How Much Second Best `Second Best' Is; P.A. Samuelson. 2. The Marshallian Macroeconomic Model; A. Zellner. 3. Production Theory as a Part of a Dynamic General Disequilibrium System; W. Krelle. 4. Kinds of Theory; E. Maskin. 5. Maximality, Optimality, and Duality: A Synthesis of Some Recent Results; K. Suzumura. 6. FIML Estimation of Sample Selection Models for Count Data; W.H. Greene. 7. Long-Run Rigidity in Labor Markets; K.G. Nishimura, Y. Tamai. 8. Incomplete Contracts in Public Procurement; D. Bös. 9. Non-Stationary Intergenerational Altruism; H. Hori. Section II: Macroeconomics and Dynamics. 10. The Speed of Adjustment; R.A. Musgrave. 11. Interactions in the Growth of Science and the Economy; M. Beckmann. 12. Conservation Laws and Optimal Paths in External Two Sector Growth Model; F. Fujiwara, et al. 13. Nonlinearity, Chaos, and Bifurcation: A Competition and an Experiment; W.A. Barnett, Y. He. 14. Capital Depreciation, Indeterminacy and Cycles in Two-Sector Economies; K. Nishimura, A. Venditti. 15. Environmental Externalities, Abatement Behavior and Pigovian Taxes; T. Ihori. 16. Optimal Defense Spending; Y. Niho, M. Takeuchi. 17. The Dynamic Gains from Trade Liberalization with Product Variety: Summary of Results; T.F. Rutherford, D.G. Tarr. 18. Monetary Expansion and Converging Speed in a Growing Economy; K.Mino. Section III: Financial Markets. 19. Analytical Afterthoughts on the Asian Crisis; P. Krugman. 20. The Impact of Mergers on U.S. Bank Performance; W. Kim, L.J. White. 21. A Simple Model of Foreign Exchange Exposure; G.M. Bodnar, R.C. Marston. 22. The International Linkage of Interest Rate Swap Spreads: The Yen-Dollar Markets; Y.H. Eom, M.G. Subrahmanyam, J. Uno. 23. Inflation, Financial Development and Growth; P.L. Rousseau, P. Wachtel. 24. Stochastic Inter-Temporal Optimization in Discrete Time; W.H. Fleming, J.L. Stein. 25. Fluctuation of Exchange Rates, Foreign Direct Investment, and Hollowing Phenomenon; M. Matsushita. Section IV: Firms and Industry. 26. Alfred Marshall in Hitotsubashi; T. Negishi. 27. Endogenous Technology Transfer: What is the Right Price?; W.J. Baumol. 28. Investment for Survival; M. Ohyama. 29. Characterizing an Area Condition Associated with Minimizing Systems; J.B. Cooper, T. Russell, P.A. Samuelson. 30. Access Pricing in Regulated Industries; K. Kawamata. 31. Equilibrium Locations: Product Cost Differentials and the Market Size; H. Ono. 32. Indeterminate Output Allocations; T. Mitchell. 33. Divisonal Rivalry and First-Mover Disadvantages; S. Tsutsui. 34. Symmetry and the Theory of the Firm; R.V. Ramachandran. Section V: Comparative Analysis of Economic Systems. 35. Reflections on Japanese Political Economy; J. Tobin. 36. `Reversed Investment