This book, based on economics andgame theory, analyzes the changes that Japan is now facing as a reflection ofchanges in Japanese families and society. The author presents a simpleframework for the structural relationship among markets, communities includingfamilies, and the state; and uses it to explain the changes that have occurredin Japanese society. Social changes have created a series of social problemssuch as population ageing, inequality, and regional disparities, which requirechanges in public policies. The book provides readers with rich informationabout the Japanese social security system, social policies and regionalpolicies by explaining why they are developed, how they are designed, and whatchallenges they face. Readers will find that the transformation of Japanesesociety is not really a special case but a fairly common one that manydeveloped countries have experienced and many developing countries are going toexperience. The book will be useful not only to those who are interested inJapanese society and public policies but also to anyone who is interested inthe transformations of families, communities, and roles of the state in amodern market economy.