This brand new edition of the book has been rigorously updated throughout in terms of examples and data references, issues covered, and layout and pedagogical features. Key concepts are reinforced through multiple problems and discussion questions within each chapter. This latest edition contains extra material on loss aversion, global warming, technology, and US health care reform, as well as a wider range of international examples. Extra tables have been included in order to clarify more complicated issues. Instructors will also benefit from the new companion website, which will offer power point presentations, answers to end of chapter questions, and a test bank. This textbook encourages its readers to understand and apply key concepts whilst also learning to appreciate policy analysis as part of an interdisciplinary, analytical, and political process that can lead to better government policy decisions. It is an ideal teaching tool for undergraduate and postgraduate students engaged in Public Administration, Public Economics, and Public Policy.