Offers the most comprehensive, serious treatment of policy analysis on the market. Provides students with a clear understanding of why markets fail, how governments fail, what the alternatives are for correcting policy failures, how to choose between many different policy options, and how to structure, write, and present a policy recommendation to promote desirable policy change. Content has been thoroughly revised and refreshed throughout, and cut chapters (e.g. "When Statistics Count") have been moved to a dedicated companion website for this edition. Includes a full suite of online instructor resources including PowerPoint slides, sample student project topics, a project evaluation template, a 'Memorandum on Writing Memoranda,' an ethics exercise, and answers to discussion questions.