Since the first edition of this book in 1987, it has been widely recognized as a comprehensive and definitive text on the economics of the welfare state its efficiency, its fairness, and its relevance to the whole population, not just to the poor. Although written primarily for students of economics, a diverse readership, including students of social administration and public policy, has been kept in mind throughout. To this end, each of the technical chapters has an appendix which explains the results in non-technical terms. This latest edition includes information on several new topics, including pension policy, long-term disability and residential care insurance for older persons, and the impact of genetic screening on medical and life insurance. It describes new challenges to the welfare state, such as demographic changes, changes in family structure, the trend toward the feminization of poverty, and changes in the structure of jobs, as well as ongoing debates about the welfare state is it desirable, and if it is desirable, is it any longer feasible given demographic and other challenges? Reviews of Previous Editions A detailed, tightly argued discussion of both the aims and the methods of social policy...Its didactic layout and style makes it accessible to students of the subject and even to non-economists like myself...Barr has written a text for the years to come, intelligent, thorough, informative, and clear. Lord Dahrendorf, Times Higher Education Supplement Economists seeking a unified treatment of the economics of the welfare state can stop searching. They will find Barr s well-organized, lucidly-written volume a welcome alternative to the fragmented, incomplete discussions that appear in textbooks on public economics, labor economics, and poverty and income inequality...By persistently asking the kinds of questions an economist should ask about policy issues, and sensibly answering them, the book teaches readers much about the value of an economic approach to policy issues. Journal of Economic Literature