Principles in Health Economics and Policy, second edition, is a concise introduction to health economics and its application to health policy. It introduces the subject of economics, explains the fundamental failures in the market for healthcare, and discusses the concepts of equity and fairness when applied to health and healthcare. This new edition presents a globally-relevant, policy-oriented approach, that emphasizes the application of economic analysis to universal health policy issues in an accessible manner. It explores four key questions currently facing health policy-makers across the globe: How should society intervene in the determinants that affect health? How should healthcare be financed? How should healthcare providers be paid? And, how should alternative healthcare programmes be evaluated when setting priorities? The book is an ideal guide to everyone interested in how the tools of health economics can be applied when shaping health policy.