This important book provides a state of the art of the study of policy instruments, combining insights taken from European and American experiences, to present a detailed exposition of the nature and use of policy instruments.The book first analyses the background of the instrumental approach and outlines its development in the field of public adminstration. It also includes an exposition of four alternative schools of thought about policy instruments, namely, the instrumentalist, proceduralist, contingentist and constitutivist schools. The criteria for choosing instruments are discussed as is the effectiveness of regulatory, financial and communicative instruments. This volume also addresses the recent efforts by governments to restrict intervention in the market. The final section provides a reassessment of the instruments literature and looks at the questions that will continue to face this perspective on public policy. This book will be of great use to academics and students of public policy and political science as well as policymakers.