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The Third Edition of this successful textbook introduces students to the major concepts, models, and approaches surrounding the public sector. Now fully updated to include coverage of the New Public Management (NPM), The Public Sector is the most comprehensive textbook on theories of public policy and public administration. The Public Sector is introduced within a three-part framework: public resource allocation, redistribution and regulation. Jan-Erik Lane explains the basic concepts of each of these broad areas, and goes on to examine their consequences for various approaches to the making and implementation of public policy. The book explores models of management, effectiveness and efficiency, and evaluates the contribution, among many, of public choice and neo-institutionalist approaches, organizational theory, models of normative policy-making and, expanded in this edition, the theory of fiscal federalism. The New Edition retains chapters on public sector reform and continues to contrast the logic of the new management state with that of the old administrative state before introducing the basic ideas of New Public Management. The Public Sector will be essential reading to all students seeking a deeper understanding of the modern state and government across political science and public policy, administration and management.