This broad-ranging new text applies economics analysis to the aims, instruments and outcomes of land use planning and housing policies. The core focus is on providing students with a substantive and sophisticated understanding of the relation of the state and market and such key current issues as sustainable development, urban renaissance, affordable housing and the relationships between planning, housebuilding and house prices. Drawing examples from Britain, the rest of Europe and the USA, it emphasizes the role of economics in promoting a theoretically- informed and evidence-based approach to policy formation and implementation. INDICE Introduction Markets, Development, Institutions and Efficiency The Relevance of Welfare Economics Market Failure Environmental Economics and Sustainable Development Public Choice Theory, Planning and Housing Distributional Justice and Land Markets Affordable Housing and Planning Housing, Planning and Urban Renaissance Policy Instruments in a Comparative Context The Economic Consequences of Planning Conclusions