This document discusses the nature of policy analysis. It defines policy analysis as the examination and evaluation of policy options to address public issues. An effective process involves empirical research, data collection, and input from stakeholders. The document then provides a brief history of the field, outlining how it has evolved from a focus on institutions to include analysis of actual policy content and processes. It describes the most common four-step model used in policy analysis: 1) describing problems and solutions, 2) determining costs, 3) determining outcomes, and 4) making recommendations. The document concludes by discussing traditional views on the nature of public policy.