State of the art understanding of the seismic behaviour of shallow foundations has advanced rapidly in recent years, yet current design practice does not account for these advances. The idea that shallow foundation bearing failure should not occur during an earthquake is not in line with other areas of earthquake engineering, where performance based design is widely accepted. The macro-element investigated in this study is a simple tool that can model complex dynamic soil-structure interaction beneath a shallow foundation. A detailed account of macro-element theory and behaviour is given and a computer code, written for use with the MATLAB software, is included. Insights are made into the usefulness of the macro-element in routine design, the trade-off between actions and permanent displacements of the foundation and superstructure, and the way that conventional geotechnical conservatism does not apply in performance based design. This book will be of interest to academics and practitioners involved in earthquake engineering. It will be of particular value to those working in the areas of performance based design and soil-foundation-structure interaction.