This course provides an introduction to the economic analysis of public policy issues. The focus of the course is on the development of up-to-date analytical tools, drawn from recent research, and their application to key policy issues relating to the spending, taxing, and financing activities of government. The first part of the course presents the foundations of public economics. We start by laying down the general problem and methods of welfare and distributional analysis, and review the traditional rational for government intervention (externalities, public goods, etc.). We also present empirical tools needed to evaluate public policies and conduct welfare analysis. We then look at problems of public choice and political economics, and go on to consider the implications of recent research in behavioural economics for welfare analysis. The second part studies in much more detail two of the most important domains of public intervention: education policies, and social insurance programs.