The aim of the course is to give basic knowledge about the functioning of public sector in market economies, under a normative and positive perspective. Specifically, students will learn the fundamentals of welfare economic along with the efficiency and equity of public intervention. The main theories of public choice analyses are illustrated as well as the role of public sector in case of market failures such as public goods and common resources, monopoly and natural monopoly, externalities and asymmetric information. Specific focus will be given to the analysis of the Italian public finance (public expense and taxes) in the context of the monetary policy of the UE, the taxation burden and distortion. The final purpose of the present course is to give students the basic knowledge to understand and critically discuss the key elements of the p debate about the role of public sector in market economies.