This course surveys the literature on the economic analysis of education. Topics include the economic theories of educational investment and production, the interaction of markets with educational provision, and how and whether markets may be used to improve the educational system. We discuss a number of current policy debates, including the effects on student outcomes of class size, teacher credentials, standards-based educational reform, incentive pay for teachers, and school voucher systems. We also consider education’s role in increasing or decreasing income inequality within and across countries. A central goal of the class is for students to understand the methods that economists and policymakers use to study and discuss educational practices and reforms.