Public economics is one of the main disciplines in economics. Using microeconomic and macroeconomic analyses, it studies the behavior of government when providing public goods, controlling uncertainty, and reducing poverty and inequality and analyzes the effects of such behaviors on economic variables. Over the recent years, with an emphasis on political economy and institutionalism in economic analysis, alternative theories have emerged in the public sector. The book aims to present some evidence and facts observed in Iran’s public sector in the form of a course book while addressing common theoretical issues in public economics. When presenting the theoretical discussions, the traditional public finance approach is developed using more recent approaches, such as public selection. The alternative theories are designed to note the fact that there are different perspectives for solving economic problems and that these issues can be viewed from various perspectives.