Welfare economics gives an introduction to the economic analysis of welfare programs. Welfare programs focus on alleviating risks that individuals encounter during life, such as not being able to support oneself due to sickness, unemployment or old age. In the book economic tools are used to analyze different ways of cooperation that mediates such risks, their efficiency and income distribution effects. Welfare economics also addresses the pros and cons with different welfare program designs based on theoretical results and robust empirical research. Altogether this gives the reader a solid foundation for understanding and analyzing welfare programs. The book includes chapters on health care, sickness and unemployment insurance, pension systems, elderly care and child policies. In each chapter there are international examples and figures; nonetheless there is some focus on Sweden justified by an often shown interest in the functioning of “the big welfare state” and the merits and limits of the Swedish way. The book will be useful in introductory courses in economics and public finance, but also for students in sociology, social work and political science. Furthermore, it is very suitable for “on-the-job” training courses for employees of welfare authorities.