Economic analysis of education and schooling has progressed considerably over the past few decades, and this essay attempts to put a few key issues into perspective. I look at the field from the particular vantage point of an economist with an interest in how school resources are used and how student performance can be improved. This perspective at least as applied-may be a bit narrow, although I think it is central to much of the policy discussion in education. Overall, I believe that this research line is poised to improve educational policy making, but much of its potential depends on developments yet to come.