Explore public and nonprofit finance in this comprehensive lecture from Yale University's Financial Markets course. Delve into the financial structures supporting public causes and nonprofits, examining their role in achieving higher social goals. Learn about the distinctions between for-profit and nonprofit enterprises, and understand government involvement in regulating corporate profits. Investigate state and local finance, including operating and capital budgets, and the tax-exemption of municipal bonds. Trace the historical development of governmental social insurance, from progressive taxes to public services and social security. Discover how these advancements in public and nonprofit finance have evolved alongside technological progress, shaping modern society. Gain insights into social entrepreneurship, the invention of social insurance in Germany, and the broader social purpose of finance and behavioral economics.