Here is a sample of the sorts of issues we investigate. See our research section for details of current projects. See also our strategic framework for an outline of our aims and how we set about achieving them and our quality standards for details of how our systems and practices are designed to ensure that every stage of the research process is carried out to a very high standard.

Taxes and welfare

Governments tax and spend to provide services, redistribute income and influence the behaviour of individuals and firms. Among the questions we ask: Will tax credits improve work incentives? Who wins and loses from the Budget? Is there a rationale for National Insurance? Would higher alcohol duties raise revenue? How heavy is the tax burden on business? Is independent taxation of men and women eroding? Is housing undertaxed? How many people is means-testing set to affect?

Public finance and public services

The government is under pressure to improve public services and infrastructure, but rules limit how much it can borrow. Among the questions we ask: What are the pressures to raise spending in different areas? How can we measure the quality of public services? Do performance targets improve public sector productivity? How sensible are the government's fiscal rules? Can it meet its rules without raising taxes? Why has corporation tax yielded less than the Treasury expected?

Inequality and education

Education can improve people's lifetime incomes, helping tackle poverty and inequality. Among the questions we ask: What are the financial returns from education? Does pre-school learning offer value for money? Do student loans disadvantage the poor? Why does inequality show different trends for income and spending? Can we learn more about the welfare of the very poorest? How can the government hit its child poverty target? Are "baby bonds" an effective redistributive tool?

Productivity and competition

Greater competitiveness, productivity and firm performance are the foundations for growth in living standards. Among the questions we ask: In what sectors does UK productivity lag behind the US? Should tax credits be used to encourage R&D? How do product and labour market reforms interact? How does overseas competition affect wages? Does dividend taxation affect investment?

Spending and saving

Understanding how consumers decide what to spend and save is essential for monetary, fiscal and competition policy. Among the questions we ask: Are people saving enough for retirement? Is the pension system affordable? How do house prices affect spending? How do people insure against unexpected income changes? Does inflation measure the prices shoppers really pay?

Development and poverty reduction

Poverty reduction requires policies to help poor people invest in their human capital. Among the questions we ask: Do education subsidies in Latin America improve school enrolment? Does better education lead to better health? Are cash transfers more effective when women receive the money? Do political pressures hamper policy evaluation?

Tax law and administration

Good tax policy depends on the legal process and administration, not just economics. Among the questions we ask: Is parliament involved early enough in making tax law? Is the legal treatment of same-sex couples coherent? Are the employed and self-employed treated equitably? Should we merge HM Customs and the Inland Revenue?

Methodology and evaluation

To evaluate policies rigorously - and help others do so - we develop micro-econometric techniques and pass on our skills to other researchers, civil servants, regulators and private sector economists.