Aims and methods (as at end of award) : This project represented a continuation of ESRC financed research at IFS into the incidence of fiscal policy. Our aim was both to begin the incorporation of behavioural models more fully into our analysis of the effects of fiscal policy as well as to extend our standard analysis into new and important area. We have extended our models of labour supply and taxation to assess their robustness and to consider new groups. in particular single parents and households where individual adults are unemployed. We have developed a procedure for dealing with the take up of means tested benefits and have begun the estimations of a detailed micro level consumers' expenditure model for the analysis of indirect taxation. We have developed a methodology for incorporating our company tax model into behavioural models of investment, employment and financing decisions. We have created a range of software for estimating models from unbalanced company panel data. Finally we have developed econometric models of employment and investment behaviour using company level data. Our tax models have been extended using the Survey of Persons Incomes to consider high earners and those not well represented in the FES data source we currently use. We have carried out extensive model comparisons across a tax benefit modelers inside and outside government. Our tax analysis in the corporate sector has developed a methodology for dealing with tax exhaustion and tax asymetric. We have also developed detailed user friendly software and estimation which is now used extensively by academics and others outside the Institute.