Sharp nonparametric bounds are derived for Hicksian compensating and equivalent variations. These 'i-bounds' generalize earlier results of Blundell, Browning and Crawford (2008). We show that their e-bounds are sharp under the Weak Axiom of Revealed Preference (WARP). They do not require transitivity. The new i-bounds are sharp under the Strong Axiom of Revealed Preference (SARP). By requiring transitivity they can be used to bound welfare measures. The new bounds on welfare measures are shown to be operationalized through algorithms that are easy to implement.

This commentary gives a detailed examination of the behavioural insights for tax and benefit policy.

There is growing interest in how behavioural economics can be used effectively by policymakers. This observation considers some of the broad implications of behavioural insights for tax and benefit policy, drawing on new IFS research which explores the issues for particular aspects of policy in this area.

These slides were presented at the British Academy in London, 22 February 2012.

Concern that too little saving is done by a significant number of UK households has long been a motivation for government policy. However, any intervention by policy makers designed to increase household saving rates should ideally be based on high quality evidence on the efficacy of different policies. A new British Academy policy centre report authored by IFS researchers examines the evidence for different types of policy to promote household savings: financial incentives, education, 'nudges' and social marketing. Despite the obvious importance attached to the issue in the UK and internationally, the report concludes that significant gaps in the evidence base remain.

This report looks at evidence on policies to encourage household saving. The report examines in detail what is known - and what is not known - about the effectiveness of four types of intervention designed to raise saving by households: financial incentives; education; choice architecture; and social marketing.

This presentation was delivered at the Geary Institute, University College Dublin.

Households receiving the winter fuel payment are almost 14 times as likely to spend the money on fuel than would have been the case had their incomes been increased in other ways; But in very cold weather it remains the case that the poorest pensioners cut back on spending on food to finance the additional cost of heating their homes.

This presentation was delivered at the IFS briefing 'Cash by any other name? evidence on labelling from the UK Winter Fuel Payment', 8 June 2011.

We study the UK Winter Fuel Payment (WFP) and find robust evidence of a behavioural effect of the labelling.

This presentation was delivered on November 23rd at University College Dublin.

In recent months, there has been much speculation that the Winter Fuel Payment (WFP) will be abolished or restricted as part of the forthcoming programme of spending cuts. In this observation we contribute to this debate by summarising what the WFP does, and does not, achieve.