The author is grateful to James Banks, Andrew Dilnot, Alan Duncan, Christopher Giles, Paul Johnson, Costas Meghir and Graham Stark for comments and helpful encouragement in assembling the material for this lecture. It forms part of the research programme of the ESRC Centre for the Microeconomic Analysis of Fiscal Policy at IFS. Data from the Family Expenditure Survey made available by the Central Statistical Office through the ESRC Data Archive have been used by permission of the Controller of Her Majesty's Stationery Office. The usual disclaimer applies.
This is the text of the IFS Annual Lecture 1995 delivered at the Merchant Centre, London on 13 June 1995.