Centre for Economic Performance

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Centre for Economic Performance (CEP)

The Centre for Economic Performance is a research centre at the London School of Economics (LSE). Founded in 1990 with funding from the Economic and Social Research Council (ESRC), CEP studies why economies grow and how to build a fair, inclusive, and sustainable society. It is led by Director Stephen Machin and is one of the UK’s leading economic research institutes.

Location and people
- Based in London at 32 Lincoln’s Inn Fields, WC2A 3PH.
- Director: Stephen Machin. Research Director: Henry Overman.
- Key researchers include Stephen Machin, Alan Manning, Sandra McNally, Ralf Martin, Guy Michaels, Catherine Thomas, Richard Layard, and Daniel Sturm.
- Staff: 100+.
- Website: CEP’s official site.

What CEP does
- CEP is an interdisciplinary centre that combines theory and data to study economic performance and policy.
- It runs six main research programs and collaborates with related centres and projects, such as the Centre for Vocational Education Research, the Programme on Innovation and Diffusion, and the What Works Centre for Local Economic Growth.
- The centre publishes working papers, policy briefs, and analyses to inform government and business.

Impact and notable work
- Wellbeing and mental health: CEP’s LSE Depression Report influenced the Improving Access to Psychological Therapies (IAPT) programme, a major service providing talking therapies to about 1 million people each year.
- Policy influence: CEP research has informed UK government guidelines on how wellbeing evidence should shape policy.
- Growth and infrastructure: The LSE Growth Commission (2013 and 2017) recommended a National Infrastructure Commission and an Infrastructure Bank, both of which have become real institutions.
- Management and productivity: The World Management Survey (started in 2002) measures how good management is in firms and schools. The data linked management quality to productivity and helped launch initiatives like Be the Business and Help to Grow.
- Minimum wage: CEP researchers helped shape the case for the UK’s National Minimum Wage and advised on its implementation. The Low Pay Commission was established in 1997, and the National Minimum Wage began in 1999.
- Regional growth: CEP work on why some places are richer than others has explored transport costs, skills, and agglomeration effects.
- Brexit and trade: CEP research predicted GDP losses from trade frictions after Brexit and has informed official forecasts. After the UK left the EU single market in 2021, CEP work analyzed the impact of the new Trade and Cooperation Agreement (TCA).
- Lionel Robbins lectures: CEP hosts this lecture series, inviting leading economists.

Leadership and influence
- CEP directors: Richard Layard (1990–2003), John Van Reenen (2003–2016), Stephen Machin (2016–present).
- The centre also connects with major public bodies. Since August 2022, two of the nine Bank of England Monetary Policy Committee members are CEP associates: Jonathan Haskel and Swati Dhingra.
- The Migration Advisory Committee is chaired by CEP associates; current chair is Brian Bell, with past chairs including Alan Manning (2016–2020) and Sir David Metcalf (2007–2016).

Overall, CEP combines rigorous research with real-world policy impact, addressing how economies grow and how to create a fairer, more productive society.