Household survey data,econometrics and economic transition

This paper explores some of the possible uses of household survey data for the analysis of the process of economic transition. It is argued that such data are particularly valuable for work on the distributional effects of transition, using simulation techniques of various kinds. Some examples are given, focusing on: labour supply; indirect taxation; and the cost and effectiveness of the Hungarian personal income tax and social security systems under alternative assumptions about changes in the distribution of gross earnings and the level and incidence of unemployment.