This study examines the scope for redistributive government policies based on progressive income taxation and direct income transfers. We concentrate on the case of Hungary. We first survey recent developments in the economic circumstances of the household sector and changes in the Hungarian tax-benefit system. We then examine the changing redistributive role of the personal income tax system. Finally, we consider the redistributive potential for various types of income transfer, using optimal targeting techniques. The analysis is based on data from the 1991 Hungarian Household Budget Survey.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1117.
Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials P24 - Economic Systems - - Socialist Systems and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
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