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Redistributive Policy in a Transition Economy: The Case of Hungary

Author

Listed:
  • Jarvis, Sarah
  • Pudney, Stephen

Abstract

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.

Suggested Citation

  • Jarvis, Sarah & Pudney, Stephen, 1995. "Redistributive Policy in a Transition Economy: The Case of Hungary," CEPR Discussion Papers 1117, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1117
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    Citations

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    Cited by:

    1. Cecilia Testa, 2005. "Reforms, lobbies and welfare: A common agency approach," Public Choice, Springer, vol. 125(3), pages 305-337, December.
    2. Chu, Ke-young & Davoodi, Hamid & Gupta, Sanjeev, 2003. "Income distribution and tax, and government social spending policies in developing countries," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34918, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. David Newbery & Tamas Révész, 2000. "The Evolution of the Tax Structure of a Reforming Transitional Economy: Hungary 1988–98," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(2), pages 209-240, March.
    4. Galasi, Péter & Nagy, Gyula, 2008. "Jövedelmek és munkanélküli-ellátások [Targeting unemployment benefits in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 473-502.

    More about this item

    Keywords

    Economic Transition; Hungary; Redistribution;
    All these keywords.

    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 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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