Examination of Inequalities in Hungary by Microsimulation in Consistency with Macro Data

Cserháti, Ilona, Keresztély, Tibor and Takács, Tibor (2016) Examination of Inequalities in Hungary by Microsimulation in Consistency with Macro Data. Society and Economy, 38 (4). pp. 479-495. DOI 10.1556/204.2016.38.4.3

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Effective decision making uses various databases including both micro and macro level datasets. In many cases it is a big challenge to ensure the consistency of the two levels. Different types of problems can occur and several methods can be used to solve them. The paper concentrates on the input alignment of the households’ income for microsimulation, which means refers to improving the elements of a micro data survey (EU-SILC) by using macro data from administrative sources. We use a combined micro-macro model called ECONS-TAX for this improvement. We also produced model projections until 2015 which is important because the official EU-SILC micro database will only be available in Hungary in the summer of 2017. The paper presents our estimations about the dynamics of income elements and the changes in income inequalities. Results show that the aligned data provides a different level of income inequality, but does not affect the direction of change from year to year. However, when we analyzed policy change, the use of aligned data caused larger differences both in income levels and in their dynamics.

Item Type:Article
Uncontrolled Keywords:income distribution, income inequality, microsimulation, micro-macro link, well-being
JEL classification:C15 - Statistical Simulation Methods: General
C54 - Quantitative Policy Modeling
D31 - Personal Income, Wealth, and Their Distributions
Divisions:Faculty of Economics > Department of Economic Policy
Faculty of Economics > Department of Statistics
Subjects:Economic development
General statistics
ID Code:2564
Deposited By: Ádám Hoffmann
Deposited On:19 Dec 2016 08:17
Last Modified:13 Dec 2021 08:54

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