Abstract: This paper describes attempts to improve the quality of data used for the dynamic econometric analysis of East European economies in their transition period from a planned to a market economy. It gives general requirements for an ‘ideal’ set of data used for dynamic macroeconomic analysis and reflects on some particular data problems related to the modelling of the economy in transition. It exemplifies the methodology by showing the way the alternative price indices (that is covering jointly the state controlled and uncontrolled sectors of the economy) are constructed. Furthermore, it describes the approximation of the alternative annual households' incomes…data. It also shows how the observable quarterly series on wages are used for the Kalman filter approximation of quarterly incomes.
Show more