Alternative Data for the Dynamic Modelling of the East European Transformation¹

Article type: Research Article

Authors: Blangiewicz, Maria^a | Bołt, Tadeusz W.^a | Charemza, Wojciech W.^b

Affiliations: [a] University of Gdańsk, Poland | [b] Economics Department, University of Leicester, University Road, Leicester LE1 7RH, UK

Note: [1] All authors are also with the Macroeconomic and Financial Data Centre, Gdańsk and Leicester. The financial support of the A.C.E. Project Structural Change and Spillovers in the East European Reform Process is gratefully acknowledged. We are indebted to Derek Deadman for his helpful comments on an earlier draft of the paper. The usual disclaimer applies.

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.

DOI: 10.3233/JEM-1994-20101

Journal: Journal of Economic and Social Measurement, vol. 20, no. 1, pp. 1-23, 1994