Modelling income distribution in countries in transition: A computable general equilibrium analysis for Poland

The paper designs an analytical framework suitable for modelling distributional issues of transition in Eastern Europe. It involves a computable general equilibrium model, with a social accounting matrix (SAM) serving as a database. The model is disaggregated with respect to production activities, factors of production and households. In particular, the household sector is disaggregated by socioeconomic groups, distinguished by their source of income. The data for Poland in 1990 have been used to calibrate the model. The distributional consequences of a decline in output and of privatization are examined in simulation experiments