In this paper we examine the growth of income inequality in Hungary in the early transition period. We use household budget survey data from four years between 1987 and 1993 to examine the factors associated with the levels and changes in inequality. We find that public policy inhibited the...

Empirical analyses on income and wealth inequality and those in other fields in economics and finance often face the difficulty that the data is heterogeneous, heavy-tailed or correlated in some unknown fashion. The paper focuses on applications of the recently developed \textit{t}-statistic...