Tax policy in the Slovak and Czech Economies
| Authors | |
|---|---|
| Year of publication | 2021 |
| Type | Article in Periodical |
| Magazine / Source | Politická ekonomie |
| MU Faculty or unit | |
| Citation | |
| Web | https://polek.vse.cz/artkey/pol-202106-0004_tax-policy-in-the-slovak-and-czech-economies.php?back=/magno/pol/2021/mn6.php?secid=1 |
| Doi | http://dx.doi.org/10.18267/j.polek.1336 |
| Keywords | Tax reform; Czech Republic; Slovakia; DSGE; labour; capital; consumption |
| Attached files | |
| Description | Today, society is struggling with the uncertainty caused by the pandemic of coronavirus disease 2019. Government budgets will face a real challenge in the coming years. This paper provides an overview of current public finances and their condition over the past 20 years in the Slovak and Czech republics. It investigates the possible effects of different tax type changes and also the option to cover budget losses. A simple DSGE model with three sectors was calibrated using data from 2018 and a stochastic analysis was performed. It was shown that the economy was more sensitive to shocks on social security contributions than to those on other taxes. The results support the reform of decreasing labour taxes, for which both Slovakia and Czechia have been waiting for a long time. |
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