Consumer Demand System Estimation and Value Added Tax Reforms in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F14%3A10281417" target="_blank" >RIV/00216208:11230/14:10281417 - isvavai.cz</a>

Alternative codes found

RIV/67985998:_____/14:00429475

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Consumer Demand System Estimation and Value Added Tax Reforms in the Czech Republic

Original language description

The value added tax (VAT) rates have recently changed in the Czech Republic, and in this paper I simulate the impact of these reforms. They are an example of changes in indirect taxes that change the prices of goods and services, to which households canrespond by adjusting their expenditures. I first estimate the behavioral response of consumers to price changes in the Czech Republic by applying a consumer demand model of the Quadratic Almost Ideal Demand System (QUAIDS) on the basis of the Czech Statistical Office household expenditure and price data for the period from 2001 to 2011. I derive estimates of own- and cross-price and income elasticities for individual households. I then use these elasticities to estimate the impact of the changes in VATrates that were proposed or implemented between 2011 and 2013 on households' quantity demanded and government revenues. One of the main findings is that the estimated increases in government revenues that take the consumer responses into

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

Result was created during the realization of more than one project. More information in the Projects tab.

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2014

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Finance a úvěr

ISSN

0015-1920

e-ISSN

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Volume of the periodical

64

Issue of the periodical within the volume

3

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

28

Pages from-to

246-273

UT code for WoS article

000338186400004

EID of the result in the Scopus database

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