Property Tax and Quality of Life in the Czech Municipalities: Does the Policy of Raising Local Coefficient Imply Potential or Risk for Development?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F18%3A39912374" target="_blank" >RIV/00216275:25410/18:39912374 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.2478/revecp-2018-0007" target="_blank" >https://doi.org/10.2478/revecp-2018-0007</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.2478/revecp-2018-0007" target="_blank" >10.2478/revecp-2018-0007</a>

Result language

angličtina

Original language name

Property Tax and Quality of Life in the Czech Municipalities: Does the Policy of Raising Local Coefficient Imply Potential or Risk for Development?

Original language description

Since the 1990s, the Czech intergovernmental fiscal relations have been undergoing a transformation. One of the measurements strengthening the autonomy of local authorities was the introduction of the instrument of the local coefficient in 2009 which provided the municipalities with the possibility to raise real estate tax in order to maximize their revenues. The aim of this article is to statistically analyse the impact of this instrument on the quality of life in a sample of Czech municipalities which have changed the local coefficient from 1 up to 5. The empirical analysis consists of two parts - a non-parametrical correlation analysis and paired difference testing. It is carried out in context of population ageing versus population growth, and the availability of basic public services (education, health care, communication, public safety). The analysis proves that there are great differences between the municipalities that have increased the real estate taxes and municipalities that have not. In the second case, the municipalities are more threatened by population ageing as they face the growth of population while the number of working age citizens is declining together with the provision of public services. Meanwhile, the municipalities that have increased the coefficient of real estate taxes have experienced increase in both population and working age population sizes. Such municipalities do not face the problem of shrinking of public services. Also, the policy of raising local coefficient implies a potential for ongoing development of districts.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50602 - Public administration

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

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

Name of the periodical

Review of Economic Perspectives - Národohospodářský obzor

ISSN

1213-2446

e-ISSN

—

Volume of the periodical

18

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

123-136

UT code for WoS article

000436553000002

EID of the result in the Scopus database

2-s2.0-85049413435