Tax Adjustments and Informal Economy in the Czech Republic and Slovakia: A DSGE Approach

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F20%3A00116017" target="_blank" >RIV/00216224:14560/20:00116017 - isvavai.cz</a>

Výsledek na webu

<a href="http://www.fhi.sk/files/katedry/kove/ssov/VKOXX/Zbornik2020.pdf" target="_blank" >http://www.fhi.sk/files/katedry/kove/ssov/VKOXX/Zbornik2020.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Tax Adjustments and Informal Economy in the Czech Republic and Slovakia: A DSGE Approach

Popis výsledku v původním jazyce

The goal of this paper is to quantify and compare the impacts of alternative tax adjustments in the corporate tax rate on the size of the shadow economy and, consequently, on government tax revenues in Slovakia and the Czech Republic. In this contribution, we present results based on a small dynamic stochastic general equilibrium (DSGE) model consisting of both formal and informal sectors of an economy. We estimate this DSGE model in linearized form for both Slovak and Czech economies, using the quarterly data for household consumption, investments, total gross wages, probability of tax audit, and several measures for government revenues. Based on the estimated parameter values, we perform a set of simulations using the non-linear form of the underlying DSGE model to evaluate the differences in effects of changes in the corporate tax rate on the two economies of interest. These effects are evaluated with regards to the changes in steady-state values of the output in the official economy, total tax revenues, and the size of the shadow economy. The corresponding Laffer curves help us to analyze the reaction of the informal economy in response to changes in the corporate tax rates, and subsequent effects on the size of the government tax revenues.

Název v anglickém jazyce

Tax Adjustments and Informal Economy in the Czech Republic and Slovakia: A DSGE Approach

Popis výsledku anglicky

The goal of this paper is to quantify and compare the impacts of alternative tax adjustments in the corporate tax rate on the size of the shadow economy and, consequently, on government tax revenues in Slovakia and the Czech Republic. In this contribution, we present results based on a small dynamic stochastic general equilibrium (DSGE) model consisting of both formal and informal sectors of an economy. We estimate this DSGE model in linearized form for both Slovak and Czech economies, using the quarterly data for household consumption, investments, total gross wages, probability of tax audit, and several measures for government revenues. Based on the estimated parameter values, we perform a set of simulations using the non-linear form of the underlying DSGE model to evaluate the differences in effects of changes in the corporate tax rate on the two economies of interest. These effects are evaluated with regards to the changes in steady-state values of the output in the official economy, total tax revenues, and the size of the shadow economy. The corresponding Laffer curves help us to analyze the reaction of the informal economy in response to changes in the corporate tax rates, and subsequent effects on the size of the government tax revenues.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název statě ve sborníku

Quantitative Methods in Economics; Multiple Criteria Decision Making XX

ISBN

9788089962600

ISSN

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e-ISSN

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Počet stran výsledku

8

Strana od-do

119-126

Název nakladatele

University of Economics, Bratislava

Místo vydání

Bratislava

Místo konání akce

Púchov, Slovakia

Datum konání akce

27. 5. 2020

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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