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Impact of the changes in excise duties on households in the Czech Republic

Author

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  • Petr JANSKÝ

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and CERGE-EI, Czech Republic)

Abstract

Excise duties are an important source of the government revenue and their rates change relatively often in the Czech Republic. Reforms of excise duties change the prices of goods, a change to which the households respond by adjusting their expenditures. In the contribution, there are used detailed Czech Statistical Office data and the estimates of own- and cross-price and income elasticities for the individual households to create a microeconomic simulation model that enables to simulate the impact of changes in excise duties on the households' demands. There is shown the distributional impact of the current excise duties and then the impact of the hypothetical increases of 10 per cent in each of them is simulated. Further, there is simulated the impact of certain approved or proposed changes in the excise duties including the unsuccessful 2012 proposal to introduce an excise duty on wine.

Suggested Citation

  • Petr JANSKÝ, 2016. "Impact of the changes in excise duties on households in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(2), pages 51-61.
    • Handle: RePEc:caa:jnlage:v:62:y:2016:i:2:id:31-2015-agricecon
    DOI: 10.17221/31/2015-AGRICECON
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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