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Does political orientation affect economic indicators in the Czech Republic?

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  • Krajňák, Michal
  • Krzikallová, Kateřina
  • Friedrich, Václav

Abstract

The article evaluates the relationship between the tax burden on labor and magic quadrangle indicators in the Czech Republic in the years 1993 through 2020. The article examines whether indicators such as the effective rate or tax rate on labor affect the macro-economic indicators of the magic quadrangle. The originality of this study lies in the fact that it deals with the influence of political factors. The analysis shows the strongest correlation between the growth of gross domestic product and the implicit tax rate on labor. Moreover, the study finds that the factor with the most significant – and surprising – bearing on the findings is that fact that right-wing Parliament behaved like left-wing parties. The conclusions reached by this study further underline the significance of the tax burden on labor on the selected magic quadrangle indicators.

Suggested Citation

  • Krajňák, Michal & Krzikallová, Kateřina & Friedrich, Václav, 2022. "Does political orientation affect economic indicators in the Czech Republic?," Journal of Policy Modeling, Elsevier, vol. 44(6), pages 1219-1231.
    • Handle: RePEc:eee:jpolmo:v:44:y:2022:i:6:p:1219-1231
    DOI: 10.1016/j.jpolmod.2022.10.001
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