Publication detail

A General Equilibrium Model of Optimal Alcohol Taxation in the Czech Republic

Author(s): prof. Ing. Karel Janda M.A., Dr., Ph.D., Zuzana Lajksnerova
PhDr. Jakub Mikolášek , Zuzana Lajksnerova
Type: IES Working Papers
Year: 2018
Number: 8
ISSN / ISBN:
Published in: IES Working Papers 08/2018
Publishing place: Prague
Keywords: Alcohol, Beer, Wine, Czech Republic, Elasticity, Price, Social costs, Tax
JEL codes: H21, Q02, Q18
Suggested Citation: Janda K., Lajksnerova Z., Mikolasek J. (2018): "A General Equilibrium Model of Optimal Alcohol Taxation in the Czech Republic" IES Working Papers 08/2018. IES FSV. Charles University.
Abstract: This paper provides a general equilibrium theoretical model of alcohol taxation and empirically estimates this model. For this purpose, we use a model determined by both externality corrections and fiscal considerations as the tax increase is assumed to immediately change other governmental policies such as labour taxation or medical expenditures. The results of our analysis show that under the most of parametric scenarios the current Czech tax rate on beer and wine is below its optimal level and that the fiscal component has a significant impact on the optimal level of tax.
Downloadable: wp_2018_08_Janda

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