Publication detail

Impact of Changes in Excise Duties on Households in the Czech Republic

Author(s): doc. Petr Janský Ph.D.,
Type: IES Working Papers
Year: 2014
Number: 25
Published in: IES Working Papers 25/2014
Publishing place: Prague
Keywords: consumer behaviour, excise duties, tax reforms, households
JEL codes: D12, H20, H31
Suggested Citation: Janský P. (2014). “Impact of Changes in Excise Duties on Households in the Czech Republic” IES Working Paper 25/2014. IES FSV. Charles University.
Grants: GACR 403/10/1235 (2010-2014) Institutional Responses to Financial Market Failures
Abstract: Excise duties are an important source of 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 households respond by adjusting their expenditures. I use detailed Czech Statistical Office data and estimates of own- and cross-price and income elasticities for individual households to create a microeconomic simulation model that enables me to simulate the impact of changes in excise duties on households’ demands. I show the distributional impact of current excise duties and then I simulate the impact of hypothetical increases of 10 per cent in each of them. I further simulate impact of certain approved or proposed changes in excise duties including the unsuccessful 2012 proposal to introduce an excise duty on wine.
Downloadable: wp_2014_25_Jansky


Česká Spořitelna


Patria Finance