Social Costs and Benefits of Czech Beer Industry - Optimal Taxation
|Author:||Bc. Zuzana Lajksnerová|
|Year:||2014 - summer|
|Leaders:|| prof. Ing. Karel Janda M.A., Dr., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis analyzes the Czech brewing industry by describing its structure, recent
development, and social and economic impacts on the society as a whole. The aim is to
empirically estimate the optimal level of beer tax, which would balance both social costs and
benefits of beer production. 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 labor taxation or medical
expenditures. The results of our analysis show that under most of the sets of parameters,
the current tax rate on beer is under its optimal level and that the fiscal component has a
significant impact on the optimal level of tax.