Deficitní sklon v oblasti veřejných financí a hospodaření domácností v ČR v letech 1998 - 2018

The diploma thesis analyzes public finance of the Czech Republic and household economy between 1998 and 2018. The main objective of the thesis is to characterize the approach of households towards the public and personal indebtedness, the preferences for transfer payments and taxes and the ability to evaluate the impact of the debt. The analysis shows that public finances are currently not in the bad shape however the short-sightedness of economic policy-makers and structural burdens can cause significant problems with their long-term sustainability. These difficulties are mainly related to the increase in mandatory spending, demographical changes and excessive pressure on the revenue side of the government budget. In contrast with public finance the thesis also analyzes household debt which is steadily increasing. The main component here is the housing debt which does not pose a threat to the stability of the economy due to low delinquency rate of mortgages. In order to enrich the thesis own model of prisoner’s dilemma is applied to public finance which illustrates the overuse of transfer payments and inefficiency of tax systems. Also three interviews with experts are conducted to extend the topic of the thesis and compare their opinions with the results of own research. The behavior of households towards the indebtedness is examined by a questionnaire survey, which shows that most respondents consider state indebtedness to be wrong. It also identifies a greater preference for low taxes over high transfer payments and an increase in this preference with income growth. Along with the growth of income arises greater aversion for tax increase. It then refutes the hypothesis that deficit bias is related to the inability of households to evaluate the impact of debt as most respondents are aware of the impact on present and future generations.