Template-Type: ReDIF-Article 1.0 Author-Name: Kamil Janáček Author-Name: Eva Zamrazilová Title: Czech Economy: First Year after the EU Entry Abstract: In 2004, the Czech economy continued in solid growth. Slight acceleration of economic growth was driven in particular by strong investment demand and improving performance of the foreign trade with goods. On the other hand, due to slowdown in real wages, consumer demand weakened. 2004 was the year of turnover in foreign trade which has reported the best results since 1994. The EU entry was an important factor behind the improvement of trade balance - the foreign trade exchange significantly accelerated after the EU accession. The EU entry opened new chances to the exporters, especially small and medium-sized companies could fully use the advantage of the Single Market. With the trade balance improving, the reason for permanently high current account deficit is the growing deficit of income balance as a consequence of strong FDI inflow. January and May changes in the Value Added Tax brought a temporary speed-up of consumer prices. After the absorption of this increase, since the last quarter of 2004, headline inflation has been declining. Similar to previous years, inflation fell under the CNB target corridor. Record high world prices of oil and metals caused a strong increase of industrial producer prices, however, strong competition between both producers and traders has prevented the spillover to consumer prices. Keywords: economic growth, labour market, foreign trade, external balance, consumer and producer prices Classification-JEL: E20, O11, O52 Pages: 195-220 Volume: 2005 Issue: 3 Year: 2005 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=262.pdf File-URL: http://www.vse.cz/pep/262 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:3:id:262:p:195-220 Template-Type: ReDIF-Article 1.0 Author-Name: Ondřej Schneider Author-Name: Tomáš Jelínek Title: Distributive Impact of Czech Social Security and Tax Systems: Dynamics in Early 2000s Abstract: In this paper, we analyse the Czech social and tax systems and their impact on income distribution. We use regular household surveys, organized and published by the Czech Statistical Office (CSO), for years 1999 - 2002. This longer time span allows us to identify some trends in the Czech social security system and their impact on well-being of various income groups. We find that while the total cost of the Czech social security system were not escalating in the period of 1999 - 2002, the illness benefit - already the largest spending programme - rose by enormous 72 % in these four years. This largesse failed, however, to improve income of the poorest households as the benefit is very inefficient in increasing income of the poorest households. We also find that spending on more focused programmes (social supplement and parental allowance) increased least. Last but not least, we analysed the impact of tax deductions on the income distribution in the Czech Republic. These deductions represent a massive transfer, comparable to all social benefits combined. Our analysis shows, that the impact of tax deductions on income of the poorest decile fell significantly over the period of 1999 - 2002. Keywords: social policy, public budgets, income distribution Classification-JEL: D61, H55, I38 Pages: 221-237 Volume: 2005 Issue: 3 Year: 2005 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=263.pdf File-URL: http://www.vse.cz/pep/263 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:3:id:263:p:221-237 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/263 Template-Type: ReDIF-Article 1.0 Author-Name: Menbere T. Workie Title: Determinants of Growth and Convergence in Transitive Economies in the 1990s: Empirical Evidence from a Panel Data Abstract: This paper empirically examines the determinants of economic growth and convergence in transitive economies of Central and Eastern Europe in the 1990s. While the cross-section regression suggests the absence of a significant convergence across the EU15 and other transitive economies, the Visegrad four (Slovakia, the Czech Republic, Hungary and Poland) dummy being positive and significant indicates that this group of countries has done relatively better than the other group of transitive economies. Moreover, the results indicate that there was an income per capita convergence within Visegrad countries. Switching to a panel data approach, and controlling for macroeconomic stability, financial development, human and physical capital accumulations and other policy variables, the results seem to suggest that there was a conditional convergence across EU15 and transitive economies in the 1990s. Keywords: economic growth, transitive economies, convergence, panel data Classification-JEL: C13, C31, C33 Pages: 239-251 Volume: 2005 Issue: 3 Year: 2005 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=264.pdf File-URL: http://www.vse.cz/pep/264 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:3:id:264:p:239-251 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/264 Template-Type: ReDIF-Article 1.0 Author-Name: Jaromír Hurník Author-Name: David Navrátil Title: Potential Output in the Czech Republic: A Production Function Approach Abstract: This paper deals with the Czech economy supply side performance from the macroeconomic point of view. In order to evaluate the supply side behaviour we calculate the potential output dynamic path and contribution of its particular determinants using the production function method. The results show that the potential output growth was rather slow around 2 per cent. This implies that e. g. even 3 per cent growth can cause macroeconomic imbalances. Increase of the non-accelerating-inflation-rate of unemployment (NAIRU), weak growth of the capital stock and weak growth of total factor productivity appear to be the reasons for the constrained ability of the Czech economy to grow steadily and converge to EU level. Keywords: capital stock, potential output, production function, NAIRU, total factor productivity Classification-JEL: E23, O47 Pages: 253-266 Volume: 2005 Issue: 3 Year: 2005 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=265.pdf File-URL: http://www.vse.cz/pep/265 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:3:id:265:p:253-266 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/265 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Dlouhý Title: Health Care Regulation: Impact on the Supply of Outpatient Services in the Czech Republic Abstract: The objective of this paper is to evaluate the impact of regulatory policy on the supply of outpatient services and on their geographical distribution in the Czech Republic. The analysis of regulatory policy is based on the review of literature. Trends and regional distribution were analysed quantitatively on the data for the period of 1990 to 2002. Regulation introduced in 1997 led to a financial stability of the health sector, but it did not have a great impact on the level and distribution of outpatient services. Regulatory policy can be seen as a failure if one assumes that improved quality, effectiveness, and efficiency are the objectives of the health system. The supply of outpatient services is unevenly distributed. For example, one-quarter of outpatient services in psychiatry is concentrated in the capital. Keywords: regulation, health care, outpatient services, inequality, Gini coefficient, Robin Hood index Classification-JEL: D630, H000, I180 Pages: 267-276 Volume: 2005 Issue: 3 Year: 2005 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=266.pdf File-URL: http://www.vse.cz/pep/266 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:3:id:266:p:267-276 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/266