Changes in the Czech Tax-benefit System: Long-run Effects

Department 37 – Economic Policy
Department 37 – Economic Policy


  • Research
  • Minister of Finance

This paper provides a methodological overview of the framework for simulating the macroeconomic impact of the changes in tax-benefit system. The long-run effect of simulated parametric changes results from interaction between the microsimulation module and the general equilibrium model. In practical part, we illustrate the use of our model with relevant scenarios of hypothetical modifications of the Czech tax-benefit system.