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Udržitelnost veřejných financí a dynamická efektivnost
[Public finance sustainability and dynamic efficiency]

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  • Vratislav Izák

Abstract

In the last years there has been a growing discrepancy between gross domestic product and gross disposable income (more than a double of government budget deficit in 2006)in favour of non-residents. The difference between the real interest rate and the rate of growth of GDP has been negative in 2000-2006 and is expected to be negative in the near future suggesting that even a small deficit in primary budget balance can stabilize the debt ratio (30 % of GDP). But in a world of uncertainty even in the Czech republic the capital sector is on net a spout and not a sink (the profit rate has been higher than the investment rate in 1995-2008). Hence the czech economy seems to be dynamically efficient and an increase in national saving is necessary.

Suggested Citation

  • Vratislav Izák, 2008. "Udržitelnost veřejných financí a dynamická efektivnost [Public finance sustainability and dynamic efficiency]," Politická ekonomie, Prague University of Economics and Business, vol. 2008(2), pages 162-181.
    • Handle: RePEc:prg:jnlpol:v:2008:y:2008:i:2:id:635:p:162-181
    DOI: 10.18267/j.polek.635
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal sustainability; dynamic efficiency; czech data;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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