Project Objective:

A two stage approach during the CGE elaboration will be used. Firstly a generic CGE model of economics – multisectoral model supposing perfect competition, using all national accounts with the maximal possible disaggregation of households. Secondly the generic model will be further adjusted for specific analyses concerning environmental protection and energy regulation.

The model will be used for evaluating the impact of economic policy, including the impacts connected with the entry of the Czech Republic to the EU (legislative harmonization, indirect taxes etc.).

Also external shocks will be evaluated plus changes in global raw materials prices, nominal exchange turbulence and the impact on prices, outputs and unemployment in diverse sectors of economics.

Brief Summary:
Creating a medium extensive model for computing general equilibrium (CGE model) for the Czech economy.

Outputs:
The CGE model has been used in many projects concerning the impact of fiscal and environmental policy. One of the most significant applications was simulating the impact of the green tax reform. Together with the HERMIN model it was used for a number of analyses, e. g. elaborating an independent opponent expert opinion on the Pre-Accession Economic Programme for the Ministry of Finance.