C65 - Miscellaneous Mathematical ToolsReturn

The paper deals with two related topics - a mathematical model of the Gini coefficient, and its application in the taxation theory. However, the mathematical part of the paper should not only be understood as a traditional methodological starting point, but it has also didactic character and correctly describes the properties of the Gini coefficient, pointing to misinterpretation deficiencies found in a number of contemporary works. In the application part of the paper, we study the fulfillment of redistribution function of the tax system in the Czech Republic by using the Musgrave-Thin index coefficient M. Our research implies that the global progressivity of the tax allowance system in the Czech Republic was moderately progressive throughout the analyzed period 2006-2016. The considerable change in the personal income tax structure made in 2008 did not essentially reflect the global tax progressivity. Key words: tax progressivity, Gini coefficient, Lorenz curve, redistribution

Our paper focuses on the analysis of supply and demand shocks and on the estimation of expected costs of introducing Euro currency into Czech Republic (CR). The analysis is based on the theory of optimal currency areas by Mundell (1961, 1973) and uses a macroeconomic approach formalized by Bayoumi (1994). VAR models and the Blanchard-Quah decomposition (Blanchard and Quah, 1989) are used in order to simulate aggregated macroeconomic impulse response dynamics and to isolate supply and demand shocks for further inspection. Based on the analysis performed we conclude that given current circumstances and persistent differences in symmetry of economic shocks in CR and selected Euro zone countries, the costs from introducing the Euro to CR (as measured by fluctuations of real macroeconomic variables) would be nonzero, however presumably not significantly different from equivalent costs experienced in Austria or Slovakia (i.e. not prohibitive or signifi cantly damaging).

Importance of risk and uncertainty in present period of dynamic changes grows. The article deals with risk and uncertainty in strategic decision making. First the concepts of risk and uncertainty and possibilities of their measurement are discussed. Further shortcomings of strategic decision making from the point of view risk integration are described. The emphasis is on discussion of decision making methods under risk and uncertainty (including decision tables, scenarios, Monte Carlo simulation, real options, decision trees, multicriteria utility function under risk, theory of games and methods of portfolio development) as supporting tools for strategic decision making. In the last part of the article some recommendations for integration of risk and uncertainty in strategic decision making based on scenario approach are suggested.