D61 - Allocative Efficiency; Cost-Benefit AnalysisReturn

In the paper the discrete choice models are discussed and applied based on empirical data. The main goal of the paper is to find out whether the various discrete choice models provide the analyst with the robust and reliable estimates of values of natural goods or values of changed quality of such goods. Our results indicate that the yielded value estimates using the choice experiment method and discrete choice models are applicable in expert support of decision-making on allocation of public resources to such goods, because they are stable and robust. These issues are investigated for the marginal willingness of Czech visitors to the Mácha Lake beaches to pay for the water quality and beach characteristics.

The paper is focused on history of the concept of consumer surplus presented by Alfred Marshall as an economic tool to measure benefits and losses resulting from changes in market conditions. As it assumes constant marginal utility of money, it was refused by further development of economics. Subsequently, John Hicks redefined the concept using indifference analysis, inducing the use of compensating and equivalent variations in welfare economics. However, we reveal substantial errors in the Kaldor-Hicks-efficiency justification of economic policy and suggest an alternative use for the concept of consumer surplus - in an analysis of economic discrimination.

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.