Acta Univ. Agric. Silvic. Mendelianae Brun. 2019, 67, 515-534
Published online 2019-04-29

Determinants of Short Term Fiscal Imbalance: the Role of Tax Evasion as Fiscal Determinant Within European Countries

Lucia Mihóková1, Radovan Dráb2, Andrea Kralik3

1Department of Finance, Faculty of Economics, Technical University of Košice, Košice, Slovak Republic
2Department of Banking and Investments, Faculty of Economics, Technical University of Košice, Košice, Slovak Republic
3GETRAG FORD Transmissons Slovakia s.r.o., Kechnec, Slovak Republic

Received January 4, 2018
Accepted November 21, 2018

The paper refers to important tax evasion consequences in the form of destabilization and countries’ fiscal development deteoriation. The main objective of the research is to analyse the selected determinants impact on short‑term fiscal imbalance expressed as primary balance with the emphasis on tax evasion. The object of the research is analysed using a panel regression model within four pre‑identified clusters during the period of 21 years. The results of the conducted analysis point out that the tax evasion has a significant effect primary balance. They also point out the differences of tax evasion impact, extent and timeing effect on primary balance between clusters. A future analysis with adjusted and modified investigated period, segmentation criteria in the cluster analysis or exogenous variables in the panel regression analysis could provide a different insight into this problem.


This work was supported by the National Scientific Grant Agency of Ministry of Education, Science, Research and Sport of the Slovak Republic and the Slovak Academy of Sciences under the Grant number VEGA No. 1/0967/15.


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