Aplikácia modelu CGE na kvantifikáciu prínosov a nákladov vstupu Slovenskej republiky do Európskej únie
CGE MODEL APPLICATION USED TO QUANTIFY ASSETS AND COSTS OF SLOVAK REPUBLIC’S ENTRY INTO THE EUROPEAN UNION

Summary/Abstract: Prepared entry of the Slovak Republic into the EU brings about the need to quantify the possible assets and costs of this process. The aim of the paper is this quantification by means of the CGE model. Methodology used is characterised inclusive both model structure with database used and simulated scenario. Computable General Equilibrium (CGE) models are models, which simulate behav-iour and mutual interactions of individual economic subjects in various markets. These macro-economic models are based on macro-economic assumptions of optimum behav-iour of the subjects. Database of the CGE model is the SAM-Social Accounting Matrix. One can charac-terise SAM in a very simplifying manner as a table describing the flows of commodi-ties, services and money in the economy within a given period, usually during a year. CGE models are comparatively static ones. This principle is exploited to model the consequences of non-marginal exogenous shocks and policy changes in the medium-range and long-range horizon assuming ceteris paribus. • The main areas of CGE application are analyses of impacts of non-marginal changes in environmental, foreign trade and tax policies. Database of the model applied was the Social Accounting matrix SAM, designed from the 1998 data. Three data sources were used to design SAM – National Accounts, Branch-and-Commodity Tables for the Supplies and Usage and Foreign Trade of the Slovak Republic. Model used to estimate the impacts of the Slovak entry into the EU has a following structure: • Production is in the model allocated into eight commodities. • Household sector is aggregated and described as a „representative household“. • Government sector is described as one entity. Under the label Government is un-derstood the whole area of public finance. • Foreign countries are de-aggregated into the three regional groups – EU countries, candidate countries and the rest of the world. The equations of the model were allocated into the following groups: • To describe production branches one used Cobb-Douglas production functions. • Armington function of imports and exports were of the CES type, where substitu-tion elasticities were estimated by econometric methods. • Function of household usefulness Cobb-Douglas production function. • Function of government usefulness Leontieff’s complementary function. • Function of investment production Cobb-Douglas function. Slovakia’s entry into the EU was modelled by means of the following changes: • Change of VAT rate, • Change of excise tax rate, • Change of our import rates in compliance with EU rates, • Change of custom tariffs for our exports in the countries of extended EU, • Change of income for legal entities and for natural persons, • Net incomes from the EU funds, • Investment costs for approximation in the sphere of environment.

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