Political-business cycle in Czech Republic

This diploma thesis focuses on political-business cycle which is a theme frequently omitted in discussions about economic situation in the Czech Republic. Theoretical part of the work will provide readers with the topic of political-business cycle and its basic models which will serve as a support to the statistical research in the analytical part. Is fiscal policy in hands of Czech politicians an efficient tool to manipulate voters? The aim of the work is to answer this question and thus give a detailed look of political-business cycle on example of four regular electoral periods of Czech Parliament. To reach the goal of diploma thesis, we used regressive analysis to examine hypothesis if the date of elections influences certain folders of income and expenses of government budget. This hypothesis was not accepted on the significance level of 5 per cent. The reasons are mainly short time series of tested indicators