Effective Spirits' Taxation Policy Across Regions in Montenegro Reveals Positive Impact

Researchers at the University of Donja Gorica have published a new study on the impact of taxation policy on households' spirits consumption in Montenegro. The study applied a two-part methodology to Household Budget Survey data and found that effective taxation policy can decrease consumption and increase public revenues, with notable regional differences. The research contributes to the understanding of consumption sensitivity to price and income changes, a previously untested aspect in Montenegro.

Key Takeaways:

• The study tested the impact of taxation policy on households' spirits consumption on a regional level in Montenegro.
• The research applied a two-part methodology to Household Budget Survey data to assess regional differences in spirits consumption and prevalence changes due to price and income increases.
• Using estimates of prevalence and conditional elasticity, the researchers simulated the effects of price changes on consumption and public revenues, confirming a positive impact of effective taxation policy.
• The study found evident regional differences in the impact of taxation policy on consumption and public revenues.
• The research contributes to the understanding of consumption sensitivity to price and income changes, a previously untested aspect in Montenegro.
• The study emphasizes the importance of effective taxation policy in influencing consumption patterns and public revenues.
• The research was conducted at the University of Donja Gorica and involved a team of researchers, including G. Radojevic, M. Cizmovic, A. Mugosa, and T. Lakovic.

Statistics:

• The study applied a two-part methodology to Household Budget Survey data.
• The researchers simulated the effects of price changes on consumption and public revenues, finding a positive impact of effective taxation policy.
• Evident regional differences were found in the impact of taxation policy on consumption and public revenues.
• The study contributes to the understanding of consumption sensitivity to price and income changes, a previously untested aspect in Montenegro.
• The research was cited in Lex localis - Journal of Local Self-Government, 2020;18(1):165-184.

Sources:

• Lex localis - Journal of Local Self-Government, 2020;18(1):165-184.
• G. Radojevic, University of Donja Gorica, Fac Int Econ Finance & Business, Podgorica 81000, Montenegro.
• M. Cizmovic, A. Mugosa, and T. Lakovic (Authors).
• Inst Local Self-Government Maribor, Smetanova Ulica 30, Maribor, 2000, Slovenia.