Impact of tax changes on economic growth of Slovakia

The power of government in changing the direction and the speed of convergence to the steady state of country's economic growth is indisputable. This paper deals with the tax changes in Slovakia and their impact on economic growth. We present commonly used methods to compute the structural parameters which appear in analysis based on a linear approximation around the steady state of Cass-Koopman model. We also present a simple algorithm which can be later reproduce for similar studies. In empirical part we display a graphical representation of convergence simulation with emphases on the limits of tax rates. Our study can serve as a monitor of current state and as a suggestion of government possibilities in tax area.