Identification of the Differences between the Regions of the Czech Republic based on the Economic Characteristics

The breakdown of the Czech Republic into individual regions causes the existence of territorial units with their specific characteristics. The economic level, living conditions or status of households represent the properties which allow us to characterize the differences between regions that are common for today's market economy and significantly related to the areas of public finances. The paper theoretically defines the selected indicators ( gross domestic product, net disposable income, incomes in terms of their structure, taxes on personal income, health and social insurance) characterizing the income situation of households in each region and then identifies similarities and differences. The aim of this paper is to identify similar or identical characteristics of each region using mathematical and statistical methods by means of indicators relating to the income situation of Czech households and highlight dependencies between the examined indicators. Similarities of the regions will be expressed using clusters into which they are divided. The undertaken description followed by synthesis will contribute to understanding of the potential differences between regions and can provide relevant information to stakeholders of public finances. (C) 2014 Elsevier B.V.