MODEL APPROACHES TO SLOVAK ECONOMY ANALYSIS

The paper analyzes the economic background of the transition of the Slovak Republic economy according to the results obtained by model-building techniques in the years of 1989 Q1 - 1993 Q4. The economic transition process in Slovakia embraces three goals: (1) changing the economic system (economic reform), (2) structural changes in the economy (conversion) and (3) changes in the parameters of the tool variables (functional means of market mechanism). Different model approaches were elaborated: a model of income concentration; the analysis of external and internal factors of growth; Madrid model was used to construct the Laffer's curve of tax burden and Lax revenue as far as their share in GDP is concerned; Ramsay's model solving the problem of minimum investment cost necessary to maintain the development of the inhabitants' consumption at the non-decreasing level up to the year of 2000; structural aspects of the transition; econometric approaches to the development of the economy in 1992 Q1 - 1993 Q4 according to the model MODELEP and BMOD. The results of the research make inference that for the years of 1992 Q1 - 1993 Q4 there is a lack of economic resources in Slovakia which are not sufficient to meet the needs of the resource distribution. The transition from central planning economy system to the market one is characterized by a new role of the state budget which - in the transition period - creates predominance of tax policy (tax burden and tax revenue) instead of profit criterion that is becoming the ''second best'' one in the year of 1993. The state budget of the Slovak Republic exceeded the Laffer's maximum point from which it may be inferred that the tax burden (56 % of the GDP) shall create smaller tax revenue (40 % of the GDP approximately). Authors of the paper suggest a way out of the economic recession, insolvency and stagflation by introducing a starting strategy iniciating growth impulses for the successive steps of a middle-term strategy (specific economic programms for the enterpreneurial sphere as well as suitable regulation parameters of a market economy). The authors suggest to respect the Hamilton's principle of the least changes in all the three parts of the policy indicated above and to realize it according to the scenarios step by step. A shock therapeutics is just the best way leading to chaos.