Vliv éry socialismu na tvorbu kapitálu v ČR

This thesis examines influence of institutional changes on capital formation between the years of 1970 and 2005 in Czechoslovakia and Hungary. Namely the transition from socialism and centrally planned economy to democracy and market economy. Goal of the thesis is testing the hypothesis of overvaluation of gross fixed capital formation due to the influence of centrally planned economy and socialist thinking. Thesis explains in detail the concept of capital and its importance in popular economic theories, it also presents augmented neoclassical growth model for institutional impact. Empirical part follows this theoretical foundation and examines the influence of socialism and centrally planned economy on capital formation, capital-output ratio and determinants of these indicators with the usage of ordinary least squares method of linear regression models and first-order autoregressive error models. After the interpretation of results of the regression analysis, thesis examines the overvaluation of capital formation, comparing the growth rates of capital formation and capital-output ratio during the era of centrally planned economy and the era of market economy in the examined countries. Due to the massive physical capital formation during the era of centrally planned economy the main goal of the thesis was the examination of hypothesis of overvaluation of capital formation in countries, that underwent the era of centrally planned economy (socialism), however this hypothesis could not be confirmed.