The paper offers a new view of the role of state based on recognition of the economic ability of the state as a separate factor of production. Recognizing the state’s economic ability is as a fifth factor of production and correspondingly gives indirect taxes the status of factor income as...

The paper offers a new view of the process of post‐Communist transformation of an economy. The collapse of the Communist regime had the result that with rare exceptions all goods produced in these countries were incompatible with international standards due to low quality and/or high prices....

As is recognized, indirect business taxes are the unearned income of the Government. Shows that the fifth factor of production is the economic ability of Government; indirect taxes on business are corresponding factorial income, which is transferred into Government profit. Shows also that...

Purpose – The purpose of this paper is to distinguish the economic foundations of post‐Communist capitalism and to examine the key economic problems of this type of society in the context of the modern financial crisis. Design/methodology/approach – This question is approached by studying...