how to cite this article
share this article


  • citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:3
  • full-text downloads in 30 days:1


article: 8 from 19  
Back back to result list
2017, vol. 64, iss. 5, pp. 623-643
Tax evolution in the EU: A convergence club approach
aUniversity of Oviedo, Faculty of Economics and Business, Department of Economics, Spain
bUniversity of Oviedo, Faculty of Economics and Business, Department of Applied Economics, Spain,
Keywords: Taxation; Sigma convergence; Club convergence; European Union
This paper investigates tax convergence in 15 European Union member states using annual data from 1975 to 2011. We follow the proposal of Peter C. B. Phillips and Donggyu Sul (2007) to test the convergence club hypothesis, complemented with a preliminary sigma convergence study, and focusing on the tax burden and tax mix with the major OECD subdivisions. Our results suggest sigma convergence in all cases, but to different degrees. We identify convergence clubs, with several clusters in each tax category and differences between the whole sample and the two sub-periods analyzed, namely 1975-1994 and 1995-2011.
Apergis, N., Christou, C., Hassapis, C. (2013) Convergence in public expenditures across EU countries: evidence from club convergence. Economics & Finance Research, 1(1): 45-59
Apergis, N., Cooray, A. (2014) Tax revenues convergence across ASEAN, Pacific and Oceania countries: Evidence from club convergence. Journal of Multinational Financial Management, 27: 11-21
Apergis, N., Cooray, A. (2014) Convergence in sovereign debt ratios across heavily indebted EU countries: evidence from club convergence. Applied Economics Letters, 21(11): 786-788
Attia, N., Berenger, V. (2007) Social protection convergence in the European Union: Impact of Maastricht treaty. Panoeconomicus, vol. 54, br. 4, str. 469-487
Bertarelli, S., Censolo, R., Colombo, C. (2014) Fiscal convergence in the European Union before the crisis. Contemporary Economic Policy, 32(4): 784-801
Blot, C., Serranito, F. (2006) Convergence of fiscal policies in EMU: a unit-root tests analysis with structural break. Applied Economics Letters, 13(4): 211-216
Chen, Y., Cuestas, J.C., Regis, P.J. (2016) Convergence in Corporate Statutory Tax Rates in the Asian and Pacific Economies. International Journal of Finance & Economics, 21(3): 266-278
Clemens, F., Huber, B. (1999) Can tax coordination work?. Public Finance Analysis, 56: 443-458
Delgado,, Francisco, J. (2009) Presión Fiscal en la Unión Europea: Un Análisis de Beta, Sigma y Gamma Convergencia. Revista de Economía Mundial, 22: 141-166
Delgado,, Francisco, J., Jose, Presno. M. (2010) Tax Policy Convergence in the EU: An Empirical Analysis. Revista de Economía Mundial, 26: 53-83
Delgado, F.J., Presno, M.J. (2011) Convergence of fiscal pressure in the EU: a time series approach. Applied Economics, 43(28): 4257-4267
Delgado, F.J., Salinas-Jimenez, J. (2008) Impuestos y Crecimiento Económico: Una Panorámica. Revista Asturiana de Economía, 42: 9-30
Duncan, D., Gerrish, E. (2014) Personal income tax mimicry: evidence from international panel data. International Tax and Public Finance, 21(1): 119-152
Esteve, V., Sosvilla-Rivero, S., Tamarit, C. (2000) Convergence in fiscal pressure across EU countries. Applied Economics Letters, 7(2): 117-123
Ferreiro, J., Carrasco, A.C., Gomez, C. (2014) Convergence of Public Expenditures and Implementation of a Single Model of Public Finances in the European Union. Revista de Economía Mundial, 37: 75-102
Kammas, P. (2011) Strategic fiscal interaction among OECD countries. Public Choice, 147(3-4): 459-480
Keen, M., Konrad, K.A. (2013) The Theory of International Tax Competition and Coordination. in: Handbook of Public Economics, Elsevier BV, str. 257-328
Kočenda, E., Kutan, A.M., Yigit, T.M. (2008) Fiscal convergence in the European Union. North American Journal of Economics and Finance, 19(3): 319-330
Leibrecht, M., Hochgatterer, C. (2010) Tax competition as a cause of falling corporate income tax rates: a survey of empirical literature. Journal of Economic Surveys, 26(4): 616-648
Marchand, M., Pestieau, P., Sato, M. (2003) Can partial fiscal coordination be welfare worsening?. Journal of Urban Economics, 54(3): 451-458
Phillips, P.C. B., Sul, D. (2007) Transition Modeling and Econometric Convergence Tests. Econometrica, 75(6): 1771-1855
Phillips, P.C. B., Sul, D. (2009) Economic transition and growth. Journal of Applied Econometrics, 24(7): 1153-1185
Regis, P.J., Cuestas, J.C., Chen, Y. (2015) Corporate tax in Europe: Towards convergence?. Economics Letters, 134: 9-12
Tosun, M.S., Abizadeh, S. (2005) Economic growth and tax components: an analysis of tax changes in OECD. Applied Economics, 37(19): 2251-2263


article language: English
document type: Original Scientific Paper
DOI: 10.2298/PAN150723020D
published in SCIndeks: 09/03/2018
Creative Commons License 4.0

Related records

No related records