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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

emailfdelgado@uniovi.es, mpresno@uniovi.es
Keywords: Taxation; Sigma convergence; Club convergence; European Union
Abstract
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.
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article language: English
document type: Original Scientific Paper
DOI: 10.2298/PAN150723020D
published in SCIndeks: 09/03/2018
Creative Commons License 4.0

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