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Taxation and political business cycles in EU economies

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Abstract:

This paper examines whether incumbent national governments of 11 member states of the European Union manipulated the tax policy instruments at their disposal in order to create national political business cycles, opportunistic or partisan. The empirical evidence, based on data concerning the 1965 to 1997 period, does not support this hypothesis. Rather, it appears that governments have pursued stabilization policies.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500427106

Affiliations: 1: Department of International and European Economic Studies, Athens University of Economics and Business, Athens, Greece 2: Department of Economics, Athens University of Economics and Business and Centre of Planning and Economic Research, Athens, Greece

Publication date: August 20, 2006

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