Taxation and political business cycles in EU economies

Andreas Andrikopoulos, John (Ioannis) Loizides and Kyprianos Prodromidis

Applied Economics, 2006, vol. 38, issue 15, 1761-1774

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.

Date: 2006
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DOI: 10.1080/00036840500427106

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