EconPapers    
Economics at your fingertips  
 

Spillover effects of taxes on government debt: a spatial panel approach

Katarzyna Kopczewska (), Janusz Kudła, Konrad Walczyk, Robert Kruszewski and Agata Kocia

Policy Studies, 2016, vol. 37, issue 3, 274-293

Abstract: It is claimed that tax policy is neither time- nor space-independent due to cross-border tax base mobility, which induces spillovers. Specifically, fiscal shocks in one country are supposed to have an impact on fiscal policies in other countries. Different types of taxes influence economies differently. This paper addresses the question of their impact on government debt. Within a framework of spatial econometric modeling, we evaluate the impact of capital, labor and consumption taxes on public debt in 34 European countries in 2002–2011, and find strong spatial spillovers. We show that a consumption tax and, to a lesser degree, a capital tax significantly affect the sovereign debt, and that the global relations play a leading role (i.e. dominate the local ones) in shaping fiscal policy.

Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/01442872.2016.1146246 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:cposxx:v:37:y:2016:i:3:p:274-293

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/cpos20

DOI: 10.1080/01442872.2016.1146246

Access Statistics for this article

Policy Studies is currently edited by Toby James

More articles in Policy Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:cposxx:v:37:y:2016:i:3:p:274-293