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Taxation and political business cycles in EU economies

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  • Andreas Andrikopoulos
  • Ioannis Loizides
  • Kyprianos Prodromidis

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.

Suggested Citation

  • Andreas Andrikopoulos & Ioannis Loizides & Kyprianos Prodromidis, 2006. "Taxation and political business cycles in EU economies," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1761-1774.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1761-1774
    DOI: 10.1080/00036840500427106
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    Cited by:

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    2. Beate Jochimsen & Robert Nuscheler, 2011. "The political economy of the German Lander deficits: weak governments meet strong finance ministers," Applied Economics, Taylor & Francis Journals, vol. 43(19), pages 2399-2415.
    3. Jeroen Klomp & Jakob De Haan, 2013. "Do political budget cycles really exist?," Applied Economics, Taylor & Francis Journals, vol. 45(3), pages 329-341, January.

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