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Convergence of fiscal pressure in the EU: a time series approach

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  • Francisco Delgado
  • Maria Jose Presno

Abstract

The study of fiscal convergence in the EU is a relevant issue in the context of economic integration and fiscal harmonization and we report new empirical evidence on this topic using a time series approach. We apply unit root and stationarity tests with an endogenous break for the study of long run, deterministic and stochastic convergence of the national tax burden taking Germany, the United Kingdom and the European average as benchmarks. Only the United Kingdom and Germany show long run convergence and few countries converge despite harmonization efforts and fiscal competition.

Suggested Citation

  • Francisco Delgado & Maria Jose Presno, 2011. "Convergence of fiscal pressure in the EU: a time series approach," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4257-4267.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4257-4267
    DOI: 10.1080/00036846.2010.491449
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    References listed on IDEAS

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    Cited by:

    1. Francisco A. Blanco & Francisco J. Delgado & Maria J. Presno, 2018. "Fiscal decentralization in the EU: Common patterns through a club convergence analysis," Working Papers. Collection A: Public economics, governance and decentralization 1812, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Țibulcă Ioana Laura, 2015. "Does Fiscal Convergence Lead to tax Convergence? Evidence from the Eurozone," Scientific Annals of Economics and Business, Sciendo, vol. 62(s1), pages 1-9, October.
    3. Apergis, Nicholas & Cooray, Arusha, 2014. "Tax revenues convergence across ASEAN, Pacific and Oceania countries: Evidence from club convergence," Journal of Multinational Financial Management, Elsevier, vol. 27(C), pages 11-21.
    4. Roberto Censolo & Caterina Colombo, 2015. "The Early Consequences of the Crisis on Fiscal Convergence in the EU," Working Papers 2015024, University of Ferrara, Department of Economics.

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