Tax Evolution in the EU: A Convergence Club Approach

  • Francisco J. Delgado University of Oviedo, Faculty of Economics and Business, Department of Economics, Spain
  • Maria J. Presno University of Oviedo, Faculty of Economics and Business, Department of Economics, Spain

Abstract

This paper investigates tax convergence in 15 European Union Members States using annual data from 1975 to 2011. We follow the proposal of Phillips and Sul (2007) to test the convergence club hypothesis, complemented with a preliminary sigma convergence study, and focusing on the tax burden and tax mix with the major OECD subdivisions. Our results suggest sigma convergence in all cases, but to different degrees. We identify convergence clubs, with several clusters in each tax category and differences between the whole sample and the two sub-periods analyzed, namely 1975-1994 and 1995-2011.


Key words: Taxation, Sigma convergence, Club convergence, European Union.
JEL: C33, E62, H20.


U radu se istražuje konvergenciju poreza u 15 zemalja članica Evropske Unije koristeći godišnje podatke od 1975. do 2011. godine. Pratimo predlog koji su dali Peter C. B. Phillips i Donggyu Sul-a (2007) da testiramo hipotezu konvergencije klasa, upotpunjenu preliminarnom studijom sigma konvergencije i fokusirajući se na poresko opterećenje i poreske mikseve sa glavnim podelama OECD-a. Naši rezultati ukazuju na sigma konvergenciju u svim slučajevima, ali u različitim stepenima. Možemo identifikovati klase konvergencije, sa nekoliko klastera u svakoj kategoriji poreza i razlike između celog uzorka i dva pod-perioda koja su analizirana, konkretno 1975-1994 i 1995-2011.


Ključne reči: Oporezivanje, Sigma konvergencija, Konvergencija klasa, Evropska Unija.

How to Cite
Delgado F.J., & Presno M.J. (2017). Tax Evolution in the EU: A Convergence Club Approach. Panoeconomicus, 64(5), 623-643. doi:10.2298/PAN150723020D
Section
Original scientific paper