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Optimal taxation and budget deficits: Evidence for the EU's New Member States

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  • Gerhard Reitschuler

    (Department of Economics, University of Innsbruck)

Abstract

The tax smoothing hypothesis (TSH) is tested for the New Member States of the European Union. Our results show that the TSH holds for five countries, the introduction of the Maastricht 3%-deficit rule, however, had very little effect with regard to the validity of the TSH.

Suggested Citation

  • Gerhard Reitschuler, 2011. "Optimal taxation and budget deficits: Evidence for the EU's New Member States," Economics Bulletin, AccessEcon, vol. 31(3), pages 2593-2602.
    • Handle: RePEc:ebl:ecbull:eb-11-00268
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P233.pdf
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    References listed on IDEAS

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    Cited by:

    1. Samia OMRANE BELGUITH & Foued Badr GABSI & Ameni MTIBAA, 2018. "Tax smoothing hypothesis: The Tunisian case," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(617), W), pages 169-178, Winter.
    2. Taner Turan & Mesut Karakas & Halit Yanikkaya, 2014. "Tax Smoothing Hypothesis: A Turkish Case," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(4), pages 487-501, September.

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    More about this item

    Keywords

    Tax smoothing; Government budget constraint; Fiscal rule; Cointegration;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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