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Effective Tax rates and Fiscal Convergence in the OECD: 1965-2001

Author

Listed:
  • José E. Boscá

    () (Universidad de Valencia)

  • José R. García

    (Universidad de Valencia)

  • David Tagüas

    (Servicio de Estudios, BBVA)

Abstract

In this work we elaborate a data base that includes 21 OECD countries along the 1965-2001 period. It includes average effective tax rates on consumption, capital and labour, which are adequate to analyse macroeconomic effects of fiscal policy. Additionally, we make a description of the most important features of fiscal structures in OECD countries along the last decades. Thus, we find that the ratio of fiscal revenues to GDP has steadily increased in these countries, mainly due to the increase of taxation on labour earnings. This increase in fiscal revenues has gone together with a process of convergence across countries both in the level of fiscal revenues, as in labour and capital tax rates. However, consumption tax rates, which have not been converging across OECD countries, present a clear convergence pattern across European countries since the beginning of the eighties.

Suggested Citation

  • José E. Boscá & José R. García & David Tagüas, 2005. "Effective Tax rates and Fiscal Convergence in the OECD: 1965-2001," Hacienda Pública Española, IEF, vol. 174(3), pages 119-141, September.
  • Handle: RePEc:hpe:journl:y:2005:v:174:i:3:p:119-141
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    References listed on IDEAS

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    Cited by:

    1. Javier Andrés & José E. Boscá & Javier Ferri, 2016. "Instruments, rules, and household debt: the effects of fiscal policy," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 419-443.
    2. Marchiori, Luca & Pierrard, Olivier, 2017. "How does global demand for financial services promote domestic growth in Luxembourg? A dynamic general equilibrium analysis," Economic Modelling, Elsevier, vol. 62(C), pages 103-123.

    More about this item

    Keywords

    Tax rates; consumption tax; labour tax; capital tax.;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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