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Political Fragmentation and the Evolution of National Tax Structures in the OECD

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  • John Ashworth

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  • Bruno Heyndels

    ()

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    Abstract

    This paper considers how tax structures in OECD countries change over time and how these changes are related to political fragmentation. Tax structures amongst OECD countries have become more uniform in the recent past (1965–1995) but it is less clear that this convergence satisfies time-series requirements. Evidence on stochastic convergence tends to suggest that there is evidence of persistence of shocks remaining over a considerable time period. A consideration of the countries where this persistence is most prevalent shows that there is significant correlation between high persistence and weak (coalition) governments, giving further weight to the theories of weak government. Copyright Kluwer Academic Publishers 2001

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    Article provided by Springer in its journal International Tax and Public Finance.

    Volume (Year): 8 (2001)
    Issue (Month): 4 (August)
    Pages: 377-393

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    Handle: RePEc:kap:itaxpf:v:8:y:2001:i:4:p:377-393
    Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102915

    Keywords: tax structures; persistence; weak government hypothesis; fragmented government;

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    12. Marcello D'Amato & Barbara Pistoresi, 1997. "Co-movements of OECD growth cycles," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 135-144.
    13. Goff, Brian, 1998. " Persistence in Government Spending Fluctuations: New Evidence on the Displacement Effect," Public Choice, Springer, vol. 97(1-2), pages 141-57, October.
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    Cited by:

    1. Peter Schwarz, 2007. "Does capital mobility reduce the corporate-labor tax ratio?," Public Choice, Springer, vol. 130(3), pages 363-380, March.
    2. Bharatee Dash & Angara Raja, 2014. "Do political determinants affect revenue collection? Evidence from the Indian states," International Review of Economics, Springer, vol. 61(3), pages 253-278, September.
    3. Miroslav Beblavý, 2011. "Why has the crisis been bad for private pensions, but good for the flat tax? The sustainability of ‘neoliberal’ reforms in the new EU member states," CEPS Papers 6313, Centre for European Policy Studies.
    4. Roberto Ricciuti, 2004. "Political Fragmentation and Fiscal Outcomes," Public Choice, Springer, vol. 118(3_4), pages 365-388, 03.
    5. Huber, Gerald & Kocher, Martin G. & Sutter, Matthias, 2003. "Government strength, power dispersion in governments and budget deficits in OECD-countries. A voting power approach," Munich Reprints in Economics 18164, University of Munich, Department of Economics.
    6. Osterloh, Steffen & Debus, Marc, 2012. "Partisan politics in corporate taxation," European Journal of Political Economy, Elsevier, vol. 28(2), pages 192-207.
    7. Osterloh, Steffen & Debus, Marc, 2009. "Partisan politics in corporate tax competition," ZEW Discussion Papers 09-078, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Hans Pitlik, 2005. "Folgt die Steuerpolitik in der EU der Logik des Steuerwettbewerbs," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 256/2005, Department of Economics, University of Hohenheim, Germany.
    9. Hansson, Åsa & Porter, Susan & Perry Williams, Susan, 2012. "The Effect of Political and Economic Factors on Corporate Tax Rates," Working Paper Series 942, Research Institute of Industrial Economics.
    10. Ruiz, Fernando & Gerard, Marcel, 2008. "Is there evidence of strategic corporate tax interaction among EU countries?," MPRA Paper 10094, University Library of Munich, Germany.

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