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Convergence of Tax Shocks and Macroeconomic Performance in the Enlarged European Union

In: Taxation in Crisis

Author

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  • Athanasios Anastasiou

    (University of Peloponnese)

Abstract

While the question of whether or not there are differences across countries in the effects of fiscal policy on several macroeconomic outcomes, much less is known about the linkages between the convergence of tax shocks either in aggregated level or in disaggregated level (direct and indirect) and several macroeconomic factors such as trade openness, convergence of economic policies, and convergence of labor-market rigidities in the enlarged EU27. Our results provide evidence of heterogeneities between the pattern responses of output growth and inflation to total, direct, and indirect shocks. Overall, our results have important policy implications as they provide insights into which factor could reduce tax policy asymmetries in Europe—something essential for the successful functioning of the internal market.

Suggested Citation

  • Athanasios Anastasiou, 2017. "Convergence of Tax Shocks and Macroeconomic Performance in the Enlarged European Union," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Dimitrios D. Thomakos & Konstantinos I. Nikolopoulos (ed.), Taxation in Crisis, chapter 7, pages 145-173, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-319-65310-5_7
    DOI: 10.1007/978-3-319-65310-5_7
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    Cited by:

    1. Athanasios ANASTASIOU & Vasiliki KREMASTIOTI, 2021. "The impact of taxation on growth: the case of Greece," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(627), S), pages 285-293, Summer.

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