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Fiscal interactions among European countries

By Michela Redoano


In this paper we investigate whether there is empirical evidence that EU Countries set their public expenditure and their taxes interdependently. We use a panel of data across European countries, years and fiscal variables to estimated countries’ reactions functions. We find evidence of intedependences consistent with the literature on tax and yardistick competition

Topics: HC, HJ
Publisher: University of Warwick, Department of Economics
Year: 2003
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