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Tax structure turbulence in OECD countries

Ashworth, J.; Heyndels, B.

Authors

B. Heyndels



Abstract

This paper analyses whether and to what extent politicians manipulate tax structures strategically in order to win elections or for ideological purposes. We introduce an indicator for tax structure turbulence which measures the degree to which a country's tax structure changes from one year to another. Using data on 18 OECD countries over the period 1965–1995, we find clear evidence of a political budget cycle in national tax structures. More precisely, we find that in election years, tax structures are changed significantly less than in other years. Further, the dispersion of political power significantly lowers the ability of governments to change the tax structure. We do not, however, find any evidence of partisan budget cycles in national tax systems following political regime changes.

Citation

Ashworth, J., & Heyndels, B. (2002). Tax structure turbulence in OECD countries. Public Choice, 111(3-4), 347-376. https://doi.org/10.1023/a%3A1014957130671

Journal Article Type Article
Publication Date Apr 1, 2002
Deposit Date Apr 3, 2007
Journal Public Choice
Print ISSN 0048-5829
Electronic ISSN 1573-7101
Publisher Springer
Peer Reviewed Peer Reviewed
Volume 111
Issue 3-4
Pages 347-376
DOI https://doi.org/10.1023/a%3A1014957130671
Public URL https://durham-repository.worktribe.com/output/1631873

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