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| Gerhard Reitschuler |
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| ''Optimal taxation and budget deficits: Evidence for the EU's New Member States'' |
| ( 2011, Vol. 31 No.3 ) |
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| The tax smoothing hypothesis (TSH) is tested for the New Member States of the European Union. Our results show that the TSH holds for five countries, the introduction of the Maastricht 3%-deficit rule, however, had very little effect with regard to the validity of the TSH. |
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| Keywords: Tax smoothing, Government budget constraint, Fiscal rule, Cointegration |
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
H2 - Taxation, Subsidies, and Revenue: General |
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| Manuscript Received : Apr 27 2011 | | Manuscript Accepted : Sep 12 2011 |
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