Corporate tax in Europe: Towards convergence?

- We analyse convergence in corporate tax rates in a group of European countries.
- We apply the Phillips and Sul (2007, 2009) methodology.
- We find evidence of four clear convergence clubs.

In this paper, we analyse whether there has been any convergence in statutory corporate tax rates within a pool of European countries. We find that there has been some degree of convergence; specifically we find four main convergence clubs.