Politickį ekonomie 2026, 74(2)  | DOI: 10.18267/j.polek.1493

Cultural Patterns and the Structure of Tax Revenue and Public Expenditures: An International Perspective

Magda Wi¶niewska-Ku¼ma
(email: mwisniewska@uwb.edu.pl), University of Bialystok, Faculty of Economics and Finance, Bialystok, Poland

This study examines the link between cultural patterns and fiscal policy in 29 EU/EFTA countries. Using Ward’s clustering on Hofstede’s dimensions, five groups were formed. Results confirm that cultural clusters share similar tax and expenditure structures. Regression analysis shows that a 1% increase in individualism raises tax revenues by 0.686% and spending by 0.655% (social +0.740%, human capital +0.364%, classical +0.375%, economic +0.340%). A 1% rise in long-term orientation increases indirect tax shares by 0.717% and income taxes by 0.340%. Uncertainty avoidance (+1%) correlates with higher tax revenues (+0.164%) and indirect taxes (+0.298%). Dimensions like individualism, uncertainty avoidance, masculinity, restraint, and power distance differentiate expenditure structures. These findings indicate that cultural patterns significantly influence fiscal policies, posing challenges for a uniform EU fiscal model.

Keywords: Cultural pattern, fiscal policy, public expenditures, tax revenues
JEL classification: H20, H50, Z13, Z18

Received: December 1, 2024; Revised: March 29, 2025; Accepted: March 29, 2025; Prepublished online: November 3, 2025; Published: April 28, 2026  Show citation

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Wi¶niewska-Ku¼ma, M. (2026). Cultural Patterns and the Structure of Tax Revenue and Public Expenditures: An International Perspective. Politickį ekonomie, 74(2), 278-304. doi: 10.18267/j.polek.1493
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