“…The empirical evidence on how globalisation influences tax rates and public (social) spending tends to support the compensation hypothesis rather than the race‐to‐the‐bottom hypothesis (Cameron, ; Dreher, Sturm, & Ursprung, ; Gaston & Rajaguru, 2013a,2013b; Gozgor & Ranjan, ; Gründler & Köllner, ; Herwartz & Theilen, ; Meinhard & Potrafke, ; Potrafke, ; Walter, ; Yay & Aksoy, ;—for surveys see Potrafke, ; Schulze & Ursprung, ; Ursprung, ) . Social expenditure has, for example, drastically increased in OECD countries and dominates fiscal policies—proceeding globalisation notwithstanding.…”