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El sistema de transferencias federales en México: Premio o castigo para el esfuerzo fiscal de los gobiernos locales urbanos
[The system of federal transfers in Mexico: a reward or punishment for the fiscal effort of urban local governments]

Author

Listed:
  • Sour, Laura

Abstract

In the last years, Latin America has been immersed in a process of great democratic openness that generated a demand for more fiscal decentralization. Within this subject, this paper has the goal of contributing to the discussion on tax responsibilities devolution to local governments. Therefore, and for the first time in literature, the collecting effort of 155 municipalities in Mexico during 1993-200 is analyzed. It is found that, both non-conditional and conditional transfers (ramos 26 and 33) have had a negative impact in all local governments. Likewise, differences in fiscal performance are observed when they are grouped by size. The results show that the transfer policy has depleted more the tax effort of large local governments than those of the small ones, and that middle municipalities have shown a better performance. That is, there are differences in fiscal performance between equal size governments. The main lesson is that policies cannot be generalized according to the size of local government—municipalities are so diverse that, in fact, diversity must guide the design of the fiscal decentralization policy in Mexico.

Suggested Citation

  • Sour, Laura, 2004. "El sistema de transferencias federales en México: Premio o castigo para el esfuerzo fiscal de los gobiernos locales urbanos [The system of federal transfers in Mexico: a reward or punishment for th," MPRA Paper 50444, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:50444
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    References listed on IDEAS

    as
    1. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    2. Jones, Mark P. & Sanguinetti, Pablo & Tommasi, Mariano, 2000. "Politics, institutions, and fiscal performance in a federal system: an analysis of the Argentine provinces," Journal of Development Economics, Elsevier, vol. 61(2), pages 305-333, April.
    3. Inman, Robert P. & Rubinfeld, Daniel L., 1996. "Designing tax policy in federalist economies: An overview," Journal of Public Economics, Elsevier, vol. 60(3), pages 307-334, June.
    4. James R. Hines & Richard H. Thaler, 1995. "The Flypaper Effect," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 217-226, Fall.
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    Cited by:

    1. Sour, Laura, 2008. "Un repaso de conceptos sobre capacidad y esfuerzo fiscal, y su aplicación para los gobiernos locales mexicanos [An Overview of Current Concepts of the fiscal capacity and effort, and its applicatio," MPRA Paper 50451, University Library of Munich, Germany.
    2. Heidi Jane M. Smith, 2013. "Explaining Borrowing Patterns of Mexican Cities: The Case of the State of Guanajuato," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 75-87, April.
    3. Unda Gutierrez, Monica & Moreno Jaimes, Carlos, 2015. "La recaudación del impuesto predial: un análisis de sus determinantes económicos en el periodo 1969-2010 [Property tax collection in Mexico: an analysis of its economic determinants in the period 1," MPRA Paper 66780, University Library of Munich, Germany.
    4. Pedro Isidoro González Ramírez & Edgar Gomez Galarza, 2020. "Federalismo fiscal y las asignaciones de transferencias en San Luis Potosí, México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 15(3), pages 395-413, Julio - S.
    5. Cardoso-Vargas, Carlos-Enrique, 2019. "Combate a la pobreza y a la corrupción e implementación de mejores prácticas, ¿nuevas vías para incrementar la recaudación de predial en los municipios? [Fighting poverty and corruption and impleme," MPRA Paper 103396, University Library of Munich, Germany.
    6. Moreno, Carlos, 2005. "Analyzing the Performance of Local Government in Mexico: A Political Explanation of Municipal Budgetary Choices," University of California at San Diego, Center for U.S.-Mexican Studies qt3v39q4j0, Center for U.S.-Mexican Studies, UC San Diego.
    7. Heidi Jane Smith, 2019. "Increasing Decision Making Capacities of Local Governments: Mexico?s Quest for Economic Growth," Working Paper Series Sobre México 2019002, Sobre México. Temas en economía.

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    More about this item

    Keywords

    decentralization; municipal governments; municipal finance;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General

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