Essays on Mexican fiscal federalism: a positive analysis

dc.contributor.advisorStahl, Dale O.en
dc.creatorCamacho Gutiérrez, Pabloen
dc.date.accessioned2008-08-28T22:21:15Zen
dc.date.available2008-08-28T22:21:15Zen
dc.date.issued2005en
dc.descriptiontexten
dc.description.abstractThe purpose of this dissertation is two fold. At the policy level, this dissertation contributes to the debate over the reform of the Mexican fiscal federalism regime by providing quantitative, positive analyses of it. This dissertation, on the other hand, makes a contribution to the theory of fiscal federalism by developing a theoretical model to explain the non-fungibility of unconditional grants when these account for most of the recipient government’s revenues, which is a case not considered in the literature. The dissertation is divided in six chapters, where the first chapter is the introduction and the sixth chapter concludes. The second chapter reviews the fiscal federalism literature, but focus on the issues that are relevant for this dissertation: the intergovernmental allocation of spending and revenue-raising functions as well as the “flypaper effect.” The third chapter describes and analyzes the fiscal federalism regime in Mexico and the claims for fiscal decentralization. Centralized spending responsibilities depart from what the literature prescribes as optimal; however, the vi actual intergovernmental assignment of revenue sources does not. Nonetheless, the analyses on Mexican federalism focus on the decentralization of revenue sources instead of spending responsibilities. The fourth chapter presents a quantitative analysis of the determinants of intergovernmental distribution of revenue-sharing transfers or participaciones, which represent the main source of revenue for sub-national governments. The goal is to evaluate the effectiveness of the modification to the revenue-sharing formula made early in the 1990s, which had the purpose of inducing a more equitable distribution of these transfers while maintaining the incentives for fiscal effort on behalf of recipient governments. Empirical estimates show no evidence that supports the effectiveness of the formula modification. The fifth chapter estimates the response of state governments to the participaciones they receive and develops a theoretical model to explain the non-fungibility of unconditional grants when the recipient government’s own revenues are not enough to finance a minimum provision level of the public good. Empirical results show that state governments in Mexico get to spend all the participaciones monies they receive, which to some extent is explained by the developed model.
dc.description.departmentBusiness Administrationen
dc.format.mediumelectronicen
dc.identifierb60721200en
dc.identifier.oclc66900603en
dc.identifier.urihttp://hdl.handle.net/2152/1869en
dc.language.isoengen
dc.rightsCopyright is held by the author. Presentation of this material on the Libraries' web site by University Libraries, The University of Texas at Austin was made possible under a limited license grant from the author who has retained all copyrights in the works.en
dc.subject.lcshIntergovernmental fiscal relations--Mexicoen
dc.subject.lcshFiscal policy--Mexicoen
dc.titleEssays on Mexican fiscal federalism: a positive analysisen
dc.type.genreThesisen
thesis.degree.departmentBusiness Administrationen
thesis.degree.disciplineBusiness Administrationen
thesis.degree.grantorThe University of Texas at Austinen
thesis.degree.levelDoctoralen
thesis.degree.nameDoctor of Philosophyen

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