We study the hypothesis of convergence amongst Mexican regions since 1940 with special interest in the post-trade liberalization period. A time-series analysis shows that difference in income levels between the capital and the rest of the regions tend to narrow over time. Using the concept of...

We estimate the long-run income elasticity of three Mexican federal taxes (income tax, value added tax and specific taxes on output and services), and that of the total tax revenue in Mexico, with the purpose of indirectly compute the income elasticity of the federal transfers to subnational...