During the last years, Mexico has registered relatively large output falls. The business cycle accounting method of Chari, Kehoe and McGrattan (2007) is applied to the two most recent recessions in Mexico (including the “Tequila crisis”) in order to understand what are the most important...

In a recent paper, Gertler, Gilchrist and Natalucci (2006) report that the financial accelerator mechanism may account for about half of the fall in output and investment observed during the Korean crisis of 1997-1998. Using the business cycle accounting method of Chari, Kehoe and McGrattan...

This paper evaluates to what extent the end-of-sample problem inherent to the Hodrick-Prescott (HP) filter may be ameliorated when estimating the output gap. For that purpose, the filter of St-Amant and van Norden (1997) is proposed using Mexican data under both univariate and multivariate...

A neoclassical endogenous growth model is presented where a representative household deriving utility from both consumption and leisure must use money in order to purchase consumption goods. Taxes on money holdings, capital and labor income may be used to finance an exogenous stream of wasteful...

The paper estimates average effective tax rates on consumption, labor and capital income for Mexico, using the method of Mendoza et al. (1994) and related extensions, including two novel refinements. On average, it is found that consumption taxes are roughly between 7 and 14%, whereas labor and...