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...

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...

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...

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...

The AK endogenous growth model with elastic labor supply and useful government expenditures of Turnovsky (2000) is specially calibrated for the Mexican economy in order to perform a series of fiscal reform exercises. Available taxes include lump-sum, consumption and factor income taxes. For all...

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...

Compensating wage differentials are used to estimate marginal rates of substitution between income and both fatal and non-fatal occupational-injury risks in the Mexico City metropolitan area. Data are obtained by in-person survey of almost 600 workers and include workers' perceived risks of...

This paper analyzes the aggregate effects of a revenue neutral fiscal-cum-social policy reform in a typical developing country that consists of two main changes: (1) the implementation of universal social insurance to replace the current dual social protection system (i.e., a reconfiguration of...

The proposal by Levy (2008) whereby a universal social insurance (USI) scheme is guaranteed to all workers, regardless of formality status, aims at abolishing the current contributory social insurance system and financing social insurance through value-added taxes instead (henceforth, the social...