This article studies the impact of vertical fiscal transfers on local tax effort in Mexico, considering evidence for municipalities in Sinaloa between 1993 and 2008. Based on cadastral information, gross added value and property taxes we create a “pure” indicator of fiscal effort which is...

On January 1 2002 the Mexican Congress approved the 2002 budget, ratifying a US $ 7.5 billion tax package, which included a new Income Tax Law. This tax package reflected a second attempt by President Vicente Fox’s government at comprehensive tax reform in Mexico during 2001. The first tax...

This paper constructs a composite-leading indicator (CLI) to forecast economic activity/business cycles in Mexico. This cycle is the result of deviations of the economy from its long-term trend. Here, a contractionary phase means a decline in the rate of growth of the economy, and not...

The North American Free Trade Agreement (NAFTA) has had a significant effect on Mexico’s economy and institutions. The ongoing consideration of tax reform in Mexico requires an evaluation of the role of NAFTA in Mexico’s economy, including its tax structure; it also requires an assessment of...