This paper describes the main features of the Mexican fiscal system, details the most important changes that have occurred/not occurred over the past two decades, and explains what factors influenced the rate, degree and direction of change. In brief, we contend that there have been profound and...

An equalization system ensures that subnational governments can provide similar level of public services at a comparable level of own tax-effort. This paper focuses on the importance of spending needs factors in the design of equalization transfers as well as special purpose transfers-and the...