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Comparison of fiscal system progressivity over time: theory and application in Mexico

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  • Luis Huesca Reynoso

    (Center of Research for Food and Development (CIAD-México))

  • Abdelkrim Araar

    (Université Laval and CIRPÉE)

Abstract

Assessing the progressivity of a fiscal system is relevant to develop a global idea on the extent of redistribution. We analyze the evolution of how fiscal policy affects the design of a fiscal system, as well as its progressivity over time. We assess the dynamics of progressivity during the period 2002-2012. This work adopts a non-parametric approach to measure the progressivity of taxes and transfers in Mexico, using a common support of comparison. Progressivity increased and high levels of polarization and inequality generate a non-negligible impact on its level when the common support of comparison is applied.

Suggested Citation

  • Luis Huesca Reynoso & Abdelkrim Araar, 2016. "Comparison of fiscal system progressivity over time: theory and application in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(1), pages 3-45.
    • Handle: RePEc:emx:esteco:v:31:y:2016:i:1:p:3-45
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    Cited by:

    1. Luis Huesca, 2017. "Income redistribution and inequality in the Mexican tax-benefit system," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(72), October.
    2. Linda Irene Llamas Rembao & Luis Huesca Reynoso & José Javier González, 2019. "Impact of Income Taxes on Wages. A Non Parametric Analysis of the Mexican Case," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(1), pages 79-94, Enero-Mar.

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    More about this item

    Keywords

    fiscal system; progressivity; inequality; polarization;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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