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¿Pueden las transferencias federales afectar el esfuerzo fiscal, la transparencia y la rendición de cuentas de los gobiernos locales? México 2003-2013

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  • Mendoza Velázquez, Alfonso

    (Universidad Popular Autónoma del Estado de Puebla)

Abstract

Background: The second generation of fiscal federalism (SGFF) models caution that fiscal dependence can make local governments lazy in the collection of their own revenue, in addition to the promotion of corruption and lower levels of accountability (Oates, 2005). This work tests the hypothesis of the tradeoff between greater fiscal interdependence and the accountability/transparency of subnational governments in Mexico (Gamkhar y Shah, 2007). Methodology: We estimate a panel vector autorregression (VARP), which allows us to examine the dynamic interrelation of fiscal variables and accountability/ transparency during the period 2003-2013. Results: There is evidence of causality between federal transfers and fiscal effort and accountability/transparency depending on the level of local development. Conclusions: The results provide evidence that suggests that greater federal transfers are associated with lower fiscal effort and lower transparency, but they are somehow related to greater financial accountability. Similarly, greater levels of economic development reveal positive dynamic effects of fiscal effort towards accountability and transparency.

Suggested Citation

  • Mendoza Velázquez, Alfonso, 2019. "¿Pueden las transferencias federales afectar el esfuerzo fiscal, la transparencia y la rendición de cuentas de los gobiernos locales? México 2003-2013," El Trimestre Económico, Fondo de Cultura Económica, vol. 86(342), pages 307-342, abril-jun.
    • Handle: RePEc:elt:journl:v:86:y:2019:i:342:p:307-342
    DOI: http://dx.doi.org/10.20430/ete.v86i342.747
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    More about this item

    Keywords

    fiscal federalism; transfers; fiscal effort; accountability; transparency;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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