IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Stabilization of Federal Transferences: A Proposal for the Mexican Federal Entities Based on the Economic Cycle

Listed author(s):
  • Felipe de Jesús Fonseca Hernández


    (Universidad de Guadalajara, Guadalajara, Jal. Mexico.)

  • Juan Carlos Chávez Martín del Campo


    (Universidad de Guadalajara, Guadalajara, Jal. Mexico.)

  • Ricardo Rodríguez Vargas


    (Profesor de cátedra, Instituto Tecnológico de Estudios Superiores de Monterrey (ITESM), Campus Aguascalientes, Aguascalientes, Ags. Mexico.)

We propose an instrument to smooth the cyclical fluctuations of federal transfers (participaciones) with a rainy day fund mechanism through a stabilization fund. The rule works by means of saving federal transfers (participaciones) during good times in order to smooth the impact of cyclical revenue fluctuations in the business cycle recession phase. Taking into account the three most recent upswings experienced by the Mexican economy since 1993 (1993-1994, 1997-2000 and 2006-2008), the results obtained through a contrafactual scenario show that in the most recent upswing (2006-2008) the Mexican federal entities could have saved —on average— an amount equivalent to 5 per cent of the total revenue they had at the beginning of the 2009 downturn.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by in its journal Economia Mexicana NUEVA EPOCA.

Volume (Year): XXII (2013)
Issue (Month): 1 (January-June)
Pages: 151-175

in new window

Handle: RePEc:emc:ecomex:v:22:y:2013:i:1:p:151-175
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:22:y:2013:i:1:p:151-175. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Tiscareño)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.