Measuring Expenditure Needs and Public Safety Transfers in Mexico
In this paper we deal simultaneously with two crucial problems in today’s Mexico: a fiscal federalism that is seriously-flawed in the allocation of transfers to the local governments and the large number of offences linked with organized crime, a category in which the country is among the highest ranking. In this paper we suggest a more equitable and effective allocation of public safety transfers to state governments. The proposal is based on measuring expenditure needs through the method of principal components.
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- Ehtisham Ahmad & Mercedes Garcia-Escribano & JosÃ© Antonio GonzÃ¡lez Anaya & Ernesto Revilla & Giorgio Brosio & Ben Lockwood, 2007. "Why Focus on Spending Needs Factors? The Political Economy of Fiscal Transfer Reforms in Mexico," IMF Working Papers 07/252, International Monetary Fund.
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