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Measuring Expenditure Needs and Public Safety Transfers in Mexico

Author

Listed:
  • Luis Cabrera-Castellanos

    (University of Quintana Roo, Mexico)

  • Maribel Lozano-Cortés

    (University of Quintana Roo, Mexico)

  • Frederick H. Wallace

    (University of Quintana Roo, Mexico)

Abstract

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.

Suggested Citation

  • Luis Cabrera-Castellanos & Maribel Lozano-Cortés & Frederick H. Wallace, 2009. "Measuring Expenditure Needs and Public Safety Transfers in Mexico," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(1), pages 77-86.
  • Handle: RePEc:pet:annals:v:9:i:1:y:2009:p:77-86
    as

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    File URL: http://upet.ro/annals/economics/pdf/2009/20090108.pdf
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    References listed on IDEAS

    as
    1. Ehtisham Ahmad & Mercedes Garcia-Escribano & José Antonio González 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.
    2. Bird, Richard M., 1993. "Threading the Fiscal Labyrinth: Some Issues in Fiscal Decentralization," National Tax Journal, National Tax Association, vol. 46(2), pages 207-27, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    fiscal federalism; decentralization; public safety transfers; factor analysis;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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