The non-optimality of the Mexican indirect tax system
In: Fiscal Inclusive Development: Microsimulation Models for Latin America
This chapter starts with a review of the marginal tax reform methodology that was first advanced by Ahmad and Stern (1984), as well as its second-order variant introduced by Urzúa (2005). After that, it reviews some aspects of the estimation of demand systems, a topic that, although well known to applied econometricians, might be unfamiliar to practitioners. Finally, using an estimated demand system, the paper identifies marginal and second-order improvements in the current Mexican indirect tax system. For the non-experts, an appendix provides a computer code in Stata that can be used to estimate demand systems of the type considered here.
|This chapter was published in: ||This item is provided by Tecnológico de Monterrey, Campus Ciudad de México in its series EGAP Chapters with number
201202.||Handle:|| RePEc:ega:capitu:201202||Contact details of provider:|| Web page: http://www.ccm.itesm.mx/egap/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Deaton, Angus, 1987. "Estimation of own- and cross-price elasticities from household survey data," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 7-30.
- Jorge N. Valero Gil, 2006. "Estimación de elasticidades e impuestos óptimos a los bienes más consumidos en México," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 21(2), pages 127-176.
- Bev Dahlby, 2008. "The Marginal Cost of Public Funds: Theory and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262042509, March.
- Lahatte, Agénor & Miquel, Ruth & Laisney, François & Preston, Ian, 1997.
"Demand Systems with Unit Values: A Comparsion of Two Specifications,"
ZEW Discussion Papers
97-24, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Lahatte, Agenor & Miquel, Ruth & Laisney, Francois & Preston, Ian, 1998. "Demand systems with unit values:: A comparison of two specifications," Economics Letters, Elsevier, vol. 58(3), pages 281-290, March.
- Preston, Ian & Laisney, François & Crawford, Ian A., 2002.
"Estimation of Household Demand Systems with Theoretically Compatible Engel Curves and Unit Value Specifications,"
ZEW Discussion Papers
97-06 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Crawford, Ian & Laisney, Francois & Preston, Ian, 2003. "Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications," Journal of Econometrics, Elsevier, vol. 114(2), pages 221-241, June.
- Ian Crawford & Francois Laisney & Ian Preston, 2002. "Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications," IFS Working Papers W02/17, Institute for Fiscal Studies.
- Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
- Nicita, Alessandro, 2004. "Efficiency and equity of a marginal tax reform - income, quality, and price elasticities for Mexico," Policy Research Working Paper Series 3266, The World Bank.
- J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
When requesting a correction, please mention this item's handle: RePEc:ega:capitu:201202. 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: (Amaranta Arroyo)
If references are entirely missing, you can add them using this form.