Distributional Effects of Intergovernmental Transfers in Mexico

Distributional Effects of Intergovernmental Transfers in Mexico

A rigorous understanding of the developmental effect of fiscal transfers to subnational governments remains an important policy research issue globally. This paper exploits a novel dataset of 20 years of municipal poverty maps and local public finances to study the effects on local welfare of a...

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Main Authors: Rodriguez-Castelan, Carlos, Cadena, Kiyomi, Moreno Herrera, Laura
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
FISCAL FEDERALISM
EARMARKED TRANSFERS
DECENTRALIZATION
POVERTY
INCOME DISTRIBUTION
INTERGOVERNMENTAL TRANSFERS
INEQUALITY
Online Access:http://documents.worldbank.org/curated/en/238121586438967113/Distributional-Effects-of-Intergovernmental-Transfers-in-Mexico
http://hdl.handle.net/10986/33603
id okr-10986-33603
recordtype oai_dc
spelling okr-10986-336032022-09-20T00:13:20Z Distributional Effects of Intergovernmental Transfers in Mexico Rodriguez-Castelan, Carlos Cadena, Kiyomi Moreno Herrera, Laura FISCAL FEDERALISM EARMARKED TRANSFERS DECENTRALIZATION POVERTY INCOME DISTRIBUTION INTERGOVERNMENTAL TRANSFERS POVERTY INEQUALITY A rigorous understanding of the developmental effect of fiscal transfers to subnational governments remains an important policy research issue globally. This paper exploits a novel dataset of 20 years of municipal poverty maps and local public finances to study the effects on local welfare of a large fiscal transfer fund earmarked for social investment in more than 2,000 Mexican municipalities. Results show a positive but modest effect on the average household income, and positive effects on seven nonmonetary welfare measures. In contrast, these funds have no significant impact on extreme and moderate monetary poverty. These results provide important lessons for policy on the effects of earmarked funds to reduce territorial poverty and inequality in terms of incentives to design formulas to distribute earmarked fiscal resources to subnational governments. 2020-04-16T18:58:39Z 2020-04-16T18:58:39Z 2020-04 Working Paper http://documents.worldbank.org/curated/en/238121586438967113/Distributional-Effects-of-Intergovernmental-Transfers-in-Mexico http://hdl.handle.net/10986/33603 English Policy Research Working Paper;No. 9209 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FISCAL FEDERALISM
EARMARKED TRANSFERS
DECENTRALIZATION
POVERTY
INCOME DISTRIBUTION
INTERGOVERNMENTAL TRANSFERS
POVERTY
INEQUALITY
spellingShingle FISCAL FEDERALISM
EARMARKED TRANSFERS
DECENTRALIZATION
POVERTY
INCOME DISTRIBUTION
INTERGOVERNMENTAL TRANSFERS
POVERTY
INEQUALITY
Rodriguez-Castelan, Carlos
Cadena, Kiyomi
Moreno Herrera, Laura
Distributional Effects of Intergovernmental Transfers in Mexico
geographic_facet Latin America & Caribbean
Mexico
relation Policy Research Working Paper;No. 9209
description A rigorous understanding of the developmental effect of fiscal transfers to subnational governments remains an important policy research issue globally. This paper exploits a novel dataset of 20 years of municipal poverty maps and local public finances to study the effects on local welfare of a large fiscal transfer fund earmarked for social investment in more than 2,000 Mexican municipalities. Results show a positive but modest effect on the average household income, and positive effects on seven nonmonetary welfare measures. In contrast, these funds have no significant impact on extreme and moderate monetary poverty. These results provide important lessons for policy on the effects of earmarked funds to reduce territorial poverty and inequality in terms of incentives to design formulas to distribute earmarked fiscal resources to subnational governments.
format Working Paper
author Rodriguez-Castelan, Carlos
Cadena, Kiyomi
Moreno Herrera, Laura
author_facet Rodriguez-Castelan, Carlos
Cadena, Kiyomi
Moreno Herrera, Laura
author_sort Rodriguez-Castelan, Carlos
title Distributional Effects of Intergovernmental Transfers in Mexico
title_short Distributional Effects of Intergovernmental Transfers in Mexico
title_full Distributional Effects of Intergovernmental Transfers in Mexico
title_fullStr Distributional Effects of Intergovernmental Transfers in Mexico
title_full_unstemmed Distributional Effects of Intergovernmental Transfers in Mexico
title_sort distributional effects of intergovernmental transfers in mexico
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/238121586438967113/Distributional-Effects-of-Intergovernmental-Transfers-in-Mexico
http://hdl.handle.net/10986/33603
_version_ 1764479122368626688

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