Measuring expenditure needs and public safety transfers in Mexico.
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Date
2009Author
Lozano Cortés, Maribel
Cabrera Castellanos, Luis Fernando
H. Wallace, Frederick
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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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