Progressivity of Taxes and Transfers: The Mexican Case 2012

Reynoso, Luís Huesca; Araar, Abdelkrim

doi:10.2139/ssrn.2408682

Cited by 2 publications

(3 citation statements)

References 24 publications

(38 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In order to detect the main sources for the tax burden of the VAT payments, we follow Huesca and Araar (2014) approach. Main findings reveal that some indirect taxes contribute significantly to reduce the progressivity of the VAT.…”

Section: Decomposing Progressivity By Vat Sourcesmentioning

confidence: 99%

mentioning

confidence: 99%

“…In our knowledge, this task has not been considered for the Mexican case using the generalization of a measure that combines the joint effects of the tax system as well as a decomposition which can integrate a number of sources of taxes (Duclos-Jalbert-Araar (2003) -DJA henceforth-and Huesca and Araar (2014)). To assess the extent of HI and its impact, we first adopt DJA (2003) approach and then, we apply an analytical method (Huesca and Araar, 2014) to decompose the sources from VAT payments. In this paper, we also apply the novel methodology of progressivity curves, which account for an order of stochastic dominance on evaluation of wellbeing and is able to determine the improvement of the fiscal reform or any fiscal system composed by taxes, mainly in our case.…”

mentioning

confidence: 99%

See 2 more Smart Citations

Progressivity and decomposition of VAT in the Mexican border, 2014

Reynoso

Valencia

Araar

2015

epd

Self Cite

View full text Add to dashboard Cite

We measure the general redistributive effect inthe Mexican fiscal system and its northern border with two decomposition approaches.The novelty of thisapplication lies inthe use of non-parametric techniques andthe fact that we did not assumeany functional relationship amongthe variables in analysis.Our papercontributeswith an assessment ofthenew 2014 fiscal reform according to the Value Added Tax (VAT) and its effects on the households.Atax-benefitsystemwith relativeprogressivitybut high HI effectis found as well as an increase on tax revenuesup to4percentof GDPfrom VAT in the border as well. Our analytical method to decompose the total progressivity measured by the contributions of different tax sourcesfrom VAT, allow us to conclude which sort of products should or should not be taxed with the general rate.

show abstract

Section: Decomposing Progressivity By Vat Sourcesmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

See 1 more Smart Citation

Progressivity and decomposition of VAT in the Mexican border, 2014

Reynoso

Valencia

Araar

2015

epd

Self Cite

View full text Add to dashboard Cite

show abstract

Comparison of the Tax System Progressivity Over Time: Theory and Application with Mexican Data

Araar

Reynoso²

2014

SSRN Journal

Self Cite

View full text Add to dashboard Cite

Abstract:Assessing the progressivity of a fiscal system is relevant to develop a global idea on the extent of redistribution. In this paper we assess the evolution of progressivity over time and how economic shocks and government fiscal policy affects its design. The social performance of fiscal redistributive mechanisms in Mexico has been receiving a growing interest from politicians and researchers. The aim of this paper is to assess the dynamics of progressivity of the fiscal system in Mexico and its effect on inequality and on polarization, and this during the period of 2002-2012. What distinguishes this work is the relevance of the adopted comparison approach of progressivity and where the common support of comparison is imposed. The results of this study confirm the effectiveness of the governmental redistributive mechanisms to decrease after-tax income inequality. Based on our estimates, we find a significant increase in the progressivity of the fiscal system over time, despite the high persistent levels of polarization and inequality in the country. Finally, we find that imposing the common support of comparison has a non-negligible impact on the level of progressivity.

show abstract

Progressivity of Taxes and Transfers: The Mexican Case 2012

Abstract: for their valuable comments and their hospitality. I also thank to Arturo Robles-Valencia for assistance with the data.

Cited by 2 publications

References 24 publications

Progressivity and decomposition of VAT in the Mexican border, 2014

Progressivity and decomposition of VAT in the Mexican border, 2014

Comparison of the Tax System Progressivity Over Time: Theory and Application with Mexican Data

Contact Info

Product

Resources

About