Measuring Expenditure Needs and Public Safety Transfers in Mexico

Luis Cabrera-Castellanos, Maribel Lozano-Cortes and Frederick Wallace

Annals of the University of Petrosani, Economics, 2009, vol. 9, issue 1, 77-86

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.

Keywords: fiscal federalism; decentralization; public safety transfers; factor analysis (search for similar items in EconPapers)
JEL-codes: H53 H72 H73 H76 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:9:i:1:y:2009:p:77-86

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